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Home My WebLink AboutZOA-09-06Page 1 of 1 Kenneth Johnstone From: Kenneth Johnstone Sent: Friday, June 17, 2011 2:58 PM To: Kathy Field; Kathy Franklin; Meredith Reckert; Sarah Showalter; Lauren Mikulak Cc: 'Christopher Price'; Daniel Brennan; Mark Cooney Subject: Primary Caregivers Based on our discussion at our meeting this afternoon, we have determined that primary caregivers are not permitted in any commercial zoning districts. Our MMJ ordinance only contemplates them in residential districts as home occupations. Chapter 26 -204 -A states the following: "...any uses not expressly permitted (P) or allowed as a special use (S) shall be deemed to be excluded." I will get out a more formal policy memo in the next several days. Please let me know if you have any questions. Thanks. Ken Johnstone, AICP Community Development Director 7500 W. 29th Avenue Wheat Ridge, Colorado 80033 Office Phone: 303 - 235 -2844 Fax: 303 - 234 -2824 vvww.ci.vvheatridye.co.us City of Wheatcige C[ ")AhAttiN9 "Il' f'lriVft(tf.MI�N t CONFIDENTIALITY NOTICE: This e-mail contains business - confidential information. It is intended only for the use of the individual or entity named above. If you are not the intended recipient, you me notified that any disclosure, copying, distribution, electronic storage or use of this communication is prohibited. If you received this communication in error, please notify us immediately by e-mail, attaching the original message, and delete the original message from your computer, and any network to which your computer is connected. Thank you. 6/23/2011 Kenneth Johnstone From: Kenneth Johnstone Sent: Thursday, May 26, 2011 11:29 AM To: Gerald Dahl; Daniel Brennan; Christopher Price; Kathy Franklin; Dave Pickett; Mark Cooney Subject: RE: Primary Caregiver's Occupying Commercial Space I think this topic would be worthy of a group discussion /meeting. Ken Johnstone, AICP Community Development Director Wheat Ridge, Colorado 80033 Office Phone: 303 - 235 -2844 - - - -- Original Message---- - From: Gerald Dahl [mailto:GDahl @mdkrlaw.com] Sent: Wednesday, May 25, 2011 1:17 PM To: Daniel Brennan; Christopher Price; Kathy Franklin; Kenneth Johnstone; Dave Pickett; Mark Cooney Subject: RE: Primary Caregiver's Occupying Commercial Space I would ask Chris to weigh in as well, but my take on the "single- space" requirement is that the spaces must be separate, leasable units, with walls that separate them, otherwise, as the Chief notes, it would be difficult to enforce the prohibition that primary caregivers share space or work together. Can someone confirm that this property is configured in this way? We could certainly get together to discuss this further if needed. Gerald E. Dahl gdahl @mdkrlaw.com Direct: 303 - 493 -6686 Murray Dahl Kuechenmeister & Renaud LLP 1530 16th Street, Suite 200 Denver, CO 80202 Phone: 303 - 493 -6670 Fax: 303 - 477 -0965 www.mdkrlaw.com This electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. If you are not the intended recipient of this e -mail, you are hereby notified that any dissemination, distribution or copying of this e -mail, and any attachments thereto, is strictly prohibited. If you have received this e -mail in error, please notify me immediately by telephone or e -mail and destroy the original message without making a copy. Thank you. - - - -- Original Message---- - From: Daniel Brennan [ mailto :dbrennan @ci.wheatridge.co.us] Sent: Tuesday, May 24, 2011 5:33 PM To: Christopher Price; Kathy Franklin; Kenneth Johnstone; Dave Pickett; Mark Cooney Cc: Gerald Dahl Subject: RE: Primary Caregiver's Occupying Commerical Space Chris and Jerry, Thanks for sharing this information and I must admit this is a bit disconcerting. How is the term "single- space" defined? In its broadest sense, it seems that it would be a 1 physical address as opposed to leasing a warehouse and saying this area is for primary giver A and so forth. Without any distinctions, it is difficult for law enforcement to determine violations. I am also concerned that this is a way around State regulations regarding seed to sale tracking. I would be opposed to any licensing of multiple caregivers at the same address. If we need to discuss further, let me know. Thanks Dan Daniel G. Brennan, Chief of Police Wheat Ridge Police Department 7500 W. 29th Ave Wheat Ridge, CO 80033 Phone: 303 - 235 -2913 CONFIDENTIALITY NOTICE: This e -mail contains business - confidential information. It is intended only for the use of the individual or entity named above. If you are not the intended recipient, you are notified that any disclosure, copying, distribution, electronic storage or use of this communication is prohibited. If you received this communication in error, please notify us immediately by e -mail, attaching the original message, and delete the original message from your computer, and any network to which your computer is connected. Thank you. - - - -- Original Message---- - From: Christopher Price [mailto:CPrice @mdkrlaw.com] Sent: Tuesday, May 24, 2011 5:13 PM To: Kathy Franklin; Daniel Brennan Cc: Gerald Dahl Subject: Primary Caregiver's Occupying Commerical Space Chief Brennan and Kathy, We received a call from a commercial property agent concerning the City's ordinance regarding medical marijuana and its application to primary care - givers. It seems that six primary care - givers (independently) want to lease space from the agent's client. The content of our discussion is below. Please let me know if you have any questions. Chris Christopher Price cprice @mdkrlaw.com Murray Dahl Kuechenmeister & Renaud LLP 1530 16th Street, Ste. 200 Denver, CO 80202 Direct: 303.493.6688 www.mdkrlaw.com This electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. If you are not the intended recipient of this e -mail, you are hereby notified that any dissemination, distribution or copying of this e -mail, and any attachments thereto, is strictly prohibited. If you have received this e -mail in error, please notify me immediately by telephone or e -mail and destroy the original message without making a copy. Thank you. - - - -- original Message---- - From: Christopher Price Sent: Tuesday, May 24, 2011 3:59 PM To: Gerald Dahl Subject: RE: Voice Message Attached from 7202171315 - SCHWARTE,THOMAS Jerry, 2 I just spoke with Heather Taylor of Edge Commercial Properties concerning a potential lease(s) for property located at 52nd and Ward Road within the City of Wheat Ridge. A broker approached her to see if the property owner would be willing to rent the space(s) to six primary care - givers. She explained that the primary care - givers were not working together. Based on a recent experience in Northglenn, Ms. Taylor asked whether the city of Wheat Ridge prohibited primary care - givers from occupying commercial space. Based on my review of the ordinance and the Medical Marijuana Code, I informed her that the City did not have such a prohibition. I did inform her that primary care - givers must obtain a license from the City. I also explained that state law prohibits primary care - givers from occupying a single space or working together, in any way, to cultivate marijuana and that they are limited to a maximum of five patients. Chris Christopher Price cprice @mdkrlaw.com Murray Dahl Kuechenmeister & Renaud LLP 1530 16th Street, Ste. 200 Denver, CO 80202 Direct: 303.493.6688 www.mdkrlaw.com This electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. If you are not the intended recipient of this e -mail, you are hereby notified that any dissemination, distribution or copying of this e -mail, and any attachments thereto, is strictly prohibited. If you have received this e -mail in error, please notify me immediately by telephone or e -mail and destroy the original message without making a copy. Thank you. 7 Kenneth Johnstone From: Christopher Price [CPrice @mdkrlaw.com] Sent: Wednesday, May 25, 20112:39 PM To: Gerald Dahl; Daniel Brennan; Kathy Franklin; Kenneth Johnstone; Dave Pickett, Mark Cooney Subject: RE: Primary Caregiver's Occupying Commercial Space Jerry, I used the term "single- space" to refer to a single, separate, leasable unit as you referenced in your email. Such complex not be unlike an apartment or condominium complex. Although the address may be the same, each unit is separately identifiable. For instance, if the property is addressed as 12100 W. 52nd Avenue with Units A though F, one primary caregiver could lease Unit A and a second, separate primary caregiver could lease Unit B so long as those Units are separate, leasable units. Such a scenario is acceptable under the limitations on primary caregivers in C.R.S. 25 -1.5- 1.6(7) and the City's Code. I explained to the agent that a scenario whereby multiple primary caregivers operate out of a single open warehouse, is prohibited under C.R.S. 25- 1.5- 106(7)(b), "two or more primary caregivers shall not join together for the purpose of cultivating medical marijuana." I further explained that primary caregivers are prohibited from appearing as lessees on the same lease and that arbitrary partitions in such a warehouse would not qualify a separate and distinct leasable units. I believe the commercial space at issue is designed in that manner. See the link below: http: / /maps.google.com/ maps ?q = 12100+ west+ 52nd+ avenue& rls= com.microsoft:en us &oe =UTF -8 &startIndex= &start Page= 1 &um= 1 &ie= UTF- 8 &hq= &hnear= Ox876b85fb27445d2b :Ox339b2900cf596e3e, 12100 +W+ 52nd +Ave, +Wheat +Ridge, +CO +80033 & gl= us& ei= gGPdTcjeJ6beOQHQvAg &sa= X &oi= geocode_ result& ct = title &resnum= l &ved= OCBYQ Christopher Price cprice @mdkrlaw.com Murray Dahl Kuechenmeister & Renaud LLP 1530 16th Street, Ste. 200 Denver, CO 80202 Direct: 303.493.6688 www.mdkrlaw.com This electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. If you are not the intended recipient of this e -mail, you are hereby notified that any dissemination, distribution or copying of this e -mail, and any attachments thereto, is strictly prohibited. If you have received this e -mail in error, please notify me immediately by telephone or e -mail and destroy the original message without making a copy. Thank you. - - - -- Original Message---- - From: Gerald Dahl Sent: Wednesday, May 25, 2011 1:17 PM To: Daniel Brennan; Christopher Price; Kathy Franklin; Kenneth Johnstone; Dave Pickett; Mark Cooney Subject: RE: Primary Caregiver's Occupying Commercial Space I would ask Chris to weigh in as well, but my take on the "single- space" requirement is that the spaces must be separate, leasable units, with walls that separate them, otherwise, as the Chief notes, it would be difficult to enforce the prohibition that primary caregivers share space or work together. Can someone confirm that this property is configured in this way? We could certainly get together to discuss this further if needed. Gerald E. Dahl 1 gdahl @mdkrlaw.com Direct: 303 - 493 -6686 Murray Dahl Kuechenmeister & Renaud LLP 1530 16th Street, Suite 200 Denver, CO 80202 Phone: 303 - 493 -6670 Fax: 303 - 477 -0965 www.mdkrlaw.com This electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. If you are not the intended recipient of this e -mail, you are hereby notified that any dissemination, distribution or copying of this e -mail, and any attachments thereto, is strictly prohibited. If you have received this e -mail in error, please notify me immediately by telephone or e -mail and destroy the original message without making a copy. Thank you. - - - -- Original Message---- - From: Daniel Brennan [ mailto :dbrennan @ci.wheatridge.co.us] Sent: Tuesday, May 24, 2011 5:33 PM To: Christopher Price; Kathy Franklin; Kenneth Johnstone; Dave Pickett; Mark Cooney Cc: Gerald Dahl Subject: RE: Primary Caregiver's Occupying Commerical Space Chris and Jerry, Thanks for sharing this information and I must admit this is a bit disconcerting. How is the term "single- space" defined? In its broadest sense, it seems that it would be a physical address as opposed to leasing a warehouse and saying this area is for primary giver A and so forth. Without any distinctions, it is difficult for law enforcement to determine violations. I am also concerned that this is a way around State regulations regarding seed to sale tracking. I would be opposed to any licensing of multiple caregivers at the same address. If we need to discuss further, let me know. Thanks, Dan Daniel G. Brennan, Chief of Police Wheat Ridge Police Department 7500 W. 29th Ave Wheat Ridge, CO 80033 Phone: 303 - 235 -2913 CONFIDENTIALITY NOTICE: This e -mail contains business - confidential information. It is intended only for the use of the individual or entity named above. If you are not the intended recipient, you are notified that any disclosure, copying, distribution, electronic storage or use of this communication is prohibited. If you received this communication in error, please notify us immediately by e -mail, attaching the original message, and delete the original message from your computer, and any network to which your computer is connected. Thank you. - - - -- Original Message---- - From: Christopher Price [mailto:CPrice @mdkrlaw.com] Sent: Tuesday, May 24, 2011 5:13 PM To: Kathy Franklin; Daniel Brennan Cc: Gerald Dahl Subject: Primary Caregiver's Occupying Commerical Space Chief Brennan and Kathy, 2 We received a call from a commercial property agent concerning the City's ordinance regarding medical marijuana and its application to primary care - givers. It seems that six primary care - givers (independently) want to lease space from the agent's client. The content of our discussion is below. Please let me know if you have any questions. Chris Christopher Price cprice @mdkrlaw.com Murray Dahl Kuechenmeister & Renaud LLP 1530 16th Street, Ste. 200 . Denver, CO 80202 Direct: 303.493.6688 www.mdkrlaw.com This electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. If you are not the intended recipient of this e -mail, you are hereby notified that any dissemination, distribution or copying of this e -mail, and any attachments thereto, is strictly prohibited. If you have received this e -mail in error, please notify me immediately by telephone or e -mail and destroy the original message without making a copy. Thank you. - - - -- Original Message---- - From: Christopher Price Sent: Tuesday, May 24, 2011 3:59 PM To: Gerald Dahl Subject: RE: Voice Message Attached from 7202171315 - SCHWARTE,THOMAS Jerry, I just spoke with Heather Taylor of Edge Commercial Properties concerning a potential lease(s) for property located at 52nd and Ward Road within the City of Wheat Ridge. A broker approached her to see if the property owner would be willing to rent the space(s) to six primary care - givers. She explained that the primary care - givers were not working together. Based on a recent experience in Northglenn, Ms. Taylor asked whether the City of Wheat Ridge prohibited primary care - givers from occupying commercial space. Based on my review of the ordinance and the Medical Marijuana Code, I informed her that the City did not have such a prohibition. I did inform her that primary care - givers must obtain a license from the City. I also explained that state law prohibits primary care - givers from occupying a single space or working together, in any way, to cultivate marijuana and that they are limited to a maximum of five patients. Chris Christopher Price cprice @mdkrlaw.com Murray Dahl Kuechenmeister & Renaud LLP 1530 16th Street, Ste. 200 Denver, CO 80202 Direct: 303.493.6688 www.mdkrlaw.com This electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. If you are not the intended recipient of this e -mail, you are hereby notified that any dissemination, distribution or copying of this e -mail, and any attachments thereto, is strictly prohibited. If you have received this e -mail in error, please notify me immediately by telephone or e -mail and destroy the original message without making a copy. Thank you. 3 City of Wheatdge COMMUNITY DEVELOPMENT Memorandum TO: Ken Johnstone, Community Development Director FROM: Lauren Mikulak, Planner I DATE: May 18, 2011 SUBJECT: Measuring Separation Requirements This memo is a follow -up to our conversation during the May 17, 2011 Planning Division meeting regarding separation requirements for medical marijuana centers. Included is a brief proposal of how these measurements may be measured in the future. At the February 17, 2011 Planning Commission meeting and subsequent City Council meeting, two maps were presented that showed proposed 1000 -foot separations between existing medical marijuana centers and schools, childcare facilities, and drug treatment facilities. In those maps, the separations were portrayed using circular buffers. It is my understanding that we should instead consider using the State's proposed method of measuring separations. Specifically, House Bill 10 -1284 states: The distances referred to in this paragraph (d) are to be computed by direct measurement from the nearest property line of the land used for a school or campus to the nearest portion of the building in which medical marijuana is to be sold, using a route of direct pedestrian access. ( §12- 43.3 -308) In short, there is no fast or easy way to compute these types of measurements, and certainly the phrases "direct pedestrian access" introduces some level of subjectivity. We can, however, identify all points of entry around a property, and using GIS technology we can manually create 1000 -foot line segments that represent pedestrian routes. The images below show one example of this methodology. Image 1 shows the property that makes up the Everitt Middle School campus. The orange dots indicate the points along the property line that are entry points (driveways, roads, sidewalks, and trails). Image 2 shows all possible routes that originate from the northwest entry point; each route is 1000 -feet long and follows roadway centerlines or pathways visible on aerial imagery. Image 3 shows all 1000 -foot pedestrian paths that are possible from the four points of entry; in total, 21 unique paths have been individually drawn. These paths represent a significantly less restrictive environment than is offered by the circular buffer (Image 4). Everitt Middle is one of only three properties for which I have mapped the pedestrian routes. The purpose of which was to determine the status of the existing medical marijuana business located at 10101 W. 37 Place. Based on this analysis it is clear that the "portion of the building in which medical marijuana is to be sold" is within 1000 feet of the school (Image 3). It should be noted that the existing medical marijuana center at this location is nonconforming only because Jefferson County School District owns a narrow strip of sidewalk that connects the school campus to Kipling Street (Image 5). Without this access point and the resulting routes, the school and medical marijuana center would not be within 1000 feet, as measured by a route of direct pedestrian access. Please advise as to the appropriateness of this methodology for determining separation requirements in the future. Image 2 1000 -foot pedestrian routes originating from one point of entry Image 1 Everitt Middle School and its 4 points of entry on the property line Image 4 A 1000 -foot circular buffer yields a much more conservative separation Image 3 All pedestrian routes; the business at 10101 W. 37` Place is within 1000 feet M u rz ca AY �Ai-IL K LIEC3-- IENMEISTEF2 RENAIJO LLP MEMORANDUM TO: Ken Johnstone, Director of Community Development Kathy Franklin, Sales Tax Supervisor FROM: Gerald E. Dahl and Christopher Price DATE: April 21, 2011 RE: Regulation of Medical Marijuana Centers 1. On March 14, 2011, Council adopted Ordinance 1479 which added a new Article X1 to Chapter 11 of the Code of Laws concerning the regulation of medical marijuana establishments. Those provisions include two spacing or buffer requirements found at Code Sections 11- 305(b) and 11- 305(c). a. Code Section 11- 305(b) prohibits medical marijuana centers from being located within 1000 feet of "a school, an alcohol or drug treatment facility, or the principal campus of a college, university, or seminary, or a residential child care facility." b. Code Section 11- 305(c) prohibits medical marijuana centers from being located within three - quarters ( of a mile of another medical marijuana center. 2. The Code does not establish how the distances in those Sections will be measured or the order in which medical marijuana center license applications will be processed by the City should a conflict between applicants concerning the buffer required by Code Section 11- 305(c) arise. 3. Buffer Measurements. a. The 1000 foot buffer in Code Section 11- 305(b) mirrors the language in the Colorado Medical Marijuana Code at C.R.S. § 12- 43.3- 308(1)(d). That provision requires that the 1000 foot buffer "be computed by direct measurement from the nearest property line of the land used for a school or company to the nearest portion of the building in which medical marijuana is to be sold, using a route of direct pedestrian access." When presented with options concerning shorter buffers, Council determined that the state's minimum buffer should apply. Since Council adopted the state's minimum 1000 foot buffer, the City should measure that buffer in accordance with the provisions in the Colorado Medical Marijuana Code. b. The three - quarters ( of a mile buffer between medical marijuana centers in Code Section 11- 305(c) was adopted by Council as a more stringent location restriction as is authorized by the Colorado Medical Marijuana Code at C.R.S. § 12- 43.3- 301(2)(b)(1). When considering this buffer zone, Council was presented with maps exhibiting its effect on existing medical marijuana center locations. Those maps were prepared using a straight line radial measurement with the starting point being the perimeter of the parcel on which the medical marijuana center was located. Since Council approved the three - quarters ( of a mile buffer based, in part, on this mapping, this buffer should be applied to license applications for new medical marijuana centers in the same manner. The three - quarters (%) of a mile buffer will be measured using a straight line from the perimeter of the parcel where a proposed medical marijuana center will be located. If there is an existing medical marijuana center on a parcel that is located within three - quarters (%) of a mile from the parcel on which the proposed medical marijuana center is located then the license application should be denied. The Community Development Department will confirm whether proposed locations meet this buffer requirement. c. These buffer zone requirements will be measured using locations that are within and outside of the City's boundaries. Code Sections 11- 305(b) and 11- 305(c) do not limit the application of the buffer zones to locations only within the City's boundaries. Similarly, the provisions of the Colorado Medical Marijuana Code do not limit the application of the buffer zones to locations only within the boundaries of a local licensing authority's municipality. Thus, the buffer zones applied to medical marijuana centers in Code Sections 11- 305(b) and 11- 305(c) will include locations that are both within and outside of the City's boundaries. 4. Timing of Review of License Applications: a. All license applications for medical marijuana establishments shall be time stamped upon their submission to the Tax and Licensing Division. b. Those applications shall be considered and processed in the order that they are received. c. Any application for which the applicant seeks to make a substantial amendment thereto must be processed as if the entire application is resubmitted on the date of amendment. A substantial amendment is one that could impact the ability of the applicant to operate and includes, but is not limited to, changing the address for the location of the proposed medical marijuana establishment or adding or removing owners to /from the license application. A substantial amendment does not include the failure of the applicant to sign or initial a form. d. If the City is processing two license applications for medical marijuana centers and those two locations are within three - quarters ( of a mile of each other based on the measurement discussed above, the license application that was first in time shall be processed first. If that license 2 application is approved, the application that was second in time will be denied. If the application that was first in time is denied then the City may consider the second in time medical marijuana center license application. e. In the event that two or more applications for medical marijuana centers are submitted to the Tax and Licensing Division at the same time, an immediate drawing by random lot will be held to determine the order in which the City will review the applications. The applicants must be informed that the drawing will take place and may bear witness to the drawing. The losers of the drawing may withdraw their applications at that time. 3 Page 1 of 2 Kenneth Johnstone From: Kathy Franklin Sent: Thursday, March 31, 2011 10:52 AM To: Christopher Price; Kenneth Johnstone Subject: RE: MMJ Memorandum re: measurement and priority - DO NOT DISTRIBUTE c. These buffer zone requirements will be measured using locations that are within and outside of the City's boundaries. Code Sections 11- 305(b) and 11- 305(c) do not limit the application of the buffer zones to locations only within the City's boundaries. Similarly, the provisions of the Colorado Medical Marijuana Code do not limit the application of the buffer zones to locations only within the boundaries of a local licensing authority's municipality. Thus, the buffer zones applied to medical marijuana centers in Code Sections 11- 305(b) and 11- 305(c) will include locations that are both within and outside of the City's boundaries. That seems a little far - reaching, but maybe understandable on one hand. On the other hand, I wonder if citizens interested in operating a location would perceive an injustice in another city's borderline ops precluding them from a C -1 location in Wheat Ridge? What message does that send? Is it a message the City wants to send? Just saying... I agree with the effect on process. Kathy Franklin Sales Tax Supervisor City of Wheat Ridge Office Phone /Fax: 303 - 235 -2825 "SAVE A TREE. DON'T PRINT THIS E -MAIL UNLESS IT'S REALLY NECESSARY." 4V� City of W heat �ge ADMINISTRXIIVE StRVICES From: Christopher Price [mailto:CPrice @mdkrlaw.com] Sent: Thursday, March 31, 20119:47 AM To: Kenneth Johnstone; Kathy Franklin Subject: MMJ Memorandum re: measurement and priority - DO NOT DISTRIBUTE Kathy and Ken, Attached for your review and comment is a draft memorandum concerning the measurement of the buffer zones and the manner in which license applications will be prioritized. Please review and let me know if you have any comments before we finalize this draft. Christopher Price cprice @mdkrlaw.com Murray Dahl Kuechenmeister & Renaud LLP 1530 16th Street, Ste. 200 Denver, CO 80202 Direct: 303.493.6688 Fax: 303.477.0965 3/31/2011 Page 2 of 2 www.mdkriaw.com This electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. If you are not the intended recipient of this e-mail, you are hereby notified that any dissemination, distribution or copying of this e-mail, and any attachments thereto, is strictly prohibited. If you have received this e-mail in error, please notify me immediately by telephone or e-mail and destroy the original message without making a copy. Thank you. 3/31/2011 M URRAY Q AHL KI..}EG6 -iEPd NiEISTER REnaau O LLP MEMORANDUM TO: Ken Johnstone, Director of Community Development Kathy Franklin, Sales Tax Supervisor FROM: Gerald E. Dahl and Christopher Price DATE: March 31, 2011 RE: Regulation of Medical Marijuana Centers 1. On March 14, 2011, Council adopted Ordinance 1479 which added a new Article XII to Chapter 11 of the Code of Laws concerning the regulation of medical marijuana establishments. Those provisions include two spacing or buffer requirements found at Code Sections 11- 305(b) and 11- 305(c). a. Code Section 11- 305(b) prohibits medical marijuana centers from being located within 1000 feet of "a school, an alcohol or drug treatment facility, or the principal campus of a college, university, or seminary, or a residential child care facility." b. Code Section 11- 305(c) prohibits medical marijuana centers from being located within three - quarters (%) of a mile of another medical marijuana center. 2. The Code does not establish how the distances in those Sections will be measured or the order in which medical marijuana center license applications will be processed by the City should a conflict between applicants concerning the buffer required by Code Section 11- 305(c) arise. 3. Buffer Measurements. a. The 1000 foot buffer in Code Section 11- 305(b) mirrors the language in the Colorado Medical Marijuana Code at C.R.S. § 12- 43.3- 308(1)(d). That provision requires that the 1000 foot buffer "be computed by direct measurement from the nearest property line of the land used for a school or company to the nearest portion of the building in which medical marijuana is to be sold, using a route of direct pedestrian access." When presented with options concerning shorter buffers, Council determined that the state's minimum buffer should apply. Since Council adopted the state's minimum 1000 foot buffer, the City should measure that buffer in accordance with the provisions in the Colorado Medical Marijuana Code. b. The three - quarters (' /) of a mile buffer between medical marijuana centers in Code Section 11- 305(c) was adopted by Council as a more stringent location restriction as is authorized by the Colorado Medical Marijuana Code at C.R.S. § 12- 43.3- 301(2)(b)(1). When considering this buffer zone, Council was presented with maps exhibiting its effect on existing medical marijuana center locations. Those maps were prepared using a straight line radial measurement with the starting point being the perimeter of the parcel on which the medical marijuana center was located. Since Council approved the three - quarters ( of a mile buffer based, in part, on this mapping, this buffer should be applied to license applications for new medical marijuana centers in the same manner. The three - quarters ( of a mile buffer will be measured using a straight line from the perimeter of the parcel where a proposed medical marijuana center will be located. If there is an existing medical marijuana center located within three - quarters ( /) of a mile from that proposed location, the license application should be denied. The Community Development Department will confirm whether proposed locations meet this buffer requirement. c. These buffer zone requirements will be measured using locations that are within and outside of the City's boundaries. Code Sections 11- 305(b) and 11- 305(c) do not limit the application of the buffer zones to locations only within the City's boundaries. Similarly, the provisions of the Colorado Medical Marijuana Code do not limit the application of the buffer zones to locations only within the boundaries of a local licensing authority's municipality. Thus, the buffer zones applied to medical marijuana centers in Code Sections 11- 305(b) and 11- 305(c) will include locations that are both within and outside of the City's boundaries. 4. Timing of Review of License Applications: a. All license applications for medical marijuana establishment shall be time stamped upon their submission to the Tax and Licensing Division. b. Those applications shall be considered and processed in the order that they are received. c. If the City is processing two license applications for medical marijuana centers and those two locations are within three - quarters ( of a mile of each other based on the measurement discussed above, the license application that was first in time shall be processed first. If that license application is approved, the application that was second in time will be denied. If the application that was first in time is denied then the City may consider the second in time medical marijuana center license application. 2 Page I of 2 Kenneth Johnstone From: Kathy Franklin Sent: Thursday, March 31, 2011 10:52 AM To: Christopher Price; Kenneth Johnstone Subject: RE: MMJ Memorandum re: measurement and priority - DO NOT DISTRIBUTE c. These buffer zone requirements will be measured using locations that are within and outside of the City's boundaries. Code Sections 11- 305(b) and 11- 305(c) do not limit the application of the buffer zones to locations only within the City's boundaries. Similarly, the provisions of the Colorado Medical Marijuana Code do not limit the application of the buffer zones to locations only within the boundaries of a local licensing authority's municipality. Thus, the buffer zones applied to medical marijuana centers in Code Sections 11- 305(b) and 11- 305(c) will include locations that are both within and outside of the City's boundaries. That seems a little far - reaching, but maybe understandable on one hand. On the other hand, I wonder if citizens interested in operating a location would perceive an injustice in another city's borderline ops precluding them from a C -1 location in Wheat Ridge? What message does that send? Is it a message the City wants to send? Just saying... I agree with the effect on process. Kathy Franklin Sales Tax Supervisor City of Wheat Ridge Office Phone /Fax: 303 - 235 -2825 "SAVE A TREE. DON'T PRINT THIS E -MAIL UNLESS IT'S REALLY NECESSARY." City of Wh6at 1 e ADMINISTRATIVE $EAVICFS From: Christopher Price [mailto:CPrice @mdkrlaw.comj Sent: Thursday, March 31, 20119:47 AM To: Kenneth Johnstone; Kathy Franklin Subject: MMJ Memorandum re: measurement and priority - DO NOT DISTRIBUTE Kathy and Ken, Attached for your review and comment is a draft memorandum concerning the measurement of the buffer zones and the manner in which license applications will be prioritized. Please review and let me know if you have any comments before we finalize this draft. Christopher Price cprice @mdkrlaw.com Murray Dahl Kuechenmeister & Renaud U-P 1530 16th Street, Ste. 200 Denver. CO 80202 Direct: 303.493.6688 Fax: 303.477.0965 3/31/2011 Page 2 of 2 www.mdkriaw.com This electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. If you are not the intended recipient of this e-mail, you are hereby notified that any dissemination, distribution or copying of this e-mail, and any attachments thereto, is strictly prohibited. If you have received this e-mail in error, please notify me immediately by telephone or e-mail and destroy the original message without making a copy. Thank you. 3/31/2011 City law — An individual doing business from home E tacility Y4 of a mile from any other MMJ center • Permanent location 2 - - -- MMJ products • Can sell to any centers W}i ai ca — Number of plants limited by State law — Department of Revenue MMJ Division KI � 3 p 2 7 t L • Ohly tanla Medreal maf�}uana- ��tabhshmerJt packages Checklist�on_f�rstp�ge ° �� Prompts =foC MMJ:busmesstype on page 1 of business �licenseapplicaffons Supplement •'State form must be obtained from Dept. of Revenue - W liemt.. 9c7ge 0 w UFIULK wnn Uuirunuuny veve1uN111UHL. • State law specifics — Department of Revenue MMJ Division, OR — Tax Supervisor u.. ..�w }scat 1 iclgc En Banc IngG7le5 Q Nfay appCy now for a centerjinfused pr oductsjrar Ifcense� The State rrioratorium Is In effect untlf at= : ' least July 1; 2011. Q: May I apply for a primary caregiver license? A: Yes'. However, a State registration maybe required. Please contact the Department of Revenue. carat:. 1 1, ;�t 5 outside. C�C��I'�rle� so�net�irn�at t�� Gty�o secc��re a V ;r. 14cation -where a cenl�e� /�nfustort�rY /grow wrl1 d z r baflawed? _._ dff _ ; = - _ A No The Ctty is proh[bited y b State lauv from v accepting or review 'Win applications for rned;cal marijuana`establishmentsduring the moratorium. [ej I location and jf'b is in effect as of the date I of your inquiry. cat -i — How the post- moratorium processAA • And soon ... limited only by the imz prospective MMJ businesspeople. . ion of w C410,:i-,t 7 • Beyond o d al,in - inquiry absences • General — Expected turnaround on applications in a perfect world? — Other? Z" .3 gm Medical Marijuana Establishment Licensing Checklist Name: Business' Name: MME License Type Center Optional Premise Grow Infused Products Mfr. Primary Caregiver (5 pats.) Fees Chart Initial Application $1,000.00 $1,000.00 $1,000.00 BL App Only $20 Date: Licensed Center N/A $160.00 $200.00 N/A Protect• natr• Cmmnletr Cnmment Comnleted hv: Tax & Licensing Division: BL App and supplement, complete, signed State App, checklist veri. Copy of Driver's license DORA Reg. Copy, Ver. $20 business license fee $ fee from chart above TL Approval to Proceed Si nature Su e: isor: Community Development: Zone/Use Appv. /Denied Signature Police Department: 2 sets of fingerprints ($10 cash or check Check/Money Order $38.50 /C.B.I. Prints /fee sent to CBI Crim. Hist. from CBI COPLINK Database LEXIS - NEXIS Database WR RMS histo DMV record check Memo via Chain to Chief 0 Si afore Investigator: Approved PD llsiinaturc7l Chief/Designee: Denied PD L Si nature Chief/Designee: Final Approval and Issue of License or Denial Letter Approved /Denied TL Signature LSu ervisor: License / Denial Letter Si . /Title THIS PAGE WILL BE COMPLETED BY THE CITY Wheat > e Application Fee $ �� Business License Application 7500 W. 29th Ave., Wheat Ridge, CO 80033 -8001 Licensing Fee $ 20.00 Phone (303)235 -2820 Fax (303)234 -5924 04.11 Please print neatly or type. Complete all applicable sections. A LICENSE MAY BE DELAYED IF THE APPLICATION IS IMPROPERLY COMPLETED. 1. Business Name: OFFICE USE ONLY: 2. Location in Wheat Ridge: Commercial Bldg. Industrial Bldg. Other LICENSE NUMBER T ONL YHO.tIfBUd /NE6d£lNFFDTOAMPIVE44 a) Private Residence Y N if yes, will the following occur: b) Retail sales ❑ c) Office Use ❑ d Storage of Goods ❑ if so, why: e) Mfg of Goods ❑ Explain 2e: f) Employees: Self ❑ Family Members ❑ Others ❑ g) Location of Business: House ❑ Garage ❑ Other ❑ location code AREA, GEO, ZONED, 3. Number of Locations in Wheat Ridge: (e ach location must license separately) 4. Mailing Address: APPROVED BY, 5. Business Phone: ( ) - Emergency Phone: ( ) - E -mail: Fax: ( ) - Website s : DATE, 6. Nature of Business: medical marijuana 7a. Date Business Started in Wheat Ridge: 7b. Date Business Occupied Address in 2: 8. Business type code from p ag e 3: Business tvpc code and description from page 3 will help speed the process. NOTES: 9. Number of Employees IN WHEAT RIDGE, including self if applicable (M.cd.t. 10. Type of Ownership: Sole /individual ❑ Partnership ❑ Corporation ❑ Association /club ❑ Other: 11. Owner/Corporate Name: Owner/Corporate Address: Responsible Party for Tax owner, officer, general partner): 12. Tax Reporting Status (see Code Sec. 22 -40c): Monthly ❑ Quarterly ❑ Annual ❑ I declare under penalty of perjury that the statements made on this application are made in good faith pursuant to the Wheal Ridge Code of Laws and regulations, and to the best of my knowledge and belief are true, correct and complete. AUTHORIZED SIGNATURE: Printed Name: Title: A valid Certificate of Occupancy is required prior to occupying any space or structure. approved Business License does not constitute a Certificate of Occupancy. The Building Division should be contacted to verify or obtain a valid Certificate of Occupancy for the space or structure to be occupied by this business. Failure to satisfy occupancy requirements and conditions will result In suspension of the Business License and closure of the business location until remedied and approved by the City. PAGE TWO MUST BE COMPLETED TN/S IS PAOF 2. IT MUST OF COMPLETED. PRIVACY STATEMENT: THIS PAGE IS NOT PUBLIC INFORMATION AND IS NOT SUBJECT TO PUBLIC INFORMATION DISCLOSURE. 13. List Names and Addresses of Owners, Partners or Officers: Begin with primary applicant. Full Name Street Address (no P.O. Box) Date of Birth % Ownership Held 14. Have any of the owners, officers or partners ever been convicted of a felony? Yes ❑ No ❑ if yes, please explain below: 15. Ownership of Building and Equipment (for approval purposes): How You Acquired... If leased, name & address of landord or lessor: Building Purchase ❑ n/a Lease to Purchase ❑ Lease (rent) ❑ Equipment Purchase ❑ n/a Lease to Purchase ❑ Lease (rent) ❑ NOTES: WREMINDERM lusinesses Located in Wheat Ridge: Zoning has requested that you be as specific as possible describing the nature of your business on page . Examples: major auto repair, minor auto repair, type of product manufactured, products (in general) that you are selling, type of service you iedorm and so forth. Extra space is provided above and guidelines on the next page. Thanks for helping us speed the approval p r oc ess. Business Name Have you previously operate or do you now operate any other medical marijuana facility? O Yes O No If yes, please complete the below: BUSINESS PLAN SECTION Using the key below, please sketch in doors, walls and windows and indicate the location of security systems, including human and animal supplements. • Siren t Camera, wide end indicates direction aimed Tr Human Animal Detection wire or beam run System make Model, year _ Monitored by Recordings retained at Please describe the lighting of the outside of the premises, you may use a star symbol for each light on the outside of the sketch above if you wish: Cultivation activity : Please describe the location of any cultivation of medical marijuana. Where Number of plants on site Describe the ventilation (enhanced ventilation is required): Describe the interior lighting of the cultivation area Estimate the water usage /month (gallons) 3/30/11 COLORADO BUSINESS MEDICAL MARIJUANA LICENSE APPLICATION DR 8530 (07/06110) The following features are available for this document when opened in the free Adobe Reader 8.0 or higher. -Save form data (for a fillable PDF form only). -Sign an existing signature field. - Digitally sign the document anywhere on the page (only supported in Adobe Reader 8.0) Colorado Medical Marijuana Enforcement Division Business License Application Instructions APPLICATION CHECKLIST 1 Application Fully Completed Type or clearly print an answer to every question. If a question does not apply to you, indicate so with an N /A. If you are unsure if a question applies to you or what information the form is asking you to provide, contact any Medical Marijuana Enforcement Division office to seek clarification. If the available space is insufficient, continue on a separate sheet and precede each answer with the appropriate title. 1-1 All Forms Signed & Attached The following accompanying forms must be signed and returned with the application: El Affirmation & Consent ❑ Investigation Authorization /Authorization to Release Information El Applicant's Request to Release Information (leave top two lines of form blank) ❑ IRS Form 8821 3 All Requested Information Attached The following information requested on the application must be attached, if applicable: ❑ Trade Name Registration ❑ Certificate of Authority from the Colorado Secretary of State's Office ❑ Certified Copy of Articles of Incorporation, including amendments ❑Articles of Organization, including amendments ❑ Partnership Agreement, including amendments ❑ If corp., annual and bi- annual reports and meeting minutes from past 12 months ❑ Current Uniform Commercial Code Report for all states where known to be filed ❑ All applicable information requested on page 4 NOTE. The Medical Marijuana Enforcement Division reserves the right to request additional information and documentation throughout the course of the background investigation. 4 Applications For Associated Persons Attached Submit the following: (1) Associated Person License Application Form (DR8520) for any person holding an ownership interest in either a privately held company or publicly traded corporation, and /or officers and directors, regardless of ownership interest, if any. El 5 Application Fees Submit appropriate license, application and background fees. ❑ Medical Marijuana Center (Type 1 *): $7,500 application fee ❑ Medical Marijuana Center (Type 2 *): $12,500 application fee ❑ Medical Marijuana Center (Type 3 *): $18,000 application fee ❑ Optional Premises Cultivation License: $1,250 ❑ Medical Marijuana — Infused Products Manufacturer: $1,250 *Type 1 =300 or fewer patients, all Colorado residents; *Type 2 =301 to 500 patients; *Type 3 =501 or more patients. LJ Make check or money order payable to: Colorado Medical Marijuana Enforcement Division. El 6 Mail or Bring in Application Bring in application and all attachments to: Medical Marijuana Enforcement Division 6200 Dahlia Street Commerce City, CO 80022 DR 8530 (07/01110) Colorado Medical Marijuana Licensing Authority COLORADO DEPARTMENT OF REVENUE MEDICAL MARIJUANA ENFORCEMENT DIVISION Business License Application License Types & Fees (Check only one application type. See Application Checklist for details on license types and fees.) ❑ Medical Marijuana Center (Type 1'): $7,500 application fee ❑ Optional Premises Cultivation License: $1,250 ❑ Medical Marijuana Center (Type 2"): $12,500 application fee ❑ Medical Marijuana— Infused Products Manufacturer: $1,250 ❑ Medical Marijuana Center (Type 3'): $18,000 application fee. 'Type 1 =300 orfewer patients, *Type 2 =301 to 500 patients; 'Type 3 =501 or more patients Business Phone Number IHome Phone Number lEmailAddress Primary state Federal Taxpayer ID Colorado Sales Tax License # Email Address Type of Business Structure ❑ Sole Proprietorship ❑ Partnership ❑ Limited Partnership ❑ Limited Liability Company ❑ C Corporation ❑ S Corporation ❑ Publicly Traded Corporation ❑ Trusl ❑ Other State of Incorporation or Creation of Business Entity Date Date of Qualification to Conduct Business in colorado (Provide Certificate of Authority from the Colorado Secretary of State's Office) If a Corporation, List all States Where the Corporation is Authorized to Conduct Business County state _MK.a taai �(tfor irtattonF u City County i Managers Reg nse Issued Through (Expiration Date) Cash Fund New License Cash Fund Transfer License I V IAL Page 1 of 8 1. Is the applicant (including any of the partners, if a partnership; members or manager if a limited liability company; or officers, Yes No stockholders or directors if a corporation) or manager under the age of twenty-one years? ❑ ❑ 2. Has the applicant (including any of the partners, if a partnership; members or manager if a limited liability company; or officers, stockholders or directors if a corporation) or manager ever (in Colorado or any other state); (a) been denied a privileged license lie: Liquor, Gaming, Racing and Medical Marijuana)? ...................................... .......... .......................... ...... ❑ ❑ (b) had a privileged license lie: Liquor, Gaming, Racing and Medical Marijuana) suspended or revoked? ......................................................... El ❑ (c) had interest in another entity that had a privileged (is: Liquor, Gaming, Racing and Medical Marijuana) license denied, suspended or revoked? ...................................... ................................ ................................................................... ... ... ......... ..... .... .......... ❑ ❑ If you answered yes to 2a, b or c, explain in detail on a separate sheet. 3. Has a Medical Marijuana Center license application (same license class), that was located within 1000 feet of the proposed premises, been denied within the preceding two years? If "yes," explain in detail..... ..................... ................................ - ........... - .............. ...... ............... El ❑ 4. Are the premises to be licensed within 1000 feet of a school (as defined in 12 -43.3 104 (15) C.R.S.), alcohol or drug treatment facility, principal campus of a college, university, orseminary, or a residential childcare facility? .................................................................... ..............................❑ ❑ 5. Has a Medical Marijuana license ever been issued to the applicant (including any of the partners, if a partnership; members or manager if a limited liability company; or officers, stockholders or directors if a corporation)? If yes, identify the name of the business and list any current or former financial interest in said business including any loans to or from a licensee . ......... .................... . .......................... ....❑ ❑ 6. Does the applicant of this application, have legal possession of the premises by virtue of ownership, lease or other arrangement? Attach all documentation showing legal possession. Deed, Title, sale or lease agreements etc. ❑ ownership ❑ Lease ❑ Other (Explain in Detail) (a) If leased, list name of landlord and tenant, and date of expiration, EXACTLY as they appear on the lease: Landlord Tenant Expires Attach a diagram of the premises to be licensed and outline or designate the area (including dimensions) which shows the limited access areas, walls, partitions, entrances, exits and what each room shall be utilized for in this business. This diagram should be no larger than 8 112" X 11 ". (It does not have to be to scale) 7. Who, besides the owners listed in this application (including persons, firms, partnerships, corporations, limited liability companies, trusts), will loan or give money, inventory, furniture or equipment to or for use in this business; or who will receive money or profits from this business. Attach a separate sheet if necessary. NAME DATE OF BIRTH FEIN OR SSN INTEREST Attach copies of all notes and security instruments, and any written agreement, or details of any oral agreement, by which any person (including partnerships, corporations, limited liability companies, etc.) will share in the profit or gross proceeds of this establishment, and any agreement relating to the business which is contingent or conditional in any way by volume, profit, sales, giving of advice or consultation. 8. Optional Premises Cultivation License Yes No H as the Applicant filed for an Optional Premises License? ................................................................................................... ............................... What City or County? (Fill out Appendix A completely) 9. Does the Applicant have evidence of a good and sufficient bond in the amount of $5000.00 in accordance with 12 -43.3 -304 C.R.S. (Include evidence with effective date 7 -1 -2011 with application)? ......................... ....................... ................................................................. ❑ ❑ Date application filed with local authority Date of local authority hearing (f held, for new license applicants; cannot be less than 30 days from date of application 12- 43.3302 (1)) C.R.S. THE LOCAL LICENSING AUTHORITY HEREBY AFFIRMS: Yes No ❑ It has adopted an ordinance or resolution containing specific standards for license issuance prior to July 1, 2011 .................................... 11 ❑ ❑ Give citation of ordinance or resolution ❑ Has not adopted an ordinance or resolution and will be using minimum licensing requirements in 12 -43.3 -Part 3 C.R.S.- ....................... El ❑ The foregoing application, the premises, and business to be conducted have been examined. We do report that such license, if granted, will comply with the provisions of Title 12, Article 43.3, C.R.S. THEREFORE, THIS APPLICATION IS APPROVED. Local Licensing Authority for Telephone Number ❑ TOWN, CITY ❑ COUNTY Signature Title Date Signature (attest) Title Date Page 2 of 8 Page 3 of 8 e List all persons and /or entities with any ownership interest, and all officers and directors, whether they have ownership interest or not. If an entity (cor- poration, partnership, Ll etc.) has interest, list all persons associated with such entity ownership in the entity, and their effective ownership in the license. List all parent, holding or other intermediary business interest. An Associated Person License Application form must be submitted for all persons in a privately held company or a publicly traded corporation, and all officers and directors. Name Title SSN/FEIN DOB App submitted? Yes � No Address city State ZIP Phone Number Business Associated with (Parent business or sub - entity) Own. % Business Associated with Effective Own. % in Applicant Name Title SSN /FEIN DOB App submitted? Yes [ No Address city State ZIP Phone Number Business Associated with (Parent business or sub - entity) Own. % Business Associated with Effective Own. % in Applicant Name Title SSN /FEIN DOB App submitted? E] Yes [ No Address city State ZIP / Phone Number Business Associated with (Parent business or sub - entity) Own. % Business Associated with Effective Own. % in Applicant Name Title SSN /FEIN DOB App submitted? ❑ Yes ❑ No Address City State ZIP Phone Number Business Associated with (Parent business or sub - entity) Own. % Business Associated with Effective Own. % in Applicant Name Title SSN /FEIN DOB App submitted? Yes ❑ No Address city State ZIP Phone Number Business Associated with (Parent business or sub - entity) Own. % Business Associated with Effective Own. % in Applicant Name Title SSN /FEIN DOB App submitted? Yes []No Address city State ZIP Phone Number Business Associated with (Parent business or sub - entity) Own. % Business Associated with Effective Own. % in Applicant Name Title SSN /FEIN DOB App submitted? Yes 0 No Address city State ZIP Phone Number Business Associated with (Parent business or sub - entity) Own. % Business Associated with Effective Own. % in Applicant Are there any outstanding options and warrants? F] Yes ❑ No - If YES, attach list of persons with outstanding options and warrants Are there any other persons, other than those listed in the Ownership Structure, including but not limited to suppliers, lenders and landlords, who will receive, directly or indirectly, any compensation or rents based upon a percentage or share of gross proceeds or income of the Medical Marijuana business? []Yes ❑ No 'If YES, attach list of persons and submit Associate Person License Application forms for each person Page 3 of 8 1.Has the applicant, the applicant's parent company or any other intermediary business entity ever applied for a Medical Mari- Yes No juana license in this or any other jurisdiction, foreign or domestic, whether or not the license was ever issued? If YES, provide details on a separate sheet, including jurisdiction, type of license, license number, and dates license held or applied for. 2.Has the applicant, the applicant's parent company or any other intermediary business entity ever been denied a Medical Mari- Yes ❑ No juana license, withdrawn a Medical Marijuana license or had any disciplinary action taken against any Medical Marijuana license that they have held in this or any other jurisdiction, foreign or domestic? If YES, provide details on a separate sheet, including jurisdiction, type of action, and date of action. 1.1s the applicant, the applicant's parent company or any other intermediary business entity delinquent in the payment of any judg- Yes No ments or tax liabilifies due to any governmental agency anywhere? If YES, provide details on a separate sheet and attach any documents to prove settlement or resolution of the delinquency. 2.Has the applicant, the applicant's parent company or any other intermediary business entity filed a bankruptcy petition in the yes No past 5 years, had such a petition filed against it, or had a receiver, fiscal agent, trustee, reorganization trustee or similar person appointed for it? If YES, provide details on a separate sheet and attach any documents from the bankruptcy court. 3.1s the applicant, the applicant's parent company or any other intermediary business entity currently a party to, or has it ever Yes No been a party to, in any capacity, any business trust instrument? If YES, provide details on a separate sheet. 4.Has a complaint, judgment, consent decree, settlement or other disposition related to a violation of federal, state or similar for- yes No eign antitrust, trade or security law or regulation ever been filed or entered against the applicant, the applicant's parent company or any other intermediary business entity? If YES, provide details on a separate sheet and attach any documents to prove the settlement of any of these issues. Include any items currently under formal dispute or legal appeal. 5.Has the applicant, the applicant's parent company or any other intermediary business entity been a party to a lawsuit in the past Yes No 5 years, either as a plaintiff or defendant, complainant or respondent, or in any other fashion, in this or any other country? If YES, provide details on a separate sheet and attach any documents to prove the settlement of any of these issues. Include any items currently under formal dispute or legal appeal. 6.Has the applicant, the applicant's parent company or any other intermediary business entity filed a business tax return in the Yes No past two years? If YES, attach all business tax returns filed in the past two years. 7.Has the applicant, the applicant's parent company or any other intermediary business entity completed financial statements, Yes No either audited or unaudited, in the past two years? If YES, attach all financial statements completed in the past two years. 8.Is the business a prospective business or has it recently begun operations? If so, submit an estimated beginning balance sheet yes No (proforma) and a statement of amount(s) and source(s) or funding for the business and specific documentation to support the declaration. 9.Has any interest or share in the profits of the sale of Medical Marijuana been pledged or hypothecated as security for a debt or yes No deposited as a security for the performance of an act or to secure the performance of a contract? If YES, provide details on a separate sheet. 1 o.Attach a list detailing the operating and investment accounts for this business, including financial institution name, address, telephone number, and account number for each account. 11.Attach a list detailing each outstanding loan and financial obligation obtained for use in this business, including creditor name, address, phone num- ber, loan number, loan amount, loan terms, date acquired, and date due. Person who maintains Applicant's business records Title Address Phone Number Person who prepares Applicant's tax returns, government forms & reports Title Address Phone Number Location of financial books and records for Applicant's business Page 4 of 8 Affirmation & Consent I, as an authorized agent for the applicant, state under penalty for offering a false instrument for recording pursuant to 18 -5 -114 C.R.S. that the entire Associated Person & Associated Key License Application Form, statements, attachments, and supporting schedules are true and correct to the best of my knowledge and belief, and that this statement is executed with the knowledge that misrepresentation or failure to reveal information requested may be deemed sufficient cause for the refusal to issue a Medical Marijuana license by the State Licensing Authority. Further, I am aware that later discovery of an omission or misrepresentation made in the above statements may be grounds for the denial of a temporary Medical Marijuana application or the revocation of the license. I am voluntarily submitting this application to the Colorado Medical Marijuana Licensing Authority under oath with full knowledge that I may be charged with perjury or other crimes for intentional omissions and misrepresentations pursuant to Colorado law or for offering a false instrument for recording pursuant to 18 -5 -114 C.R.S. I further consent to any background investigation necessary to determine my present and continuing suitability and that this consent continues as long as I hold a Colorado Medical Marijuana License, and for 90 days following the expiration or surrender of such Medical Marijuana license. Note: If your check is rejected due to insufficient or uncollected funds, the Department of Revenue may collect the payment amount directly from your banking account electronically. Trade Name Legal Agent Last Name (Please Print) Date Page 5 of 8 Investigation Authorization Authorization to Release Information I, , as an authorized agent for the applicant, hereby authorize the Colorado Medical Marijuana Licensing Authority, the Medical Marijuana Enforcement Division, (hereafter, the Investigatory Agencies) to conduct a complete investigation into my personal background, using whatever legal means they deem appropriate. I hereby authorize any person or entity contacted by the Investigatory Agencies to provide any and all such information deemed necessary by the Investigatory Agencies. I hereby waive any rights of confidentiality in this regard. I understand that by signing this authorization, a financial record check may be performed. I authorize any financial institution to surrender to the Investigatory Agencies a complete and accurate record of such transactions that may have occurred with that institution, including, but not limited to, internal banking memoranda, past and present loan applications, financial statements and any other documents relating to my personal or business financial records in whatever form and wherever located. I understand that by signing this authorization, a financial record check of my taxfiling and tax obligation status may be performed. I authorize the Colorado Department of Revenue to surrender to the Investigatory Agencies a complete and accurate record of any and all tax information or records relating to me. I authorize the Investigatory Agen- cies to obtain, receive, review, copy, discuss and use any such tax information or documents relating to me. I authorize the release of this type of information, even though such information may be designated as "confidential' or "nonpublic' under the provisions of state or federal laws. I understand that by signing this authorization, a criminal history check will be performed. I authorize the Investigatory Agencies to obtain and use from any source, any information concerning me contained in any type of criminal history record files, wherever located. I understand that the criminal history record files contain records of arrests which may have resulted in a disposition other than a finding of guilt (i.e., dismissed charges, or charges that resulted in a not guilty finding). I understand that the information may contain listings of charges that resulted in suspended imposition of sentence, even though I successfully completed the conditions of said sentence and was discharged pursuant to law. 1 authorize the release of this type of information, even though this record may be designated as "confidential" or "nonpublic' under the provisions of state or federal laws. The Investigatory Agencies reserve the right to investigate all relevant information and facts to their satisfaction. I under- stand that the Investigatory Agencies may conduct a complete and comprehensive investigation to determine the accura- cy of all information gathered. However, the State of Colorado, Investigatory Agencies, and other agents or employees of the State of Colorado shall not be held liable for the receipt, use, or dissemination of inaccurate information. I, on behalf of the applicant, its legal representatives, and assigns, hereby release, waive, discharge, and agree to hold harmless, and otherwise waive liability as to the State of Colorado, Investigatory Agencies, and other agents or employees of the State of Colorado for any damages resulting from any use, disclosure, or publication in any manner, other than a willfully unlawful disclosure or publication, of any material or information acquired during inquiries, investigations, or hearings, and hereby authorize the lawful use, disclosure, or publication of this material or information. Any information contained within my application, contained within any financial or personnel record, or otherwise found, obtained, or maintained by the Investigatory Agencies, shall be accessible to law enforcement agents of this or any other state, the government of the United States, or any foreign country. Print Full Legal Name of Authorized Agent clearly below: Applicants Business Name Trade Name (DBA) Legal Agent Last Name (Please Print) Legal Agent First Name Legal Agent Middle Name Legal Agent Title Signature (Must be signed in front of two witnesses) Dated this day of , 20 , at (day) (month) (year) (time) (city) (state) Witness 1 Signature Witness 2 Signature Page 6 of 8 Applicant's Request to Release Information TO: FROM: (Applicant's Printed Name) 1.IM/e hereby authorize and request all persons to whom this request is presented having information relating to or concerning the above named applicant to furnish such information to a duly appointed agent of the Medical Marijuana Enforcement Division whether or not such information would otherwise be protected from the disclosure by any constitutional, statutory or common law privilege. 2.1/We hereby authorize and request all persons to whom this request is presented having documents relating to or concerning the above named applicant to permit a duly appointed agent of the Medical Marijuana Enforcement Division to review and copy any such documents, whether or not such documents would otherwise be protected from disclosure by any constitutional, statutory, or common law privilege. 3.INJe hereby authorize and request the Colorado Department of Revenue to permit a duly appointed agent of the Medical Marijuana Enforcement Divi- sion to obtain, receive, review, copy, discuss and use any such tax information or documents relating to or conceming the above named applicant, whether or not such information or documents would otherwise be protected from disclosure by any constitutional, statutory, or common law privilege. 4.If the person to whom this request is presented is a brokerage firm, bank, savings and loan, or other financial institution or an officer of the same, I /we hereby authorize and request that a duly appointed agent of the Medical Marijuana Enforcement Division be permitted to review and obtain copies of any and all documents, records or correspondence pertaining to me /us, including but no limited to past loan information, notes co- signed by me /us, checking account records, savings deposit records, safe deposit box records, passbook records, and general ledger folio sheets. 5.1/1Ne do hereby make, constitute, and appoint any duly appointed agent of the Colorado Medical Marijuana Enforcement Division, my /our true and lawful attorney in fact for me /us in my /our name, place, stead, and on my /our behalf and for my /our use and benefit: (a) To request, review, copy sign for, or otherwise act for investigative purposes with respect to documents and information in the possession of the person to whom this request is presented as Vwe might; (b) To name the person or entity to whom this request is presented and insert that person's name in the appropriate location in this request: (c) To place the name of the agent presenting this request in the appropriate location on this request. 6.1 grant to said attorney in fact full power and authority to do, take, and perform all and every act and thing whatsoever requisite, proper, or neces- sary to be done, in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as Ilwe might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that said attorney in fact, or his substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. 7.This power of attorney ends twenty-four (24) months from the date of execution. 8.The above named applicant has filed with the Colorado Medical Marijuana Licensing Authority an application for a Medical Marijuana license. Said applicant understands that it is seeking the granting of a privilege and acknowledges that the burden of proving its qualifications for a favor- able determination is at all times on the applicant. Said applicant accepts any risk of adverse public notice, embarrassment, criticism, or other action of financial loss, which may result from action with respect to this application. 9.IIWe do, for myself /ourselves, my /our heirs, executors, administrators, successors, and assigns, hereby release, remise, and forever discharge the person to whom this request is presented, and his agents and employees from all and all manner or actions, causes of action, suits, debts, judgments, executions, claims, and demands whatsoever, known or unknown, in law or equity, which the applicant ever had, now has, may have, or claims to have against the person to whom this request is being presented or his agents or employees arising out of or by reason of complying with the request. 10.1/We agree to indemnify and hold harmless the person to whom this request is presented and his agents and employees from and against all claims, damages, losses, and expenses, including reasonable attomeys' fees arising out of or by reason of complying with this request. 11.A reproduction of this request by photocopying or similar process shall be for all intents and purposes as valid as the original. Print Full Legal Name of Authorized Agent clearly below: Legal Agent Last Name (Please Print) Legal Agent First Name Legal Agent Middle Name Legal Agent Title Signature (Must be signed in front of two witnesses) Dated this day of . 20 , at may) (month) year (time) a sae Witness 1 Signature Witness 2 Signature Signature of Medical Marijuana Enforcement Division agent presenting this request Date Page 7 of 8 Colorado Medical Marijuana Enforcement Divsion Appendix A Optional Premises Cultivation License (a) It leased, list name of landlord and tenant, and date of expiration, EXAU I LY as they appear on the lease: Landlord Tenant Expires Attach a diaoram of the oremises to he licensed and outline or desionate the area fincludina dimensions) which shows the limited access areas. walls, partitions, entrances, exits and what each room shall be utilized for in this business. This diagram should be no larger than 8 1/2" X 11 ". (Doesn't have to be to scale) Who, besides the owners listed in this application (including persons, firms, partnerships, corporations, limited liability companies, trusts), will loan or give money, inventory, furniture or equipment to or for use in this business; or who will receive money or profits from this business. Attach a separate sheet if necessary, - NAME DATE OF BIRTH FEIN OR SSN INTEREST Attach copies of all notes and security instruments, and any written agreement, or details of any oral agreement, by which any person (including partnerships, corporations, limited liability companies, etc.) will share in the profit or gross proceeds of this establishment, and any agreement • e e s a e a ® e a e Date application filed with local authority Date of local authority hearing (if held, for new license applicants; cannot be less than 30 days from date of application 12- 43.3 -302 (1) C.R.S.) THE LOCAL LICENSING AUTHORITY HEREBY AFFIRMS: Yes No ❑ It has adopted an ordinance or resolution containing specific standards for license issuance prior to July 1, 2011 ................................ .... ❑ ❑ ❑ Give citation of ordinance or resolution ❑ Has not adopted an ordinance or resolution and will be using minimum licensing requirements in 12 -43.3 -Part 3 C .R.S . ......................... ❑ ❑ The foregoing application, the premises, and business to be conducted have been examined. We do report that such license, if granted, will comply with the provisions of Title 12, Article 43.3, C.R.S. THEREFORE, THIS APPLICATION IS APPROVED. Local Licensing Authority for Telephone Number ❑ TOWN, CITY ❑ COUNTY Signature Title Date Signature (attest) Title Date Page 8 of 8 Does the applicant have legal possession of the premises by virtue of ownership, lease or other arrangement? ❑ ownership ❑ Lease ❑ Other (Explain in Detail) " ° ' Application Fee $ Wheat�dge Business License Application 7500 W. 29th Ave., Wheat Ridge, CO 80033 -8001 Licensing Fee $ 20.00 Phone(303)235 -2820 Fax(303)234 -5924 '01 11 Please print neatly or type. Complete all applicable sections. A LICENSE MAY BE DELAYED IF THE APPLICATION IS IMPROPERLY COMPLETED. 1. Business Name: OFFICE USE ONLY: 2. Location in Wheat Ridge: Commercial Bldg. Industrial Bldg. Other LICENSE NUMBER T A YHO. t1 £BUl51N£ll£JN££DTO4107AML£T£A - O a) Private Residence Y N if yes, will the following occur: b) Retail sales ❑ c) Office Use ❑ d Storage of Goods ❑ if so, why: e) Mfg of Goods ❑ Explain 2e: f) Employees: Self ❑ Family Members ❑ Others ❑ g) Location of Business: House ❑ Garage ❑ Other ❑ location code AREA-4 GEO ZONEDy 3. Number of Locations in Wheat Ridge: (e ach location must license separately) 4. Mailing Address: APPROVED BY , L 5. Business Phone: ( ) - Emergency Phone: ( ) - E -mail: Fax: ( ) - Website s : DATE-4 6. Nature of Business: Primary MMJ caregiver CO registry # 7a. Date Business Started in Wheat Ridge: 7b. Date Business Occupied Address in 2: 8. Business type code from page 3: Business type Code and description from page 3 will help speed the process. NOTES: 9. Number of Employees IN WHEAT RIDGE, including self if applicable (Mandam,): 10. Type of Ownership: Sole /individual ❑ Partnership ❑ Corporation ❑ Association /club ❑ Other: 11. Owner/Corporate Name: Owner /Cor orate Address: Responsible Party for Tax owner, officer, general partner): 12. Tax Reporting Status (see Code Sec. 22 -40c): Monthly ❑ Quarterly ❑ Annual ❑ I declare under penalty of perjury that the statements made on this application are made in good faith pursuant to the Wheat Ridge Code of Laws and regulations, and to the best of my knowledge and belief are true, correct and complete. AUTHORIZED SIGNATURE: Printed Name: Title: A valid Certificate of Occupancy is required prior to occupying any space or structure. approved Business License does not constitute a Certificate of Occupancy. The Building Division should be contacted to verify or obtain a valid Certificate of Occupancy for the space or structure to be occupied by this business. Failure to satisfy occupancy requirements and conditions will result in suspension of the Business License and closure of the business location until remedied and approved by the City. PAGE TWO MUST BE COMPLETED THIS IS PAGE 2. IT MUST OF PRIVACY STATEMENT: THIS PAGE IS NOT PUBLIC INFORMATION AND IS NOT SUBJECT TO PUBLIC INFORMATION DISCLOSURE. 13. List Names and Addresses of Owners, Partners or Officers: Begin with primary applicant. Full Name StreetAddress (no P.O. Box) Date of Birth % Ownership Held 14. Have any of the owners, officers or partners ever been convicted of a felony? Yes ❑ No ❑ if yes, please explain below: 15. Ownership of Building and Equipment (for approval purposes): How You Acquired... If leased, name & address of landord or lessor: Building Purchase ❑ n/a Lease to Purchase ❑ Lease (rent) ❑ Equipment Purchase ❑ n/a Lease to Purchase ❑ Lease (rent) ❑ NOTES: ly'V IV !'�RE MINDERIM sinesses Located in Wheat Ridge: Zoning has requested that you be as specific as possible describing the nature of your business on page Examples: major auto repair, minor auto repair, type of product manufactured, products (in general) that you are selling, type of service you form an so forth. Extra space is provided above and guidelines on the next page. Thanks for helping us speed the approval process. CERTIFICATE OF PROPERTY PERMISSION Medical Marijuana Primary Caregiver Permission is hereby granted for: (Primary Caregiver) To conduct medical marijuana activities for up to 5 patients at: (legal address) Owned by: r or duly authorized agent) Primary Caregiver Signature Date Property Owner /Authorized Agent Signature Date NOTARY PUBLIC: Sworn before me this day of By Address My Commission Expires: r� PRIMARY CAREGIVER AFFIRMATION AND ACKNOWLEDGEMENT I, , hereby affirm and acknowledge the following: 1. I am a state approved a medical marijuana primary caregiver. Initial 2. I understand that I maybe subject to Federal criminal prosecution for the distribution of a controlled substance. Initial 3. I agree to provide the Wheat Ridge Police Department with the registry identification number and name of each of my patients when and if asked. Initial 4. I agree that the provisions of Chapter 26 of the Wheat Ridge Code of Laws concerning home occupations have been made known to me and I understand that they apply to my activities as a primary caregiver. Initial 5. I understand that it is unlawful to grow medical marijuana for my patients outside and so doing could result in administrative action against my City Primary Caregiver License. Initial 6. I understand that the City of Wheat Ridge accepts no legal liability in connection with its approval and my subsequent operation of a medical marijuana primary caregiver location. Initial Date: Sec. 26 -613. Home occupations. A. Home occupation. Home occupations are permitted as accessory uses to any conforming (as to use) residential dwelling; provided, however, that the following requirements are met: 1. Such use shall be conducted entirely within a dwelling or accessory structure except for sales of plants and produce grown on the premises and carried on only by the inhabitants living there, with the exception that should the operator be substantially, physically handicapped a nonresident may be employed to assist the operator in his work to the extent he requires it to make up for his physical handicap. 2. Not more than one (1) employee may live off - premises. 3. Such use shall be clearly incidental and secondary to the use of the dwelling for dwelling purposes and shall not change the character thereof. 4. The total area used for said purposes shall not exceed twenty -five (25) percent of the gross floor area of the user's dwelling unit. 5. Effective August 17, 2007, 2 square feet of signage is permitted. 6. No home occupation shall create negative impacts for the residential neighborhood and it shall not change the residential character thereof. 7. The use shall not generate traffic, noise, vibration, glare, fumes, odors or electrical interference beyond what normally occurs in any residential zone district. 8. There shall be only incidental storage of stocks, supplies or products related to the occupation conducted on the premises. Merchandise stored or merchandized on the premises, which is either for retail sale or for delivery of presold items, shall be limited to a maximum area of one hundred (100) square feet. 9. There shall be no exterior storage on the premises of materials, products or equipment used as part of the home occupation, nor shall there be any visible evidence from any property line of the operation of a home occupation except for the sale of plants and produce grown on the premises. 10. Parking related to the home occupation shall be confined to the street frontage of the lot in question, the driveway and the garage /carport. In instances where the home is used as an office for business conducted off - premises, such as by way of example, a home improvement contractor, lawn care service, etc., storage of materials, tools, equipment, trailers, trucks or vans used in the business, except as specified below, shall not be permitted upon the premises from which the home occupation operates. In addition, parking of the motor vehicle of an employee who works off of the premises shall be confined to the frontage of the lot in question, the driveway, and the garage or carport. The home occupant may park no more than one (1) motor vehicle used in the business upon the premises or confined to the street frontage of the lot in question; provided that any such vehicle does not exceed a one -ton chassis. All tools, equipment and materials shall be totally enclosed within this vehicle or within enclosures attached to the vehicle. 11. Home occupations are limited to the following business or commercial activities: a. Craft work, such as the making of pottery, jewelry or dolls, flower arranging, smithing and woodworking. b. Garment work, such as tailoring, dressmaking, millinery work, ironing and garment repair. c. Office uses, such as office uses for door -to -door, home party and telephone solicitation sales, investment counseling, typing, notary public, travel services, surveyors, physicians, dentists, lawyers, accountants, architects, engineers and other similar services. d. Repair services for electronics, small appliances, and mechanical devices, bicycles and upholstery. e. Tutoring, music lessons, dance lessons, gymnastics lessons, swim lessons and tennis lessons. f. Artistic endeavors, such as art studios, portrait studios, photography studios, writing and lithography. g. Garage sales, not to exceed four (4) three -day periods, which need not be consecutive, per calendar year. h. Hair care services carried on by only one (1) inhabitant of the dwelling. No other employee shall be permitted. i. Small day care home. j. Sales directly related but merely ancillary to the primary home occupation, such as: (1) Sale of hair care products by a beautician or barber. (2) Sale of accompaniment items, such as neckties, bows, ribbons or belts for a tailor or dressmaker. (3) Sale of component parts or accessories used in repair services for electronics, small appliances, bicycles, etc. (4) Supplies related to a class, course of instruction, or lessons conducted on the site. (5) Sale of artistic or craft works which were created on the site, such as pottery, jewelry, dolls, portraits, paintings, sculptures, etc. (6) Sale of plants and produce grown on the premises. k. Delivery of pre -sold items which were sold either over the telephone, by door -to -door solicitation or at home parties, such as beauty products, kitchen ware, home products, etc. I. Massage therapist, restricted to one (1) practitioner, subject to the restrictions of chapter 11, article X of the Code of Laws. m. Other similar uses as approved by the director of community development or board of adjustment and when in conformance with the standards and requirements set forth herein. 12. In no event shall any home occupation include or allow any of the following business or commercial activities: a. Body or mechanical repair or modification of motor vehicles (for hire). b. Animal hospital, kennel or animal grooming. c. Residential health care facility. d. Taxidermy of large animals and large fish and /or curing of hides and skins. e. Parking of vehicles for a fee or any other thing considered of value. (Ord. No. 2001 -1215, § 1, 2- 26 -01; Ord. No. 1370, § 1, 8- 28 -06) Page 1 of 2 Kenneth Johnstone From: Kenneth Johnstone Sent: Tuesday, March 22, 20114:16 PM To: John Schumacher; Kathy Field; Kenneth Johnstone; Kirk Cadotte; Lauren Mikulak; Melissa Mackey; Meredith Reckert; Sally Payne; Sarah Showalter Cc: Kathy Franklin; Christopher Price; 'gdahl @mdkrlaw.com'; Daniel Brennan; Mark Cooney Subject: Med MJ Administrative processing update Good morning all, We had an internal meeting on Monday with Comm Dev, Sales Tax, PD and our City Attorneys to discuss fees and administrative processing procedures for future potential medical marijuana business applications. We are still finalizing some of the specific procedures and our City Attorney will be preparing an administrative policy memo that spells out how we process applications, notably in the event we receive multiple applications when the moratorium is lifted. I will forward that policy memo as soon as available. In the meantime, a couple of things to be aware of, as follows: March 28 City Council meeting scheduled for adoption of the necessary administrative processing fees. While the effective date of our local ordinance is April 1, the state moratorium is still in effect tentatively set to expire July 1, 2011, pending the states adoption of administrative rules. With the state moratorium in effect, we will not be authorized to accept or process any permits, licenses, etc. for NEW medical marijuana establishments, with one exception, noted below. The exception is that we have two EXISTING MedMJ businesses that are considered "grandfathered in ". These two establishments are required by the ordinance to apply for licenses with the City within 30 days of the effective date of the ordinance. As existing establishments, they will not be subject to the state moratorium and will in fact be required to apply for and receive medical marijuana licenses. They are exempted from the buffering requirements from schools, daycares, etc.\ A question has been raised regarding how to measure the 1000 -foot separation requirement. It is not explicitly stated in the ordinance. We are working with our City Attorney on that question and will provide more direction shortly. (Current Planners) In regards to inquiries as to specific locations and their permissibility relative to 1) zoning district; 2) 3 /4 mile separation between "centers "; and 3) 1000 -foot buffering from schools, daycares and drug and alcohol treatment facilities, we should be prepared to respond to this inquiries in the following manner: • Treat them as any other zoning compliance type of letter • Request the questions be posed in writing (either by e -mail or letter) • Require as much specific information as you deem necessary to make an accurate determination • All responses should have the caveat "as of time of the writing of this _ (e- mail, letter) ". The presence of other MMJ Centers, Daycares, etc. can and may change rapidly. Please do not hesitate to ask if you have any questions. Thanks. Ken Johnstone, AICP 3/23/2011 Page 2 of 2 Community Development Director 7500 W. 29th Avenue Wheat Ridge, Colorado 80033 Office Phone: 303 - 235 -2844 Fax: 303 - 234 -2824 www.ci.wheatridize.co.us City of . Wheat �dge CCtMMUNtTY tSkV�t)F +AeLNT CONFIDENTIALITY NOTICE: This e-mail contains business - confidential information. It is intended only for the use of the individual or entity named above. If you are not the intended recipient, you are notified that any disclosure, copying, distribution, electronic storage or use of this communication is prohibited. If you received this communication in error, please notify us immediately by e-mail, attaching the original message, and delete the original message from your computer, and any network to which your computer is connected. Thank you. 3/23/2011 i SL a \ CON^ v P u it 'PVG s `FQ rY�dJ`u T f 1 Vv� `' "h i I F' I I s JD us •' v Cam, �I'L ,., a� r2 s a , J 1 � i Zd P �� A - Wheat Ridge, CO - Official Website - Medical Marijuana Page 1 of 2 Currently The City Council passed the Wheat Ridge Medical Marijuana Ordinance (MEDMO) on March 14, 2011 by a unanimous vote of the six members present. The ordinance (number to be supplied when it becomes available) will be effective on April 1, 2011. Please view 1 i . r„ eft to - - in the Most Recent Agenda Packet at the City Clerk's page. As soon as the signed and numbered ordinance is available it will be made available on the'.. i 1 .c;, ng, and linked up from this page as well. Under its own temporary moratorium imposed by -, Q (and extended by . ° +4Z and i _1, [.' {) no new license applications for medical marijuana centers or cultivation facilities may be accepted or reviewed by City staff prior to the effective date of the Medical Marijuana Ordinance, April 1, 2011. There is no way to "place hold" a location before then. Additionally, fd effectively imposes a moratorium on the issue of any new state medical marijuana licenses until July 1, 2011. So, even though a City license may be granted, any operations can happen only after the State license is issued. You've Got Questions, We've Got Answers Q: When will 'applications be available? A: Fees must first be set by a motion of City Council at the March 28 meeting. Staff will develop a recommendation based on the time and resources required to perform the comprehensive review required by both City and State law. Applications will be available online and at the Tax Division office by 1:00 p.m. March 29. Q: When will applications be accepted? A: City staff will begin accepting applications promptly at 8:00 a.m. on April 1. Q: How will order of reception be established? A: City staff will time and date stamp each application as it arrives on or after April 1, regardless of how it arrives. Q: Can I mail my application to arrive early so you can hold onto it and stamp it right away in the morning of April 17 A: No. The City is prohibited by law from even accepting an application prior to April 1. Mail will be opened at 4:30 p.m. on March 31 to prevent inadvertent unlawful early acceptance. Any applications found at that time will be set aside and the applicant called by 5:30 p.m. of March 31. Q: How will it be ensured that applications will be approved in the order of receipt? A: A process will be established soon and published on this page as well as in a printed flyer that will be available at the Tax Division office. The City may also issue a press release prior to April 1 about the entire process. Watch for it[ Q: After applying on or after April 1, how long will it be until I know if my license is approved? A: It depends on a number of factors such as how quickly you respond to any requests for information, staff absences, and volume. Generally, a complex application will take three to four weeks to process. You will be notified of approval or denial according to the process that is yet to be established. Guidance from the State The Colorado Department of Revenue has issued a ask- - ra i k,y_ to assist localities and licensees in understanding the law and its requirements. Any questions remaining after reading the memorandum should be taken to an attorney or the Medical Marijuana Enforcement Divisor. Their office http:// co- wheatridge .eivicplus.com/index.aspx ?NID= 930 &ART = 2533 &ADMIN =1 03/17/2011 Wheat Ridge, CO - Official Website - Medical Marijuana Page 2 of 2 may be contacted at: Medical Marijuana Enforcement Division 6200 Dahlia Street Commerce City, CO 80022 Phone: 303- 205 -THCI (8421) Website Contacts £: i. _ Ei. 1'ti I'. `c :i Please feel free to .:.. <c Iq: with questions or concerns about licensing. If you want to be on a distribution list for email notification about the City's activities on this matter join #�cERVKE REQUEST .there ri p c -, If you want to report a possible illegal medical marijuana operation, please contact the . I CAREER fii PORjUeliTIES -S.& PROF055ALSA input regarding the fees should be directed to the City of wheat Ridge City Hall • 7500 1N. 29th Ave. • Wheat Ridge, CO 50033 • (303) 234-5900 Corte municipal accessibility site map disclaimer powered by CivicHus • copyright notices http: / /co- wheatridge.civieplus.com /index.aspx ?NID = 930 &ART =2533 &ADMIN =1 03/17/2011 COLORADO BUSINESS MEDICAL MARIJUANA LICENSE APPLICATION V,DV\ DR 8530 (07106!70) The following features are available for this document when opened in the free Adobe Reader 8.0 or higher. -Save form data (for a fillable PDF form only). -Sign an existing signature field. - Digitally sign the document anywhere on the page (only supported in Adobe Reader 8.0) Colorado Medical Marijuana Enforcement Division Business License Application Instructions APPLICATION CHECKLIST 1 Application Fully Completed Type or clearly print an answer to every question. If a question does not apply to you, indicate so with an N /A. If you are unsure if a question applies to you or what information the form is asking you to provide, contact any Medical Marijuana Enforcement Division office to seek clarification. If the available space is insufficient, continue on a separate sheet and precede each answer with the appropriate title. 2 All Forms Signed & Attached The following accompanying forms must be signed and returned with the application: ❑Affirmation & Consent Investigation Authorization /Authorization to Release Information El Applicant's Request to Release Information (leave top two lines of form blank) ❑ IRS Form 8821 L E 3 l All Requested Information Attached The following information requested on the application must be attached, if applicable: ❑ Trade Name Registration ❑ Certificate of Authority from the Colorado Secretary of State's Office ❑ Certified Copy of Articles of Incorporation, including amendments El Articles of Organization, including amendments ❑ Partnership Agreement, including amendments ❑ If corp., annual and bi- annual reports and meeting minutes from past 12 months ❑ Current Uniform Commercial Code Report for all states where known to be filed El All applicable information requested on page 4 NOTE. The Medical Marijuana Enforcement Division reserves the right to request additional information and documentation throughout the course of the background investigation. ❑ 4 Applications For Associated Persons Attached Submit the following: (1) Associated Person License Application Form (DR8520) for any person holding an ownership interest in either a privately held company or publicly traded corporation, and /or officers and directors, regardless of ownership interest, if any. El 5 Application Fees Submit appropriate license, application and background fees. ❑ Medical Marijuana Center (Type 1'): $7,500 application fee ❑ Medical Marijuana Center (Type 2'): $12,500 application fee ❑ Medical Marijuana Center (Type 3'): $18,000 application fee ❑ Optional Premises Cultivation License: $1,250 ❑ Medical Marijuana— Infused Products Manufacturer: $1,250 'Type 1 =300 or fewer patients, all Colorado residents; *Type 2 =301 to 500 patients, 'Type 3 =501 or more patients. E Make check or money order payable to: Colorado Medical Marijuana Enforcement Division. 6 Mail or Bring in Application Bring in application and all attachments to: Medical Marijuana Enforcement Division 6200 Dahlia Street Commerce City, CO 80022 DR 8530 (07/01/10) Colorado Medical Marijuana Licensing Authority COLORADO DEPARTMENT OF REVENUE MEDICAL MARIJUANA ENFORCEMENT DIVISION Business License Application License Types & Fees (Check only one application type. See Application Checklist for details on license types and fees.) ❑ Medical Marijuana Center (Type 1*): $7,500 application fee ❑ Optional Premises Cultivation License: $1,250 ❑ Medical Marijuana Center (Type 2 *): $12,500 application fee ❑ Medical Marijuana — Infused Products Manufacturer: $1,250 ❑ Medical Marijuana Center (Type 3 *): $18,000 application fee. "Type 1 =300 or fewer patients, *Type 2 =301 to 500 patients; 'Type 3 =501 or more patients Applicants Name (Please Print) Medical Marijuana License Number (Assigned by Division) Name (DBA) (Provide Trade Name Registration) Street Address of Medical Marijuana Business (Required for Retailer Applicants) (Use Appendix A for Optional Premises Cultivation Information) Number Contact Person for Business Primary Contact Phone Contact Fax Number Sales Tax License # Type of Business Structure ❑ Sole Proprietorship ❑ Partnership ❑ Limited Partnership ❑ Limited Liability Company ❑ C Corporation ❑ S Corporation ❑ Publicly Traded Corporation ❑ Trust ❑ Other State of Incorporation or Creation of Business Entity IDate to of Authority from the Colorado a Corporation, List all States Where the Corporation is Authorized to Conduct OF REVENUE USE ONL County State city I Industry Type I License Account Number I Liability Date Cash Fund New License City County I Managers Reg Cash Fund Transfer License R Office) SPACE (Expiration Page 1 of 8 1. Is the applicant (including any of the partners, if a partnership; members or manager if a limited liability company; or officers, Yes No ❑ ❑ stockholders or directors if a corporation) or manager under the age of twenty-one years? 2. Has the applicant (including any of the partners, if a partnership; members or manager if a limited liability company; or officers, stockholders or directors if a corporation) or manager ever (in Colorado or any other state); El (a) been denied a privileged license (ie: Liquor, Gaming, Racing and Medical Marijuana)? ... .. .............................. ............... ..............................❑ ❑ (b) had a privileged license (ie: Liquor, Gaming, Racing and Medical Marijuana) suspended or revoked? .................. ......... ..................... ... ......❑ (c) had interest in another entity that had a privileged (ie: Liquor, Gaming, Racing and Medical Marijuana) license El ❑ denied suspended or revoked?... ........................................ - .................................................................................... ... . . .... ...... ... If you answered yes to 2a, b or c, explain in detail on a separate sheet. 3. Has a Medical Marijuana Center license application (same license class), that was located within 1000 feet of the proposed premises, ❑ been denied within the preceding two years? If "yes,' explain in detail .................................................... ............................... 1. ...................... ....❑ 4. Are the premises to be licensed within 1000 feet of a school (as defined in 12 -43.3 104 (15) C.R.S.), alcohol or drug treatment facility, principal ❑ ❑ campus of a college, university, or seminary, or a residential childcare facility? ..................................... ........ ... .......... ................. ............. .......... S. Has a Medical Marijuana license ever been issued to the applicant (including any of the partners, if a partnership; members or manager if a limited liability company; or officers, stockholders or directors if a corporation)? If yes, identify the name of the business and ❑ ❑ list any current or former financial interest in said business including any loans to or from a licensee . ............................... 1............................ 6. Does the applicant of this application, have legal possession of the premises by virtue of ownership, lease or other arrangement? Attach all documentation showing legal possession. Deed, Title, sale or lease agreements etc. ❑ Ownership ❑ Lease ❑ Other (Explain in Detail) (a) If leased, list name of landlord and tenant, and date of expiration, EXACTLY as they appear on the lease: Landlord Tenant Expires Attach a diagram of the premises to be licensed and outline or designate the area (including dimensions) which shows the limited access areas, walls, partitions, entrances, exits and what each room shall be utilized for in this business. This diagram should be no larger than 8 1/2" X 11 ". (It does not have to be to scale) 7. Who, besides the owners listed in this application (including persons, firms, partnerships, corporations, limited liability companies, trusts), will loan or give money, inventory, furniture or equipment to or for use in this business; or who will receive money or profits from this business. Attach a separate sheet if necessary. NAME DATE OF BIRTH FEIN OR SSN INTEREST Attach copies of all notes and security instruments, and any written agreement, or details of any oral agreement, by which any person (including partnerships, corporations, limited liability companies, etc.) will share in the profit or gross proceeds of this establishment, and any agreement relating to the business which is contingent or conditional in any way by volume, profit, sales, giving of advice or consultation. 8. Optional Premises Cultivation License Yes No ❑ ❑ Has the Applicant filed for an Optional Premises License? ....................................................................... ............................... I........................... What City or County? (Fill out Appendix completely) 9. Does the Applicant have evidence of a good and sufficient bond in the amount of $5000.00 in accordance with 12 -43.3 -304 C.R.S. ❑ (Include evidence with effective date 7 -1 -2011 with application)? ...... .............. ................... .. ............................................................ ............ Date filed with local authority Date of local authority hearing (if held, for new license applicants; cannot be less than 30 days from date of application 1243.3 -302 (1)) C.R.S. THE LOCAL LICENSING AUTHORITY HEREBY AFFIRMS: Yes No ❑ ❑ It has adopted an ordinance or resolution containing specific standards for license issuance priorto July 1, 2011 ................ ........ ... .........❑ ❑ Give citation of ordinance or resolution ❑ Has not adopted an ordinance or resolution and will be using minimum licensing requirements in 1243.3 -Part 3 C .R.S . .................. ....... ❑ ❑ The foregoing application, the premises, and business to be conducted have been examined. We do report that such license, if granted, will comply with the provisions of Title 12, Article 43.3, C.R.S. THEREFORE, THIS APPLICATION IS APPROVED. Local Licensing Authority for Telephone Number ❑ TOWN, CITY ❑ COUNTY Signature Title Date Signature (attest) Title Date Page 2 or a Page 3 of 8 minymn List all persons and /or entfties with any ownership interest, and all officers and directors, whether they have ownership interest or not. If an entity (cor- poration, partnership, LLC, etc.) has interest, list all persons associated with such entity, their ownership in the entity, and their effective ownership in the license. List all parent, holding or other intermediary business interest. An Associated Person License Application form must be submitted for all persons in a privately held company or a publicly traded corporation, and all officers and directors. Name Title SSN /FEIN DOB App submitted? E]Yes [:]No Address city State ZIP Phone Number Business Associated with (Parent business or sub - entity) Own. % Business Associated with Effective Own. %in Applicant Name Title SSN /FEIN DOB App submitted? ❑ Yes [:] No Address city State ZIP Phone Number Business Associated with (Parent business or sub - entity) Own. % Business Associated with Effective Own. % in Applicant Name Title SSN /FEIN DOB App submitted? Yes DNo Address city State ZIP Phone Number Business Associated with (Parent business or sub - entity) Own. % Business Associated with Effective Own. % in Applicant Name Title SSN /FEIN DOB App submitted? E] Yes 0 No Address city State ZIP Phone Number Business Associated with (Parent business or sub - entity) Own. % Business Associated with Effective Own. % in Applicant Name Title SSN /FEIN DOB App submitted? oYes E]No Address city State ZIP / Phone Number Business Associated with (Parent business or sub - entity) Own. % Business Associated with Effective Own. % in Applicant Name Title SSN /FEIN DOB App submitted? Yes No Address city State ZIP Phone Number Business Associated with (Parent business or sub - entity) Own. % Business Associated with Effective Own. % in Applicant Name Title SSN /FEIN DOB App submitted? Yes E]No Address city State ZIP Phone Number Business Associated with (Parent business or sub - entity) Own. % Business Associated with Effective Own. % in Applicant Are there any outstanding options and warrants? ❑ Yes E] No `If YES, attach list of persons with outstanding options and warrants Are there any other persons, other than those listed in the Ownership Structure, including but not limited to suppliers, lenders and landlords, who will receive, directly or indirectly, any compensation or rents based upon a percentage or share of gross proceeds or income of the Medical Marijuana business? ❑ Yes ❑ No `If YES, attach list of persons and submit Associate Person License Application forms for each person Page 3 of 8 Applicant's Printed Trade Name (DBA) t.Has the applicant, the applicant's parent company or any other intermediary business entity ever applied for a Medical Mari- juana license in this or any other jurisdiction, foreign or domestic, whether or not the license was ever issued? If YES, provide D Yes D No details on a separate sheet, including jurisdiction, type of license, license number, and dates license held or applied for. 2.Has the applicant, the applicant's parent company or any other intermediary business entity ever been denied a Medical Mari- Yes D No juana license, withdrawn a Medical Marijuana license or had any disciplinary action taken against any Medical Marijuana license that they have held in this or any other jurisdiction, foreign or domestic? If YES, provide details on a separate sheet, including jurisdiction, type of action, and date of action. a Us the applicant, the applicant's parent company or any other intermediary business entity delinquent in the payment of any judg- � Yes D No ments or tax liabilities due to any governmental agency anywhere? If YES, provide details on a separate sheet and attach any documents to prove settlement or resolution of the delinquency. 2.Has the applicant, the applicant's parent company or any other intermediary business entity filed a bankruptcy petition in the Yes [J No past 5 years, had such a petition fled against it, or had a receiver, fiscal agent, trustee, reorganization trustee or similar person for it? If YES, details on a separate sheet and attach any documents from the bankruptcy court. appointed provide 3.Is the applicant, the applicant's parent company or an other intermedi business en curren a art to, or has it ever PP ' P P Y Y rY ty Y p ar t y Dyes D No been a party to, in any capacity, any business trust instrument? If YES, provide details on a separate sheet. 4.Has a complaint, judgment, consent decree, settlement or other disposition related to a violation of federal, state or similar for- D Yes ❑ No eign antitrust, trade or security law or regulation ever been fled or entered against the applicant, the applicant's parent company or any other intermediary business entity? If YES, provide details on a separate sheet and attach any documents to prove the settlement of any of these issues. Include any items currently under formal dispute or legal appeal. 5.Has the applicant, the applicant's parent company or any other intermediary business entity been a party to a lawsuit in the past D Yes ❑ No 5 years, either as a plaintiff or defendant, complainant or respondent, or in any other fashion, in this or any other country? If YES, provide details on a separate sheet and attach any documents to prove the settlement of any of these issues. Include any items currently under formal dispute or legal appeal. S.Has the applicant, the applicant's parent company or any other intermediary business entity filed a business tax return in the ❑ Yes ❑ No past two years? If YES, attach all business tax returns filed in the past two years. 7.Has the applicant, the applicant's parent company or any other intermediary business entity completed financial statements, ❑ Yes O No either audited or unaudited, in the past two years? if YES, attach all financial statements completed in the past two years. Us the business a prospective business or has it recently begun operations? If so, submit an estimated beginning balance sheet D Yes O No (proforma) and a statement of amount(s) and source(s) or funding for the business and specific documentation to support the declaration. 9.Has any interest or share in the profits of the sale of Medical Marijuana been pledged or hypothecated as security for a debt or Yes O No deposited as a security for the performance of an act or to secure the performance of a contract? If YES, provide details on a separate sheet. 10.Attach a list detailing the operating and investment accounts forthis business, including financial institution name, address, telephone number, and account number for each account. 11.Attach a list detailing each outstanding loan and financial obligation obtained for use in this business, including creditor name, address, phone num- ber, loan number, loan amount, loan terms, date acquired, and date due. Person who maintains Applicant's business records Title Address Phone Number Person who prepares Applicant's tax returns, government forms & reports Title Address Phone Number Location of financial books and records for Applicant's business Page 4 of 8 Affirmation & Consent I, , as an authorized agent for the applicant, state under penalty for offering a false instrument for recording pursuant to 18 -5 -114 C.R.S. that the entire Associated Person & Associated Key License Application Form, statements, attachments, and supporting schedules are true and correct to the best of my knowledge and belief, and that this statement is executed with the knowledge that misrepresentation or failure to reveal information requested may be deemed sufficient cause for the refusal to issue a Medical Marijuana license by the State Licensing Authority. Further, I am aware that later discovery of an omission or misrepresentation made in the above statements may be grounds for the denial of a temporary Medical Marijuana application or the revocation of the license. I am voluntarily submitting this application to the Colorado Medical Marijuana Licensing Authority under oath with full knowledge that I may be charged with perjury or other crimes for intentional omissions and misrepresentations pursuant to Colorado law or for offering a false instrument for recording pursuant to 18 -5 -114 C.R.S. I further consent to any background investigation necessary to determine my present and continuing suitability and that this consent continues as long as I hold a Colorado Medical Marijuana License, and for 90 days following the expiration or surrender of such Medical Marijuana license. Note: If your check is rejected due to insufficient or uncollected funds, the Department of Revenue may collect the payment amount directly from your banking account electronically. Name Legal Agent Last Name (Please Print) Legal Agent Page 5 of 8 Investigation Authorization Authorization to Release Information as an authorized agent for the applicant, hereby authorize the Colorado Medical Marijuana Licensing Authority, the Medical Marijuana Enforcement Division, (hereafter, the Investigatory Agencies) to conduct a complete investigation into my personal background, using whatever legal means they deem appropriate. I hereby authorize any person or entity contacted by the Investigatory Agencies to provide any and all such information deemed necessary by the Investigatory Agencies. I hereby waive any rights of confidentiality in this regard. I understand that by signing this authorization, a financial record check may be performed. I authorize any financial institution to surrender to the Investigatory Agencies a complete and accurate record of such transactions that may have occurred with that institution, including, but not limited to, internal banking memoranda, past and present loan applications, financial statements and any other documents relating to my personal or business financial records in whatever form and wherever located. I understand that by signing this authorization, a financial record check of my tax filing and tax obligation status may be performed. I authorize the Colorado Department of Revenue to surrender to the Investigatory Agencies a complete and accurate record of any and all tax information or records relating to me. I authorize the Investigatory Agen- cies to obtain, receive, review, copy, discuss and use any such tax information or documents relating to me. I authorize the release of this type of information, even though such information may be designated as "confidential" or "nonpublic" under the provisions of state or federal laws. I understand that by signing this authorization, a criminal history check will be performed. I authorize the Investigatory Agencies to obtain and use from any source, any information concerning me contained in any type of criminal history record files, wherever located. I understand that the criminal history record files contain records of arrests which may have resulted in a disposition other than a finding of guilt (i.e., dismissed charges, or charges that resulted in a not guilty finding). I understand that the information may contain listings of charges that resulted in suspended imposition of sentence, even though I successfully completed the conditions of said sentence and was discharged pursuant to law. I authorize the release of this type of information, even though this record may be designated as "confidential" or "nonpublic" under the provisions of state or federal laws. The Investigatory Agencies reserve the right to investigate all relevant information and facts to their satisfaction. I under- stand that the Investigatory Agencies may conduct a complete and comprehensive investigation to determine the accura- cy of all information gathered. However, the State of Colorado, Investigatory Agencies, and other agents or employees of the State of Colorado shall not be held liable for the receipt, use, or dissemination of inaccurate information. 1, on behalf of the applicant, its legal representatives, and assigns, hereby release, waive, discharge, and agree to hold harmless, and otherwise waive liability as to the State of Colorado, Investigatory Agencies, and other agents or employees of the State of Colorado for any damages resulting from any use, disclosure, or publication in any manner, other than a willfully unlawful disclosure or publication, of any material or information acquired during inquiries, investigations, or hearings, and hereby authorize the lawful use, disclosure, or publication of this material or information. Any information contained within my application, contained within any financial or personnel record, or otherwise found, obtained, or maintained by the Investigatory Agencies, shall be accessible to law enforcement agents of this or any other state, the government of the United States, or any foreign country. Print Full Legal Name of Authorized Agent clearly below: Applicant's Business Name Trade Name (DBA) Legal Agent Last Name (Please Print) Legal Agent First Name Legal Agent Middle Name Legal Agent Title Signature (Must be signed in front of two witnesses) Dated this day of , 20 , at (day) (month) (year) (time) (state) (City) Witness 1 Signature Witness 2 Signature Page 6 of 8 Applicant's Request to Release Information TO: FROM: (Applicant's Printed Name) 1.IMle hereby authorize and request all persons to whom this request is presented having information relating to or concerning the above named applicant to furnish such information to a duly appointed agent of the Medical Marijuana Enforcement Division whether or not such information would otherwise be protected from the disclosure by any constitutional, statutory or common law privilege. 2.IIWe hereby authorize and request all persons to whom this request is presented having documents relating to or concerning the above named applicant to permit a duly appointed agent of the Medical Marijuana Enforcement Division to review and copy any such documents, whether or not such documents would otherwise be protected from disclosure by any constitutional, statutory, or common law privilege. 3.WVe hereby authorize and request the Colorado Department of Revenue to permit a duly appointed agent of the Medical Marijuana Enforcement Divi- sion to obtain, receive, review, copy, discuss and use any such tax Information or documents relating to or concerning the above named applicant, whether or not such information or documents would otherwise be protected from disclosure by any constitutional, statutory, or common law privilege. 4.If the person to whom this request is presented is a brokerage firm, bank, savings and loan, or other financial institution or an officer of the same, I /we hereby authorize and request that a duly appointed agent of the Medical Marijuana Enforcement Division be permitted to review and obtain copies of any and all documents, records or correspondence pertaining to me /us, including but no limited to past loan information, notes co- signed by me /us, checking account records, savings deposit records, safe deposit box records, passbook records, and general ledger folio sheets. 5.1/We do hereby make, constitute, and appoint any duly appointed agent of the Colorado Medical Marijuana Enforcement Division, my /our true and lawful attorney in fact for me /us in my /our name, place, stead, and on my /our behalf and for my /our use and benefit: (a) To request, review, copy sign for, or otherwise act for investigative purposes with respect to documents and information in the possession of the person to whom this request is presented as I/we might; (b) To name the person or entity to whom this request is presented and insert that person's name in the appropriate location in this request: (c) To place the name of the agent presenting this request in the appropriate location on this request. 6.1 grant to said attorney in fact full power and authority to do, take, and perform all and every act and thing whatsoever requisite, proper, or neces- sary to be done, in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as I/we might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that said attorney in fact, or his substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. 731his power of attorney ends twenty-four (24) months from the date of execution. 8.The above named applicant has filed with the Colorado Medical Marijuana Licensing Authority an application for a Medical Marijuana license. Said applicant understands that it is seeking the granting of a privilege and acknowledges that the burden of proving its qualifications for a favor- able determination is at all times on the applicant. Said applicant accepts any risk of adverse public notice, embarrassment, criticism, or other action of financial loss, which may result from action with respect to this application. 9.IIWe do, for myself /ourselves, my /our heirs, executors, administrators, successors, and assigns, hereby release, remise, and forever discharge the person to whom this request is presented, and his agents and employees from all and all manner or actions, causes of action, suits, debts, judgments, executions, claims, and demands whatsoever, known or unknown, in law or equity, which the applicant ever had, now has, may have, or claims to have against the person to whom this request is being presented or his agents or employees arising out of or by reason of complying with the request. 10.1/We agree to indemnify and hold harmless the person to whom this request is presented and his agents and employees from and against all claims, damages, losses, and expenses, including reasonable attorneys' fees arising out of or by reason of complying with this request. 11.A reproduction of this request by photocopying or similar process shall be for all intents and purposes as valid as the original. Print Full Legal Name of Authorized Agent clearly below: Legal Agent Last Name (Please Print) Legal Agent First Name Legal Agent Middle Name Legal Agent Title Signature (Must be signed in front of two witnesses) Dated this day of , 20 at (day) year (time) (city) sae Witness 1 Signature Witness 2 Signature Signature of Medical Marijuana Enforcement Division agent presenting this request Date Page 7 of 8 C o l o r ado M Marijuana Enforcement Divsion Appendix A Optional Premises Cultivation License Attach a diagram of the premises to be licensed and outline or designate the area (including dimensions) which shows the limited access areas, walls, partitions, entrances, exits and what each room shall be utilized for in this business. This diagram should be no larger than S 1/2" X 11 ". (Doesn't have to be to scale) ✓ho, besides the owners listed in this application (including persons, firms, partnerships, corporations, limited liability companies, trusts), will loan or ive money, inventory, furniture or equipment to or for use in this business; or who will receive money or profits from this business. Attach a separate heat if necessary. Attach copies of all notes and security instruments, and any written agreement, or details of any oral agreement, by which any person (including partnerships, corporations, limited liability companies, etc.) will share in the profit or gross proceeds of this establishment, and any agreement relating to the business which is contingent or conditional in any way by volume profit sales giving of advice or consultation. 11i A :11 Date application filed with local authority Date of local authority hearing (a held, for new license applicants, cannot be less than 30 days 1from dale of application 12 -03.3 -302 (1) C.R.S.) THE LOCAL LICENSING AUTHORITY HEREBY AFFIRMS: Yes No ❑ It has adopted an ordinance or resolution containing specific standards for license issuance prior to July 1, 2011 ................... -- ............. ❑ ❑ ❑ Give citation of ordinance or resolution ❑ Has not adopted an ordinance or resolution and will be using minimum licensing requirements in 12- 43.3 -Part 3 C.R.S ........................ 11 ❑ The foregoing application, the premises, and business to be conducted have been examined. We do report that such license, if granted, will comply with the provisions of Title 12, Article 43.3, C.R.S. THEREFORE, THIS APPLICATION IS APPROVED. Local Licensing Authority for Telephone Number ❑ TOWN, CITY 0 COUNTY Signature Title Date Signature (attest) I Title Date Page 8 of 8 Does the applicant have legal possession of the premises by virtue of ownership, lease or other arrangement? ❑ Ownership ❑ Lease ❑ Other (Explain in Detail) (a) If leased, list name of landlord and tenant, and date of expiration, EXACTLY as they appear on the lease: COLORADO ASSOCIATED PERSON & ASSOCIATED KEY MEDICAL MARIJUANA LICENSE APPLICATION OR 8520 (07/06/10) The following features are available for this document when opened in the free Adobe Reader 8.0 or higher. -Save form data (for a fillable PDF form only). -Sign an existing signature field. - Digitally sign the document anywhere on the page (only supported in Adobe Reader 8.0) Colorado Medical Marijuana Enforcement Division Associated Person & Associated Key Application Instructions APPLICATION CHECKLIST ❑ 1 License Types (Check on One, and Only One, of the following Types) Associated Person: Any stockholder holding an interest in a medical marijuana licensee, or any officer or director, who does not act as a Key executive, employee or agent. Associated Key: Any stockholder holding an interest in a medical marijuana licensee, or any officer or director, who also acts as a Key executive, employee or agent while physically working in a licensed establishment, Optional Premises or Infused Products Manufacturer location. El 2 Application Completed & Signed Type or clearly print an answer to every question. If a question does not apply to you, indicate so with an N /A. If you are unsure if a question applies to you or what information the form is asking you to pro- vide, contact any Medical Marijuana Enforcement Division office to seek clarification. If the available space is insufficient, continue on a separate sheet and precede each answer with the appropriate title. Sign and date the application. Notice: You are required by state law to provide your social security number. If you do not have a social security number, you must complete a sworn statement (available at any Medical Marijuana Enforcement Division office) stating you do not have a social security number. ❑ 3 Attachments The following must be attached: ❑ Copies of federal income tax returns for the past two (2) years ❑ Certified copy of DD214, if applicable ❑ Copies of diplomas for all higher education degrees, if applicable ❑ Copies of divorce decree(s), if applicable ❑ Copies of 12 months of all (Individual or Joint) bank statements and six months of all (Individual or Joint) credit card statements ❑ Explanations for all "Yes" answers 4 Fingerprint Card & Verification of Fingerprints Ensure the fingerprint card is filled out completely and signed. Also ensure the form "Verification of Fingerprints' is filled out and signed by the person performing the fingerprinting. Medical Marijuana Enforcement Offices can Perform fingerprinting service. El 5 Mail or Bring in Application Mail or bring in application and all attachments to: Medical Marijuana Enforcement Division 6200 Dahlia Street Commerce City, CO 80022 DR 8520(07/06/10) COLORADO DEPARTMENT OF REVENUE MEDICAL MARIJUANA ENFORCEMENT DIVISION 6200 DAHLIA STREET COMMERCE CITY, CO 80022 Medical Marijuana License Number (Leave Blank) Associated Person & Associated Key License Application Form License Types ❑Associated Person (Check only one application type. See Application Checklist for details on license types.) El Associated Key Applicant's Last Name (Please Print) First Name (Please Print) Middle Name If Associated Person or Associated Key, Name of Medical Marijuana Licensee Associated With Maiden /Married Names Used (Full Name) (Attach separate sheet if necessary) Nicknames, Ailases, Etc. Used (Full Name) (Attach separate sheet if necessary) Sex M F Race Date of Birth Social SecurityNumber Other Social Security Numbers Used [:] Yes 0 No If yes attach details. Place of Birth: City State Country Drivers License Number and State+ Physical Appearance Height Weight Hair Color Eye Color Scarslrattoos If yes explain on E] Yes ❑ No a separate sheet U.S. Citizen ❑ Yes ❑ No CO Resident ❑ Yes No Date of Residency 'If "No ", include details here: (Attach separate sheet Alien Registration Number if necessary) Address City County State ZIP Length of time at this Address: Year(s) Month(s) Home Phone Number / \ ` / Cell Phone Number / \ ` / Email Address Address City State ZIP List all addresses where you have lived during the last 10 years, not including present address, (attach separate sheet if necessary) Street and Number City/StatelZIP From To Name of licensed Medical Marijuana business where you will be working Work Phone Number Job Title Name of present employer, if different from above Work Phone Number Occupation or Job Title Do you currently possess a Colorado support Medical Marijuana license or are you an associated person in any other type of Colorado Medical Marijuana license? ❑ Yes ❑ No 'If "Yes ", indicate license type and number here: Have you ever applied before for a Medical Marijuana license in this or any other jurisdiction, domestic or foreign, whether or not the license was ever issued? ❑ Yes ❑ No 'If "Yes ", explain here: Have you ever been denied a Medical Marijuana license, withdrawn a Medical Marijuana license application or had any disciplinary action taken against any Medical Marijuana license that you have held, either individually or as part of an ownership group, in this or any other jurisdiction? ❑ Yes No 'If "Yes ", explain here: Applicant's Signature Date rage 1 or 22 Applicant's Last Name (Please Print) First Name (Please Print) Middle Name NOTICE: The Associated Person & Associated Key License Application Form is an official document. If you provide false information on your Medical Marijuana license application and /or do not disclose all information the application asks, your license is subject to denial or revocation, and you may be subject to criminal prosecution. The Medical Marijuana Enforcement Division will conduct a complete background investigation and will check all sources of information. If you need clarification of any of the following questions, please contact the Investigations Section at any Medical Marijuana Enforcement Division office. 1. Have you ever been convicted of a felony at anytime regarding the possession, distribution, or [:]Yes ❑ No use of a controlled substance? 2_ Have you served a sentence, including probation or parole, within the past 5 years upon convic- ❑ Yes ❑ No tion for any felony, even if the conviction occurred more than 5 years ago? 3 Have you failed to remedy an outstanding delinquency for taxes owed, an outstanding delin- quency for judgements owed to a government agency, or an outstanding delinquency for child ❑ Yes ❑ No support? 4. Are you a licensed Physician making patient recommendations? El Yes ❑ No 5. Have you had your authority to act as a primary caregiver revoked by the State Health Agency? ❑ Yes ❑ No 6 Are you under 21 years of age at the time of this application? ❑ Yes ❑ No 7. Are you the spouse or child living in the household of any person employed by the Colorado ❑ Yes ❑ No Medical Marijuana Enforcement Division? g. Are you an officer, reserve police officer, agent, or employee of any law enforcement agency of ❑ Yes ❑ No the State of Colorado? If you answered YES to any of the above questions, by Colorado law you cannot obtain or hold a Colorado Medical Marijuana license. I have thoroughly read and understand the questions above, and understand that I cannot hold a Colorado Medical Marijuana license if at any time in the future I can ever answer "Yes" to any of the questions above. Applicant's Signature Date Page 2 of 22 Applicant's Last Name (Please Print) First Name Middle Name Applicant's Initials Page 3 of 22 e o INISMINSUfffflam Current Marital Status ❑ Single ❑ Married ❑ Common -Law Separated 0 Divorced ❑ Widowed Engaged Spouse's Full Name (Maiden) (Please Print) Social Security Number Date of Birth Place of Birth Residence Address City State ZIP Spouse's Employer Occupation Address of Employer City State ZIP Previous Marriages (If ever legally separated, divorced or annulled, attach copy of divorce decree) (Attach separate sheet for details, if necessary) Spouse's Name Nature of Order or Decree Date City, County, State Phone Number Current Address City State ZIP Spouse's Name Nature of Order or Decree Date City, County, State Phone Number Current Address City State ZIP b b Children (include all natural, step -, and adopted children) Name Date of Birth Place of Birth Current Address City State ZIP Name Date of Birth Place of Birth Current Address City State ZIP Name Date of Birth Place of Birth Current Address City State ZIP Name Date of Birth Place of Birth Current Address City State ZIP Name Date of Birth Place of Birth Current Address City State ZIP Name Date of Birth Place of Birth Current Address City State ZIP Applicant's Initials Page 3 of 22 e a High School Name Location Major Dates Attended Graduate Degree Earned From To [] Yes EJNo CollegeNO -Tech Name (Submit diploma copy) Location Major Dates Attended Graduate Degree Earned From To Yes [ Other College/School Name (Submit diploma copy) Location Major Dates Attended Graduate Degree Earned From To E] Yes Q No Other College/School Name (Submit diploma copy) Location Major Dates Attended Graduate Degree Eamed From To Yes [:]No e e Have you ever served in any armed forces? (Please provide certified copy of DD214) ❑ Yes F] No If "Yes ": IActive ❑ Reserve Branch Service Number Date of Service Type of Discharge Grade /Rank While in military service, were you ever arrested for an offense in violation of UCMJ? ❑ Yes ❑ No If "Yes ", explain in detail on a separate sheet and attach it to your application. e• 1. In the last 10 years have you ever been arrested, served with a criminal summons, charged with, or convicted of ❑ Yes E] No ANY crime or offense in any manner in this or any other country? • You must include ALL arrests, charges, and convictions in the last 10 years but not prior to the age of 18 regardless of the outcome, even if the charges were dismissed or you were found not guilty. • You must include ALL arrests, charges, and convictions regardless of the class of crime (felonies, misdemeanors, and /or petty offenses). • You must include ALL serious traffic offenses, including DUI; DWAI; reckless driving; leaving the scene of an accident (hit and run); driving under denial, suspension or revocation; or any other offense which resulted in your being taken into custody. • NOTICE: Do not rely upon your understanding that an arrest or charge is "not supposed to be on your record "A criminal record was not cleared, erased, sealed or expunged unless you were given, and have in your possession, a written order from a judge directing that action. *If you answered YES, explain in detail on a separate sheet and attach it to your application. For each offense for which you were arrested or charged, YOU MUST OBTAIN OFFICIAL DOCUMENTATION FROM THE COURT WHERE YOU APPEARED, SHOWING THE FINAL DISPOSITION (OUT- COME) OF YOUR CASE. This information will include whether you were found guilty or not guilty; and the penalty (money fine, time in jail or prison, or probation or deferred sentence). If you received a deferred judgment, a deferred sentence, or probation, your documentation must include the date that you were discharged or released from probation or other supervision. 2. Have you ever received a pardon or its equivalent for any criminal offense in this or any other country? ❑ Yes O No 3. Have you, as an individual, as a member of a partnership or other form of domestic or foreign business entity, or as owner, ❑ Yes ❑ No director, or officer of a corporation, ever been a party to a lawsuit (other than divorces), either as a plaintiff or defendant, complainant or respondent, or in any other fashion, in this or any other country? *If you answered YES to any of the preceding questions, explain in detail on a separate sheet and attach it to your application. Applicant's Initials Page 4 of 22 Applicant's Last Name (Please Print) First Name Middle Name DR 8521 (07106110) COLORADO DEPARTMENT OF REVENUE MEDICAL MARIJUANA ENFORCEMENT DIVISION ARREST DISCLOSURE FORM If you have been arrested in the past 10 years, given a summons, or been convicted of any offense, you must disclose this information to the Medical Marijuana Enforcement Division. Any person licensed by the Medical Marijuana Enforcement Division, and any associated person to a licensee, must make written notification to the Division's office of any criminal conviction and /or criminal charge pending against such person within 10 days of such arrest, summons, or conviction. This includes: • Being taken into custody for any offense, including traffic offenses • Being issued a summons or citation for any offense except for minor traffic offenses • Failing to comply with your sentencing requirements • Failing to appear for a court proceeding and having a bench warrant issued • Having your driver's license suspended or revoked • Being alleged to have driven under the influence or impairment of intoxicating liquor or drugs Failure to disclose an arrest or citation may result in disciplinary action, up to and including the denial of your license application. Please List Each Offense Separately Im Date of Offense Place of Offense Arresting Agency Original Charge nicnncifinn NarrntwP.. — Muat alan nrnvide nffirial dnrumentafinn rercenf fnr minnr traffir. nffensel im Date of Offense Place of Offense Arresting Agency Original Charge Disposition Narrative — Must also provide official documentation (except for minor traffic offense). Printed Name I Medical Marijuana License Number Signature Date Page 5 of 22 Applicant's Last Name (Please Print) First Name Middle Name DR 6521 (07101110) COLORADO DEPARTMENTOF REVENUE MEDICAL MARIJUANA ENFORCEMENT DIVISION ARREST DISCLOSURE FORM (Continued) Please List Each Offense Separately Date of Offense Place of Offense Arresting Agency Original Charge Disposition Narrative — Must also provide official documentation (except for minor traffic offense). Date of Offense Place of Offense Arresting Agency Original Charge mmnnsition Narrative — Must alsn nrnvide offirial dncumentation fexcent for minor traffic nffensel Printed Name Medical Marijuana License Number Signature Date Page 6 of 22 Applicant's Last Name (Please Print) First Name Middle Name a a e a Beginning with your current employment, list all jobs you have held in the past 10 years, but not prior to age 18. Also, list all businesses with which you have been associated, including all corporations, partnerships or any other business ventures with which you have been associated, including as an officer, director, stockholder, partner, limited partner, member, or in any other related capacity. Employer /Business Name Dates (from -to) Title Description of Duties Reason for Leaving Address (include ZIP code) Supervisors Name Employer /Business Name Dates (from -to) Title Description of Duties Reason for Leaving Address (include ZIP code) Supervisor's Name Employer /Business Name Dates (from -to) Title Description of Duties Reason for Leaving Address (include ZIP code) Supervisor's Name Employer /Business Name Dates (from -to) Title Description of Duties Reason for Leaving Address (include ZIP code) Supervisor's Name EmployeriBusiness Name Dates (from -to) Title Description of Duties Reason for Leaving Address (include ZIP code) Supervisors Name Employer /Business Name Dates (from -to) Title Description of Duties Reason for Leaving Address (include ZIP code) Supervisor's Name List three character references who have known you five or more years. Do not include relatives, present employer, or employees. Last Name First Name Middle Name Residence Phone Years Known Address City State ZIP Employer Business Phone Address City State ZIP Last Name First Name Middle Name Residence Phone Years Known Address City State ZIP Employer / Business Phone Address City State ZIP Last Name First Name Middle Name Residence Phone Years Known Address City State ZIP Employer Business Phone Address City State ZIP Applicant's Initials Page 7 of 22 Applicants Last Name (Please Print) First Name Middle Name Applicants Initials Page 8 of 22 1. Are you delinquent in the filing of any tax return with any taxing agency anywhere? ❑ Yes E] No 2. Are you delinquent in the payment of any taxes, interest, or penalties due to any taxing agency anywhere? E] Yes ❑ No 3. Are you delinquent in the payment of any judgments due to any governmental agency anywhere? E] Yes No 4. Are you delinquent in the repayment of any government - insured student loans? Yes No 5. Are you delinquent in the payment of any child support? ❑ Yes O No 6. Check any of the following privileged or professional licenses you have held individually or as part of an ownership group ❑ Yes ❑ No in this state or any other domestic or foreign jurisdiction ❑ Liquor ❑ Real Estate Broker /Sales Accountant ❑ Lawyer Physician ❑ Insurance ❑ Racing Lottery ❑ Securities Dealer Other Have you ever been denied a privileged or professional license, withdrawn a privileged or professional license Yes ❑ No 7. application or had any disciplinary action taken against any such license that you have held, either individually or as part of an ownership group? Have you, as an individual, principal of any form of business entity, or as an owner, officer or director of a corporation, ever Yes No 8. filed a bankruptcy petition, had such a petition filed against you or the business entity or the corporation; or had a receiver, fiscal agent, trustee, reorganization trustee or similar person appointed for you or the business entity or corporation? Do you now own, have ever owned, or otherwise derive a benefit from assets held outside the United States, whether held ❑ Yes E] No 9. in your own name or another name, on your behalf or for another person or entity, or through other individuals or business entities, or in trust, or in any other fashion or status? 10. Are you currently a party, or ever been a party, in any capacity, to any trust instrument? Yes El No Has a complaint, judgment, consent decree, settlement or other disposition related to a violation of federal, state or similar Yes ❑ No 11. foreign antitrust, trade or security law or regulation ever been filed or entered against you or a business entity of which you were a principal or against a corporation for which you were an owner, officer or director. 'If you answered YES to any of the questions above or checked any boxes above, give details on separate sheet, including license number and dates license held for licenses marked on question 6. Include any items currently under formal dispute or legal appeal. Attach any documents to prove your settlement on any of these issues. Applicants Initials Page 8 of 22 pplicant's Last Name (Please Print) First Name Middle Name 1. Annual Income You must submit copies of Federal Income Tax Returns for the Past Two (2) Years. Salary (Source): $ Salary (Source): $ Interest (Source): $ Interest (Source): $ Dividends (Source): $ Dividends (Source): $ Other (Source): $ Other (Source): $ Attach 12 months of bank statements and six months of credit card statements. TOTAL $ Please submit all executed agreements or documents that grant you any right to any percent of ownership or percent of income from the Colorado Medic 2. 3. 4. 5. al Marijuana business with which you are associated Amount to be invested in business: $ Percentage of ownership this amount represents: Investment will be derived from the following sources: Has your interest in this Medical Marijuana establishment been assigned, pledged or hypothecated to any person, firm, or corporation, or has any agreement been entered into whereby your interest is to be assigned, pledged or sold, either E] Yes ❑ No in part or whole? If YES, explain: Applicant's Initials Page 9 of 22 J � O W h Ro O c F 0 Z W � C � W ° am � W � 0 � � 0 O a m rc � Oo �Od OUP aY C J m 7 W L 2� U N W d R N U O a m d ro d D_ F U U Q N @ T @ 0 N N m N a O N �o Oa m R E C Z c o O U � Q a` 3 C v Q Z m c m Q Q N N E R Z C Cf] O N Q @ N E Z d B d m N J O Z W v 2 R U) w C 7 O U U Q N U C K v m n N N n U C m O C N U d m r 3 O T V L 3 c m n 0 T c 0 T C d � O � c D O L i U O � c ° m y n v D o` `o c a m c o m r y c ° v ° D N C � N O N > O T �n O D N m 3 L 0.2 N q J O T U N 3 T d T O n c D D m c L m N n C m 3 U U m � C y E J 0 C U D N C m N v C J C Uw m y N m .c N o m a c m N > J � N N C N C N o. Q 0 ° N N a d R 0 U O a J a d @ T Ul o 0 N E T @ a R N m a 7 � c c J �o Oa 'O N � R 0 U C G QI O W a` Q C @ N E Z N N C N C N o. Q 0 ° N N a N U o W m J C S Y U � U) y C . m N y D V C O dda d a�w yUy J p U � CO mN ma m mo mLm n�b CLU y U N 6 C v d m., m y U �Np � = C m GD 7L d mU O� T j d .CNN UC woa {p N C L y m v- N n 09 U O OO cD O d L �c3 C TO NCN m m `o nD so U jUO a =x m ow n O C N C � L U D J C L E c OEc w 6 c y O m T na 0 w m D � N OLO w N U � O �0 nN T N � =O a O T Tw _ C.- 0mm O 6 ry T0- M. D rnn mc_ oam o c= _ Up `oD c d w V 0 D m y m L j' y �a D c mr OLy n O1D p J C C O O m -a o N C U . @ O x y 0 y _ N Omm N C'E r n _ ' m w J W 2 m @ Y `m _a @ > U C N @ m Z U a` N @ U a' a` @ v a N N _ @ C CO D @ �T @ N Y c Q E W y J LU E H W H S U c U) �N 3 m 0 1 � m m 0 . Om T n J L V 3� c c w > t a N O �o o D 0E OE _T= C O NY o� cn O m N n� T C C T.0 ad OL Cr d N D� n - UC C C Om D cc U� 6C p U 00 oD NN 0 N O n� N 0 U ov T;Q OC TV d � Do dm L m Nm yL w� ` c= _ C w �C c c`0 U y `o Da "1 > N p j C Um U O D N cE Um NC aL cw mD UUC LEo 3 ' m .0O N � � C O U N � a D 0 v @ >�y C m.. 0 0 L N N ` m m O C 4� a _ w m O N OCO m y a t N 3 N V L J m y m m 0 3 N a Ol @ 3 @ 0 @ 2 U L 3 C N N E Z 0 @ U a a` @ L a N 0 3 O W N w m C � O n F T U S n n C W n m N a m C N m a Q N E Z m N a m C N m a Q U N m L 0 L L 3 c L a 0 T C O T C N `o O a . TC C .� m� T a L ON _N m« a� L C UN 0) N` a c0 mU O� y O a `off W N> c _ Y O U J D W To LU _ o U T� T m a am m`m L L N � ,, m NL m « N y C C 02 .a a N C �p U � a o.? a W t - u o .O U N mm o � c UL N ' N a a C U m C L . J � L m 3c En o� o� nm m« mm Q �.0 3c 0 1 O do n _ y c J 0 m 0 N s m E U c 0 L 3 N 'O N N 3 3 0 t 0 N t6 d R L U J Q N @ U N R m U j L p Q a' E N V) d Q F T 0 N O J N N - o Q LL. y Y W N Q D W s O N N C N c U n w A a 0 R E O `c d O x U C N C N m Z d R Y N d m N N L i Q' U Q` N N m 3 a N Q `o N F T N N C N c U n w A a 0 _ n W J � �a W y = O U Z N m N R O U N O O 3 a R R 0 T 3 R a R R 0 e O a c a a c d E T R a U `m m m E a CD rn R C c 3 m E O¢ v R � m o � c O rn 9 O R U 0 N N R E R Z R R E R z m a 2 T W m J n ' LU 7 2 rn U r N R v c O a U N 0 R i0 T R C O N O a m 0 0 a a c R E m a U N m LD m n Z) E CD rn O a R � M � U c O m 9 0 O U R U O N R B R R E R Z 0 rn N a m c N C U a 6 y -a M R 0J W � m N U Mp m m 0 U O C T O +- aa U N W J N ❑ d N O n 3 a T - d IL m ❑ d m m o m C N o m ma a a� (6 G nm c � �m 75 C C J O m OQ a N � (6 ❑ U c 0 rn a O `o a m U 0 a N N a c Q a `m O `o z z N d Y a W J J D 0 W 2 C U G O U A C N C V Q 6 Q 0 a m R a a a m J j N } O N E2 N a L a 55 d m N N l0 O U N w O 6 IL IL d m m m m K 0 0 a C N m CL c� m m C3 n c R C C 0 = E OQ a m � m O v c `O m 0 O `o m U O N 2 a a m E E m z A C N C V Q 6 Q 0 a m R a Applicant's Last Name (Please Print) First Name Middle Name 'qg rx° ..'rf P AS OF (date) List all assets, both tangible and intangible, and all liabilities on the appropriate line below. Enter the amount as of the date of this state- ment. Each listed asset and liability must be described fully on the appropriate schedule. ASSETS Original Cost/investment Market Value CURRENTASSETS Cash on Hand $ $ Cash in Banks (Schedule A) $ $ Accounts and Notes Receivable (Schedule B) $ $ INVESTMENTS Stocks and Bonds (Schedule C) $ $ Business Investments (Schedule D) $ $ FIXED ASSETS Real Estate (Schedule E) $ $ OTHERASSETS (Schedule F) $ $ $ $ TOTALASSETS ............................................. ............................... $ $ LIABILITIES CURRENT LIABILITIES Accounts Payable (credit cards, etc.) $ Taxes Payable $ LONG TERM LIABILITIES (debts due and payable in more than one year) Notes Payable (Schedule G) $ Mortgages Payable ( Schedule H) $ Other Liabilities (Schedule 1) $ TOTAL LIABILITIES ................................................................................................. ............................... $ NETWORTH .................................. ..................................................................................... I.................... $ Applicant's Initials Page 15 of 22 DR 4679 (09/21/06) COLORADO DEPARTMENT OF REVENUE AFFIDAVIT - RESTRICTIONS ON PUBLIC BENEFITS I, , swear or affirm under penalty of perjury under the laws of the State of Colorado that (check one): ❑ I am a United States citizen. ❑ I am not a United States citizen but I am a Permanent Resident of the United States. ❑ I am not a United States citizen but I am lawfully present in the United States pursuant to Federal law. ❑ I am a foreign national not physically present in the United States. I understand that this sworn statement is required by law because l have applied for a public benefit. I under- stand that state law requires me to provide proof that I am lawfully present in the United States prior to receipt of this public benefit. l further acknowledge that making a false, fictitious, or fraudulent statement or representation in this sworn affidavit is punishable under the criminal laws of Colorado as perjury in the second degree under Colorado Revised Statute 18 -8 -503 and it shall constitute a separate criminal offense each time a public benefit is fraudulently received. Signature Date Page 16 of 22 Affirmation & Consent I, , state under Penalty for offering a false instrument for recording pursuant to 18 -5 -114 C.R.S. that the entire Associated Person & Associated Key License Ap- plication Form, statements, attachments, and supporting schedules are true and correct to the best of my knowledge and belief, and that this statement is executed with the knowledge that misrepresentation or failure to reveal information requested may be deemed sufficient cause for the refusal to issue a Medi- cal Marijuana license by the State Licensing Authority. Further, I am aware that later discovery of an omis- sion or misrepresentation made in the above statements may be grounds for the denial of a temporary Medi- cal Marijuana application or the revocation of the license. I am voluntarily submitting this application to the Colorado Medical Marijuana Licensing Authority under oath with full knowledge that I may be charged with per- jury or other crimes for intentional omissions and misrepresentations pursuant to Colorado law or for offering a false instrument for recording pursuant to 18 -5 -114. 1 further consent to any background investigation necessary to determine my present and continuing suitability and that this consent continues as long as I hold a Colorado Medical Marijuana license, and for 90 days following the expiration or surrender of such Medical Marijuana li- cense. Note: If your check is rejected due to insufficient or uncollected funds, the Department of Revenue may collect the payment amount directly from your banking account electronically. Legal Last Name (Please Print) Page 17 of 22 Investigation Authorization Authorization to Release Information I, hereby authorize the Colorado Medical Marijuana Licensing Authority, the Medical Marijuana Enforcement Division, (hereafter, the Investigatory Agencies) to conduct a complete investigation into my personal background, using whatever legal means they deem appropriate. I hereby authorize any person or entity contacted by the Investigatory Agencies to provide any and all such information deemed necessary by the Investigatory Agencies. I hereby waive any rights of confidentiality in this regard. I understand that by signing this authorization, a financial record check may be performed. I authorize any financial institution to sur- render to the Investigatory Agencies a complete and accurate record of such transactions that may have occurred with that institution, including, but not limited to, internal banking memoranda, past and present loan applications, financial statements and any other documents relating to my personal or business financial records in whatever form and wher- ever located. I understand that by signing this authorization, a financial record check of my tax filing and tax obligation status may be performed. I authorize the Colorado Department of Revenue to surrender to the Investigatory Agencies a complete and accurate record of any and all tax information or records relating to me. I authorize the Investigatory Agencies to obtain, receive, review, copy, discuss and use any such tax information or documents relating to me. I authorize the release of this type of information, even though such information may be designated as "confidential' or "nonpublic" under the provisions of state or federal laws. I understand that by signing this authorization, a criminal his- tory check will be performed. I authorize the Investigatory Agencies to obtain and use from any source, any information concerning me contained in any type of criminal history record files, wherever located. I understand that the criminal history record files contain records of arrests which may have resulted in a disposition other than a finding of guilt (i.e., dismissed charges, or charges that resulted in a not guilty finding). I understand that the information may contain listings of charges that resulted in suspended imposition of sentence, even though I successfully completed the condi- tions of said sentence and was discharged pursuant to law. I authorize the release of this type of information, even though this record may be designated as "confidential' or "nonpublic" under the provisions of state or federal laws. The Investigatory Agencies reserve the right to investigate all relevant information and facts to their satisfaction. I understand that the Investigatory Agencies may conduct a complete and comprehensive investigation to determine the accuracy of all information gathered. However, the State of Colorado, Investigatory Agencies, and other agents or employees of the State of Colorado shall not be held liable for the receipt, use, or dissemination of inaccurate in- formation. 1, on behalf of the applicant, its legal representatives, and assigns, hereby release, waive, discharge, and agree to hold harmless, and otherwise waive liability as to the State of Colorado, Investigatory Agencies, and other agents or employees of the State of Colorado for any damages resulting from any use, disclosure, or publication in any manner, other than a willfully unlawful disclosure or publication, of any material or information acquired during inquiries, investigations, or hearings, and hereby authorize the lawful use, disclosure, or publication of this material or information. Any information contained within my application, contained within any financial or personnel record, or otherwise found, obtained, or maintained by the Investigatory Agencies, shall be accessible to law enforcement agents of this or any other state, the government of the United States, or any foreign country. Print your Full Legal Name clearly below: - Legal Last Name (Please Print) Legal First Name Legal Middle Name Signature (Must be signed in front of two witnesses) Dated this day of . 20 , at (day) (month) (year) (time) (city) (slate) Witness 1 Signature Witness 2 Signature Page 18 of 22 Applicant's Request to Release Information TO: FROM: (Applicant's Printed Name) 1.I/We hereby authorize and request all persons to whom this request is presented having information relating to or concerning the above named applicant to furnish such information to a duly appointed agent of the Medical Marijuana Enforcement Division whether or not such information would otherwise be protected from the disclosure by any constitutional, statutory or common law privilege. 2.IAVe hereby authorize and request all persons to whom this request is presented having documents relating to or conceming the above named applicant to permit a duly appointed agent of the Medical Marijuana Enforcement Division to review and copy any such documents, whether or not such documents would otherwise be protected from disclosure by any constitutional, statutory, or common law privilege. 3.I/We hereby authorize and request the Colorado Department of Revenue to permit a duly appointed agent of the Medical Marijuana Enforcement Divi- sion to obtain, receive, review, copy, discuss and use any such tax information or documents relating to or concerning the above named applicant, whether or not such information or documents would otherwise be protected from disclosure by any constitutional, statutory, or common law privilege. 4.If the person to whom this request is presented is a brokerage firm, bank, savings and loan, or other financial institution or an officer of the same, I/we hereby authorize and request that a duly appointed agent of the Medical Marijuana Enforcement Division be permitted to review and obtain copies of any and all documents, records or correspondence pertaining to me /us, including but no limited to past loan information, notes co- signed by me /us, checking account records, savings deposit records, safe deposit box records, passbook records, and general ledger folio sheets. 5.IPNe do hereby make, constitute, and appoint any duly appointed agent of the Colorado Medical Marijuana Enforcement Division, my /our true and lawful attorney in fact for me /us in my /our name, place, stead, and on my /our behalf and for my /our use and benefit: (a) To request, review, copy sign for, or otherwise act for investigative purposes with respect to documents and information in the possession of the person to whom this request is presented as I/we might; (b) To name the person or entity to whom this request is presented and insert that person's name in the appropriate location in this request: (c) To place the name of the agent presenting this request in the appropriate location on this request. 6.1 grant to said attorney in fact full power and authority to do, take, and perform all and every act and thing whatsoever requisite, proper, or neces- sary to be done, in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as I /we might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that said attorney in fact, or his substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. 7-This power of attorney ends twenty-four (24) months from the date of execution. 8.The above named applicant has filed with the Colorado Medical Marijuana Licensing Authority an application for a Medical Marijuana license. Said applicant understands that it is seeking the granting of a privilege and acknowledges that the burden of proving its qualifications for a favor- able determination is at all times on the applicant. Said applicant accepts any risk of adverse public notice, embarrassment, criticism, or other action of financial loss, which may result from action with respect to this application. 9.1/We do, for myself /ourselves, my /our heirs, executors, administrators, successors, and assigns, hereby release, remise, and forever discharge the person to whom this request is presented, and his agents and employees from all and all manner or actions, causes of action, suits, debts, judgments, executions, claims, and demands whatsoever, known or unknown, in law or equity, which the applicant ever had, now has, may have, or claims to have against the person to whom this request is being presented or his agents or employees arising out of or by reason of complying with the request. 10.IfVVe agree to indemnify and hold harmless the person to whom this request is presented and his agents and employees from and against all claims, damages, losses, and expenses, including reasonable attorneys' fees arising out of or by reason of complying with this request. 11.A reproduction of this request by photocopying or similar process shall be for all intents and purposes as valid as the original. Applicant's Last Name (Please Print) First Name Middle Name Signature (Must be signed in front of two witnesses) Dated this day of , 20 , at �� mon year (time ay (state Witness 1 Signature Witness 2 Signature Spouse's Last Name (Please Print) Spouse's First Name Middle Name Spouse's Signature (Must be signed in front of two witnesses) Dated this day of , 20 at � (month) year ime a sae Witness 1 Signature Witness 2 Signature Signature of Medical Marijuana Enforcement Division agent presenting this request Date 'Page 19 of 22 Verification of Fingerprints This form is to be completed by the law enforcement agency that takes your fingerprints. The enclosed fingerprint card contains the prints of: 'Applicant's Last Name (Please Print) First Name Middle Name Taken by me: Name Date Page 20 of 22 Colorado M Marijuana Enforcement Division Authorization for Disclosure for Internal Revenue Service Name and Social Security Number of Person(si You Have Filed a Joint Tax Return With in the Past 5 Years Last Name (Please Print) First Name Middle Name Social Security Number Last Name (Please Print) First Name Middle Name Social Security Number Last Name (Please Print) First Name - Middle Name Social Security Number Type of Return Taxable Periods Form 1040, Individual Income Tax 2005, 2006, 2007, 2008, and 2009 1 authorize the Internal Revenue Service to disclose tax return information (including, but not limited to, fact of filing, fact of payment, terms of installment agreement) regarding the above returns to the Medical Marijuana Enforcement Division, Colorado Department of Revenue. Signature Date Page 21 at 22 5TATE OF COLORADO DEPARTMENT OF REVENUE Medical Marijuana Enforcement Division �e O4 Bill Ritter, Jr. Governor Roxanne Huber Executive Director Dear Applicant: Thank you for your interest in becoming an associated person /key with a licensed business in the Medical Mari- juana industry. Before you submit your application, we want to make you aware of a few facts. The Medical Marijuana industry in Colorado is one of the most scrutinized businesses in the state, because Colorado citizens want the industry and everyone involved in it free from even the hint of any corruption or deceit. That's why we take our regulation of the industry very seriously, including the issuance of licenses. During the licensing process, we will conduct a thorough check of your background. If you pass our qualifica- tions, you will be found suitable as an associated person /key that will allow you to work in the Medical Marijuana Industry. You should know that a Medical Marijuana license is a privilege, not a right. And one thing you must do to obtain this privilege is be completely honest on your license application. In particular, we ask you on page 4 of the application: "In the past 10 years, but not prior to age 18 have you been arrested, served with a criminal summons, charged with, or convicted of ANY crime or offense in any manner in this or any other country?" The application goes on to tell you to explain ALL such arrests or charges no matter the final outcome. Did you list ALL arrests and charges in the past 10 years? Are you clear about what you need to disclose? If not, then ask someone at the front desk to assist you and answer any questions you might have. Here are some of the excuses we have heard from people who have failed to disclose arrests to us: • My attorney told me I didn't have to disclose. • I didn't think I was arrested, because I only got a ticket. • I didn't think the arrest had anything to do with Medical Marijuana. • I didn't think that was still on my record. But there is no excuse not to disclose an arrest. You have been informed throughout the application to disclose ALL arrests. And you have just been informed again: You will not necessarily be denied a license if you have ever_ been arrested, but you will be denied if you fail to disclose any arrest I have read and understand this letter. Signed Date DR 8522 (06115110) Page 22 of 22 Kenneth Johnstone Subject: Updated: MMJ Licensing Action Plan Meeting Location: Recreation Center Conference Room Start: Mon 3/21/2011 9:00 AM End: Mon 3/21/2011 10:30 AM Show Time As: Tentative Recurrence: (none) Meeting Status: Not yet responded Required Attendees: Kathy Franklin; Kenneth Johnstone; Mark Cooney; gdahl @mdkrlaw.com Optional Attendees: Heather Geyer; Christopher Price bConference: 0 Call Handling Mode: 6 CallHandleReminderEnable: 0 Cal l H a nd I i ngCance I ed: 0 Hi all, Well, here we are with MMJ licensing in the City set to be effective as of April 1. We need to develop a process and administrative policies as well as a recommendation to Council for the associated fees. I've attached some forms cribbed off the old massage licensing forms. Please take a glance and come up with any suggestions for change. This is expected to be a contentious process initially as would -be MMJ operators jockey for position within the allowed areas and outside the various buffers which will shift as shops crop up, so we will truly need a watertight plan that also meets all the requirements of the state and local laws. Ken mentioned a process used in licensing billboards, also a contentious issue, that was contested but ultimately held up in court. I'm hoping we can lean on that rather than reinvent something. So, bring your ideas, concerns, etc. and we will hammer this out for initial implementation with the knowledge that the lesser concerns can be adapted aft the initial gold rush. f E M_ Medical Marijuana Satellite[1].pdf (14 Medical Marijuana Form.xls (47... KB) Checklist.do... Thanks! An applicant for a medical marijuan establishemnt license must undergo a background investigation pursuant to Wheat Ridge Municipal Code section 11- 275.' -..G : PLEASE SUBMIT ONE COPY OF THIS FIRST PAGE ONLY FOR EACH OW NER OF FIVE PERCENT OR MORE INTEREST IN THE BUSINESS. Date: ¢pplrcatlon feetae arapaj Full name of establishment owner: LICepSlti9 fee'` (Addibonal to business libensmg fees) ,.�_ Other names you may have used or be known by, in the past or present: Name of establishment: Address of establishment: Your home address (no post office box): be tow, Inease ast p ieces wnere you nave resiaea in the p ast Street, Unit nve years, auacning an acantanai sneer IT necessai City, State, ZIP Dates from - to Phone number(s): Work/home /mobile Work/home /mobile Work/home /mobile Social Security Number: Personal statistics: Education beyond high school: a Date of Driver's license State Driver's license number Expiration date: Height Weight Hair color Eye color I the undersigned understand that operation of a medical marijuana establishment may result in prosecution under Federal law and that the City accepts no legal obligation in connection with the approval of and subsequent operation of a medical marijuana establishment I further certify that I a m a primary ca regiver as defined in Section 14 of Article 18 of Colorado Constitution. I further understand that falsification of information on any City application or the criminal background investigation authorization is a violation of City law and may be c use for revocation of the edical Marijuana Establishment License. Signed �GT4 6-fJ �ti- 7,r `Nl� Date use: approved o by date conditions denied ❑ by date edit date 11129/06 BUSINESS PLAN SECTION Needs only be completed once. Using the key below, please sketch in doors, walls and windows and indicate the location of security systems, including human and animal supplements. G\ • Siren t Camera, wide end indicates direction aimed �� Human Animal —� Detection wire or beam run System make Model, year Monitored by Recordings retained at Please describe the lighting of the outside of the premises, you may use a star symbol for each light on the outside of the sketch above if you wish: Hours of operation: Sun to Mon to Tue to Wed to Thu to Fri to Sat to Staffing How many employees, including yourself? How many volunteers? rl� �. �� JV`h Cultivation activity: UtOr I I VI{ti- I Please describe the location of any cultivation of medical marijuana. Where Number of plants on site Describe the ventilation (enhanced ventilation is required): Describe the interior lighting of the cultivation area Estimate the water usage /month (gallons) edltdate 1129106 Certification of Compliance Pursuant to section 12- 43.3- 103(2)(b), C.R.S. I, the undersigned, as an authorized agent of (hereinafter the "business "), state under penalty for offering false information, that the information contained in this form is true and correct to the best of my knowledge and belief. I certify the following: My name is . I am at least 21 years old. of the business. My current position with the business is as a/an . I currently reside in Colorado. 2. I have personal knowledge regarding the amount of medical marijuana necessary for the operation of the business. 3. The business (circle "a" or "b "): a. Is currently operating and is cultivating at least seventy percent (70 %) of the medical marijuana necessary for the operation of the business; or b. Is not currently operating, but prior to operation will be adequately equipped to cultivate at least seventy percent (70 %) of the medical marijuana necessary for the operation of the business. Being adequately equipped includes: (1) currently having the appropriate infrastructure to cultivate the required amount of medical marijuana; (2) currently having legal access to locally approved space adequate to grow at least seventy percent (70 %) of the medical marijuana necessary for the operation of the business; (3) currently having the appropriate paperwork filed for local and state licenses; and (4) currently having all other materials required to cultivate at least seventy percent (70 %) of the medical marijuana necessary for the operation of the business . 4. I affirm that the medical marijuana purchased and/or used for this business will only be acquired from facilities that are operating in compliance with the Colorado Medical Marijuana Code, Article 43.3 of Title 12, C.R.S. 5. I do hereby attest to the following and have personal knowledge of the matters set forth herein. 6. I understand that intentionally providing false information in this certification may subject me to: a. Criminal penalties, including fining and imprisonment; and b. Revocation of any license issued pursuant to Article 43.3 of Title 12, C.R.S.; and c. Denial of any future licenses issued pursuant to the Article 43.3 of Title 12, C.R.S.; and d. Any other punishments authorized by law. Signed this _ day of 1 201 _ SUBSCRIBED AND SWORN TO before me this _ day of 201. Notary Public I am an authorized agent My Commission Expires: Medical Marijuana Establishment Checklist Last, First, Middle Initial DOB Social Security Number Process: Date: Com lete . Comment: completed by: Application: Bus. License App. /Lawful Presence Affidavit SIGNED MME supplement Business Plan page Copy of Driver's license $25 business license fee $ MME fee Approval to Proceed Signature Police TRU clerks: 2 sets of fingerprints 1 digital photograph Check/Money Order $18/ Treasury Check/Money Order $16.50 /C.B.I. Police Technician: Prints /fee sent to FBI Prints /fee sent to CBI Crim Hist. from CBI Crim. Hist. from FBI West Law history WR RMS history Certificate Verified Other: Other: Other: Sergeant Review Approve Signature Denied J Signature CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER DEMOTT Council Bill No. 06 Ordinance No. 1479 Series 2011 TITLE: AN ORDINANCE AMENDING CHAPTER 11 OF THE WHEAT RIDGE CODE OF LAWS BY ADDING A NEW ARTICLE XII CONCERNING MEDICAL MARIJUANA AND MAKING CERTAIN AMENDMENTS TO CHAPTER 26 (ZONING AND DEVELOPMENT) IN ASSOCIATION THEREWITH WHEREAS, in the November 2000 general election, the voters of the State of Colorado adopted Amendment 20 to the Colorado Constitution ( "Amendment 20 "), codified at Article XVIII Section 14, which authorizes and limits the use of medical marijuana for the treatment of debilitating medical conditions; and WHEREAS, Amendment 20 provides patients and primary care - givers, as those terms are defined therein, with criminal defenses to, or exceptions from prosecution for the possession, production and use or medical marijuana; and WHEREAS, in May, 2010 the Colorado General Assembly adopted the Colorado Medical Marijuana Code, §§ 12- 43.3 -101 et seq., C.R.S., authorizing the cultivation, manufacture, distribution, and sale of medical marijuana and medical marijuana- infused products throughout the state under state and local government licensing procedures; and WHEREAS, the City Council has been made aware of a proliferation of businesses seeking to cultivate, manufacture, distribute and sell medical marijuana and medical marijuana- infused products to those who qualify under state law; and WHEREAS, the City has no current land use or business regulation governing the operation of businesses that cultivate, manufacture, distribute or sell medical marijuana and /or medical marijuana - infused products ( "Medical Marijuana Establishments "); and WHEREAS, on September 14, 2009, the City imposed a moratorium on the submission, acceptance, processing, and approval of all applications for City licenses relating to the operation of Medical Marijuana Establishments to allow the City staff and the City Council to investigate the City's ability to regulate such establishments, and to develop and implement any appropriate regulations consistent with state law; and WHEREAS, because marijuana is a controlled substance under Colorado and federal law, the cultivation, manufacture, distribution and sale as contemplated by the Colorado Medical Marijuana Code has the potential for abuse and should be closely monitored and regulated by local authorities to the extent possible; and WHEREAS, if not closely monitored and regulated, the presence of marijuana, even for the purposes legally permitted by Amendment 20 and the Colorado Medical Marijuana Code, can potentially cause an increase in illegal activities within the City affecting the health, safety, order, comfort, convenience and general welfare of the residents of the City; and WHEREAS, if Medical Marijuana Establishments operating pursuant to the Colorado Medical Marijuana Code were allowed to be established and to operate without appropriate local regulation of their location, such establishments might be established in areas that would conflict with the City's comprehensive land use plan; be inconsistent with surrounding uses; or otherwise be detrimental to the public health, safety and welfare. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1 . Moratorium Concluded. The moratorium imposed by Ordinance 1453 on September 14, 2009 shall conclude upon the effective date of this ordinance. Section 2 . Chapter 11 of the Wheat Ridge Code of Laws is hereby amended by the adoption of a new Article XII to read in its entirety as follows: Article XII. Medical Marijuana Licenses Division 1. Generally Sec. 11 -290. Authority Sec. 11 -291. Definitions Division 2. Medical Marijuana Licenses Sec. 11 -292. Local licensing authority established Sec. 11 -293. Types of medical marijuana licenses Sec. 11 -294. Medical marijuana license required Sec. 11 -295. Application of Colorado Medical Marijuana Code Sec. 11 -296. Application for license Sec. 11 -297. Application fee Sec. 11 -298. Standards for approval of license, no hearing required Sec. 11 -299. Authority to recommend and impose conditions on license. Sec. 11 -300. Denial of license. Sec. 11 -301. Appeal of denial or conditional approval of license Sec. 11 -302. Duration of license, renewal Sec. 11 -303. Duties of licensee Sec. 11 -304. Hearing, suspension, revocation of license Sec. 11 -305. Prohibited locations Sec.11 -306. Signage Sec.11 -307. Taxes Sec. 11 -308. Penalties, injunctive relief Secs. 11-309-11-319. Reserved Division 3. Primary Caregiver Licenses Sec. 11 -320. Primary caregiver license required Sec. 11 -321. Application for license Sec. 11 -322. Application fee Sec. 11 -323. Standards for approval of license Sec. 11 -324. Authority to recommend and impose conditions on license Sec. 11 -325. Denial of license. Sec. 11 -326. Appeal of denial or conditional approval of license Sec. 11 -327. Duration of license, renewal Sec. 11 -328. Duties of licensee Sec. 11 -329. Hearing, suspension, revocation of license Sec. 11 -330. Growing of medical marijuana outdoors prohibited Sec. 11 -331. Penalties, injunctive relief DIVISION 1. GENERALLY Sec. 11 -290. Authority. The City Council hereby finds, determines, and declares that it has the power to adopt this article pursuant to: (a) The Local Government Land Use Control Enabling Act, article 20 of title 29, C.R.S.; (b) Part 3 of article 23 of title 31, C.R.S. (concerning municipal zoning powers); (c) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (d) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (e) Section 31 -15 -501, C.R.S. (concerning municipal authority to regulate businesses); (f) The authority granted to home rule municipalities by article XX of the Colorado Constitution; (g) Article XVIII Section 14 of the Colorado Constitution; and (h) The powers contained in the Wheat Ridge Home Rule Charter. Sec. 11 -291. Definitions. As used in this article the following words shall have the following meanings, unless the context clearly requires otherwise: Administrative hearing officer has the meaning provided in section 2 -87 of this code. Applicant means any person making an application for a license under this article. 3 Application means an application for license submitted pursuant to this article. City Manager shall have the meaning provided in section 2 -26 of this code. Colorado Medical Marijuana Code shall mean Article 43.3 of Title 12 of the Colorado Revised Statutes and any implementing administrative regulations. Good cause means and includes (1) When a licensee violates, does not meet, or fails to comply with any of the terms, conditions, or provisions of this article and any rule and regulation promulgated pursuant to this article or the Colorado Medical Marijuana Code; (2) When the licensee or applicant has failed to comply with any special terms or conditions that were placed on its license at the time the license was issued, or that were placed on its license pursuant to an order of the local licensing authority or the Colorado Department of Revenue; or (3) When the licensed premises have been operated in a manner that adversely affects the public health, welfare, or safety of the immediate neighborhood in which the medical marijuana clinic is located. Evidence to support such a finding can include: (i) a pattern of disorderly conduct as defined in section 11- 54(a)(1) of this code within or immediately adjacent to the premises of the licensee; (ii) a pattern of drug - related criminal conduct within the licensed premises, or in the immediate area surrounding the licensed premises; (iii) criminal conduct directly related to or arising from the operation of the medical marijuana establishment.. License means a license to operate a medical marijuana establishment issued pursuant to this article. Licensed premises means the location in the City from which the Licensee will operate. Licensee means the person to whom a license has been issued pursuant to this article and the Colorado Medical Marijuana Code to operate a business as described in section 12- 43.3 -402, C.R.S.. Medical marijuana means marijuana that is grown and sold pursuant to the provisions of the Colorado Medical Marijuana Code for a purpose authorized by section 14 of the Article XVIII of the Colorado Constitution. Medical marijuana center means a premises licensed pursuant to the Colorado Medical Marijuana Code to operate a business as described in section 12- 43.3 -402, C.R.S. Medical marijuana establishment shall mean a medical marijuana center, a medical marijuana - infused product manufacturer or an optional premises cultivation operation. Medical marijuana - infused product shall mean a product infused with medical marijuana that is intended for use or consumption other than by smoking, including, but not limited to, edible products, ointments, and tinctures. Medical marijuana - infused product manufacturer shall mean a person licensed pursuant to the Colorado Medical Marijuana Code to operate a business as described in section 12- 43.3 -404, C.R.S. Optional premises cultivation operation shall mean a premises licensed pursuant to this ordinance and the Colorado Medical Marijuana Code where a business described in section 12 -43.3 -403, C.R.S will operate. Patient has the meaning provided in section 14(a)(d) of Article XVIII of the Colorado Constitution of the Colorado Constitution as further defined and regulated in section 25- 1.5 -106, C.R.S. and 5 C.C.R. 1006 -2. Person means a natural person, partnership, association, company, corporation, limited liability company, organization, or a manager, agent, owner, director, servant, officer, or employee thereof. Primary care -giver has the meaning provided in section 14(1)(f) of Article XVIII of the Colorado Constitution as further defined and regulated in section 25 -1.5 -106, C.R.S. and 5 C.C.R. 1006 -2. School shall mean a public or private preschool or a public or private elementary, middle, junior high or high school. (b) In addition to the definitions provided in subsection (a) of this section, the other defined terms in section 14 of Article XVIII of the Colorado Constitution are incorporated into this article by reference. DIVISION 2. MEDICAL MARIJUANA LICENSES Sec. 11 -292. Local licensing authority established. (a) There is hereby established a local licensing authority, which shall have and is vested with the authority to: 1. Grant and refuse licenses and approve and deny applications for renewal and transfer of licenses for the sale, cultivation and manufacture of medical marijuana and medical marijuana infused products; 2. Promulgate reasonable rules and regulations concerning licenses issued under this division 2; 5 3. Suspend and revoke licenses issued under this division 2 in the matter provided by law; and 4. Have all of the powers of the local licensing authority as provided in the Colorado Medical Marijuana Code. (b) The Tax and Licensing Division of the City shall serve as the local licensing authority for any administrative purposes described in subsections (a)(1), (a)(2) and (a)(4) of this section An administrative hearing officer shall serve as the local licensing authority for purposes of hearing any requests for suspension or revocation described in subsection (a)(3). Sec. 11 -293. Types of medical marijuana licenses. The local licensing authority may issue the following three types of medical marijuana licenses: (a) Medical marijuana center license; (b) Medical marijuana- infused products manufacturing license; and (c) Optional premises cultivation license. Sec. 11 -294. Medical marijuana license required. No person or entity shall operate a medical marijuana establishment within the City without a valid and appropriate medical marijuana license issued in accordance with this division 2. This requirement to obtain the appropriate medical marijuana license is in addition to the requirement to obtain a business license pursuant to article II of this chapter and any other license or permit required by the city. Medical marijuana establishments that are in existence as of the effective date of this section must submit an application for a medical marijuana license within 30 days of that effective date. Sec. 11 -295. Application of Colorado Medical Marijuana Code. Except as otherwise provided herein, the local licensing authority shall be governed by the Colorado Medical Marijuana Code now in effect or subsequently amended. In the event of a conflict between the provisions in this article and those in the Colorado Medical Marijuana Code, the more stringent provision shall apply. Sec. 11 -296. Application for license. (a) A person seeking to obtain a license pursuant to this division 2 shall file an application with the local licensing authority on a form provided by the state, and shall include all additional information required by the Colorado Medical Marijuana Code. (b) The local licensing authority is hereby authorized to request any applicant to provide information that is in addition to the requirements of the Colorado Medical Marijuana Code if it determines that such information is reasonably necessary to complete the investigation and review of the application. Sec. 11 -297. Application fee. An applicant shall pay to the City a non - refundable application fee when the application is filed. The purpose of the fee is to cover the administrative costs of processing the application. The amount of the application fee shall be fixed by the City Council by motion. Sec. 11 -298. Standards for approval of license, no hearing required. (a) The local licensing authority is authorized to administratively approve any license under this division 2 so long as the following conditions are met: 1. The application (including any required attachments and submissions) is complete and signed by the applicant; 2. The applicant has paid the application fee and any other fees required by this code; 3. The application does not contain a material falsehood or misrepresentation; 4. The application complies with all of the requirements of this division 2 and the Colorado Medical Marijuana Code; and 5. The licensing authority has received written approval from the City of Wheat Ridge Police Department as to the applicant's criminal background. 6. The licensing authority has received written approval from the Community Development Department that the location and zoning requirements imposed by this division 2 and Section 26 -204 of the Code have been met. (b) The local licensing authority may, but is not required to hold a hearing as permitted by section 12 -43.3 -302, C.R.S. prior to granting a medical marijuana license. Sec. 11 -299. Authority to recommend and impose conditions on license. (a) Any City department shall have the authority to recommend reasonable terms and conditions on a license as may be necessary to protect the public health, safety, and welfare, and to obtain compliance with the requirements of this division 2 and applicable law, so long as those conditions are not in conflict with the Colorado Medical Marijuana Code. (b) The local licensing authority is authorized to approve any license issued under this division 2 subject to such reasonable conditions as required by the City. (c) in the event an application is conditionally approved, the local licensing authority shall clearly set forth in writing the conditions of approval. Sec. 11 -300. Denial of license. The local licensing authority shall deny an application for a license under this division 2 when the applicant fails to meet all of the standards set forth in section 11 -298 of this division 2. Sec. 11 -301. Appeal of denial or conditional approval of license. (a) An applicant has the right to appeal the denial of an application or condition imposed thereon to an administrative hearing officer. (b) The applicant must file a written notice of appeal with the local licensing authority within fifteen days after the date of mailing of the denial or conditional approval of the application. (c) Upon notice from the local licensing authority that the applicant has satisfied the requirement in subsection (b), the City Manager shall appoint an administrative hearing officer. (d) The applicant shall be provided with not less than ten days' prior written notice of the appeal hearing to be held by the administrative hearing officer. (e) The burden of proof in an appeal filed under this section shall be on the applicant. (f) If the administrative hearing officer finds by a preponderance of the evidence that the decision of the local licensing authority was correct, the administrative hearing officer shall uphold that decision. If the administrative hearing officer finds by a preponderance of the evidence that the decision of the local licensing authority was incorrect, the administrative hearing officer shall set aside the denial and issue the license. The administrative hearing officer may impose additional conditions on the license issued (if it was previously denied) or require that the conditions of approval be stricken or modified. (g) Any decision made by the administrative hearing officer pursuant to this section shall be a final decision and may be appealed to the district court pursuant to Rule 106(a)(4) of the Colorado Rules of Civil Procedure. The applicant's failure to timely appeal the decision is a waiver of the applicant's right to contest the denial or conditional approval of the application. Sec. 11 -302. Duration of license, renewal. (a) Each license issued pursuant to this division 2 shall expire on the first day of the month one year from the month of issuance, and may be renewed as provided in this section. (b) An application for the renewal of an existing license shall be made to the local licensing authority as required by the Colorado Medical Marijuana Code. At the time of the filing of an application for the renewal of an existing license the applicant shall pay a renewal fee in an amount fixed by the City Council by motion. Sec. 11 -303. Duties of licensee. Each licensee shall: (a) Post the license in a conspicuous location on the licensed premises; (b) Comply with all of the terms and conditions of the license; (c) Comply with all of the requirements of this division 2; (d) Comply with all other applicable City ordinances; (e) Comply with the Colorado Medical Marijuana Code; (f) Comply with all state laws and administrative regulations pertaining to the medical use of marijuana; (g) Comply with all applicable federal laws, rules, or regulations, other than a federal law, rule or regulation concerning the possession, sale or distribution of medical marijuana; (h) Permit inspection of its records and operation by the local licensing authority for the purpose of determining the licensee's compliance with the terms and conditions of the license and the City's tax laws; and (i) Permit inspection of the premises by authorized City officials during permitted business hours for the purpose of determining compliance with this division 2. Sec. 11 -304. Hearing, suspension, revocation of license. (a) A license issued pursuant to this division 2 may be suspended or revoked by the local licensing authority after a hearing for the following reasons: 1. Fraud, misrepresentation, or a false statement of material fact contained in the license application; 2. A violation of any City ordinance, state, or federal law or regulation, other than a federal law or regulation concerning the possession, sale or distribution of marijuana that conflicts with Article XVII I Section 14 of the Colorado Constitution; 3. A violation of any of the terms and conditions of the license; 4. A violation of any of the provisions of this article; or 5. Good cause. (b) Request for suspension or revocation, notice of hearing, burden. 1. Any authorized City official may request in writing that a license issued under this article be suspended or revoked. 2. The City Manager shall appoint an administrative hearing officer to preside over the hearing on the suspension or revocation of a license. 3. The administrative hearing officer shall a. Set a date and time on which to determine whether to revoke or suspend such license; b. Notify the licensee in the hearing at least t such hearing. Such mail postage prepaid. given upon mailing; writing of the date and time of :n (10) days prior to conducting notice shall be sent by regular Notice is deemed to have been C. Conduct a hearing based on the allegations provided in the written request. This shall be an informal hearing where no rules of evidence shall apply. The burden shall be on the City to prove by a preponderance of the evidence that the licensee has violated the provisions in subsection 11 -294 (a); and d. Provide a written decision to the licensee within a reasonable time after the conclusion of the hearing. (c) In deciding whether a license should be suspended or revoked, and in deciding what conditions to impose in the event of a suspension, if any, the administrative hearing officer shall consider: 1. The nature and seriousness of the violation; 2. Corrective action, if any, taken by the licensee; 3. Prior violation(s), if any, by the licensee; 4. The likelihood of recurrence; 5. All circumstances surrounding the violation; 6. Whether the violation was willful; 7. The number of previous violations by the licensee; and 8. Previous sanctions, if any, imposed against the licensee. (d) In connection with the suspension of a license, the administrative hearing officer may impose reasonable conditions thereon. (e) Any decision made by the administrative hearing officer pursuant to this section shall be a final decision and may be appealed to the district court pursuant to Rule 106(a)(4) of the Colorado Rules of Civil Procedure. The applicant's failure to timely appeal the decision is a waiver of the applicant's right to contest the decision. 10 (f) No fee previously paid by a licensee in connection with the application shall be refunded if such license is suspended or revoked. Sec. 11 -305. Prohibited locations. (a) Except as provided in subsection (f) of this section, no medical marijuana establishment shall be located at a location that does not conform to the requirements of this section. (b) No medical marijuana center shall be located within one thousand feet of a school, an alcohol or drug treatment facility, or the principal campus of a college, university, or seminary, or a residential child care facility. Medical marijuana establishments that were lawfully in existence at a specific location within the city as of the effective date of this section shall not be subject to the prohibition at that location. (c) No medical marijuana center shall be located within three quarters (Y4) of a mile of another medical marijuana center. Medical marijuana establishments that were lawfully in existence at a specific location within the city as of the effective date of this section shall not be subject to the prohibition at that location. (d) No person shall operate an optional premises cultivation operation within the City unless the licensed premises of the person's optional premises cultivation operation are contiguous with the licensed premises of the person's medical marijuana center license and /or the person's medical marijuana- infused products manufacturing license. (e) Each medical marijuana establishment shall be operated from a permanent location. Except as permitted by the Medical Marijuana Code, no medical marijuana establishment shall be licensed to operate from a moveable, mobile, or transitory location. (f) The suitability of a location for a medical marijuana establishment shall be determined at the time of the issuance of the first license for such establishment. The fact that changes in the neighborhood that occur after the issuance of the first license might render the site unsuitable for a medical marijuana establishment under this section shall not be grounds to suspend, revoke or refuse to renew the license for such establishment so long as the license for the establishment remains in effect. Sec. 11 -306. Signage. (a) All signage for a medical marijuana establishment shall comply with the requirements of chapter 26 of this code. (b) No licensee shall display a sign for the medical marijuana establishment that contains the word "marijuana," "cannabis," or any other word or phrase commonly understood to refer to marijuana unless such word or phrase is immediately preceded or followed by the word "medical." 11 Sec. 11 -307. Taxes. Each licensee shall collect and remit sales tax on all medical marijuana, paraphernalia, and other tangible personal property sold by the licensee at the medical marijuana establishment according to the provisions of chapter 22 of this code and any regulations issued pursuant thereto. Sec. 11 -308. Penalties, injunctive relief. (a) It is a misdemeanor offense for any person to violate any provision of this division 2. Any person convicted of having violated any provision of this division 2 shall be punished as set forth in section 1 -5 of this code. (b) In addition to all other remedies available to the city under this code and by law, the operation of a medical marijuana establishment without a valid license issued pursuant to this division 2 may be enjoined by the City in an action brought in a court of competent jurisdiction. DIVISION 3. PRIMARY CARE -GIVER LICENSE Sec. 11 -320. Primary caregiver license required. No primary care -giver shall produce, offer, sell or grow medical marijuana within the City without a valid and appropriate primary care -giver license issued in accordance with this division 3. Sec. 11 -321. Application for license. (a) A person seeking to obtain a primary care -giver license shall file an application with the Tax and Licensing Division. (b) An application for a primary care -giver license shall contain the following information: 1. The applicant's name, address and telephone number; 2. The street address of the applicant's operation location; 3. If the applicant is not the owner of the proposed location, a notarized statement from the owner of such property authorizing the use of said property for the applicant's operation; 4. A statement by the applicant acknowledging that the applicant may be subject to criminal prosecution under federal law for the distribution of a controlled substance; 5. A statement by the applicant that the applicant is a state approved primary care - giver; 6. A statement by the applicant that the applicant will provide the Wheat Ridge Police Department the registry identification card number of each of his or her patients upon inquiry; 12 7. A statement by the applicant acknowledging that the City accepts no legal liability in connection with the approval and subsequent operation of the medical marijuana establishment; 8. A statement by the applicant acknowledging that the provisions in chapter 26 of this code concerning home occupations applies to the activities of a primary care - giver; and 9. Any additional information that the Tax and Licensing Division reasonably determines to be necessary in connection with the investigation and review of the application. Sec. 11 -322. Application fee. An applicant shall pay to the City a non - refundable application fee when the application is filed. The purpose of the fee is to cover the administrative costs of processing the application. The amount of the application fee shall be fixed by the City Council by motion. Sec. 11 -323. Standards for approval of license. The Tax and Licensing Division is authorized to approve a primary care -giver license so long as the following conditions are met: (a) The application (including any required attachments and submissions) is complete and signed by the applicant; (b) The applicant has paid the application fee; and (c) The application does not contain a material falsehood or misrepresentation. Sec. 11 -324. Authority to recommend and impose conditions on license. (a) Any City department shall have the authority to recommend reasonable terms and conditions on a primary care -giver license as may be necessary to protect the public health, safety, and welfare, and to obtain compliance with the requirements of this division 3 and applicable law. (b) The Tax and Licensing Division is authorized to approve any primary care- giver license subject to such reasonable conditions as required by the City. (c) In the event an application is conditionally approved, the Tax and Licensing Division shall clearly set forth in writing the conditions of approval. Sec. 11 -325. Denial of license. The Tax and Licensing Division shall deny an application for a primary care -giver license when the applicant fails to meet all of the standards set forth in section 11 -323 of this division 3. Sec. 11 -326. Appeal of denial or conditional approval of license. An applicant has the right to appeal the denial of an application or condition imposed thereon to an administrative hearing officer pursuant to the provisions in code section 11 -291. 13 Sec. 11 -327. Duration of license, renewal. (a) Each license issued pursuant to this division 3 shall expire on the first day of the month one year from the month of issuance, and may be renewed as provided in this section. (b) An application for the renewal of an existing license issued under this division 3 shall be made to the Tax and Licensing Division. At the time of the filing of an application for the renewal of an existing license the applicant shall pay a renewal fee in an amount fixed by the City Council by motion. Sec. 11 -328. Duties of licensee. Each licensee shall: (a) Comply with all of the terms and conditions of the license; (b) Comply with all of the requirements of this division 3; (c) Comply with all other applicable City ordinances; (d) Comply with all state laws and administrative regulations pertaining to the medical use of marijuana; (e) Comply with all applicable federal laws, rules, or regulations, other than a federal law, rule or regulation concerning the possession, sale or distribution of medical marijuana; and (f) Permit inspection of the licensed premises by authorized City officials at reasonable hours upon a complaint and after providing twenty -four hours written notice to the licensee. Such written notice may be posted on the licensed premises. Sec. 11 -329. Hearing, suspension, revocation of license. A license issued pursuant to this division 3 may be suspended or revoked by the City pursuant to the provisions in code section 11 -294. Sec. 11 -330. Growing of medical marijuana outdoors prohibited. No primary care- giver may grow medical marijuana outdoors. Sec. 11 -331. Penalties, injunctive relief. (a) It is a misdemeanor offense for any person to violate any provision of this division 3. Any person convicted of having violated any provision of this article shall be punished as set forth in code section 1 -5. (b) In addition to all other remedies available to the City under this code and by law, the growing of medical marijuana by an unlicensed primary care -giver may be enjoined by the City in an action brought in a court of competent jurisdiction. 14 Section 3 . Section 26 -123 of the Code, entitled Definitions, is hereby amended by the addition of the following terms: Medical marijuana center has the meaning provided in Article XII of Chapter 11 of this code. Medical marijuana- infused products manufacturer has the meaning provided in Article XII of Chapter 11 of this code. Optional premises cultivation operation has the meaning provided in Article XI of Chapter 11 of this code. Section 4 . The Table of Uses for Commercial and Industrial Districts provided for in Section 26 -204 of the Code is hereby amended as follows: uses Notes NC RC C -1 C -2 1 Medical and dental Pharmacies and P P P P P offices, clinics or optical stores laboratories, excluding are accessory substance abuse use clinics MEDICAL P P MARIJUANA CENTERS MEDICAL P P MARIJUANA - INFUSED PRODUCTS MANUFACTURERS OPTIONAL P P PREMISES CULTIVATION OPERATION Mini - warehouses for P P inside storage Section 5 . Police Power Finding The City Council hereby finds, determines, and declares that this Ordinance is necessary and proper to provide for the safety, preserve the health, promote the prosperity, and improve the order, comfort and convenience of the City of Wheat Ridge and the inhabitants thereof. Section 6 . Authority. The City Council hereby finds, determines and declares that it has the power to adopt this Ordinance pursuant to: (i) the Local Government Land Use Control Enabling Act, Article 20 of Title 29, C.R.S.; (ii) Part 3 of Article 23 of Title 31, C.R.S. (concerning municipal zoning powers); (iii) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (iv) Section 31 -15 -401, C.R.S. (concerning 15 municipal police powers); (v) Section 31 -15 -501 (concerning municipal power to regulate businesses); (vi) the authority granted to home rule municipalities by Article XX of the Colorado Constitution; and (vii) the powers contained in the City of Wheat Ridge, Colorado Home Rule Charter (the "Charter"). Section 7 Severability, Conflicting Ordinances Repealed If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 8 . Effective Date This Ordinance shall take effect fifteen (15) days after final publication, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of 7 to 0 on this 28th day of February, 2011, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge, and Public Hearing and consideration on final passage set for March 14, 2011 at 7:00 p.m., in the Council Chambers, 7500 West 29 Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of 6 to 0, this 14th day of March, 2011. SIGNED by the Mayor on this � day of Ma Kc- Ll , 2011. I l 3, Mayor ATTEST: Michael Snow, City Clerk First Publication: March 3, 2011 Second Publication: March 17, 2011 Wheat Ridge Transcript Effective Date: April 1, 2011 rim City Council Minutes 3/14/2011 14 Britta Fisher, Executive Director of Wheat Ridge 2020, wished everyone a Happy Pi (fl) Day. Today was the grand opening of a new Wheat Ridge business called MyPie located at 3928 Wadsworth Blvd. MyPie will be donating 31.4% of the day's sales to the Wheat Ridge Math Department. Mrs. Fisher also announced there will be a public meeting for the 38 Avenue Revitalization project on March 15, 2011 from 6:30 pm to 8:30pm at Wheat Ridge Middle School. Interested citizens are encouraged to attend and provide input to the revitalization plans for the area. APPROVAL OF THE AGENDA Motion by Mr. Reinhart to add Item 12 to the agenda, a Resolution Opposing the Jefferson County Schools Decision to Close Martinson Elementary School, City Clerk Michael Snow assigned Resolution No. 10 -2011; seconded by Mr. DeMott; carried 6 -0 1. CONSENT AGENDA A. Resolution 09 -2011 — accepting an Easement and the transfer of existing Assignments from Jefferson County for the purpose of providing a Corridor for the Clear Creek Trail. B. Motion to approve payment of Murray Dahl Kuechenmeister & Renaud LLP February 2011 Invoices for Legal Services in the amount of $24,562.64. C. Motion to approve award of RFQ -11 -08 Design /Build of the Discovery Park Skate Park in the amount of $350,000 to Team Pain Enterprises, Inc., Winter Springs, Florida. D. Motion to approve award of RFB -11 -13 2011 Activities Guide Printing Services to Publication Printers in the amount of $27,738. E. Motion to approve the annual renewal for the Mobile COP Computer System in the amount of $24,174 to Interact Public Safety Systems. F. Motion to appoint Robert Blair, District II, to the Board of Adjustment. G. Motion to award RFP -11 -1 Natural Gas Suppliers to BP Energy Company. Consent Agenda was introduced and read by Mr. Stites. Motion by Mr. Stites for approval of the Consent Agenda; seconded by Mrs. Jay and Mr. Reinhart; carried 6 -0. ORDINANCES ON SECOND READING Item 2. Council Bill 06 -2011 — amending Article 11 of the Wheat Ridge Code of Laws by adding a new Article XI concerning Medical Marijuana and City Council Minutes 3/14/2011 Page 3 making certain Amendments to Chapter 26 (Zoning and Development) in association therewith. Mayor DiTullio opened the public hearing. Council Bill 06 -2011 was introduced on second reading by Mr. DeMott. City Clerk Michael Snow assigned Ordinance No. 1479. No Staff presentation was provided. Chuck Wharton is a partner in ownership of NatuRx, one of the two medical marijuana centers currently in the City of Wheat Ridge. He expressed his pleasure with the proposed ordinance as it is the most reasonable and thoughtful of those he has seen in the Denver Metro area cities. Mr. Wharton commended Council in taking the proper time to create a well thought out and effective Medical Marijuana ordinance. Further, if City Council does pass this amendment tonight he will pledge as a business owner to protect the health, safety and welfare of community. Chief Brennan responded to questions regarding the indication of no financial impact in the packet materials from the perspective of the Police Department. Mayor DiTullio closed the public hearing. Motion by Mr. DeMott to approve Council Bill 06 -2011 (Ordinance 1479) on second reading and that it take effect 15 days after final publication; I further move to amend Council Bill 06 -2011 to add the following sentence to the end of Sections 11- 305(b) and 11- 305(c): Medical marijuana establishments that were lawfully in existence at a specific location within the City as of the effective date of this section shall not be subject to this prohibition at their current location.; seconded by Mr. Reinhart; carried 6 -0. Item 3. Council Bill 03 -2011 — approving the Rezoning of property located at 11808 W. 44" Ave. From Commercial -One (C -1) and Commercial -One with Use Restrictions to Mixed Use — Commercial Interstate (MU -C Interstate) and Mixed Use — Neighborhood (MU -N) Zone Districts. (Case No. WZ- 10 -09 /RV America) Mayor DiTullio opened the public hearing. Council Bill 03 -2011 was introduced on second reading by Mr. DeMott. City Clerk Michael Snow assigned Ordinance No. 1480. Mrs. Reckert provided a summary presentation of the proposed zoning change (amended to this packet). s� a� (f 1 city Of¢¢ 7�-pyw eC�.L A ' `ige ITEM NO: DATE: March 14, 2011 f REQUEST FOR CITY COUNCIL ACTION TITLE: COUNCIL BILL NO. 06 -2011 - AN ORDINANCE AMENDING ARTICLE 11 OF THE WHEAT RIDGE CODE OF LAWS BY ADDING A NEW ARTICLE XH CONCERNING MEDICAL MARIJUANA AND MAKING CERTAIN AMENDMENTS TO CHAPTER 26 (ZONING AND DEVELOPMENT) IN ASSOCIATION THEREWITH ® PUBLIC HEARING ❑ ORDINANCES FOR 1 READING (02/28/2011) ❑ BIDS/MOTIONS ® ORDINANCES FOR 2' READING (03/14/2011) ❑ RESOLUTIONS QUASI - JUDICIAL: ® YES ® NO City Attorney City Manager ISSUE: On September 14, 2009, Council adopted Ordinance 1453, Series 2009, which enacted a moratorium on the issuance or consideration of any City license or permit concerning medical marijuana business operations. This moratorium was twice extended to allow the state to adopt laws and regulations concerning the activities of medical marijuana business operations. In 2010, the General Assembly enacted the Colorado Medical Marijuana Code (C.R.S. §§ 12 -43.3- 101 et seq.) which authorized the state to license and regulate the sale, distribution, cultivation, growth and manufacture of medical marijuana and medical marijuana - infused products throughout the state. The Code named the Colorado Department of Revenue ( "DOR ") as the state's licensing authority and further authorized the DOR to adopt rules that would further implement provisions of the Code. The attached Ordinance regulates and licenses medical marijuana businesses seeking to operate in the City, the appropriate zoning for those businesses and the regulation and licensing of primary caregivers who seek to grow medical marijuana in the City. Please note that staff is proposing amendments to Section 11 -305 (page 11) of the VAForms \CAFtemplate Council Action Form March 14, 2011 Page 2 Ordinance concerning the location of existing medical marijuana businesses. The provisions in this Ordinance, as amended, are consistent with state law. PRIOR ACTION: Council adopted Ordinance 1453, Series 2009, on September 14, 2009 as an emergency ordinance. Ordinance 1453 enacted a temporary ninety (90) day moratorium on the issuance or consideration of any City license or permit concerning medical marijuana dispensaries. Council adopted Ordinance 1457, Series, 2009, on second reading on November 23, 2009. Ordinance 1457 extended the moratorium in Ordinance 1453 for an additional ninety (90) days. Council adopted Ordinance 1459, Series 2010, on second reading on March 8, 2010. Ordinance 1459 extended the moratorium in Ordinance 1453 until July 13, 2010. Council adopted Ordinance 1466, Series 2010, on second reading on June 28, 2010. Ordinance 1466 extended the moratorium in Ordinance 1453 until the effective date of the rules concerning medical marijuana that are currently under consideration by the Colorado Department of Revenue. FINANCIAL IMPACT: The financial impact for the City is unknown. However, the City may begin receiving permit and/or license fees for new applications concerning medical marijuana businesses and primary care- givers. BACKGROUND: In November 2000, the people of the State of Colorado adopted Amendment 20 which amended the Colorado Constitution by adding Article XVIII Section 14 thereto. Under Amendment 20, certain persons are protected from criminal prosecution under state law for the acquisition, possession, production, use or transportation of marijuana for medical purposes. Amendment 20 does not protect those persons from criminal prosecution under federal law. In 2009, due to certain announcements by the United States Attorney General and rule making by the Colorado Department of Public Health and Environment, Colorado communities saw an increase in establishments operating as "medical marijuana dispensaries." Amendment 20 does not discuss "medical marijuana dispensaries" or the retail or for profit sale of medical marijuana. The City enacted a moratorium to allow the state to develop laws regulating medical marijuana business operations. On May 12, 2010, the General Assembly adopted House Bill 10 -1284 concerning the regulation of the sale, distribution, cultivation, growth and manufacture of medical marijuana and medical marijuana - infused products. This bill was signed into law by the Governor on June 7, 2010. The bill prohibited primary caregivers from selling medical marijuana for a profit and imposes numerical limits on the number of patients for whom those caregivers can lawfully provide services under Amendment 20. In conjunction with limiting the application of the provisions in Amendment 20, House Bill 10 -1284 enacted the Code which created a new state and local licensing model for medical marijuana business operations. The Council Action Form March 14, 2011 Page 3 Code authorized municipalities to adopt or extend moratoria to allow the DOR to adopt rules further implementing the Code. The final draft of those rules was published for public comment that ended on February 11, 2011. As of the date of this RFCA, the DOR had not yet set a date for final implementation or adoption of those rules. At a study session on November 15, 2010, Council provided direction to staff concerning the extent to which the City should regulate medical marijuana business operations. At that study session, Council also directed staff to draft regulations concerning primary caregivers who cultivate medical marijuana. This Ordinance has been drafted in accordance with those recommendations and state law. The Ordinance authorizes the City's tax and licensing division to act as the City's local licensing authority. The tax and licensing division will be authorized to issue three types of medical marijuana business licenses including: 1) medical marijuana center licenses (i.e. retail outlets), 2) optional premises cultivation operation licenses (i.e. grow facilities) and 3) medical marijuana infused products manufacturer licenses. All medical marijuana businesses will be authorized to operate in the Light Commercial (C -1) and Industrial (I) zone districts. However, these businesses will be prohibited from operating within 1000 feet of any school, alcohol or drug treatment facility, college or residential child care facility. Medical marijuana centers will be further prohibited from being located within three quarters of a mile of any other licensed medical marijuana center. Following internal discussions, staff has noted that the Ordinance as written could be interpreted to apply those buffer zones to the City's two existing medical marijuana businesses. To clarify the Ordinance, staff is proposing an amendment on second reading that will exempt those two businesses from the application of the buffer zones but only to the extent that those businesses remain at their current locations. If the businesses move, they will be subject to the buffer zones. rDw The Ordixn e also adopts a vertical integration model for cultivation operations. This means that those operations are only authorized in the City to the extent that the applicant for such license also operates a licensed medical marijuana center or infused products location within the City. The licensed location for a grow operation must be contiguous to the location at which the applicant operates its medical marijuana center or infused product manufacturing facility. The Ordinance also adopts regulations and licensing requirements for primary caregivers who grow medical marijuana. Primary caregivers will be required to obtain annual licenses and will be prohibited from growing medical marijuana outdoors. There are no location limitations concerning primary caregivers. However, to the extent applicable, primary caregiver license applicants must provide notarized approval from the owner of the property that such cultivation activities are authorized. Council Action Form March 14, 2011 Page 4 RECOMMENDATIONS: Planning Commission recommended adoption of this Ordinance by a vote of 6 -1 following a public hearing on February 17, 2011. City staff recommends adoption of this Ordinance. RECOMMENDED MOTION: "I move to approve Council Bill No. 06 -2011 an ordinance amending Article 11 of the Wheat Ridge Code of Laws by adding a new Article XII concerning medical marijuana and making certain amendments to Chapter 26 (Zoning and Development) in association therewith, on second reading, and that it will take effect 15 days after final publication. I further move to amend Council Bill No. 06 -2011 to add the following sentence to the end of sections 11- 305(b) and 11- 305(c): "Medical marijuana establishments that were lawfully in existence at a specific location within the city as of the effective date of this section shall not be subject to this prohibition at that location." Or, "I move to table indefinitely Council Bill No. 06 -2011 adopting regulations concerning medical marijuana for the following reason(s) " REPORT PREPARED BY: Gerald E. Dahl, City Attorney ATTACHMENTS: 1. Council Bill No. 06 -2011 2. January 22, 2010 memorandum from the City Attorney, Director of Community Development and Chief of Police titled "Medical Marijuana Basics." 3. November 3, 2010 memorandum from the City Attorney, Director of Community Development and Chief of Police titled "Medical Marijuana Licensing and Regulation." 4. Map #1, depicting 3 /4 mile separation, 1000 -foot buffer, and C -1, C -2 and I zoning districts. 5. Map #2, depicting C -1 and I zoning districts where the medical marijuana businesses are proposed to be allowed. CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER DEMOTT Council Bill No. 06 Ordinance No. Series 2011 TITLE: AN ORDINANCE AMENDING ARTICLE 11 OF THE WHEAT RIDGE CODE OF LAWS BY ADDING A NEW ARTICLE XII CONCERNING MEDICAL MARIJUANA AND MAKING CERTAIN AMENDMENTS TO CHAPTER 26 (ZONING AND DEVELOPMENT) IN ASSOCIATION THEREWITH WHEREAS, in the November 2000 general election, the voters of the State of Colorado adopted Amendment 20 to the Colorado Constitution ( "Amendment 20 "), codified at Article XVIII Section 14, which authorizes and limits the use of medical marijuana for the treatment of debilitating medical conditions; and WHEREAS, Amendment 20 provides patients and primary care - givers, as those terms are defined therein, with criminal defenses to, or exceptions from prosecution for the possession, production and use or medical marijuana; and WHEREAS, in May, 2010 the Colorado General Assembly adopted the Colorado Medical Marijuana Code, §§ 12- 43.3 -101 et seq., C.R.S., authorizing the cultivation, manufacture, distribution, and sale of medical marijuana and medical marijuana- infused products throughout the state under state and local government licensing procedures; and WHEREAS, the City Council has been made aware of a proliferation of businesses seeking to cultivate, manufacture, distribute and sell medical marijuana and medical marijuana- infused products to those who qualify under state law; and WHEREAS, the City has no current land use or business regulation governing the operation of businesses that cultivate, manufacture, distribute or sell medical marijuana and /or medical marijuana- infused products ( "Medical Marijuana Establishments "); and WHEREAS, on September 14, 2009, the City imposed a moratorium on the submission, acceptance, processing, and approval of all applications for City relating to the operation of Medical Marijuana Establishments to allow the City staff and the City Council to investigate the City's ability to regulate such establishments, and to develop and implement any appropriate regulations consistent with state law; and WHEREAS, because marijuana is a controlled substance under Colorado and federal law, the cultivation, manufacture, distribution and sale as contemplated by the Colorado Medical Marijuana Code has the potential for abuse and should be closely monitored and regulated by local authorities to the extent possible; and WHEREAS, if not closely monitored and regulated, the presence of marijuana, even for the purposes legally permitted by Amendment 20 and the Colorado Medical Marijuana Code, can potentially cause an increase in illegal activities within the City Attachment 1 affecting the health, safety, order, comfort, convenience and general welfare of the residents of the City; and WHEREAS, if Medical Marijuana Establishments operating pursuant to the Colorado Medical Marijuana Code were allowed to be established and to operate without appropriate local regulation of their location, such establishments might be established in areas that would conflict with the City's comprehensive land use plan; be inconsistent with surrounding uses; or otherwise be detrimental to the public health, safety and welfare. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1 . Moratorium Concluded. The moratorium imposed by Ordinance 1453 on September 14, 2009 shall conclude upon the effective date of this ordinance. Section 2 . Chapter 11 of the Wheat Ridge Code of Laws is hereby amended by the adoption of a new Article XII to read in its entirety as follows: Article XII. Medical Marijuana Licenses Division 1. Generally Sec. 11 -290. Authority Sec. 11 -291. Definitions Division 2. Medical Marijuana Licenses Sec. 11 -292. Local licensing authority established Sec. 11 -293. Types of medical marijuana licenses Sec. 11 -294. Medical marijuana license required Sec. 11 -295. Application of Colorado Medical Marijuana Code Sec. 11 -296. Application for license Sec. 11 -297. Application fee Sec. 11 -298. Standards for approval of license, no hearing required Sec. 11 -299. Authority to recommend and impose conditions on license. Sec. 11 -300. Denial of license. Sec. 11 -301. Appeal of denial or conditional approval of license Sec. 11 -302. Duration of license, renewal Sec. 11 -303. Duties of licensee Sec. 11 -304. Hearing, suspension, revocation of license Sec. 11 -305. Prohibited locations Sec. 11 -306. Signage Sec. 11 -307. Taxes Sec. 11 -308. Penalties, injunctive relief Secs. 11-309-11-319. Reserved 2 Division 3. Primary Caregiver Licenses Sec. 11 -320. Primary caregiver license required Sec. 11 -321. Application for license Sec. 11 -322. Application fee Sec. 11 -323. Standards for approval of license Sec. 11 -324. Authority to recommend and impose conditions on license Sec. 11 -325. Denial of license. Sec. 11 -326. Appeal of denial or conditional approval of license Sec. 11 -327. Duration of license, renewal Sec. 11 -328. Duties of licensee Sec. 11 -329. Hearing, suspension, revocation of license Sec. 11 -330. Growing of medical marijuana outdoors prohibited Sec. 11 -331. Penalties, injunctive relief DIVISION 1. GENERALLY Sec. 11 -290. Authority. The City Council hereby finds, determines, and declares that it has the power to adopt this article pursuant to: (a) The Local Government Land Use Control Enabling Act, article 20 of title 29, C.R.S.; (b) Part 3 of article 23 of title 31, C.R.S. (concerning municipal zoning powers); (c) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (d) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (e) Section 31 -15 -501, C.R.S. (concerning municipal authority to regulate businesses); (f) The authority granted to home rule municipalities by article XX of the Colorado Constitution; (g) Article XVIII Section 14 of the Colorado Constitution; and (h) The powers contained in the Wheat Ridge Home Rule Charter. Sec. 11 -291. Definitions. As used in this article the following words shall have the following meanings, unless the context clearly requires otherwise: Administrative hearing officer has the meaning provided in section 2 -87 of this code. Applicant means any person making an application for a license under this article. C Application means an application for license submitted pursuant to this article. City Manager shall have the meaning provided in section 2 -26 of this code. Colorado Medical Marijuana Code shall mean Article 43.3 of Title 12 of the Colorado Revised Statutes and any implementing administrative regulations. Good cause means and includes (1) When a licensee violates, does not meet, or fails to comply with any of the terms, conditions, or provisions of this article and any rule and regulation promulgated pursuant to this article or the Colorado Medical Marijuana Code; (2) When the licensee or applicant has failed to comply with any special terms or conditions that were placed on its license at the time the license was issued, or that were placed on its license pursuant to an order of the local licensing authority or the Colorado Department of Revenue; or (3) When the licensed premises have been operated in a manner that adversely affects the public health, welfare, or safety of the immediate neighborhood in which the medical marijuana clinic is located. Evidence to support such a finding can include: (i) a pattern of disorderly conduct as defined in section 11- 54(a)(1) of this code within or immediately adjacent to the premises of the licensee; (ii) a pattern of drug - related criminal conduct within the licensed premises, or in the immediate area surrounding the licensed premises; (iii) criminal conduct directly related to or arising from the operation of the medical marijuana establishment.. License means a license to operate a medical marijuana establishment issued pursuant to this article. Licensed premises means the location in the City from which the Licensee will operate. Licensee means the person to whom a license has been issued pursuant to this article and the Colorado Medical Marijuana Code to operate a business as described in section 12- 43.3 -402, C.R.S.. Medical marijuana means marijuana that is grown and sold pursuant to the provisions of the Colorado Medical Marijuana Code for a purpose authorized by section 14 of the Article XVIII of the Colorado Constitution. Medical marijuana center means a premises licensed pursuant to the Colorado Medical Marijuana Code to operate a business as described in section 12- 43.3 -402, C.R.S. Medical marjuana establishment shall mean a medical marijuana center, a medical marijuana- infused product manufacturer or an optional premises cultivation operation. Medical marjuana- infused product shall mean a product infused with medical marijuana that is intended for use or consumption other than by smoking, including, but not limited to, edible products, ointments, and tinctures. Medical marijuana- infused product manufacturer shall mean a person licensed pursuant to the Colorado Medical Marijuana Code to operate a business as described in section 12- 43.3 -404, C.R.S. Optional premises cultivation operation shall mean a premises licensed pursuant to this ordinance and the Colorado Medical Marijuana Code where a business described in section 12- 43.3 -403, C.R.S will operate. Patient has the meaning provided in section 14(a)(d) of Article XVIII of the Colorado Constitution of the Colorado Constitution as further defined and regulated in section 25- 1.5 -106, C.R.S. and 5 C.C.R. 1006 -2. Person means a natural person, partnership, association, company, corporation, limited liability company, organization, or a manager, agent, owner, director, servant, officer, or employee thereof. Primary care -giver has the meaning provided in section 14(1)(0 of Article XVIII of the Colorado Constitution as further defined and regulated in section 25 -1.5 -106, C.R.S. and 5 C.C.R. 1006 -2. School shall mean a public or private preschool or a public or private elementary, middle, junior high or high school. (b) In addition to the definitions provided in subsection (a) of this section, the other defined terms in section 14 of Article XVIII of the Colorado Constitution are incorporated into this article by reference. DIVISION 2. MEDICAL MARIJUANA LICENSES Sec. 11 -292. Local licensing authority established. (a) There is hereby established a local licensing authority, which shall have and is vested with the authority to: 1. Grant and refuse licenses and approve and deny applications for renewal and transfer of licenses for the sale, cultivation and manufacture of medical marijuana and medical marijuana infused products; 2. Promulgate reasonable rules and regulations concerning licenses issued under this division 2; 2 3. Suspend and revoke licenses issued under this division 2 in the matter provided by law; and 4. Have all of the powers of the local licensing authority as provided in the Colorado Medical Marijuana Code. (b) The Tax and Licensing Division of the City shall serve as the local licensing authority for any administrative purposes described in subsections (a)(1), (a)(2) and (a)(4) of this section An administrative hearing officer shall serve as the local licensing authority for purposes of hearing any requests for suspension or revocation described in subsection (a)(3). Sec. 11 -293. Types of medical marijuana licenses. The local licensing authority may issue the following three types of medical marijuana licenses: (a) Medical marijuana center license; (b) Medical marijuana - infused products manufacturing license; and (c) Optional premises cultivation license. Sec. 11 -294. Medical marijuana license required. No person or entity shall operate a medical marijuana establishment within the City without a valid and appropriate medical marijuana license issued in accordance with this division 2. This requirement to obtain the appropriate medical marijuana license is in addition to the requirement to obtain a business license pursuant to article II of this chapter and any other license or permit required by the city. Medical marijuana establishments that are in existence as of the effective date of this section must submit an application for a medical marijuana license within 30 days of that effective date. Sec. 11 -295. Application of Colorado Medical Marijuana Code. Except as otherwise provided herein, the local licensing authority shall be governed by the Colorado Medical Marijuana Code now in effect or subsequently amended. In the event of a conflict between the provisions in this article and those in the Colorado Medical Marijuana Code, the more stringent provision shall apply. Sec. 11 -296. Application for license. (a) A person seeking to obtain a license pursuant to this division 2 shall file an application with the local licensing authority on a form provided by the state, and shall include all additional information required by the Colorado Medical Marijuana Code. (b) The local licensing authority is hereby authorized to request any applicant to provide information that is in addition to the requirements of the Colorado Medical Marijuana Code if it determines that such information is reasonably necessary to complete the investigation and review of the application. Sec. 11 -297. Application fee. An applicant shall pay to the City a non - refundable application fee when the application is filed. The purpose of the fee is to cover the D administrative costs of processing the application. The amount of the application fee shall be fixed by the City Council by motion. Sec. 11 -298. Standards for approval of license, no hearing required. (a) The local licensing authority is authorized to administratively approve any license under this division 2 so long as the following conditions are met: 1. The application (including any required attachments and submissions) is complete and signed by the applicant; 2. The applicant has paid the application fee and any other fees required by this code; 3. The application does not contain a material falsehood or misrepresentation; 4. The application complies with all of the requirements of this division 2 and the Colorado Medical Marijuana Code; and 5. The licensing authority has received written approval from the City of Wheat Ridge Police Department as to the applicant's criminal background. 6. The licensing authority has received written approval from the Community Development Department that the location and zoning requirements imposed by this division 2 and Section 26 -204 of the Code have been met. (b) The local licensing authority may, but is not required to hold a hearing as permitted by section 12- 43.3 -302, C.R.S. prior to granting a medical marijuana license. Sec. 11 -299. Authority to recommend and impose conditions on license. (a) Any City department shall have the authority to recommend reasonable terms and conditions on a license as may be necessary to protect the public health, safety, and welfare, and to obtain compliance with the requirements of this division 2 and applicable law, so long as those conditions are not in conflict with the Colorado Medical Marijuana Code. (b) The local licensing authority is authorized to approve any license issued under this division 2 subject to such reasonable conditions as required by the City. (c) In the event an application is conditionally approved, the local licensing authority shall clearly set forth in writing the conditions of approval. Sec. 11 -300. Denial of license. The local licensing authority shall deny an application for a license under this division 2 when the applicant fails to meet all of the standards set forth in section 11 -298 of this division 2. 7 Sec. 11 -301. Appeal of denial or conditional approval of license. (a) An applicant has the right to appeal the denial of an application or condition imposed thereon to an administrative hearing officer. (b) The applicant must file a written notice of appeal with the local licensing authority within fifteen days after the date of mailing of the denial or conditional approval of the application. (c) Upon notice from the local satisfied the requirement in subsection administrative hearing officer. licensing authority that the applicant has (b), the City Manager shall appoint an (d) The applicant shall be provided with not less than ten days' prior written notice of the appeal hearing to be held by the administrative hearing officer. (e) The burden of proof in an appeal filed under this section shall be on the applicant. (f) If the administrative hearing officer finds by a preponderance of the evidence that the decision of the local licensing authority was correct, the administrative hearing officer shall uphold that decision. If the administrative hearing officer finds by a preponderance of the evidence that the decision of the local licensing authority was incorrect, the administrative hearing officer shall set aside the denial and issue the license. The administrative hearing officer may impose additional conditions on the license issued (if it was previously denied) or require that the conditions of approval be stricken or modified. (g) Any decision made by the administrative hearing officer pursuant to this section shall be a final decision and may be appealed to the district court pursuant to Rule 106(a)(4) of the Colorado Rules of Civil Procedure. The applicant's failure to timely appeal the decision is a waiver of the applicant's right to contest the denial or conditional approval of the application. Sec. 11 -302. Duration of license, renewal. (a) Each license issued pursuant to this division 2 shall expire on the first day of the month one year from the month of issuance, and may be renewed as provided in this section. (b) An application for the renewal of an existing license shall be made to the local licensing authority as required by the Colorado Medical Marijuana Code. At the time of the filing of an application for the renewal of an existing license the applicant shall pay a renewal fee in an amount fixed by the City Council by motion. Sec. 11 -303. Duties of licensee. Each licensee shall: (a) Post the license in a conspicuous location on the licensed premises; N (b) Comply with all of the terms and conditions of the license; (c) Comply with all of the requirements of this division 2; (d) Comply with all other applicable City ordinances; (e) Comply with the Colorado Medical Marijuana Code; (f) Comply with all state laws and administrative regulations pertaining to the medical use of marijuana; (g) Comply with all applicable federal laws, rules, or regulations, other than a federal law, rule or regulation concerning the possession, sale or distribution of medical marijuana; (h) Permit inspection of its records and operation by the local licensing authority for the purpose of determining the licensee's compliance with the terms and conditions of the license and the City's tax laws; and (i) Permit inspection of the premises by authorized City officials during permitted business hours for the purpose of determining compliance with this division 2. Sec. 11 -304. Hearing, suspension, revocation of license. (a) A license issued pursuant to this division 2 may be suspended or revoked by the local licensing authority after a hearing for the following reasons: 1. Fraud, misrepresentation, or a false statement of material fact contained in the license application; 2. A violation of any City ordinance, state, or federal law or regulation, other than a federal law or regulation concerning the possession, sale or distribution of marijuana that conflicts with Article XVIII Section 14 of the Colorado Constitution; 3. A violation of any of the terms and conditions of the license; 4. A violation of any of the provisions of this article; or 5. Good cause. (b) Request for suspension or revocation, notice of hearing, burden. 1. Any authorized City official may request in writing that a license issued under this article be suspended or revoked. 2. The City Manager shall appoint an administrative hearing officer to preside over the hearing on the suspension or revocation of a license. A 3. The administrative hearing officer shall a. Set a date and time on which to determine whether to revoke or suspend such license; b. Notify the licensee in writing of the date and time of the hearing at least ten (10) days prior to conducting such hearing. Such notice shall be sent by regular mail postage prepaid. Notice is deemed to have been given upon mailing; C. Conduct a hearing based on the allegations provided in the written request. This shall be an informal hearing where no rules of evidence shall apply. The burden shall be on the City to prove by a preponderance of the evidence that the licensee has violated the provisions in subsection 11 -294 (a); and d. Provide a written decision to the licensee within a reasonable time after the conclusion of the hearing. (c) In deciding whether a license should be suspended or revoked, and in deciding what conditions to impose in the event of a suspension, if any, the administrative hearing officer shall consider: 1. The nature and seriousness of the violation; 2. Corrective action, if any, taken by the licensee; 3. Prior violation(s), if any, by the licensee; 4. The likelihood of recurrence; 5. All circumstances surrounding the violation; 6. Whether the violation was willful; 7. The number of previous violations by the licensee; and 8. Previous sanctions, if any, imposed against the licensee. (d) In connection with the suspension of a license, the administrative hearing officer may impose reasonable conditions thereon. (e) Any decision made by the administrative hearing officer pursuant to this section shall be a final decision and may be appealed to the district court pursuant to Rule 106(a)(4) of the Colorado Rules of Civil Procedure. The applicant's failure to timely appeal the decision is a waiver of the applicant's right to contest the decision. 10 (f) No fee previously paid by a licensee in connection with the application shall be refunded if such license is suspended or revoked. Sec. 11 -305. Prohibited locations. (a) Except as provided in subsection (f) of this section, no medical marijuana establishment shall be located at a location that does not conform to the requirements of this section. (b) No medical marijuana center shall be located within one thousand feet of a school, an alcohol or drug treatment facility, or the principal campus of a college, university, or seminary, or a residential child care facility. (c) No medical marijuana center shall be located within three quarters ( of a mile of another medical marijuana center. (d) No person shall operate an optional premises cultivation operation within the City unless the licensed premises of the person's optional premises cultivation operation are contiguous with the licensed premises of the person's medical marijuana center license and /or the person's medical marijuana- infused products manufacturing license. (e) Each medical marijuana establishment shall be operated from a permanent location. Except as permitted by the Medical Marijuana Code, no medical marijuana establishment shall be licensed to operate from a moveable, mobile, or transitory location. (f) The suitability of a location for a medical marijuana establishment shall be determined at the time of the issuance of the first license for such establishment. The fact that changes in the neighborhood that occur after the issuance of the first license might render the site unsuitable for a medical marijuana establishment under this section shall not be grounds to suspend, revoke or refuse to renew the license for such establishment so long as the license for the establishment remains in effect. Sec. 11 -306. Signage. (a) All signage for a medical marijuana establishment shall comply with the requirements of chapter 26 of this code. (b) No licensee shall display a sign for the medical marijuana establishment that contains the word "marijuana," "cannabis," or any other word or phrase commonly understood to refer to marijuana unless such word or phrase is immediately preceded or followed by the word "medical." Sec. 11 -307. Taxes. Each licensee shall collect and remit sales tax on all medical marijuana, paraphernalia, and other tangible personal property sold by the licensee at the medical marijuana establishment according to the provisions of chapter 22 of this code and any regulations issued pursuant thereto. 11 Sec. 11 -308. Penalties, injunctive relief. (a) It is a misdemeanor offense for any person to violate any provision of this division 2. Any person convicted of having violated any provision of this division 2 shall be punished as set forth in section 1 -5 of this code. (b) In addition to all other remedies available to the city under this code and by law, the operation of a medical marijuana establishment without a valid license issued pursuant to this division 2 may be enjoined by the City in an action brought in a court of competent jurisdiction. DIVISION 3. PRIMARY CARE -GIVER LICENSE Sec. 11 -320. Primary caregiver license required. No primary care -giver shall produce, offer, sell or grow medical marijuana within the City without a valid and appropriate primary care -giver license issued in accordance with this division 3. Sec. 11 -321. Application for license. (a) A person seeking to obtain a primary care -giver license shall file an application with the Tax and Licensing Division. (b) An application for a primary care -giver license shall contain the following information: 1. The applicant's name, address and telephone number; 2. The street address of the applicant's operation location; 3. If the applicant is not the owner of the proposed location, a notarized statement from the owner of such property authorizing the use of said property for the applicant's operation; 4. A statement by the applicant acknowledging that the applicant may be subject to criminal prosecution under federal law for the distribution of a controlled substance; 5. A statement by the applicant that the applicant is a state approved primary care - giver; 6. A statement by the applicant that the applicant will provide the Wheat Ridge Police Department the registry identification card number of each of his or her patients upon inquiry; 7. A statement by the applicant acknowledging that the City accepts no legal liability in connection with the approval and subsequent operation of the medical marijuana establishment; 12 8. A statement by the applicant acknowledging that the provisions in chapter 26 of this code concerning home occupations applies to the activities of a primary care - giver; and 9. Any additional information that the Tax and Licensing Division reasonably determines to be necessary in connection with the investigation and review of the application. Sec. 11 -322. Application fee. An applicant shall pay to the City a non - refundable application fee when the application is filed. The purpose of the fee is to cover the administrative costs of processing the application. The amount of the application fee shall be fixed by the City Council by motion. Sec. 11 -323. Standards for approval of license. The Tax and Licensing Division is authorized to approve a primary care -giver license so long as the following conditions are met: (a) The application (including any required attachments and submissions) is complete and signed by the applicant; (b) The applicant has paid the application fee; and (c) The application does not contain a material falsehood or misrepresentation. Sec. 11 -324. Authority to recommend and impose conditions on license. (a) Any City department shall have the authority to recommend reasonable terms and conditions on a primary care -giver license as may be necessary to protect the public health, safety, and welfare, and to obtain compliance with the requirements of this division 3 and applicable law. (b) The Tax and Licensing Division is authorized to approve any primary care- giver license subject to such reasonable conditions as required by the City. (c) In the event an application is conditionally approved, the Tax and Licensing Division shall clearly set forth in writing the conditions of approval. Sec. 11 -325. Denial of license. The Tax and Licensing Division shall deny an application for a primary care -giver license when the applicant fails to meet all of the standards set forth in section 11'9�of this division 3. 3 )_3 Sec. 11 -326. Appeal of denial or conditional approval of license. An applicant has the right to appeal the denial of an application or condition imposed thereon to an administrative hearing officer pursuant to the provisions in code section 11 -291. 13 Sec. 11 -327. Duration of license, renewal. (a) Each license issued pursuant to this division 3 shall expire on the first day of the month one year from the month of issuance, and may be renewed as provided in this section. (b) An application for the renewal of an existing license issued under this division 3 shall be made to the Tax and Licensing Division. At the time of the filing of an application for the renewal of an existing license the applicant shall pay a renewal fee in an amount fixed by the City Council by motion. Sec. 11 -328. Duties of licensee. Each licensee shall: (a) Comply with all of the terms and conditions of the license; (b) Comply with all of the requirements of this division 3; (c) Comply with all other applicable City ordinances; (d) Comply with all state laws and administrative regulations pertaining to the medical use of marijuana; (e) Comply with all applicable federal laws, rules, or regulations, other than a federal law, rule or regulation concerning the possession, sale or distribution of medical marijuana; and (f) Permit inspection of the licensed premises by authorized City officials at reasonable hours upon a complaint and after providing twenty -four hours written notice to the licensee. Such written notice may be posted on the licensed premises. Sec. 11 -329. Hearing, suspension, revocation of license. A license issued pursuant to this division 3 may be suspended or revoked by the City pursuant to the provisions in code section 11 -294. Sec. 11 -330. Growing of medical marijuana outdoors prohibited. No primary care- giver may grow medical marijuana outdoors. Sec. 11 -331. Penalties, injunctive relief. (a) It is a misdemeanor offense for any person to violate any provision of this division 3. Any person convicted of having violated any provision of this article shall be punished as set forth in code section 1 -5. (b) In addition to all other remedies available to the City under this code and by law, the growing of medical marijuana by an unlicensed primary care -giver may be enjoined by the City in an action brought in a court of competent jurisdiction. Section 3 . Section 26 -123 of the Code, entitled Definitions, is hereby amended by the addition of the following terms: 14 Medical marijuana center has the meaning provided in Article XII of Chapter 11 of this code. Medical marijuana- infused products manufacturer has the meaning provided in Article XII of Chapter 11 of this code. Optional premises cultivation operation has the meaning provided in Article XII of Chapter 11 of this code. Section 4 . The Table of Uses for Commercial and Industrial Districts provided for in Section 26 -204 of the Code is hereby amended as follows: Uses Notes NC RC C -1 C -2 I Medical and dental Pharmacies and P P P P P offices, clinics or optical stores laboratories, excluding are accessory substance abuse use clinics MEDICAL P P MARIJUANA CENTERS MEDICAL P P MARIJUANA - INFUSED PRODUCTS MANUFACTURERS OPTIONAL P P PREMISES CULTIVATION OPERATION Mini - warehouses for P P inside storage Section 5 . Police Power Finding The City Council hereby finds, determines, and declares that this Ordinance is necessary and proper to provide for the safety, preserve the health, promote the prosperity, and improve the order, comfort and convenience of the City of Wheat Ridge and the inhabitants thereof. Section 6 . Authority The City Council hereby finds, determines and declares that it has the power to adopt this Ordinance pursuant to: (i) the Local Government Land Use Control Enabling Act, Article 20 of Title 29, C.R.S.; (ii) Part 3 of Article 23 of Title 31, C.R.S. (concerning municipal zoning powers); (iii) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (iv) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (v) Section 31 -15 -501 (concerning municipal power to regulate businesses); (vi) the authority granted to home rule municipalities by Article XX of the Colorado Constitution; and (vii) the powers contained in the City of Wheat Ridge, Colorado Home Rule Charter (the "Charter "). 15 Section 7 Severability, Conflicting Ordinances Repealed If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 8 . Effective Date This Ordinance shall take effect fifteen (15) days after final publication, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of 7 to 0 on this 28th day of February, 2011, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge, and Public Hearing and consideration on final passage set for March 14, 2011 at 7:00 p.m., in the Council Chambers, 7500 West 29 Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of to _, this day of , 2011. SIGNED by the Mayor on this day of 2011. Jerry DiTullio, Mayor ATTEST: Michael Snow, City Clerk Approved as to Form Gerald E. Dahl, City Attorney First Publication: March 3, 2011 Second Publication: Wheat Ridge Transcript Effective Date: 16 MAE LiV MEMORANDUM TO: Mayor Jerry DiTullio and City Council THROUGH: Randy Young, City Manager FROM: Gerald Dahl, City Attorney; Dan Brennan, Chief of Police and Ken Johnstone, Director of Community Development DATE: January 22, 2010 RE: Medical Marijuana Basics How is marijuana legal? In 2000, Colorado voters passed Amendment 20 to the Colorado Constitution, legalizing the medical use of marijuana. Colo. Const. art. XVIII, § 14. Amendment 20 created an exception to the state's criminal laws for any patient or primary care -giver in lawful possession of a registry identification card to engage or assist in the medical use of marijuana.' Colo. Const. art XVIII, § 14(2)(b). If medical marijuana patients or primary care- givers are not in possession of a registry identification card but they have a physician's recommendation that marijuana may help treat a patient's debilitating medical condition, than the patient and their primary care -giver are entitled to an affirmative defense to the state's criminal laws. Colo. Const. art XVIII, § 14(2)(a). Licensed physicians are also entitled to an exception to the state's criminal laws under Amendment 20 for recommending the medical use of marijuana to patients who have been diagnosed with debilitating medical conditions. Colo. Const. art. XVltl, § 14(2)(c). For purposes of Amendment 20, "medical use" means: The acquisition, possession, production, use, or transportation of marijuana or paraphernalia related to the administration of such marijuana to address the symptoms or effects of a patient's debilitating medical condition, which may be authorized only after diagnosis of the patient's debilitating medical condition by a physician or physicians, as provided in this Section. Colo. Const. art. XVIII, § 14(1)(b). Thus, persons diagnosed with a debilitating medical condition may use, acquire, possess, produce or transport marijuana for medicinal purposes. As of June 14, 2004, the Colorado Department of Public Health and Environment instituted a policy of no longer issuing medical marijuana registry cards to primary- caregivers. Attachment 2 j I Note, that medical use does not include the term dispensing, selling or purchasing. Those words are only included within Amendment 20 under section 14(2)(e) which states. I Notwithstanding the foregoing provisions, no person, including a patient or primary care - giver, shall be entitled to the protection ... for his or her acquisition, possession, manufacture, production, use, ale, distribution, dispensing, or transportation of marijuana for any use other than medical use. j I However, in a recent decision, a District Court judge determined that the term "acquire' i as used within the term "medical use" necessarily included selling or dispensing because of section 14(e). Frasher et al v. City of Centennial, 2009CV1456, Arapahoe County. This was a preliminary decision on a motion for temporary injunctive relief and not a after a full trial. In c addition, because this is a decision of a District Court it does not serve as legal precedent and therefore does not necessarily apply to any other municipality besides Centennial. To date, the sale of medical marijuana is not regulated by the state. As a result, medical marijuana dispensaries are being established under the pretense that the individuals operating those businesses do so as a "primary caregiver ". Amendment 20 defines "primary caregiver" as: I a person other than the patient and the patient's physician who is eighteen years of age or older and has a significant responsibility for managing the well -being of a patient who has a debilitating medical condition. Colo. Const. art. XVIII, § 14(1)(f). So long as an individual owner of a medical marijuana dispensary is named as a primary giver by patients who have debilitating medical conditions, that individual is entitled to the same protections afforded those patients under Amendment 20. Therefore, a primary care -giver is allowed to acquire, possess, and transport marijuana for use by his or her patients. Combined a patient and his or her primary care -giver may not possess more than two (2) ounces of marijuana in a usable form and not more than six (6) marijuana plants in varying stages of development. Colo. Const. art. XVIII, § 14(4)(a). This limit as applied to a primary care -giver is cumulative as based on the number of patients for whom that primary care -giver is responsible. For example, if a primary care -giver has 10 patients, none of whom grow their own marijuana, than the primary care -giver is entitled to possess up to sixty (60) plants. So why have medical marijuana dispensaries proliferated? In February of last year, the United States Attorney General, Eric Holder, announced that it would no longer be a priority of the Justice Department to enforce the federal prohibition against the sale or use of marijuana. Prior to that announcement, few medical marijuana dispensaries operated within the state and there were a few thousand patients listed on the state's registry. Since that announcement, it has been estimated that there are now 30,000 patients listed on the state's registry and an unknown number of medical marijuana dispensaries. The Attorney General's comments alone do not explain the explosion of medical marijuana dispensaries in the state. The Colorado Department of Public Health (the "CDPHE ") also shares some responsibility. The CDPHE is charged with promulgating rules to implement z Amendment 20. In July 2009, the CDPHE proposed an amendment to its regulations to redefine the phrase "significant responsibility for managing the well -being of a patient," as it is used in the definition of "primary caregiver." After a twelve hour hearing, the CDPHE adopted a rule that defines that phrase to mean: assisting a patient with daily activities, including but not limited to transportation or housekeeping or meal preparation or shipping or making any necessary arrangement for access to medical care or services or provision of medical marijuana. Under this definition, a primary care -giver can significantly manage the well -being of a patient solely by providing medical marijuana. However, in October 2009, the Colorado Court of Appeals determined that "supplying marijuana for medical use, by itself, is insufficient to constitute significant management responsibility for a patient's well - being." People V. Clendenin, 08CA0624 (Colo. App. October 29, 2009). Unfortunately, the Court did not describe what other types of activities would satisfy the term. In addition, due to timing, the Court did not address the CDPHE's definition. This case is now before the Colorado Supreme Court. What is the current status of legislation? Currently, the state laws concerning medical marijuana do not address or place requirements on the doctor to patient relationship. There are two bills being proposed for consideration by the General Assembly during this year's term. The first bill would address the doctor to patient relationship. This bill places more stringent requirements on the type of review that must be conducted by the physician prior to that physician recommending that a patient use medical marijuana. The second bill would limit the number of patients for whom a primary care -giver may care. If this second bill is adopted as written, a primary care -giver may only have five (5) patients. It also prohibits primary care- givers from combing to grow or provide marijuana to their patients. Economically, this would essentially prohibit medical marijuana dispensaries from continued operation. 3 M u�ctav OaHL K LfEGf -3EN MEISTE3� R ENALIO LLP AT OPNMAT W W MEMORANDUM TO: Mayor Jerry DiTullio and City Council THROUGH: Patrick Goff, City Manager FROM: Gerald Dahl, City Attorney; Dan Brennan, Chief of Police and Ken Johnstone, Director of Community Development DATE: November 3, 2010 (for the November 15 Study Session) RE: Medical Marijuana Licensing and Regulation The purpose of this memorandum is two -fold: (1) to give an update of recent developments concerning the regulation of the cultivation, production, use and sale of medical marijuana, and (2) to request direction from Council on how to proceed with appropriate licensing and regulation, or banning, of medical marijuana businesses in the City also including primary care - givers and cultivation. I. Baclraround• Regulation of Medical Marijuana Businesses In June 2010, staff produced a memorandum (attached for your reference) describing the licensing and regulation of medical marijuana cultivation, production and use under Amendment 20 to the Colorado Constitution and the newly adopted Colorado Medical Marijuana Code, C.R.S. §§ 12- 43.3 -101 et seq. At that time, the Colorado Department of Revenue (the "DOR "), the state's licensing authority, was expected to produce and adopt regulations concerning its application of the Medical Marijuana Code in September 2010. Council decided to delay further discussion concerning the City's regulations until after the DOR had produced its regulations. Council adopted an ordinance extending the City's moratorium on the issuance of permits and licenses concerning medical marijuana businesses until the date that the DOR regulations "became effective." The DOR released its draft regulations in September. Under state law, the DOR is required to hold hearings on those regulations prior to their implementation, While the DOR has not produced an official calendar, the DOR should begin holding hearings on the regulations in January 2011 with an effective date set for March 2011. At approximately ninety -three pages of text, the draft regulations are extensive. Staff believes that the draft regulations provide enough guidance for the Council to lift the moratorium and enact the City's regulations. Attachment 3 H. Options for Council Action Staff is proposing the following options for Council's consideration: 1. Adopt an ordinance or recommend a ballot measure banning medical marijuana businesses from operating in the City. 2. Adopt an ordinance regulating medical marijuana businesses. Option 1: Adopt an ordinance or resolution or recommend a ballot measure banning medical marijuana businesses from operating in the City. The Colorado Medical Marijuana Code, at C.R.S. § 12- 43.3 -106, contains a local opt out provision authorizing local governments to prohibit medical marijuana businesses from operating in their communities. There are two methods by which a local government may exercise this opt out provision: o By a vote of a majority of registered electors of the local government at a regular or special election; or o By a vote of a majority of the members of the governing board of the local government. Here, Council, acting as the governing board for the City, may, by majority vote, adopt an ordinance or resolution banning medical marijuana businesses from operating in the City. Alternatively, Council could refer this question to the voters of Wheat Ridge at a special election. There are several local governments that have followed one of these two approaches. A list of those communities is attached for your reference. It is important to note that there are two retail medical marijuana businesses currently operating in the City. If the City adopts a ban on those types of businesses, this may create two legal non - conforming uses and/or potentially run afoul of the state's anti - amortization law. Under that law, no business that was legal at the time that it was created may be forced to close. By adopting a ban on medical marijuana businesses, the City would necessarily be forcing the two existing businesses to close. This could subject the City to a lawsuit under the anti - amortization provisions. However, the anti- amortization statute predates the Colorado Medical Marijuana Code. Under general rules of statutory interpretation, in the event that two statutory provisions conflict, the more recent provision prevails. As the more recent provision, the Colorado Medical Marijuana Code authorizes the City to ban medical marijuana businesses. In addition, under the Colorado Medical Marijuana Code, the City's ability to ban must necessarily include the ability of the City to force those existing businesses to close. Thus, while the City may be subject to a lawsuit for forcing those existing businesses to close, it is not likely that the City would be forced to compensate the owners of those businesses for taking actions authorized under the Colorado Medical Marijuana Code. Option 2 - Adopt an ordinance concerning the licensing of medical with changes consistent with the provisions in the Colorado Medical Marijuana Code and DOR regulations. If the Council decides to allow medical marijuana businesses to operate in the City, staff requests direction concerning some specific regulatory options for those businesses. The City is not required to adopt regulations implementing the Colorado Medical Marijuana Code because under C.R.S. § 12- 43.3- 301(2)(a), if the Council does not ban medical marijuana businesses or adopt regulations, then the default provisions of the Colorado Medical Marijuana Code apply. It is staff's recommendation that Council adopt some level of regulation to determine the appropriate zoning and licensing mechanisms for these businesses operating within the City. Here are the questions Staff needs Council to answer if Option 2 is selected: o What types of licenses should the City offer? The Colorado Medical Marijuana Code authorizes the City to issue the following medical marijuana licenses: 1. A medical mariyuana center license This is a license for a retail medical marijuana business. 2. A medical madivana- infused Moducts manufacturer license This is a license for a business that manufacturers a product containing medical marijuana for use or consumption by a patient. Examples of products include edibles, tinctures and ointments. 3. An optional premises cultivation operation license This is a license that can only be issued to either a medical marijuana center or a medical marijuana - infused products manufacturer for a location in which the licensee is authorized to grow and cultivate medical marijuana. o Should the City adopt a vertical integration model for medical marijuana centers? Under the vertical integration model, all cultivation activities under an optional premises license would be required to occur at or immediately adjacent to the location of the medical marijuana center licensed premises. The primary purpose of this regulatory model would be to assist the City in enforcing the Colorado Medical Marijuana Code requirement that medical marijuana centers grow a minimum of 70% of the medical marijuana that they sell at retail. In addition, under this model, no medical marijuana center could obtain a City license unless the applicant also obtained an optional premises cultivation operation license for an adjacent parcel. This type of model could limit the number of medical marijuana centers operating in the City. The City of Lakewood currently operates under this type of vertical integration model. One alternative to the vertical integration model includes allowing optional premises medical marijuana cultivation operations to be in separate and non- adjacent facilities from medical marijuana center locations. One purpose for this is that land use impacts from cultivation operations may include additional electrical power usage, -3- l i significant water use, chemicals and odors associated with growing plants. These types of impacts are typically not conducive to retail locations. o If the City adopts a vertical integration model, what is the appropriate zoning for those businesses? Community Development Staff proposes that vertically integrated medical marijuana businesses be allowed as a use by right in the City's Cl (light commercial) and I (industrial) zone districts. The Police Department supports keeping medical marijuana businesses in the City's Cl districts for reasons of safety and enforcement. o If the City does not adopt a vertical integration model, what is the appropriate zoning for medical marijuana businesses? Community Development Staff and the Police Department Staff agree that if the City does not adopt a vertical integration model, retail medical marijuana centers should be allowed as a use by right in the City's Cl (light commercial) district and that optional premises cultivation operations and medical marijuana - infused products manufacturers should be permitted in the City's I (industrial) zone district. o Does Council want to reduce or eliminate the Colorado Medical Marijuana Code's default provision that prohibits medical marjuana businesses from operating within 1000 feet of certain locations? The Colorado Medical Marijuana Code prohibits medical marijuana businesses from operating within 1000 feet of schools, child care facilities or drug treatment and rehabilitation centers. However, it does authorize the City to adopt less stringent distance requirements. Staff previously recommended that the 1000 foot distance limitation be reduced to 500 feet. Maps of the City demonstrating these distance limitations have been attached to this Memorandum. Map A concerns the 500 foot limitation. Map B concerns the default 1000 foot limitation. o Does Council want to adopt a provision limiting the distance between licensed premises? The Colorado Medical Marijuana Code authorizes the City to adopt a provision limiting location of the distance between medical marijuana licensed premises. Currently, the City of Lakewood prohibits medical marijuana centers from operating within three quarters of a mile of another medical marijuana center. Attached to this memorandum is Map C which demonstrates this distance limitation in conjunction with the default 1000 foot limitation described above. As demonstrated on Map C, if both limitations were adopted by the City, the available locations for operating medical marijuana facilities would be limited. As a result, the total number of medical marijuana facilities would also he limited. -4- o Who will serve as the City's local licensing authority? The Colorado Medical Marijuana Code requires all local governments issuing licenses to medical marijuana businesses to name a local licensing authority. Council may designate an administrative office or a division thereof, such as the Tax and Licensing Division of the City Managers office, as that local licensing authority. Alternatively, Council may designate a deliberative body, like the City's Liquor Authority, as the local licensing authority. Staff recommends that Council name the Tax and Licensing Division of the City Manager's office as the City's local licensing authority for the purpose of issuing medical marijuana business licenses. Staff further recommends that Council provide for a hearing officer to be named by the City Manager (as is done with other regulatory matters in the City) to serve as the licensing authority for the purposes of hearing appeals and show cause matters. Although the Liquor Authority has expressed interest in becoming the licensing authority for medical marijuana business, Staff believes that this would make the process less efficient and effective because the requirements of the Colorado Medical Marijuana Code are detailed and technical. As such, a citizen committee is likely unprepared to interpret and apply those requirements without significant staff involvement. Naming an administrative office is preferable because it will be more efficient and cost effective. o Flow broad or deep should the City's regulations be? With complex regulatory subjects, such as elections and liquor licenses, some municipalities opt to adopt by reference all or substantially all of the state regulations concerning those subjects in their respective codes. Currently, the City regulates elections and liquor licenses through references to the respective state statutes covering those subjects. This allows the City to regulate those subjects under the extensive state law provisions without the City extending its Code unnecessarily. Does Council favor adopting similar references to state statutes and regulations concerning medical marijuana businesses? The alternative would consist of a lengthy ordinance that contained language that was largely pulled from state statute. Once these decisions have been made, staff will present a draft ordinance for Council's consideration. In. Regulation of the Activities of Primary Caregivers This portion of the memorandum concerns the use of property within the City by primary caregivers. Recall, that Amendment 20 to the Colorado Constitution provides patients and primary caregivers with an affirmative defense or exception to criminal prosecution concerning their medical use of marijuana. Medical use is defined in Amendment 20 as the "acquisition, possession, production, use, or transportation of marijuana or paraphernalia related to the administration of medical marijuana. Under Amendment 20, primary caregivers have significant responsibility for managing the wellbeing of their patients and are authorized to grow up to six plants, in various stages of development, for each patient, A patient is permitted a maximum of six plants in varying stages of development and a maximum of two ounces of -5- marijuana in a usable form. Pursuant to the provisions in C.R.S. § 25- 1.5- 106(8), a primary caregiver may serve up to a maximum of five patients but may not charge those patients more than the primary caregiver's cost to cultivate or purchase medical marijuana. However, the primary caregiver may charge for the cost of providing caregiver services, e.g. grocery shopping, cleaning, etc. This summer, the Police Department and City staff received questions from City residents concerning the use of residential property within the City for cultivation activities of patients and primary caregivers. Recently, the Wheat Ridge officers contacted a resident concerning marijuana plants that were being grown in the backyard of the residence. The resident presented sufficient materials to the officers proving that the resident was a primary caregiver under Amendment 20. As a result of that status, the officers did not take further action. Although Amendment 20 protects patients and primary caregivers from criminal prosecution for the medical use of marijuana, they are not immune from application of the zoning provisions. Thus, the City may adopt some limited regulation concerning marijuana cultivation activities. Currently, under Wheat Ridge Code of Laws § 26 -613, as a home occupation, primary caregivers are permitted to use a residential dwelling for cultivation activities as a use by right. To prevent additional unnecessary contacts by Wheat Ridge officers, alleviate neighbor concerns, and for reasons of protecting the public's health, safety and welfare, staff recommends that Council consider adopting a provision in the zoning code that limits marijuana cultivation activities to inside of structures within the City. This limitation would apply equally to optional premises cultivation operators, patients, and primary caregivers. Some other communities have adopted or considered provisions regulating primary caregivers and/or the cultivation of medical marijuana in their communities. Those regulations include: 1. Limiting the number of medical marijuana plants that can be cultivated in residential zone districts. 2. Requiring primary caregivers to obtain a municipal license or registration. 3. Prohibiting the number of primary caregivers that can operate from a single dwelling unit. 4. Regulating primary caregivers as home occupations under local zoning code provisions_ IV. Conclusion The landscape concerning local and state regulation of the cultivation, sale and manufacture of medical marijuana and medical marijuana - infused products continues to develop. We will continue to follow this changing environment and present updates to the Mayor and Council as requested or as necessary to obtain further guidance concerning the City's regulatory position. As always, please let us know if you have any additional questions or concerns. Attachments: 1. Summary of local government ban status 2. 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M lc±ier7rir r, . o ' ti ;.' =.` ;� r a f te r' ( r_ s -_' a i�r t ifs ! +`�;:: �* " + �5 3 r: ar ilk t �_ �y 1. ✓ � ..� {�,.: �}. j ,�' i +, S4"�` di I, • ; �1 1 ,h .w "` .I,�, /o _ '.' -i ° .il.. gor *_• -1y� ..,� � �,, - . ;.�'1 -�. r ') J 1 _ � �'"+:"'Y �•r..r•• - f�l,.Y . — r - t }',f;C' � °'�� -•, ' 6 ,IIII I� �•x v y<<.I s l T 3100000 L r J� �P e� s Attachment 4 i—nnn a, MAP Proposed Separations: Medical Marijuana Dispensaries and Other Land Uses Case No. ZOA -09 -06 Amendments to Chapter 26, Zoning & Development Code, concerning medical marijuana dispensaries �._•. City of Wheat Ridge Boundary - Existing Medical Marijuana Dispensaries - Schools Childcare Facilities Drug Treatment Centers 1000 -Foot Buffer 3/4 -Mile Buffer N Zone Districts - Commercial -One (C -1) - Commercial -Two (C -2) - Industrial (1) 2,250 0 2,250 4,500 Fee State Plane Coordinate Projection Colorado Central Zone Datum: NAD83 DISCLAIMER NOTICE This is a ictorial representation of geographic and demographic P P information. Reliance upon the accuracy, reliability and authority of this information is solely requestor's responsibility. The City of Wheat Ridge in Jefferson County Colorado - a political subdivision of the State of Colorado, has compiled for its use certain computerized information. This information is available to assist in identifying general areas of concern only. The computerized information provided should only be relied upon with corroboration of the methods, assumptions, and results by a qualified independent source. The user of this information shall indemnify and hold free the City of Wheat Ridge from any and all liabilities, damages, lawsuits, and causes of action that result as a consequence of his reliance on information provided herein. ♦ WheatWdge City of Wheat Ridge, Colorado 7500 West 29th Avenue Wheat Ridge, CO 80033 -8001 303.234.5900 Created by Lauren Mikulak, Planner I - 2/812011 Data Sources: City of Wheat Ridge, Colorado Department of Human Services I 4. r o -- I. II 1 � I I JT �� , r �ta n ' A� 3' �4 �P h� J� �P 4% Attachment 4 i—nnn a, MAP Proposed Separations: Medical Marijuana Dispensaries and Other Land Uses Case No. ZOA -09 -06 Amendments to Chapter 26, Zoning & Development Code, concerning medical marijuana dispensaries �._•. City of Wheat Ridge Boundary - Existing Medical Marijuana Dispensaries - Schools Childcare Facilities Drug Treatment Centers 1000 -Foot Buffer 3/4 -Mile Buffer N Zone Districts - Commercial -One (C -1) - Commercial -Two (C -2) - Industrial (1) 2,250 0 2,250 4,500 Fee State Plane Coordinate Projection Colorado Central Zone Datum: NAD83 DISCLAIMER NOTICE This is a ictorial representation of geographic and demographic P P information. Reliance upon the accuracy, reliability and authority of this information is solely requestor's responsibility. The City of Wheat Ridge in Jefferson County Colorado - a political subdivision of the State of Colorado, has compiled for its use certain computerized information. This information is available to assist in identifying general areas of concern only. The computerized information provided should only be relied upon with corroboration of the methods, assumptions, and results by a qualified independent source. The user of this information shall indemnify and hold free the City of Wheat Ridge from any and all liabilities, damages, lawsuits, and causes of action that result as a consequence of his reliance on information provided herein. ♦ WheatWdge City of Wheat Ridge, Colorado 7500 West 29th Avenue Wheat Ridge, CO 80033 -8001 303.234.5900 Created by Lauren Mikulak, Planner I - 2/812011 Data Sources: City of Wheat Ridge, Colorado Department of Human Services I 4. r o -- I. II 1 � I I JT �� , 3100000 3105000 ill uuuu 3115000 I I I I 1 ° ° N O O 00 O O t 0 0 r ° O p O O O W °y U M O f O O°I °O 0 O ° O O O m N r ° N f O O 1 O O O c N z° o m v ° W N° o m n >' °o 'o 0 1D m o umi o N m Z .-- N (7 N° V ,- ° O p F' m 0 0 0 r n 0_ o F- J R rn O W d N ry O r m } F" Z O Z N O N Z Z Z V p p O 0 ° O F d7 N m o N p K !� r ` N O m r0 J N N Z N Z N N Z h¢ 0 a = z H K Z W N z o� U' 00 °f Z z K H Y ~ �. Z z K3 w m r o z¢ ¢ z= W¢ U' n. = Z z Z o N F m w U W N H¢ U w N ? N N O li H Q¢ W L. 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O �e �P At T i �" ... f r � _ Attachment 5 MAP 2 Proposed Eligible Locations: Medical Marijuana Dispensaries Case No. ZOA -09 -06 Amendments to Chapter 26, Zoning & Development Code, concerning medical marijuana dispensaries 1._.._ City of Wheat Ridge Boundary N Zone Districts Commercial -One (C -1) - Industrial (1) 2250 0 2,250 4,500 Fee State Plane Coordinate Projection Colorado Central Zone Datum: NAD83 DISCLAIMER NOTICE This is a pictorial representation of geographic and demographic information. Reliance upon the accuracy, reliability and authority of this information is solely requestor's responsibility. The City of Wheat Ridge, in Jefferson County. Colorado - a political subdivision of the State of Colorado, has compiled for its use certain computerized information. This information is available to assist in identifying general areas of concern only. The computerized information provided should only be relied upon with corroboration of the methods, assumptions, and results by a qualified independent source. The user of this information shall indemnify and hold free the City of Wheat Ridge from any and all liabilities, damages, lawsuits, and causes of action that result as a consequence of his reliance on information provided herein. c Wheatwdge City of Wheat Ridge, Colorado 7500 West 29th Avenue Wheat Ridge, CO 80033 -8001 303.234.5900 Created by Lauren Mikulak, Planner I - 2/8/2011 Data Sources: City of Wheat Ridge, Colorado Department of Human Services MAP Proposed Separations: Medical Marijuana Dispensaries and Other Land Uses Case No. ZOA -09 -06 Amendments to Chapter 26, Zoning & Development Code, concerning medical marijuana dispensaries i _ ! City of Wheat Ridge Boundary Existing Medical Marijuana Dispensaries Schools Childcare Facilities Drug Treatment Centers 1000 -Foot Buffer 314 -Mile Buffer N Zone Districts IM Commercial- One (C -1) j Commercial -Two (C -2) Industrial (1) I u a a xiw 4, 500 Fi State Plane Coordinate Projection Colorado Central Zone Datum: NAD83 DISCLAIM NOTICE This is a pic oval representation of geographic and demographic intoanabon. Raliance, upon the accuracy, reliability and authority of this information is solely requester's rasponsihil ty, The City of wheat Ridge, in Jefferson County, Colorado - a political subdivision of me State of Colorado, has compiled for its use contain comp ulenoed Intovnation. This infcrmafon is available to assist in identifying be areas of concern only, The computerized information posted should only be reiied upon with conoborati on of me methods, assumptions, and he suits by a quaffed independent source. The user of this information shat indemnify and hold free the City of "beat Ridge from 2ny and all lialaelie s, damages, I..uits. and causes of action that result as a consequence of his reliance on information provided herein, e - < f W heatRi�Ldge City of Wheat Ridge, Colorado 7500 West 29th Avenue Wheat Ridge, CO 80033 -8001 303.234.5900 Created by Lauren Mikulak, Planner I - 2/8/2011 om., scar«.: crcr m urn��r R�a��, camr,aa oomnm��r or m�m,� s<r.;a. � � I Proposed Eligible Locations: Medical Marijuana Dispensaries Case No. ZOA -09 -06 Amendments to Chapter 26, Zoning & Development Code, concerning medical marijuana dispensaries i — City of Wheat Ridge Boundary N Zone Districts RM Commercial -One (C -1) ME Industrial (I)! 2.250 0 2250 Ose F Stale Plane Coordinate Projection Colorado Central Zone opium. NA083 DISCLAIMER NOTICE This Ise pidenal e,bacentadon o: geographic and demeghmhlc information. Reliance upon the accuracy. « liability and authority of this inlormaliom Is solely, requeslofs responsiblity. The Clty of Meat Ridge, in Jefferson County. Colorado - a political subdivision of the State of Colorado, has compiled for its use certain computerized information. This information is available to assist in identifying general areas of concern only. The computerized information provided should only be relied upon with corroboration of the methods, assumpicns, and results by a qualified independent scarce. The user of this lnfcrnation shall indemnify and hold free the City of VN%eat Ridge from any and all liabilities, damages, I..uits, and causes of action that result as a consequence of his reliance on Information provided herein, f r Wheatl idge City of Wheat Ridge, Colorado 7500 West 29th Avenue Wheal Ridge, CO 80033 -8001 303.234.5900 Created by Lauren Mikulak, Planner I - 2/812011 Page 1 of 2 Kenneth Johnstone From: Christopher Price [CPrice @mdkrlaw.com] Sent: Monday, March 07, 2011 11:36 AM To: Kenneth Johnstone Subject: FW: Follow up on our conversation today — Attachments: 4045 Wadsworth - Zoning Letter.pdf, 4045 Wadsworth - Zoning Map.pdf, 4045 Wadsworth - Use Chart.pdf Here is the information I was forwarded. Christopher Price cprice @mdkrlaw.com Murray Dahl Kuechenmeister & Renaud LLP 1530 16th Street, Ste. 200 Denver, CO 80202 Direct: 303.493.6688 www.mdkriaw.com This electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. If you are not the intended recipient of this e-mail, you are hereby notified that any dissemination, distribution or copying of this e-mail, and any attachments thereto, is strictly prohibited. If you have received this e-mail in error, please notify me immediately by telephone or e-mail and destroy the original message without making a copy. Thank you. From: Gerald Dahl Sent: Friday, March 04, 20114:57 PM To: Christopher Price Subject: FW: Follow up on our conversation today— Mr. Byrne checks in. Gerald E. Dahl adahl(@,mdkrlaw.com Direct: 303 - 493 -6686 Murray Dahl Kuechenmeister & Renaud LLP 1530 16th Street, Suite 200 Denver, CO 80202 Phone: 303 - 493 -6670 Fax: 303 - 477 -0965 www.mdkrlaw.com This electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. If you are not the intended recipient of this e -mail, you are hereby notified that any dissemination, distribution or copying of this e -mail, and any attachments thereto, is strictly prohibited. If you have received this e -mail in error, please notify me immediately by telephone or e -mail and destroy the original message without making a copy. Thank you. 3/7/2011 Page 2 of 2 From: Kevin Byrne [mailto:kevinbyrnel @gmail.com] Sent: Friday, March 04, 20114:53 PM To: Gerald Dahl Subject: Follow up on our conversation today— Mr Dahl, I want to sincerely thank you again for your accessibility and willingness to spend time on my concerns today, it is refreshing and greatly appreciated. We have every intention of being a compliant tax - paying citizen and have enjoyed a very good relationship with the City of Wheat Ridge so far that we very much desire to continue and our conversation today was a great relief towards that end. All other things being equal with the "grandfather clause" ( Section - 11 -305; item f ) of the proposed ordinance it probably does not matter for our business concerns, however for the purposes of the discussion I wanted to share with you the response I received from CoW Zoning showing our location in a C -1 classification. Additionally confusing is if one reviews the attached Map and or the CoW Zoning map online, there are other areas showing at least C -1 classification that are not reflected as suitably zoned locations for Medical Marijuana Centers upon the maps attendant to this past Monday's meeting and First Reading of the draft ordinance. Our organization has been in the movement since the beginning and we believe in and pursue the earnest medical model and we want to be a helpful contributor whenever possible. As discussed in deference to our neighbors we do not advertise as many of of our competitors do, and we have been successful using medical offices with little to no signage in commercial zones rather than more overt locations. If we can help in any way with the City as it ends it moratorium we will be happy to volunteer as much time necessary to assist whenever possible. Respectfully, Kevin Byrne C. Kindness Co. 720.273.6600 - direct kevinbyme I garnail.com The information contained in this message is confidential, is intended only for the recipient named above, and may be privileged and protected from disclosure. If the reader of this message is not the intended recipient or is not authorized to receive it for the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this message in error, please notify us immediately by replying to the sender and deleting it from your computer system. This email message has been swept for the presence of computer viruses. Thank you. 3/7/2011 Page 1 of 2 Kenneth Johnstone From: Kathy Field Sent: Thursday, March 03, 2011 8:26 AM To: Kenneth Johnstone Subject: FW: Follow up on our conversation FYI Kathy Field Administrative Assistant Office Phone: 303 - 235 -2846 City of Wheat Idge COMMUNnY DiVuormi N 1' From: Kevin Byrne [mailto:kevinbyrnel @gmail.com] Sent: Wednesday, March 02, 2011 1:44 PM To: Kathy Field Subject: Re: Follow up on our conversation Hi Kathy, I am writing to follow up on this request and see if you had any additional feedback on our discussion. Please update me at your convenience. Respectfully, Kevin Byrne On Mar 1, 2011 1:41 PM, "Kevin Byrne" < kevinbyrnelggmail.com > wrote: > Hi Kathy, • Thank you for getting back to me so quickly on this matter. To recap our • business Cannabis Kindness is located at 4045 Wadsworth Boulevard. It seems • to show on the City's website that the building is zoned C -1, and two • previous calls to Zoning confirmed that as well. > The specific issue being the first reading of of the City's proposed new > ordinance and attendant zoning map shows our location as an existing medical > marijuana center, however it does not identify the location within the > proposed C -1 zoning locations on the City map of potential allowable > locations for medical marijuana centers. > I understand that the Ordinance calls for eligible properties to be zoned > I -3 or C -1 and we are under the impression that we are in a building that > holds that classification ... in fact we sought out locations in the beginning > classified commercial for just these concerns. 3/7/2011 Page 2 of 2 > Per your direction, can you please confirm the zoning for our property and > provide any additional guidance from your team on this issue? We are > currently located in a medical building on the 2nd floor with no direct > street exposure and no independent signage specifically to be discreet and > respectful to our neighbors. > Thank you in advance for your time. > Kevin Byrne > 720.273.6600 - direct > The information contained in this message is confidential, is intended only > for the recipient named above, and may be privileged and protected from > disclosure. If the reader of this message is not the intended recipient or > is not authorized to receive it for the intended recipient, you are hereby > notified that any dissemination, distribution or copying of this > communication is strictly prohibited. If you have received this message in > error, please notify us immediately by replying to the sender and deleting > it from your computer system. This email message has been swept for the > presence of computer viruses. Thank you. 3/7/2011 ' 1 I City of Wheat Midge COMMUNITY DEVELOPMENT City of wheat Ridge Municipal Building 7500 W. 20 Ave. Wheat Ridge, CO 80033 -8001 P: 303.235.2846 F: 303.235.2857 March 2, 2011 RE: 4045 Wadsworth Boulevards, Zoning Inquiry To Whom It May Concern: This letter is to inform you that the property located at 4045 Wadsworth Boulevard is located within the corporate limits of the City of Wheat Ridge. The property is currently within two zone districts: Neighborhood - Commercial (N -C) and Commercial -One (C -1). The majority of the property is within the C -1 zone district which was established to provide for areas with a wide range of commercial land uses which include office, general business, and retail sales and service establishments. The N -C zone district provides for a reasonably compatible transition between residential and more intensive commercial land uses. Section 26 -119.1) of the Wheat Ridge Municipal Code provides for lots with two or more zoning districts. Because C -I is considered the higher intensity zone district, it may not be utilized for the entire lot even though it encompasses the majority of the lot. Each portion of the lot may be used as N -C or C -I within the respective boundaries. I have attached to this letter a zoning map that identifies how the zone districts divide the property and copies of the applicable sections of the city's zoning code. Sincerely, n Lauren Mikulak Planner I Enclosures www.ci.whead•idge.co. us b + City of _ 1 4 9 r WheatPidge A I t,- t s-- -, v a vy VVJ ( Ac �Xa4j) ITEM NO: DATE: February 28, 2011 REQUEST FOR CITY COUNCIL ACTION 1 0 ( 600 TITLE: COUNCIL BILL NO. 06 -2011 - AN ORDINANCE AMENDING ARTICLE 11 OF THE WHEAT RIDGE CODE OF LAWS BY ADDING A NEW ARTICLE XH CONCERNING MEDICAL MARIJUANA AND MAKING CERTAIN AMENDMENTS TO CHAPTER 26 (ZONING AND DEVELOPMENT) IN ASSOCIATION THEREWITH ❑ PUBLIC HEARING ® ORDINANCES FOR 1 READING 02/28/2011 ❑ BIDS/MOTIONS ❑ ORDINANCES FOR 2ND READING 03/14/2011 ❑ RESOLUTIONS QUASI - JUDICIAL: ® YES ❑ NO City Attorney City Manager ISSUE: On September 14, 2009, Council adopted Ordinance 1453, Series 2009, which enacted a moratorium on the issuance or consideration of any City license or permit concerning medical marijuana business operations. This moratorium was twice extended to allow the state to adopt laws and regulations concerning the activities of medical marijuana business operations. In 2010, the General Assembly enacted the Colorado Medical Marijuana Code (C.R.S. §§ 12 -43.3- 101 et seq.) authorizing the state to license and regulate the sale, distribution, cultivation, growth and manufacture of medical marijuana and medical marijuana - infused products throughout the state. The Code named the Colorado Department of Revenue ( "DOR ") as the state's licensing authority and farther authorized the DOR to adopt rules that would further implement provisions of the Code. The attached Ordinance regulates and licenses medical marijuana businesses seeking to operate in the City, the appropriate zoning for those businesses and the regulation and licensing of primary caregivers who seek to grow medical marijuana in the City. The provisions in this ordinance are consistent with state law. is V :\Forms \CAFtemplate Council Action Form February 28, 2011 Page 2 PRIOR ACTION: Council adopted Ordinance 1453, Series 2009, on September 14, 2009 as an emergency ordinance. Ordinance 1453 enacted a temporary ninety (90) day moratorium on the issuance or consideration of any City license or permit concerning medical marijuana dispensaries. Council adopted Ordinance 1457, Series, 2009, on second reading on November 23, 2009. Ordinance 1457 extended the moratorium in Ordinance 1453 for an additional ninety (90) days. Council adopted Ordinance 1459, Series 2010, on second reading on March 8, 2010. Ordinance 1459 extended the moratorium in Ordinance 1453 until July 13, 2010. Council adopted Ordinance 1466, Series 2010, on second reading on June 28, 2010. Ordinance 1466 extended the moratorium in Ordinance 1453 until the effective date of the rules concerning medical marijuana that are currently under consideration by the Colorado Department of Revenue. FINANCIAL IMPACT: The financial impact for the City is unknown. However, the City may begin receiving permit and/or license fees for new applications concerning medical marijuana businesses and primary care- givers. BACKGROUND: In November 2000, the people of the State of Colorado adopted Amendment 20 which amended the Colorado Constitution by adding Article XVIII Section 14 thereto. Under Amendment 20, certain persons are protected from criminal prosecution under state law for the acquisition, possession, production, use or transportation of marijuana for medical purposes. Amendment 20 does not protect those persons from criminal prosecution under federal law. In 2009, due to certain announcements by the United States Attorney General and rule making by the Colorado Department of Public Health and Environment, Colorado communities saw an increase in establishments operating as "medical marijuana dispensaries." Amendment 20 does not discuss "medical marijuana dispensaries" or the retail or for profit sale of medical marijuana. The City enacted a moratorium to allow the state to develop laws regulating medical marijuana business operations. On May 12, 2010, the General Assembly adopted House Bill 10 -1284 concerning the regulation of the sale, distribution, cultivation, growth and manufacture of medical marijuana and medical marijuana - infused products. This bill was signed into law by the Governor on June 7, 2010. The bill prohibited primary caregivers from selling medical marijuana for a profit and imposes numerical limits on the number of patients for whom those caregivers can lawfully provide services under Amendment 20. In conjunction with limiting the application of the provisions in Amendment 20, House Bill 10 -1284 enacted the Code which created a new state and local licensing model for medical marijuana business operations. The Code authorized municipalities to adopt or extend moratoria to allow the DOR to adopt rules further implementing the Code. The final draft of those rules was published for public comment Council Action Form February 28, 2011 Page 3 that ended on February 11, 2011. As of the date of this RFCA, the DOR had not yet set a date for final implementation or adoption of those rules. At a study session on November 15, 2010, Council provided direction to staff concerning the extent to which the City should regulate medical marijuana business operations. At that study session, Council also directed staff to draft regulations concerning primary caregivers who cultivate medical marijuana. This Ordinance has been drafted in accordance with those recommendations and state law. The Ordinance authorizes the City's tax and licensing division to act as the City's local licensing authority. The tax and licensing division will be authorized to issue three types of medical marijuana business licenses including: 1) medical marijuana center licenses (i.e. retail outlets), 2) optional premises cultivation operation licenses (i.e. grow facilities) and 3) medical marijuana infused products manufacturer licenses. All medical marijuana businesses will be authorized to operate in the Light Commercial (C -1) and Industrial (1) zone districts. However, these businesses will be prohibited from operating within 1000 feet of any school, alcohol or drug treatment facility, college or residential child care facility. Medical marijuana centers will be further prohibited from being located within three quarters of a mile of any other licensed medical marijuana center. The Ordinance also adopts a vertical integration model for cultivation operations. This means that those operations are only authorized in the City to the extent that the applicant for such license also operates a licensed medical marijuana center or infused products location within the City. The licensed location for a grow operation must be contiguous to the location at which the applicant operates its medical marijuana center or infused product manufacturing facility. The Ordinance also adopts regulations and licensing requirements for primary caregivers who grow medical marijuana. Primary caregivers will be required to obtain annual licenses and will be prohibited from growing medical marijuana outdoors. There are no location limitations concerning primary caregivers. However, to the extent applicable, primary caregiver license applicants must provide notarized approval from the owner of the property that such cultivation activities are authorized. RECOMMENDATIONS: Planning Commission recommended adoption of this Ordinance by a vote of 6 -1 following a public hearing on February 17, 2011. City staff recommends adoption of this Ordinance. RECOMMENDED MOTION: "I move to approve Council Bill No. 06 -2011 on first reading, order it published, public hearing set for Monday, March 14, 2011 at 7 p.m. in City Council Chambers, and that it will take effect 15 days after final publication. Council Action Form February 28, 2011 Page 4 Or, " I move to table indefinitely Council Bill No. 06 -2011 adopting regulations concerning medical marijuana for the following reason(s) REPORT PREPARED BY: Gerald E. Dahl, City Attorney ATTACHMENTS: 1. Council Bill No. 06 -2011 2. January 22, 2010 memorandum from the City Attorney, Director of Community Development and Chief of Police titled "Medical Marijuana Basics." 3. November 3, 2010 memorandum from the City Attorney, Director of Community Development and Chief of Police titled "Medical Marijuana Licensing and Regulation." 4. Map #1, depicting '' /< mile separation, 1000 -foot buffer, and C -1, C -2 and I zoning districts. 5. Map #2, depicting C -1 and I zoning districts where the medical marijuana businesses are proposed to be allowed. CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER Council Bill No. 06 Ordinance No. Series 2011 TITLE: AN ORDINANCE AMENDING ARTICLE 11 OF THE WHEAT RIDGE CODE OF LAWS BY ADDING A NEW ARTICLE XII CONCERNING MEDICAL MARIJUANA AND MAKING CERTAIN AMENDMENTS TO CHAPTER 26 (ZONING AND DEVELOPMENT) IN ASSOCIATION THEREWITH WHEREAS, in the November 2000 general election, the voters of the State of Colorado adopted Amendment 20 to the Colorado Constitution ( "Amendment 20 "), codified at Article XVIII Section 14, which authorizes and limits the use of medical marijuana for the treatment of debilitating medical conditions; and WHEREAS, Amendment 20 provides patients and primary care - givers, as those terms are defined therein, with criminal defenses to, or exceptions from prosecution for the possession, production and use or medical marijuana; and WHEREAS, in May, 2010 the Colorado General Assembly adopted the Colorado Medical Marijuana Code, §§ 12- 43.3 -101 et seq., C.R.S., authorizing the cultivation, manufacture, distribution, and sale of medical marijuana and medical marijuana- infused products throughout the state under state and local government licensing procedures; and WHEREAS, the City Council has been made aware of a proliferation of businesses seeking to cultivate, manufacture, distribute and sell medical marijuana and medical marijuana- infused products to those who qualify under state law; and WHEREAS, the City has no current land use or business regulation governing the operation of businesses that cultivate, manufacture, distribute or sell medical marijuana and /or medical marijuana- infused products ( "Medical Marijuana Establishments "); and WHEREAS, on September 14, 2009, the City imposed a moratorium on the submission, acceptance, processing, and approval of all applications for City licenses relating to the operation of Medical Marijuana Establishments to allow the City staff and the City Council to investigate the City's ability to regulate such establishments, and to develop and implement any appropriate regulations consistent with state law; and WHEREAS, because marijuana is a controlled substance under Colorado and federal law, the cultivation, manufacture, distribution and sale as contemplated by the Colorado Medical Marijuana Code has the potential for abuse and should be closely monitored and regulated by local authorities to the extent possible; and WHEREAS, if not closely monitored and regulated, the presence of marijuana, even for the purposes legally permitted by Amendment 20 and the Colorado Medical Marijuana Code, can potentially cause an increase in illegal activities within the City Attachment 1 affecting the health, safety, order, comfort, convenience and general welfare of the residents of the City; and WHEREAS, if Medical Marijuana Establishments operating pursuant to the Colorado Medical Marijuana Code were allowed to be established and to operate without appropriate local regulation of their location, such establishments might be established in areas that would conflict with the City's comprehensive land use plan; be inconsistent with surrounding uses; or otherwise be detrimental to the public health, safety and welfare. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1 . Moratorium Concluded. The moratorium imposed by Ordinance 1453 on September 14, 2009 shall conclude upon the effective date of this ordinance. Section 2 . Chapter 11 of the Wheat Ridge Code of Laws is hereby amended by the adoption of a new Article X1 to read in its entirety as follows: Article XII. Medical Marijuana Licenses Division 1 Sec. 11 -290. Authority Sec. 11 -291. Definitions Division 2. Generally Medical Marijuana Licenses Sec. 11 -292. Local licensing authority established Sec. 11 -293. Types of medical marijuana licenses Sec. 11 -294. Medical marijuana license required Sec. 11 -295. Application of Colorado Medical Marijuana Code Sec. 11 -296. Application for license Sec. 11 -297. Application fee Sec. 11 -298. Standards for approval of license, no hearing required Sec. 11 -299. Authority to recommend and impose conditions on license. Sec. 11 -300. Denial of license. Sec. 11 -301. Appeal of denial or conditional approval of license Sec. 11 -302. Duration of license, renewal Sec. 11 -303. Duties of licensee Sec. 11 -304. Hearing, suspension, revocation of license Sec. 11 -305. Prohibited locations Sec. 11 -306. Signage Sec. 11 -307. Taxes Sec. 11 -308. Penalties, injunctive relief Secs. 11-309-11-319. Reserved +PJ Division 3. Primary Caregiver Licenses Sec. 11 -320. Primary caregiver license required Sec. 11 -321. Application for license Sec. 11 -322. Application fee Sec. 11 -323. Standards for approval of license Sec. 11 -324. Authority to recommend and impose conditions on license Sec. 11 -325. Denial of license. Sec. 11 -326. Appeal of denial or conditional approval of license Sec. 11 -327. Duration of license, renewal Sec. 11 -328. Duties of licensee Sec. 11 -329. Hearing, suspension, revocation of license Sec. 11 -330. Growing of medical marijuana outdoors prohibited Sec. 11 -331. Penalties, injunctive relief DIVISION 1. GENERALLY Sec. 11 -290. Authority. The City Council hereby finds, determines, and declares that it has the power to adopt this article pursuant to: (a) The Local Government Land Use Control Enabling Act, article 20 of title 29, C.R.S.; (b) Part 3 of article 23 of title 31, C.R.S. (concerning municipal zoning powers); (c) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (d) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (e) Section 31 -15 -501, C.R.S. (concerning municipal authority to regulate businesses); (f) The authority granted to home rule municipalities by article XX of the Colorado Constitution; (g) Article XVIII Section 14 of the Colorado Constitution; and (h) The powers contained in the Wheat Ridge Home Rule Charter. Sec. 11 -291. Definitions. As used in this article the following words shall have the following meanings, unless the context clearly requires otherwise: Administrative hearing officer has the meaning provided in section 2 -87 of this code. Applicant means any person making an application for a license under this article. 3 Application means an application for license submitted pursuant to this article. City Manager shall have the meaning provided in section 2 -26 of this code. Colorado Medical Marijuana Code shall mean Article 43.3 of Title 12 of the Colorado Revised Statutes and any implementing administrative regulations. Good cause means and includes (1) When a licensee violates, does not meet, or fails to comply with any of the terms, conditions, or provisions of this article and any rule and regulation promulgated pursuant to this article or the Colorado Medical Marijuana Code; (2) When the licensee or applicant has failed to comply with any special terms or conditions that were placed on its license at the time the license was issued, or that were placed on its license pursuant to an order of the local licensing authority or the Colorado Department of Revenue; or (3) When the licensed premises have been operated in a manner that adversely affects the public health, welfare, or safety of the immediate neighborhood in which the medical marijuana clinic is located. Evidence to support such a finding can include: (i) a pattern of disorderly conduct as defined in section 11- 54(a)(1) of this code within or immediately adjacent to the premises of the licensee; (ii) a pattern of drug - related criminal conduct within the licensed premises, or in the immediate area surrounding the licensed premises; (iii) criminal conduct directly related to or arising from the operation of the medical marijuana establishment.. License means a license to operate a medical marijuana establishment issued pursuant to this article. Licensed premises means the location in the City from which the Licensee will operate. Licensee means the person to whom a license has been issued pursuant to this article and the Colorado Medical Marijuana Code to operate a business as described in section 12- 43.3 -402, C.R.S.. Medical marijuana means marijuana that is grown and sold pursuant to the provisions of the Colorado Medical Marijuana Code for a purpose authorized by section 14 of the Article XVI II of the Colorado Constitution. Medical marijuana center means a premises licensed pursuant to the Colorado Medical Marijuana Code to operate a business as described in section 12- 43.3 -402, C.R.S. Medical marijuana establishment shall mean a medical marijuana center, a medical marijuana- infused product manufacturer or an optional premises cultivation operation. Medical marijuana- infused product shall mean a product infused with medical marijuana that is intended for use or consumption other than by smoking, including, but not limited to, edible products, ointments, and tinctures. Medical marijuana- infused product manufacturer shall mean a person licensed pursuant to the Colorado Medical Marijuana Code to operate a business as described in section 12- 43.3 -404, C.R.S. Optional premises cultivation operation shall mean a premises licensed pursuant to this ordinance and the Colorado Medical Marijuana Code where a business described in section 12- 43.3 -403, C.R.S will operate. Patient has the meaning provided in section 14(a)(d) of Article XVIII of the Colorado Constitution of the Colorado Constitution as further defined and regulated in section 25- 1.5 -106, C.R.S. and 5 C.C.R. 1006 -2. Person means a natural person, partnership, association, company, corporation, limited liability company, organization, or a manager, agent, owner, director, servant, officer, or employee thereof. Primary care -giver has the meaning provided in section 14(1)(f) of Article XVIII of the Colorado Constitution as further defined and regulated in section 25 -1.5 -106, C.R.S. and 5 C.C.R. 1006 -2. School shall mean a public or private preschool or a public or private elementary, middle, junior high or high school. (b) In addition to the definitions provided in subsection (a) of this section, the other defined terms in section 14 of Article XVIII of the Colorado Constitution are incorporated into this article by reference. DIVISION 2. MEDICAL MARIJUANA LICENSES Sec. 11 -292. Local licensing authority established. (a) There is hereby established a local licensing authority, which shall have and is vested with the authority to: 1. Grant and refuse licenses and approve and deny applications for renewal and transfer of licenses for the sale, cultivation and manufacture of medical marijuana and medical marijuana infused products; 2. Promulgate reasonable rules and regulations concerning licenses issued under this division 2; 5 3. Suspend and revoke licenses issued under this division 2 in the matter provided by law; and 4. Have all of the powers of the local licensing authority as provided in the Colorado Medical Marijuana Code. (b) The Tax and Licensing Division of the City shall serve as the local licensing authority for any administrative purposes described in subsections (a)(1), (a)(2) and (a)(4) of this section An administrative hearing officer shall serve as the local licensing authority for purposes of hearing any requests for suspension or revocation described in subsection (a)(3). Sec. 11 -293. Types of medical marijuana licenses. The local licensing authority may issue the following three types of medical marijuana licenses: (a) Medical marijuana center license; (b) Medical marijuana- infused products manufacturing license; and (c) Optional premises cultivation license. Sec. 11 -294. Medical marijuana license required. No person or entity shall operate a medical marijuana establishment within the City without a valid and appropriate medical marijuana license issued in accordance with this division 2. This requirement to obtain the appropriate medical marijuana license is in addition to the requirement to obtain a business license pursuant to article II of this chapter and any other license or permit required by the city. Sec. 11 -295. Application of Colorado Medical Marijuana Code. Except as otherwise provided herein, the local licensing authority shall be governed by the Colorado Medical Marijuana Code now in effect or subsequently amended. In the event of a conflict between the provisions in this article and those in the Colorado Medical Marijuana Code, the more stringent provision shall apply. Sec. 11 -296. Application for license. (a) A person seeking to obtain a license pursuant to this division 2 shall file an application with the local licensing authority on a form provided by the state, and shall include all additional information required by the Colorado Medical Marijuana Code. (b) The local licensing authority is hereby authorized to request any applicant to provide information that is in addition to the requirements of the Colorado Medical Marijuana Code if it determines that such information is reasonably necessary to complete the investigation and review of the application. Sec. 11 -297. Application fee. An applicant shall pay to the City a non - refundable application fee when the application is filed. The purpose of the fee is to cover the administrative costs of processing the application. The amount of the application fee shall be fixed by the City Council by motion. Sec. 11 -298. Standards for approval of license, no hearing required. (a) The local licensing authority is authorized to administratively approve any license under this division 2 so long as the following conditions are met: 1. The application (including any required attachments and submissions) is complete and signed by the applicant; 2. The applicant has paid the application fee and any other fees required by this code; 3. The application does not contain a material falsehood or misrepresentation; 4. The application complies with all of the requirements of this division 2 and the Colorado Medical Marijuana Code; and 5. The licensing authority has received written approval from the City of Wheat Ridge Police Department as to the applicant's criminal background. 6. The licensing authority has received written approval from the Community Development Department that the location and zoning requirements imposed by this division 2 and Section 26 -204 of the Code have been met. (b) The local licensing authority may, but is not required to hold a hearing as permitted by section 12- 43.3 -302, C.R.S. prior to granting a medical marijuana license. Sec. 11 -299. Authority to recommend and impose conditions on license. (a) Any City department shall have the authority to recommend reasonable terms and conditions on a license as may be necessary to protect the public health, safety, and welfare, and to obtain compliance with the requirements of this division 2 and applicable law, so long as those conditions are not in conflict with the Colorado Medical Marijuana Code. (b) The local licensing authority is authorized to approve any license issued under this division 2 subject to such reasonable conditions as required by the City. (c) In the event an application is conditionally approved, the local licensing authority shall clearly set forth in writing the conditions of approval. Sec. 11 -300. Denial of license. The local licensing authority shall deny an application for a license under this division 2 when the applicant fails to meet all of the standards set forth in section 11 -298 of this division 2. 7 Sec. 11 -301. Appeal of denial or conditional approval of license. (a) An applicant has the right to appeal the denial of an application or condition imposed thereon to an administrative hearing officer. (b) The applicant must file a written notice of appeal with the local licensing authority within fifteen days after the date of mailing of the denial or conditional approval of the application. (c) Upon notice from the local satisfied the requirement in subsection administrative hearing officer. licensing authority that the applicant has (b), the City Manager shall appoint an (d) The applicant shall be provided with not less than ten days' prior written notice of the appeal hearing to be held by the administrative hearing officer. (e) The burden of proof in an appeal filed under this section shall be on the applicant. (f) If the administrative hearing officer finds by a preponderance of the evidence that the decision of the local licensing authority was correct, the administrative hearing officer shall uphold that decision. If the administrative hearing officer finds by a preponderance of the evidence that the decision of the local licensing authority was incorrect, the administrative hearing officer shall set aside the denial and issue the license. The administrative hearing officer may impose additional conditions on the license issued (if it was previously denied) or require that the conditions of approval be stricken or modified. (g) Any decision made by the administrative hearing officer pursuant to this section shall be a final decision and may be appealed to the district court pursuant to Rule 106(a)(4) of the Colorado Rules of Civil Procedure. The applicant's failure to timely appeal the decision is a waiver of the applicant's right to contest the denial or conditional approval of the application. Sec. 11 -302. Duration of license, renewal. (a) Each license issued pursuant to this division 2 shall expire on the first day of the month one year from the month of issuance, and may be renewed as provided in this section. (b) An application for the renewal of an existing license shall be made to the local licensing authority as required by the Colorado Medical Marijuana Code. At the time of the filing of an application for the renewal of an existing license the applicant shall pay a renewal fee in an amount fixed by the City Council by motion. Sec. 11 -303. Duties of licensee. Each licensee shall: (a) Post the license in a conspicuous location on the licensed premises; (b) Comply with all of the terms and conditions of the license; M (c) Comply with all of the requirements of this division 2; (d) Comply with all other applicable City ordinances; (e) Comply with the Colorado Medical Marijuana Code; (f) Comply with all state laws and administrative regulations pertaining to the medical use of marijuana; (g) Comply with all applicable federal laws, rules, or regulations, other than a federal law, rule or regulation concerning the possession, sale or distribution of medical marijuana; (h) Permit inspection of its records and operation by the local licensing authority for the purpose of determining the licensee's compliance with the terms and conditions of the license and the City's tax laws; and (i) Permit inspection of the premises by authorized City officials during permitted business hours for the purpose of determining compliance with this division 2. Sec. 11 -304. Hearing, suspension, revocation of license. (a) A license issued pursuant to this division 2 may be suspended or revoked by the local licensing authority after a hearing for the following reasons: 1. Fraud, misrepresentation, or a false statement of material fact contained in the license application; 2. A violation of any City ordinance, state, or federal law or regulation, other than a federal law or regulation concerning the possession, sale or distribution of marijuana that conflicts with Article XVIII Section 14 of the Colorado Constitution; 3. A violation of any of the terms and conditions of the license; 4. A violation of any of the provisions of this article; or 5. Good cause. (b) Request for suspension or revocation, notice of hearing, burden. 1. Any authorized City official may request in writing that a license issued under this article be suspended or revoked. 2. The City Manager shall appoint an administrative hearing officer to preside over the hearing on the suspension or revocation of a license. 9 3. The administrative hearing officer shall a. Set a date and time on which to determine whether to revoke or suspend such license; b. Notify the licensee in writing of the date and time of the hearing at least ten (10) days prior to conducting such hearing. Such notice shall be sent by regular mail postage prepaid. Notice is deemed to have been given upon mailing; C. Conduct a hearing based on the allegations provided in the written request. This shall be an informal hearing where no rules of evidence shall apply. The burden shall be on the City to prove by a preponderance of the evidence that the licensee has violated the provisions in subsection 11 -294 (a); and d. Provide a written decision to the licensee within a reasonable time after the conclusion of the hearing. (c) In deciding whether a license should be suspended or revoked, and in deciding what conditions to impose in the event of a suspension, if any, the administrative hearing officer shall consider: 1. The nature and seriousness of the violation; 2. Corrective action, if any, taken by the licensee; 3. Prior violation(s), if any, by the licensee; 4. The likelihood of recurrence; 5. All circumstances surrounding the violation; 6. Whether the violation was willful; 7. The number of previous violations by the licensee; and 8. Previous sanctions, if any, imposed against the licensee. (d) In connection with the suspension of a license, the administrative hearing officer may impose reasonable conditions thereon. (e) Any decision made by the administrative hearing officer pursuant to this section shall be a final decision and may be appealed to the district court pursuant to Rule 106(a)(4) of the Colorado Rules of Civil Procedure. The applicant's failure to timely appeal the decision is a waiver of the applicant's right to contest the decision. 10 (f) No fee previously paid by a licensee in connection with the application shall be refunded if such license is suspended or revoked. Sec. 11 -305. Prohibited locations. (a) Except as provided in subsection (f) of this section, no medical marijuana establishment shall be located at a location that does not conform to the requirements of this section. (b) No medical marijuana center shall be located within one thousand feet of a school, an alcohol or drug treatment facility, or the principal campus of a college, university, or seminary, or a residential child care facility. (c) No medical marijuana center shall be located within three quarters (%) of a mile of another medical marijuana center. (d) No person shall operate an optional premises cultivation operation within the City unless the licensed premises of the person's optional premises cultivation operation are contiguous with the licensed premises of the person's medical marijuana center license and /or the person's medical marijuana- infused products manufacturing license. (e) Each medical marijuana establishment shall be operated from a permanent location. Except as permitted by the Medical Marijuana Code, no medical marijuana establishment shall be licensed to operate from a moveable, mobile, or transitory location. (f) The suitability of a location for a medical marijuana establishment shall be determined at the time of the issuance of the first license for such establishment. The fact that changes in the neighborhood that occur after the issuance of the first license might render the site unsuitable for a medical marijuana establishment under this section shall not be grounds to suspend, revoke or refuse to renew the license for such establishment so long as the license for the establishment remains in effect. Sec. 11 -306. Signage. (a) All signage for a medical marijuana establishment shall comply with the requirements of chapter 26 of this code. (b) No licensee shall display a sign for the medical marijuana establishment that contains the word "marijuana," "cannabis," or any other word or phrase commonly understood to refer to marijuana unless such word or phrase is immediately preceded or followed by the word "medical." Sec. 11 -307. Taxes. Each licensee shall collect and remit sales tax on all medical marijuana, paraphernalia, and other tangible personal property sold by the licensee at the medical marijuana establishment according to the provisions of chapter 22 of this code and any regulations issued pursuant thereto. 11 Sec. 11 -308. Penalties, injunctive relief. (a) It is a misdemeanor offense for any person to violate any provision of this division 2. Any person convicted of having violated any provision of this division 2 shall be punished as set forth in section 1 -5 of this code. (b) In addition to all other remedies available to the city under this code and by law, the operation of a medical marijuana establishment without a valid license issued pursuant to this division 2 may be enjoined by the City in an action brought in a court of competent jurisdiction. DIVISION 3. PRIMARY CARE -GIVER LICENSE Sec. 11 -320. Primary caregiver license required. No primary care -giver shall produce, offer, sell or grow medical marijuana within the City without a valid and appropriate primary care -giver license issued in accordance with this division 3. Sec. 11 -321. Application for license. (a) A person seeking to obtain a primary care -giver license shall file an application with the Tax and Licensing Division. (b) An application for a primary care -giver license shall contain the following information: 1. The applicant's name, address and telephone number; 2. The street address of the applicant's operation location; 3. If the applicant is not the owner of the proposed location, a notarized statement from the owner of such property authorizing the use of said property for the applicant's operation; 4. A statement by the applicant acknowledging that the applicant may be subject to criminal prosecution under federal law for the distribution of a controlled substance; 5. A statement by the applicant that the applicant is a state approved primary care - giver; 6. A statement by the applicant that the applicant will provide the Wheat Ridge Police Department the registry identification card number of each of his or her patients upon inquiry; 7. A statement by the applicant acknowledging that the City accepts no legal liability in connection with the approval and subsequent operation of the medical marijuana establishment; 12 8. A statement by the applicant acknowledging that the provisions in chapter 26 of this code concerning home occupations applies to the activities of a primary care - giver; and 9. Any additional information that the Tax and Licensing Division reasonably determines to be necessary in connection with the investigation and review of the application. Sec. 11 -322. Application fee. An applicant shall pay to the City a non - refundable application fee when the application is filed. The purpose of the fee is to cover the administrative costs of processing the application. The amount of the application fee shall be fixed by the City Council by motion. Sec. 11 -323. Standards for approval of license. The Tax and Licensing Division is authorized to approve a primary care -giver license so long as the following conditions are met: (a) The application (including any required attachments and submissions) is complete and signed by the applicant; (b) The applicant has paid the application fee; and (c) The application does not contain a material falsehood or misrepresentation. Sec. 11 -324. Authority to recommend and impose conditions on license. (a) Any City department shall have the authority to recommend reasonable terms and conditions on a primary care -giver license as may be necessary to protect the public health, safety, and welfare, and to obtain compliance with the requirements of this division 3 and applicable law. (b) The Tax and Licensing Division is authorized to approve any primary care- giver license subject to such reasonable conditions as required by the City. (c) In the event an application is conditionally approved, the Tax and Licensing Division shall clearly set forth in writing the conditions of approval. Sec. 11 -325. Denial of license. The Tax and Licensing Division shall deny an application for a primary care -giver license when the applicant fails to meet all of the standards set forth in section 11 -313 of this division 3. Sec. 11 -326. Appeal of denial or conditional approval of license. An applicant has the right to appeal the denial of an application or condition imposed thereon to an administrative hearing officer pursuant to the provisions in code section 11 -291. 13 Sec. 11 -327. Duration of license, renewal. (a) Each license issued pursuant to this division 3 shall expire on the first day of the month one year from the month of issuance, and may be renewed as provided in this section. (b) An application for the renewal of an existing license issued under this division 3 shall be made to the Tax and Licensing Division. At the time of the filing of an application for the renewal of an existing license the applicant shall pay a renewal fee in an amount fixed by the City Council by motion. Sec. 11 -328. Duties of licensee. Each licensee shall: (a) Comply with all of the terms and conditions of the license; (b) Comply with all of the requirements of this division 3; (c) Comply with all other applicable City ordinances; (d) Comply with all state laws and administrative regulations pertaining to the medical use of marijuana; (e) Comply with all applicable federal laws, rules, or regulations, other than a federal law, rule or regulation concerning the possession, sale or distribution of medical marijuana; and (f) Permit inspection of the licensed premises by authorized City officials at reasonable hours upon a complaint and after providing twenty -four hours written notice to the licensee. Such written notice may be posted on the licensed premises. Sec. 11 -329. Hearing, suspension, revocation of license. A license issued pursuant to this division 3 may be suspended or revoked by the City pursuant to the provisions in code section 11 -294. Sec. 11 -330. Growing of medical marijuana outdoors prohibited. No primary care- giver may grow medical marijuana outdoors. Sec. 11 -331. Penalties, injunctive relief. (a) It is a misdemeanor offense for any person to violate any provision of this division 3. Any person convicted of having violated any provision of this article shall be punished as set forth in code section 1 -5. (b) In addition to all other remedies available to the City under this code and by law, the growing of medical marijuana by an unlicensed primary care -giver may be enjoined by the City in an action brought in a court of competent jurisdiction. Section 3 . Section 26 -123 of the Code, entitled Definitions, is hereby amended by the addition of the following terms: 14 Medical marijuana center has the meaning provided in Article XII of Chapter 11 of this code. Medical marijuana- infused products manufacturer has the meaning provided in Article XII of Chapter 11 of this code. Optional premises cultivation operation has the meaning provided in Article XII of Chapter 11 of this code. Section 4 . The Table of Uses for Commercial and Industrial Districts provided for in Section 26 -204 of the Code is hereby amended as follows: Uses Notes NC RC C -1 C -2 / Medical and dental Pharmacies and P P P P P offices, clinics or optical stores laboratories, excluding are accessory substance abuse use clinics MEDICAL P P MARIJUANA CENTERS MEDICAL P P MARIJUANA - INFUSED PRODUCTS MANUFACTURERS OPTIONAL P P PREMISES CULTIVATION OPERATION Mini - warehouses for P P inside storage Section 5 . Police Power Finding The City Council hereby finds, determines, and declares that this Ordinance is necessary and proper to provide for the safety, preserve the health, promote the prosperity, and improve the order, comfort and convenience of the City of Wheat Ridge and the inhabitants thereof. Section 6 . Authority The City Council hereby finds, determines and declares that it has the power to adopt this Ordinance pursuant to: (i) the Local Government Land Use Control Enabling Act, Article 20 of Title 29, C.R.S.; (ii) Part 3 of Article 23 of Title 31, C.R.S. (concerning municipal zoning powers); (iii) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (iv) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (v) Section 31 -15 -501 (concerning municipal power to regulate businesses); (vi) the authority granted to home rule municipalities by Article XX of the Colorado Constitution; and (vii) the powers contained in the City of Wheat Ridge, Colorado Home Rule Charter (the "Charter "). 16 Section 7 Severability, Conflicting Ordinances Repealed If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 8 . Effective Date This Ordinance shall take effect fifteen (15) days after final publication, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of _ to on this day of 201, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge, and Public Hearing and consideration on final passage set for , 201_at 7:00 p.m., in the Council Chambers, 7500 West 29 Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of to , this day of , 201_. SIGNED by the Mayor on this day of 201_. Jerry DiTullio, Mayor ATTEST: Michael Snow, City Clerk Approved as to Form Gerald E. Dahl, City Attorney First Publication: Second Publication: Wheat Ridge Transcript Effective Date: 16 MR ML£', Al' n 1965411. \I LJ \l MEMORANDUM TO: Mayor Jerry DiTullio and City Council THROUGH: Randy Young, City Manager FROM: Gerald Dahl, City Attorney; Dan Brennan, Chief of Police and Ken Johnstone, Director of Community Development DATE: January 22, 2010 RE: Medical Marijuana Basics How is marijuana legal? In 2000, Colorado voters passed Amendment 20 to the Colorado Constitution, legalizing the medical use of marijuana. Colo. Const. art. XVIII, § 14. Amendment 20 created an exception to the state's criminal laws for any patient or primary care -giver in lawful possession of a registry identification card to engage or assist in the medical use of marijuana.' Colo. Const. art XVIII, § 14(2)(b). If medical marijuana patients or primary care - givers are not in possession of a registry identification card but they have a physician's recommendation that marijuana may help treat a patient's debilitating medical condition, than the patient and their primary care -giver are entitled to an affirmative defense to the state's criminal laws. Colo. Const. art XVIII, § 14(2)(a). Licensed physicians are also entitled to an exception to the state's criminal laws under Amendment 20 for recommending the medical use of marijuana to patients who have been diagnosed with debilitating medical conditions. Colo. Const. art. XVIII, § 14(2)(c). For purposes of Amendment 20, "medical use" means: The acquisition, possession, production, use, or transportation of marijuana or paraphernalia related to the administration of such marijuana to address the symptoms or effects of a patient's debilitating medical condition, which may be authorized only after diagnosis of the patient's debilitating medical condition by a physician or physicians, as provided in this Section. Colo. Const. art. XVIII, § 14(1)(b). Thus, persons diagnosed with a debilitating medical condition may use, acquire, possess, produce or transport marijuana for medicinal purposes. As of June 14, 2004, the Colorado Department of Public Health and Environment instituted policy of no longer issuing medical marijuana registry cards to primary- caregivers. Attachment 2 Note, that medical use does not include the tenn dispensing, selling or purchasing. Those words are only included within Amendment 20 under section 14(2)(e) which states: Notwithstanding the foregoing provisions, no person, including a patient or primary care - giver, shall be entitled to the protection ... for his or her acquisition, possession, manufacture, production, use, ale, distribution, dispensing, or transportation of marijuana for any use other than medical use. However, in a recent decision, a District Court judge determined that the term "acquire" as used within the term "medical use" necessarily included selling or dispensing because of section 14(e). Frasher et at v. City of Centennial, 2009CV1456, Arapahoe County. This was a preliminary decision on a motion for temporary injunctive relief and not a after a full trial. In addition, because this is a decision of a District Court it does not serve as legal precedent and therefore does not necessarily apply to any other municipality besides Centennial. To date, the sale of medical marijuana is not regulated by the state. As a result, medical marijuana dispensaries are being established under the pretense that the individuals operating those businesses do so as a "primary caregiver ". Amendment 20 defines "primary caregiver" as: a person other than the patient and the patient's physician who is eighteen years of age or older and has a significant responsibility for managing the well -being of a patient who has a debilitating medical condition. Colo. Const. art. XVIII, § 14(1)(f). So long as an individual owner of a medical marijuana dispensary is named as a primary giver by patients who have debilitating medical conditions, that individual is entitled to the same protections afforded those patients under Amendment 20. Therefore, a primary care -giver is allowed to acquire, possess, and transport marijuana for use by his or her patients. Combined a patient and his or her primary care -giver may not possess more than two (2) ounces of marijuana in a usable form and not more than six (6) marijuana plants in varying stages of development. Colo. Const. art. XVIII, § 14(4)(a). This limit as applied to a primary care -giver is cumulative as based on the number of patients for whom that primary care -giver is responsible. For example, if a primary care -giver has 10 patients, none of whom grow their own marijuana, than the primary care -giver is entitled to possess up to sixty (60) plants. So why have medical marijuana dispensaries proliferated? In February of last year, the United States Attorney General, Eric Holder, announced that it would no longer be a priority of the Justice Department to enforce the federal prohibition against the sale or use of marijuana. Prior to that announcement, few medical marijuana dispensaries operated within the state and there were a few thousand patients listed on the state's registry. Since that announcement, it has been estimated that there are now 30,000 patients listed on the state's registry and an unknown number of medical marijuana dispensaries. The Attorney General's comments alone do not explain the explosion of medical marijuana dispensaries in the state. The Colorado Department of Public Health (the "CDPHE ") also shares some responsibility. The CDPHE is charged with promulgating rules to implement Amendment 20. In July 2009, the CDPHE proposed an amendment to its regulations to redefine the phrase "significant responsibility for managing the well -being of a patient," as it is used in the definition of "primary caregiver." After a twelve hour hearing, the CDPHE adopted a rule that defines that phrase to mean: assisting a patient with daily activities, including but not limited to transportation or housekeeping or meal preparation or shipping or making any necessary arrangement for access to medical care or services or provision of medical marijuana. Under this definition, a primary care -giver can significantly manage the well -being of a patient solely by providing medical marijuana. However, in October 2009, the Colorado Court of Appeals determined that "supplying marijuana for medical use, by itself, is insufficient to constitute significant management responsibility for a patient's well- being." People v. Clendenin, 08CA0624 (Colo. App. October 29, 2009). Unfortunately, the Court did not describe what other types of activities would satisfy the term. In addition, due to timing, the Court did not address the CDPHE's definition. This case is now before the Colorado Supreme Court. What is the current status of legislation? Currently, the state —laws concerning medical marijuana do not address or place requirements on the doctor to patient relationship. There are two bills being -proposed for consideration by the General Assembly during this year's term. The first bill would address the doctor to patient relationship. This bill places more stringent requirements on the type of review that must be conducted by the physician prior to that physician recommending that a patient use medical marijuana. The second bill would limit the number of patients for whom a primary care -giver may care. If this second bill is adopted as written, a primary care -giver may only have five (5) patients. It also prohibits primary care - givers from combing to grow or provide marijuana to their patients. Economically, this would essentially prohibit medical marijuana dispensaries from continued operation. 3 Mu� D AHL Ku=" "mclS7cR FEN uo L AWOMMAT11W MEMORANDUM TO: Mayor Jerry DiTullio and City Council THROUGH: Patrick Goff, City Manager FROM: Gerald Dahl, City Attorney; Dan Brennan, Chief of Police and Ken Johnstone, Director of Community Development DATE: November 3, 2010 (for the November 15 Study Session) RE: Medical Marijuana Licensing and Regulation The purpose of this memorandum is two -fold: (1) to give an update of recent developments concerning the regulation of the cultivation, production, use and sale of medical marijuana, and (2) to request direction from Council on how to proceed with appropriate licensing and regulation, or banning, of medical marijuana businesses in the City also including primary care - givers and cultivation. 1. Background: Regulation of Medical Marijuana Businesses In June 2010, staff produced a memorandum (attached for your reference) describing the licensing and regulation of medical marijuana cultivation, production and use under Amendment 20 to the Colorado Constitution and the newly adopted Colorado Medical Marijuana Code, C.R.S. §§ 12- 43.3 -101 et seq. At that time, the Colorado Department of Revenue (the "DOR "), the state's licensing authority, was expected to produce and adopt regulations concerning its application of the Medical Marijuana Code in September 2010. Council decided to delay further discussion concerning the City's regulations until after the DOR had produced its regulations. Council adopted an ordinance extending the City's moratorium on the issuance of permits and licenses concerning medical marijuana businesses until the date that the DOR regulations "became effective." The DOR released its draft regulations in September. Under state law, the DOR is required to hold hearings on those regulations prior to their implementation. While the DOR has not produced an official calendar, the DOR should begin holding hearings on the regulations in January 2011 with an effective date set for March 2011. At approximately ninety -three pages of text, the draft regulations are extensive. Staff believes that the draft regulations provide enough guidance for the Council to lift the moratorium and enact the City's regulations. Attachment 3 I II. Options for Council Action Staff is proposing the following options for Council's consideration: 1. Adopt an ordinance or recommend a ballot measure banning medical marijuana businesses from operating in the City. i 2. Adopt an ordinance regulating medical marijuana businesses. Option 1: Adopt an ordinance or resolution or recommend a ballot measure banning medical marijuana businesses from operating in the City. i The Colorado Medical Marijuana Code, at C.R.S. § 12- 43.3 -106, contains a local opt out provision authorizing local governments to prohibit medical marijuana businesses from operating -in their communities. There are two methods by which a local government may exercise this opt out provision: o By a vote of a majority of registered electors of the local government at a regular or special election; or o By a vote of a majority of the members of the governing board of the local government. Here, Council, acting as the governing board for the City, may, by majority vote, adopt an ordinance or resolution banning medical marijuana businesses from operating in the City. Alternatively, Council could refer this question to the voters of Wheat Ridge at a special election. There are several local governments that have followed one of these two approaches. A list of those communities is attached for your reference. It is important to note that there are two retail medical marijuana businesses currently operating in the City. If the City adopts a ban on those types of businesses, this may create two legal non - conforming uses and/or potentially run afoul of the state's anti - amortization law. Under that law, no business that was legal at the time that it was created may be forced to close. By adopting a ban on medical marijuana businesses, the City would necessarily be forcing the two existing businesses to close. This could subject the City to a lawsuit under the anti - amortization provisions. However, the anti- amortization statute predates the Colorado Medical Marijuana Code. Under general rules of statutory interpretation, in the event that two statutory provisions conflict, the more recent provision prevails. As the more recent provision, the Colorado Medical Marijuana Code authorizes the City to ban medical marijuana businesses. In addition, under the Colorado Medical Marijuana Code, the City's ability to ban must necessarily include the ability of the City to force those existing businesses to close. Thus, while the City may be subject to a lawsuit for forcing those existing businesses to close, it is not likely that the City would be forced to compensate the owners of those businesses for taking actions authorized under the Colorado Medical Marijuana Code. Option 2 - Adopt an ordinance concerning the licensing of medical with changes consistent with the provisions in the Colorado Medical Marijuana Code and DOR regulations. If the Council decides to allow medical marijuana businesses to operate in the City, staff requests direction concerning some specific regulatory options for those businesses. The City is not required to adopt regulations implementing the Colorado Medical Marijuana Code because under C.R.S. § 12- 43.3 - 301(2)(x), if the Council does not ban medical marijuana businesses or adopt regulations, then the default provisions of the Colorado Medical Marijuana Code apply. It is staffs recommendation that Council adopt some level of regulation to determine the appropriate zoning and licensing mechanisms for these businesses operating within the City. Here are the questions Staff needs Council to answer if Option 2 is selected: o What types oflicenses should the City offer? The Colorado Medical Marijuana Code authorizes the City to issue the following medical marijuana licenses: 1. A medical marijuana center license This is a license for a retail medical marijuana business. 2. A medical mariivana- infused products manufacturer license This is a license for a business that manufacturers a product containing medical marijuana for use or consumption by a patient. Examples of products include edibles, tinctures and ointments. An optional premises cultivation operation license This is a license that can only be issued to either a medical marijuana center or a medical marijuana - infused products manufacturer for a location in which the licensee is authorized to grow and cultivate medical marijuana. o Should the City adopt a vertical integration model for medical marijuana centers? Under the vertical integration model, all cultivation activities under an optional premises license would be required to occur at or immediately adjacent to the location of the medical marijuana center licensed premises. The primary purpose of this regulatory model would be to assist the City in enforcing the Colorado Medical Marijuana Code requirement that medical marijuana centers grow a minimum of 70% of the medical marijuana that they sell at retail. In addition, under this model, no medical marijuana center could obtain a City license unless the applicant also obtained an optional premises cultivation operation license for an adjacent parcel. This type of model could limit the number of medical marijuana centers operating in the City. The City of Lakewood currently operates under this type of vertical integration model. One alternative to the vertical integration model includes allowing optional premises medical marijuana cultivation operations to be in separate and non - adjacent facilities from medical marijuana center locations. One purpose for this is that land use impacts from cultivation operations may include additional electrical power usage, -3- significant water use, chemicals and odors associated with growing plants. These types of impacts are typically not conducive to retail locations. o If the City adopts a vertical integration model, what is the appropriate zoning for those businesses? Community Development Staff proposes that vertically integrated medical marijuana businesses be allowed as a use by right in the City's Cl (light commercial) and I (industrial) zone districts. The Police Department supports keeping medical marijuana businesses in the City's Cl districts for reasons of safety and enforcement. o If the City does not adopt a vertical integration model, what is the appropriate zoning for medical marijuana businesses? Community Development Staff and the Police Department Staff agree that if the City does not adopt a vertical integration model, retail medical marijuana centers should be allowed as a use by right in the City's Cl (light commercial) district and that optional premises cultivation operations and medical marijuana - infused products manufacturers should be permitted in the City's I (industrial) zone district. o Does Council want to reduce or eliminate the Colorado Medical Marijuana Code's default provision that prohibits medical marijuana businesses from operating within 1000 feet of certain locations? The Colorado Medical Marijuana Code prohibits medical marijuana businesses from operating within 1000 feet of schools, child care facilities or drug treatment and rehabilitation centers. However, it does authorize the City to adopt less stringent distance requirements. Staff previously recommended that the 1000 foot distance limitation be reduced to 500 feet. Maps of the City demonstrating these distance limitations have been attached to this Memorandum. Map A concerns the 500 foot limitation. Map B concerns the default 1000 foot limitation. o Does Council want to adopt a provision limiting the distance between licensed premises? The Colorado Medical Marijuana Code authorizes the City to adopt a provision limiting location of the distance between medical marijuana licensed premises. Currently, the City of Lakewood prohibits medical marijuana centers from operating within three quarters of a mile of another medical marijuana center. Attached to this memorandum is Map C which demonstrates this distance limitation in conjunction with the default 1000 foot limitation described above. As demonstrated on Map C, if both limitations were adopted by the City, the available locations for operating medical marijuana facilities would be limited. As a result, the total number of medical marijuana facilities would also be limited. -4- o Who will serve as the City's local licensing authority? The Colorado Medical Marijuana Code requires all local governments issuing licenses to medical marijuana businesses to name a local licensing authority. Council may designate an administrative office or a division thereof, such as the Tax and Licensing Division of the City Manager's office, as that local licensing authority. Alternatively, Council may designate a deliberative body, like the City's Liquor Authority, as the local licensing authority. Staff recommends that Council name the Tax and Licensing Division of the City Manager's office as the City's local licensing authority for the purpose of issuing medical marijuana business licenses. Staff further recommends that Council provide for a hearing officer to be named by the City Manager (as is done with other regulatory matters in the City) to serve as the licensing authority for the purposes of hearing appeals and show cause matters. Although the Liquor Authority has expressed interest in becoming the licensing authority for medical marijuana business, Staff believes that this would make the process less efficient and effective because the requirements of the Colorado Medical Marijuana Code are detailed and technical. As such, a citizen committee is likely unprepared to interpret and apply those requirements without significant staff involvement. Naming an administrative office is preferable because it will be more efficient and cost effective. o How broad or deep should the City's regulations be? With complex regulatory subjects, such as elections and liquor licenses, some municipalities opt to adopt by reference all or substantially all of the state regulations concerning those subjects in their respective codes. Currently, the City regulates elections and liquor licenses through references to the respective state statutes covering those subjects. This allows the City to regulate those subjects under the extensive state law provisions without the City extending its Code unnecessarily. Does Council favor adopting similar references to state statutes and regulations concerning medical marijuana businesses? The alternative would consist of a lengthy ordinance that contained language that was largely pulled from state statute. Once these decisions have been made, staff will present a draft ordinance for Council's consideration. III. Regulation of the Activities of Primary Caregivers This portion of the memorandum concerns the use of property within the City by primary caregivers. Recall, that Amendment 20 to the Colorado Constitution provides patients and primary caregivers with an affirmative defense or exception to criminal prosecution concerning their medical use of marijuana. Medical use is defined in Amendment 20 as the "acquisition, possession, production, use, or transportation of marijuana or paraphernalia related to the administration of medical marijuana. Under Amendment 20, primary caregivers have significant responsibility for managing the wellbeing of their patients and are authorized to grow up to six plants, in various stages of development, for each patient. A patient is permitted a maximum of six plants in varying stages of development and a maximum of two ounces of -5- marijuana in a usable form. Pursuant to the provisions in C.R.S. § 25 -1.5- 106(3), a primary caregiver may serve up to a maximum of five patients but may not charge those patients more than the primary caregiver's cost to cultivate or purchase medical marijuana. However, the primary caregiver may charge for the cost of providing caregiver services, e.g. grocery shopping, cleaning, etc. This summer, the Police Department and City staff received questions from City residents concerning the use of residential property within the City for cultivation activities of patients and primary caregivers. Recently, the Wheat Ridge officers contacted a resident concerning marijuana plants that were being grown in the backyard of the residence. The resident presented sufficient materials to the officers proving that the resident was a primary caregiver under Amendment 20. As a result of that status, the officers did not take further action. Although Amendment 20 protects patients and primary caregivers from criminal prosecution for the medical use of marijuana, they are not immune from application of the zoning provisions. Thus, the City may adopt some limited regulation concerning marijuana cultivation activities. Currently, under Wheat Ridge Code of Laws § 26 -613, as a home occupation, primary caregivers are permitted to use a residential dwelling for cultivation activities as a use by right. To prevent additional unnecessary contacts by Wheat Ridge officers, alleviate neighbor concerns, and for reasons of protecting the public's health, safety and welfare, staff recommends that Council consider adopting a provision in the zoning code that limits marijuana cultivation activities to inside of structures within the City. This limitation would apply equally to optional premises cultivation operators, patients, and primary caregivers. Some other communities have adopted or considered provisions regulating primary caregivers and/or the cultivation of medical marijuana in their communities. Those regulations include: 1. Limiting the number of medical marijuana plants that can be cultivated in residential zone districts. 2. Requiring primary caregivers to obtain a municipal license or registration. 3. Prohibiting the number of primary caregivers that can operate from a single dwelling unit. 4. Regulating primary caregivers as home occupations under local zoning code provisions. IV. Conclusion The landscape concerning local and state regulation of the cultivation, sale and manufacture of medical marijuana and medical marijuana - infused products continues to develop. We will continue to follow this changing environment and present updates to the Mayor and Council as requested or as necessary to obtain further guidance concerning the City's regulatory position. As always, please let us know if you have any additional questions or concerns. Attachments: 1. Summary of local government ban status 2. Maps A, B, & C F1 „N in a s O c? O o O r o0 0 C< 7 Z C Z J J F F of 0 as 0 0 P m r O Z c, S is i e3 o is 9 O '0 O ✓ . U J Q. Y U Z N ^ C Z o o �' Z o 2 Z W N Q w + O W W N C cs = 0 O J m w 2¢ w O N C C a b G O O z z I as is J W ec C O O z -S G W i ie d is c, o O Q a in in ° 2 ,° o i >' O z W N r N v C< z U is < z w _w + C W u o P r 0 Proposed Separations: Medical Marijuana Dispensaries and Other Land Uses Case No. ZOA -09 -06 Amendments to Chapter 26, Zoning & Development Code, concerning medical marijuana dispensaries r•• —•j i•_ � City of Wheat Ridge Boundary Existing Medical Marijuana Dispensaries Schools Childcare Facilities Drug Treatment Centers 1000 -Foot Buffer 3/4 -Mile Buffer �P 4 V �4 4� �P e 3 f 0 � e� J� O r Fc �P 9 h � J� f P V h 3 �1 N Zone Districts Commercial- One (C -1) Commercial -Two (C -2) Industrial (1) o 2,250 .soa State Plane Coordinate Projection Colorado Central Zone Datum: NAD83 f 71SCLAIM E R NOTICE This is a pictorial representation of geographic and demographic information. Reliance upon the accuracy, reliability and authority of this information is solely requester's responsibility. The City of Wheat Ridge, in Jefferson County , Colorado - a pottical subdivision of the State of Colorado, has comphad for its use certain computerized information. This information is available to assist in identifying general areas of concern only The computerized information provided should only be, relied upon with corroboration of me methods. assumptions, and resorts by a qualified independent sours. The user of this information shall indemnity and hod free the City of Wheat Ridge from any and III liabilities, damages, lawsuits, and causes of action that result as a consequence of his reliance on information crowded herein. ATTACHMENT 4 heatl�dge City of Wheat Ridge, Colorado 7500 West 29th Avenue Wheat Ridge, CO 80033 -8001 303.234.5900 31 Created by Lauren Mikulak, Planner I - 2/8/2011 mm seurecs. G)� e Men Rd,. co�.nado a:n, :�,.'*on or Y.�nvan Sev.ees W 31 O h J� �P 40 l �P 4 SP� 5 JV �P 0 S �P e� VS A J� O , E S J 9 : P y h F I . City of Wheat Ridge Boundary N Zone Districts P ' Commercial -One (C -1) Industrial (1) t 250 a 3250 -.Sea I", State Plane Coordinate Projection Colorado Central Zone Datum: NAD83 p lsC IAIM ER NOTICE This is a pidodal representation of geogmphlc and demographic information. Rellanca upon the accuracy, reliability and authority of this information is solely requester's responsibilfty. The City of Wheat Ridge, in Jefferson County, Colorado � a poLtical subdivision of the sets of Colorado, has compiled for its use certain computer¢ed information. This information is available to assist in identifying general areas of concern only. The computerized information provided should only be relied upon wilt coroborthon of the methods, assumptions, and results by a qualified independent sous+. The user of this information shall indemnify and hold free the City of Wheat Ridge from any and all liabilities, damages, lawsuits, and causes of action that result as a consequence of his reliance on Inlortnabon provided herein. ATTACHMENT 5 heat j� City of Wheat Ridge, Colorado 7500 West 29th Avenue Wheat Ridge, CO 80033 -8001 303.234.5900 n1 Created by Lauren Mikulak, Planner I - 218/2011 oaln $W rtu'. O.y o1 WncY Rid,. col «.A ocpanmeo: at H'Pil s—.- Proposed Eligible Locations: Medical Marijuana Dispensaries s go m s -- gas s °o o °° °M " g o so�o o ��s g o o o N e s ] o� o� o ores o fOry n o ^ ore -_oar –o iZ o s o D Z o�o f ^ WN O^ Zf ^O 000 2n Z NCC rWO SN ZZ Can Own�w oOUNa 2fu.�o J Z.� Z O i 0 W O u 2 N 0 C u O N 4 C> C w C ] C N 0' C O ~ U< O] O <p Q 5] Z Z 6< i N C Case No. ZOA -09 -06 O< r O C Z D _ C i< J I C > Y O W Z 6 Z '� — 1G,,. C ^ O O < C O_ W C O, J O Z O C O< E J N W 2 i S O Q K O vl ' 26, C i< C' ¢ G c O e O J p o o ¢' W O_ o o a a z in ,a x s O m - D ! Z x ¢ = W W D D ¢ e o i G N]] j D a, o a 6 2 S x 2 O r W o c V' Amendments to Chapter 1 1 ,i 1� s l l I Zoning & Development Code, concerning medical marijuana dispensaries i O h J� �P 40 l �P 4 SP� 5 JV �P 0 S �P e� VS A J� O , E S J 9 : P y h F I . City of Wheat Ridge Boundary N Zone Districts P ' Commercial -One (C -1) Industrial (1) t 250 a 3250 -.Sea I", State Plane Coordinate Projection Colorado Central Zone Datum: NAD83 p lsC IAIM ER NOTICE This is a pidodal representation of geogmphlc and demographic information. Rellanca upon the accuracy, reliability and authority of this information is solely requester's responsibilfty. The City of Wheat Ridge, in Jefferson County, Colorado � a poLtical subdivision of the sets of Colorado, has compiled for its use certain computer¢ed information. This information is available to assist in identifying general areas of concern only. The computerized information provided should only be relied upon wilt coroborthon of the methods, assumptions, and results by a qualified independent sous+. The user of this information shall indemnify and hold free the City of Wheat Ridge from any and all liabilities, damages, lawsuits, and causes of action that result as a consequence of his reliance on Inlortnabon provided herein. ATTACHMENT 5 heat j� City of Wheat Ridge, Colorado 7500 West 29th Avenue Wheat Ridge, CO 80033 -8001 303.234.5900 n1 Created by Lauren Mikulak, Planner I - 218/2011 oaln $W rtu'. O.y o1 WncY Rid,. col «.A ocpanmeo: at H'Pil s—.- Proposed Amendment to Council Bill 06 -2011 "I move to amend Council Bill 06 -2011 to add the following sentence: Medical marijuana establishments that are in existence as of the effective date of this section must submit an application for a medical marijuana license within 30 days of that effective date." Commissioner DWYER and seconded by Commissioner POND to recommend approval of Case No's. WZ -10 -08 and MS- 10 -04, a request for approval of a Final Development Plan amendment and a 3 -lot re- subdivision for property zoned Planned Industrial Development and located at 5130 Parfet Street.. The motion carried 5 -0 with Commissioner BUCKNAM abstaining. 6. PUBLIC FORUM (This is the time for any person to speak on any subject not appearing on the agenda. Public comments may be limited to 3 minutes) No members of the public wished to speak at this time. PUBLIC HEARING A. Case No. ZOA- 09 -06 An ordinance amending Chapter 26 concerning medical marijuana dispensaries. This case was presented by Ken Johnstone. He reviewed the staff report and invited questions from the Commission. The only specific change being proposed to Chapter 26 is to establish in what zone districts each of the three different types of medical marijuana establishments can be located. The ordinance proposes that "medical marijuana centers ", "medical marijuana- infused products manufacturers" and "optional premises cultivation operation" all be allowed to locate in Commercial One (C -1) and Industrial (I) zone districts. Commissioner BUCKNAM asked if the 1000 foot buffer would apply to schools, etc. located in a neighboring jurisdiction. Mr. Johnstone replied that staff has been looking into this. The city attorney believes the ordinance would require considering locations in adjacent jurisdictions. Commissioner BUCKNAM asked about the reasoning behind the requirement for '/ mile radius around existing establishments. Mr. Johnstone replied that Council believed that was a good way to limit the number of establishments in the city. Commissioner BUCKNAM suggested setting a limit to the number of establishments allowed. Mr. Johnstone commented that this was done with the number of billboards allowed in the city. Commissioner OHM asked if the proposed separations would affect the two existing dispensaries. Mr. Johnstone explained that if they do not meet the requirements, they would become legally nonconforming. The House Bill gives city's the right to declare them illegal, however, the ordinance does not take that approach so far. Commissioner OHM asked if the '/ mile radius is "as the crow flies." Mr. Johnstone replied that the'/ mile requirement would be a straight line radius. Planning Commission Minutes 2 February 17, 2011 In reply to a question from Commissioner POND, Mr. Johnstone stated that all home occupation regulations would apply to medical marijuana home occupations. Commissioner DWYER asked the difference between a dispensary and a pharmacy. Chief Brennan explained that pharmacies are regulated by state and federal governments and dispense medicines that require prescriptions from medical doctors. Medical marijuana simply requires a verification from a doctor. The federal government does not recognize marijuana as a medical drug but rather a Schedule One substance. There is one marijuana product that can be prescribed in a pharmacy, Marinol, a pill form of cannabis. In response to a question from Commissioner DWYER regarding the restriction to Commercial and Industrial zones. Chris Price explained that a recommendation to limit zones is because of the vertical integration model included in the ordinance. If the cultivation operation has to be contiguous with a retail outlet and retail outlets are allowed in every area that pharmacies are allowed, you would be bringing in an industrial use into those zones. Commissioner BUCKNAM asked what the safety concerns were with transporting marijuana. Chief Brennan explained there was concern about robberies and other issues. The vertical integration model allows for the grow operation to be on the same site as the operation. It would be difficult for law enforcement to track the products if they are purchased in one area and sold in another. It also makes sure that the drug sold is not associated with a drug cartel or other criminal enterprise. The model also controls the size and capacity of any operation. There are environmental concerns associated with large grow operations, building code concerns, hazardous material concerns, and concerns about air quality. Commissioner BUCKNAM asked about criminal activities associated with growing marijuana at the same place it is sold. Chief Brennan explained that theft could occur wherever marijuana is grown. Problems that have been experienced so far with primary caregiver growers have been burglary, trespass and neighborhood complaints about outdoor grow operations. Some of these problems will be alleviated with requiring primary caregivers to grow marijuana indoors. He also expressed concern about home invasion robberies. In response to a question from Commissioner DIETRICK, Chief Brennan explained that Colorado State law requires a dispensary to grow 70% of the product that they sell. The remaining 30% may be purchased from another licensed grow operation. The two businesses currently operating in the city are not vertically integrated. He also explained that the City of Denver does not have a vertically integrated model; however, Lakewood is utilizing that model. Planning Commission Minutes 3 February 17, 2011 Commissioner MATTHEWS asked if marijuana in excess of the 70% required to be grown at the dispensary could be purchased in other jurisdictions. Chair Brennan stated that the answer to this will require research. Commissioner MATTHEWS asked if a greenhouse is considered to be "inside." Sarah Showalter explained that home occupation regulations would allow growing marijuana in a greenhouse. Commissioner MATTHEWS asked in what order applications will be processed. Mr. Johnstone explained they will be processed in chronological order. He commented that the lottery system used with billboards would probably not work in this case. Chair MATTHEWS opened the public hearing. Chuck Wharton Mr. Wharton and his partner, Diane McKindley, own a medical marijuana dispensary in Wheat Ridge. He spoke in favor of the ordinance. He was in favor of the vertical integration model that requires a dispensary to grow 70% of its marijuana and stated that he would not be going to a provider for the remaining 30% because he can provide 100% of all of his patients' needs. Further, the requirements for transportation are quite cumbersome. He commented that he can control the quality by growing his own marijuana. Commissioner OHM expressed concern about the safety of grow operations in residential neighborhoods. Commissioner BUCKNAM was in favor of indoor growing restrictions. He asked if indoor grow operations in a residence would have to meet the same regulations as any home occupation. For example, will there be a requirement for kitchen, bathroom, etc. to prevent a house from being used solely as a "grow" house. Ken Johnstone commented that there is a series of regulations in place that would address these concerns. Commissioner DWYER commented that he feels it is important to be consistent with the way other businesses are regulated. Commissioner BUCKNAM stated that he would like to ensure that the 1000 foot buffer will apply to schools, etc. in adjacent municipalities. Commissioner OHM stated he was in favor of the C -1 and Industrial uses; however, he stated his opposition to uses in any residential zone district. It was moved by Commissioner POND and seconded by Commissioner DWYER to recommend approval of an ordinance amending Article 11 of the Wheat Ridge Code of Laws by adding a new Article XII concerning medical Planning Commission Minutes 4 February 17, 2011 marijuana as it pertains to Chapter 26 of the City of Wheat Ridge Code of Laws, for the following reasons: 1. The ordinance provides a reasonable approach to managing medical marijuana establishments, consistent with the Colorado Constitution and applicable state laws. 2. The ordinance allows these establishments to be located in a limited range of appropriate commercial/industrial zoning districts. 3. The ordinance limits the potential impacts from these establishments in residential areas by subjecting them to home occupation regulations. I The motion carried 5 -1 with Commissioner OHM opposed and Commissioners BRINKMAN and TIMMS absent. It was moved by Commissioner DWYER and seconded by Commissioner DWYER to recess the meeting for a brief period. The motion carried 6 -0. (The meeting was recessed at 8:12 p.m. and reconvened at 8:21 p.m.) B. Case No. ZOA- 10 -05 An ordinance amending Chapter 26 pertaining to the adoption of the Streetscape Design Manual. The case was presented by Sarah Showalter. She entered all pertinent documents into the record and advised the Commission there was jurisdiction to hear the case. She reviewed the staff report and digital presentation. Staff recommended approval of the ordinance. The amendment would promote quality development and clarify and simplify the development process. It will also help to fulfill goals outlined in Chapter 6 of Envision Wheat Ridge, the City's Comprehensive Plan. Further, the new manual will help the City create attractive, high - quality streets that improve the image and character of Wheat Ridge. Commissioner OHM referred to page 28 and suggested that the wording should be changed from "tree grate openings shall be no more than '/ inch in width" to "tree grate openings shall comply with ADA regulations." Ms. Showalter agreed with this amendment. Commissioner OHM suggested another amendment on page 36 to require that drip irrigation be used in all non -turf areas consisting of either subsurface or micro - spray. Ms. Showalter stated these requirements were developed in conjunction with the Parks staff and she will check with them before making a change. Commissioner OHM asked that consideration be given to adding a statement that says: "Turf areas less than 6 feet in width shall be irrigated with subsurface to Planning Commission Minutes 5 February 17, 2011 Case #ZOA -09 -06 — History of Medical Marijuana g r8 d ` � ` Legaliiei theconsumpt,on of medical marijuana" for certain debilitating;meilical conditions — Requiresf doctor's verification of the medical condition —Allow "primary caregivers" to cultivate for patients ywiw.��rsesw History of Medical Marijuana R r ��;` �4,,y o dera I wen or emeq <,gsta a fha ha e r � , � � / x legalized med,ca� marfivah�aa 't � y ,, r , Colorado begmsseeing increased,cbmmgx,alr -; mterest'in opening m'ed,cal marijuana - " ' CDPHE rule making process Gets attention of state legislature n �1 History of Medical Marijuana R wY r i'�� Ru hpniesjseve �r�� medifal tanau`a6,' Xu t u��,'6`"i�smesses S.✓i�.�z r � n �Q s��ava� .7 � x3�; :�; 'mediial marquanpfenters • "optional premises tiultivationopemtions" • "medical marijuana infused products I , manufacturers" History of Medical Ma History of Medical Marijuana 7 es .. �� ' n a topublicsafet welf and l Proposed Medical Marijuana ¥W ._ Proposed Medical Marijuana j9, j�, � - ' 1A ' I City of Wheat Widg PLANNING COMMISSION Comuurn DEVELOPMENT LEGISLATIVE ITEM STAFF REPORT MEETING DATE: February 17, 2011 TITLE: Case #ZOA -09 -06 — An Ordinance amending Article 11 of the Wheat Ridge Code of Laws by adding a new article XII concerning medical marijuana and making certain amendments to Chapter 26 (Zoning and Development) in association therewith ❑ PUBLIC HEARING ® CODE CHANGE ORDINANCE ❑ RESOLUTION ❑ STUDY SESSION ITEM Case Manager: Ken Johnstone, AICP, Director of Community Development Date of Preparation: February 10, 2011 SUMMARY: In November 2000, Colorado Voters approved Amendment 20 to the Colorado Constitution, providing an affirmative defense for possession and use of marijuana to alleviate certain debilitating medical conditions. The amendment is more commonly referenced as the amendment that legalized medical marijuana. Amendment 20 allows patients and their caregivers to grow their own medical marijuana under certain rules promulgated by the state. Those rules have changed in recent years and there has been a significant increase in the number of business entities who are also interested in growing and selling medical marijuana in various forms within the state. Because of the new state regulations and the private interest in establishing businesses of this nature, the City finds it necessary to adopt local rules and regulations on this topic. The proposed ordinance includes changes to Chapter 26 of the Code of Laws pertaining to Zoning and Development and all such changes require review and recommendation by the Planning Commission. The use of marijuana for medical purposes has been legal in Colorado under certain circumstances since the Colorado voters approved Amendment 20 to the state constitution in 2000. First and foremost, the amendment allowed the marijuana to be grown, possessed and used by eligible and registered patients and their caregivers, as defined in the amendment. The Colorado Department of Public Health and Environment (CDPHE) was established as the state regulatory agency with jurisdiction to regulate the use of marijuana under these circumstances and patients and their caregivers were required to be registered with that agency and certain restrictions were established on the amount of marijuana they can grow and possess. In 2009, the CDPHE began a process to consider additional regulations in this area. That process was initiated, in part, based on an increased level of activity from business entities interested in creating a business model in relation to medical marijuana. It is widely thought that the increased business activity was related, at least in part, to the United States Attorney General's announcement that his administration would not be actively seeking enforcement of federal marijuana laws in states that have adopted constitutional amendments allowing its medical use. In the end and after extensive public input, CDPHE did not adopt any new rules in 2009. In 2010, the State General Assembly took up the topic and eventually adopted HB 10 -1284 concerning the regulation of medical marijuana. The house bill expands the scope of the medical marijuana arena beyond just the patient and caregiver, to allow "medical marijuana centers" (essentially retail establishments), `optional premises cultivation operations" (growing facilities) and "medical marijuana - infused products manufacturers ". The legislation also directed the Department of Revenue (DOR) to adopt further regulations in association with the enforcement of the new legislation, which is a process that is still underway, but is nearing completion. In relation to municipal governments, the legislation required that local governments create, at a minimum, a local licensing authority to approve of any of the above referenced business entities. The legislation also allowed municipalities to completely outlaw any of these entities within their boundaries. Such a ban could either be approved by a City Council, or by a City Council voting to send the matter to a vote of the people. Lastly, the legislation allowed municipalities to enact moratoriums on any further establishment or expansion of these medical marijuana related business entities until such time as the DOR and the local government, respectively, have adopted necessary regulations and ordinances. The Wheat Ride City Council has discussed this topic at numerous study sessions in 2009 and 2010, most recently on November 15, 2010. The direction received at those meetings has never been to contemplate a ban on medical marijuana establishments; but, rather, to adopt necessary ordinances to regulate their operation and location within the City. The City Council did feel that it was necessary and appropriate to adopt a moratorium while the state took action on these matters. City Council first adopted a moratorium on the issuance of any further permits or licenses for such businesses on September 14, 2009, prior to the legislature taking action in 2010. City Council has extended that moratorium on two occasions, most recently on June 28, 2010 and our local moratorium is in effect until the effective date of the rules that are to be adopted by DOR, which has not yet occurred. There are two existing medical marijuana establishments in the City, both of which were legally licensed prior to the moratorium going into effect. At the time of those licenses being issued, the City had taken the position that medical marijuana dispensaries, as they are commonly referred, were akin to a pharmacy and allowed to operate in locations where pharmacies could operate. Medical marijuana growing facilities were never deemed to be a permitted use and no such operations legally exist within the City. At the peak, the City had five (5) medical marijuana dispensaries, in 2009; several have since closed and have lost any legally non - conforming status they might have had. STATEMENT OF THE ISSUES: Staff from the Community Development Department, Police Department and City Attorney's office have been working on draft regulation, periodically over the past one and a half years as well as discussing this topic with City Council during study sessions. The direction from Council 2 has been in general to take the approach of allowing these business entities in a limited but reasonable number of locations, while providing adequate restrictions and operational regulations to ensure they would be compatible with the community and not a detriment to public safety or the general welfare of the community. Based on that direction, staff has drafted an ordinance that allows these establishments in a limited number of commercial/industrial zoning districts, with separation requirements from certain other uses as well as separation requirements between the establishments as well. In regards to the operational regulations, the state in adopting HB 10 -1284 did a thorough job of establishing operational regulations that can be enforced at both a state and local law enforcement level. The licensing authority is proposed to be housed within the City's Tax and Licensing Division, but also requires that the Police and Community Development Departments be included in the review and approval of any license to ensure the requirements related to those departments are being met. Much of the ordinance pertains to the administrative aspects of the licensing process, with are not the purview of the Planning Commission. The Planning Commission's review of the ordinance is specific to changes to Chapter 26, which are outlined in subsequent paragraphs; however, there are also some aspects of the ordinance that while not included in Chapter 26, may be of interest to the Commission, and those are outlined here: • HB 10 -1284 requires that all medical marijuana establishments be located a minimum distance from certain other establishments, including schools, daycare facilities and facilities for the treatment of substance abuse. The state separation requirement is 1000 feet and local governments are allowed to modify that distance, either lower or higher. The proposed ordinance would maintain the state separation requirement of 1000 feet for Wheat Ridge. • The proposed ordinance also requires that any medical marijuana establishment be located a minimum of 3 /4 mile away from any other medical marijuana establishment. • In drafting regulations for these medical marijuana entities, some communities have chosen to require what is referred to as a vertically integrated business model; meaning, the cultivation and the "retail" operations are located in the same building /property. Based in part on input from Chief Brennan, Wheat Ridge's proposed ordinance proposes that model and does not allow stand alone cultivation facilities. This has the advantage of eliminating concerns with transporting from a cultivation facility to a retail location. The ordinance also provides two cross - references to Chapter 26 that are of interest, but that do not specifically modify Chapter 26. • Section 11 -306 of the ordinance states that signage will comply with all requirements of Chapter 26, and further, that the words "marijuana" and "cannabis" will not be included in a sign, unless immediately preceded by the word "medical ". • Sections 11 -320 and 11 -321 establish that primary care- givers, who would be growing medical marijuana, are required to get a license with the City. If those caregivers are located on a residential property, they are required to comply with all requirements of Chapter 26 in regards to home occupations. The effect of that, among other things, would 3 require that it create no negative impacts for the residential neighborhood, that it be conducted entirely indoors and that it be limited to a maximum of 25% of the interior floor area of the residence. Chapter 26 Amendments In regard to Chapter 26, the only specific change that is being proposed is to establish in what zone districts each of the three different types of medical marijuana establishments can be located. The ordinance proposes that "medical marijuana centers ", "medical marijuana- infused products manufacturers" and "optional premises cultivation operation" all be allowed to locate in Commercial One (C -1) and Industrial (1) zone districts. RECOMMENDED MOTION: Staff recommends that Planning Commission adopt the following motions: "I move to recommend approval of an ordinance amending Article 11 of the Wheat Ridge Code of Laws by adding a new article XH concerning medical marijuana, for the following reasons: 1. The ordinance provides a reasonable approach to managing medical marijuana establishments, consistent with the Colorado Constitution and applicable state laws. 2. The ordinance allows these establishments to be located in a limited range of appropriate commerciat/industrial zoning districts. 3. The ordinance limits the potential impacts from these establishments in residential areas by subjecting them to existing home occupation regulations." Or, "I move to deny the proposed medical marijuana ordinance for the following reasons. 1. ... Exhibits: 1. Proposed ordinance 2. January 22, 2010 memorandum from the City Attorney, titled "Medical Marijuana Basics" 3. November 3, 2010 memorandum from the City Attorney, titled "Medical Marijuana Licensing and Regulation" 4. Map #1, depicting 3 /4 mile separation, 1000 -foot buffer, and C -1, C -2 and I zoning districts 5. Map #2, depicting C -1 and I zoning districts, where the establishments are proposed to be allowed CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER Council Bill No. Ordinance No. Series 201 TITLE: AN ORDINANCE AMENDING ARTICLE 11 OF THE WHEAT RIDGE CODE OF LAWS BY ADDING A NEW ARTICLE XII CONCERNING MEDICAL MARIJUANA WHEREAS, in the November 2000 general election, the voters of the State of Colorado adopted Amendment 20 to the Colorado Constitution ( "Amendment 20 "), codified at Article XVIII Section 14, which authorizes and limits the use of medical marijuana for the treatment of debilitating medical conditions; and WHEREAS, Amendment 20 provides patients and primary care - givers, as those terms are defined therein, with criminal defenses to, or exceptions from prosecution for the possession, production and use or medical marijuana; and WHEREAS, in May, 2010 the Colorado General Assembly adopted the Colorado Medical Marijuana Code, §§ 12- 43.3 -101 et seq., C.R.S., authorizing the cultivation, manufacture, distribution, and sale of medical marijuana and medical marijuana- infused products throughout the state under state and local government licensing procedures; and WHEREAS, the City Council has been made aware of a proliferation of businesses seeking to cultivate, manufacture, distribute and sell medical marijuana and medical marijuana- infused products to those who qualify under state law; and WHEREAS, the City has no current land use or business regulation governing the operation of businesses that cultivate, manufacture, distribute or sell medical marijuana and /or medical marijuana- infused products ( "Medical Marijuana Establishments "); and WHEREAS, on September 14, 2009, the City imposed a moratorium on the submission, acceptance, processing, and approval of all applications for City licenses relating to the operation of Medical Marijuana Establishments to allow the City staff and the City Council to investigate the City's ability to regulate such establishments, and to develop and implement any appropriate regulations consistent with state law; and WHEREAS, because marijuana is a controlled substance under Colorado and federal law, the cultivation, manufacture, distribution and sale as contemplated by the Colorado Medical Marijuana Code has the potential for abuse and should be closely monitored and regulated by local authorities to the extent possible; and EXHIBIT I WHEREAS, if not closely monitored and regulated, the presence of marijuana, even for the purposes legally permitted by Amendment 20 and the Colorado Medical Marijuana Code, can potentially cause an increase in illegal activities within the City affecting the health, safety, order, comfort, convenience and general welfare of the residents of the City; and WHEREAS, if Medical Marijuana Establishments operating pursuant to the Colorado Medical Marijuana Code were allowed to be established and to operate without appropriate local regulation of their location, such establishments might be established in areas that would conflict with the City's comprehensive land use plan; be inconsistent with surrounding uses; or otherwise be detrimental to the public health, safety and welfare. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1 . Moratorium Concluded. The moratorium imposed by Ordinance 1453 on September 14, 2009 shall conclude upon the effective date of this ordinance. Section 2 . Chapter 11 of the Wheat Ridge Code of Laws is hereby amended by the adoption of a new Article XII to read in its entirety as follows: Article XII. Medical Marijuana Licenses Division 1. Generally Sec. 11 -290. Authority Sec. 11 -291. Definitions Division 2. Medical Marijuana Licenses Sec. 11 -292. Local licensing authority established Sec. 11 -293. Types of medical marijuana licenses Sec. 11 -294. Medical marijuana license required Sec. 11 -295. Application of Colorado Medical Marijuana Code Sec. 11 -296. Application for license Sec. 11 -297. Application fee Sec. 11 -298. Standards for approval of license, no hearing required Sec. 11 -299. Authority to recommend and impose conditions on license. Sec. 11 -300. Denial of license. Sec. 11 -301. Appeal of denial or conditional approval of license Sec. 11 -302. Duration of license, renewal Sec. 11 -303. Duties of licensee Sec. 11 -304. Hearing, suspension, revocation of license Sec. 11 -305. Prohibited locations Sec. 11 -306. Signage Sec. 11 -307. Taxes 2 Sec. 11 -308. Penalties, injunctive relief Secs. 11- 309 -11 -319. Reserved Division 3. Primary Caregiver Licenses Sec. 11 -320. Primary caregiver license required Sec. 11 -321. Application for license Sec. 11 -322. Application fee Sec. 11 -323. Standards for approval of license Sec. 11 -324. Authority to recommend and impose conditions on license Sec. 11 -325. Denial of license. Sec. 11 -326. Appeal of denial or conditional approval of license Sec. 11 -327. Duration of license, renewal Sec. 11 -328. Duties of licensee Sec. 11 -329. Hearing, suspension, revocation of license Sec. 11 -330. Growing of medical marijuana outdoors prohibited Sec. 11 -331. Penalties, injunctive relief DIVISION 1. GENERALLY Sec. 11 -290. Authority. The City Council hereby finds, determines, and declares that it has the power to adopt this article pursuant to: (a) The Local Government Land Use Control Enabling Act, article 20 of title 29, C.R.S.; (b) Part 3 of article 23 of title 31, C.R.S. (concerning municipal zoning powers); (c) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (d) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (e) Section 31 -15 -501, C.R.S. (concerning municipal authority to regulate businesses); (f) The authority granted to home rule municipalities by article XX of the Colorado Constitution; (g) Article XVIII Section 14 of the Colorado Constitution; and (h) The powers contained in the Wheat Ridge Home Rule Charter. 3 Sec. 11 -291. Definitions. As used in this article the following words shall have the following meanings, unless the context clearly requires otherwise: Administrative hearing officer has the meaning provided in section 2 -87 of this code. Applicant means any person making an application for a license under this article. Application means an application for license submitted pursuant to this article. City Manager shall have the meaning provided in section 2 -26 of this code. Colorado Medical Marijuana Code shall mean Article 43.3 of Title 12 of the Colorado Revised Statutes and any implementing administrative regulations. Good cause means and includes (1) When a licensee violates, does not meet, or fails to comply with any of the terms, conditions, or provisions of this article and any rule and regulation promulgated pursuant to this article or the Colorado Medical Marijuana Code; (2) When the licensee or applicant has failed to comply with any special terms or conditions that were placed on its license at the time the license was issued, or that were placed on its license pursuant to an order of the local licensing authority or the Colorado Department of Revenue; or (3) When the licensed premises have been operated in a manner that adversely affects the public health, welfare, or safety of the immediate neighborhood in which the medical marijuana clinic is located. Evidence to support such a finding can include: (i) a pattern of disorderly conduct as defined in section 11- 54(a)(1) of this code within or immediately adjacent to the premises of the licensee; (ii) a pattern of drug - related criminal conduct within the licensed premises, or in the immediate area surrounding the licensed premises; (iii) criminal conduct directly related to or arising from the operation of the medical marijuana establishment.. License means a license to operate a medical marijuana establishment issued pursuant to this article. Licensed premises means the location in the City from which the Licensee will operate. Licensee means the person to whom a license has been issued pursuant to this article and the Colorado Medical Marijuana Code to operate a business as described in section 12- 43.3 -402, C.R.S.. 0 Medical marijuana means marijuana that is grown and sold pursuant to the provisions of the Colorado Medical Marijuana Code for a purpose authorized by section 14 of the Article XVIII of the Colorado Constitution. Medical marijuana center means a premises licensed pursuant to the Colorado Medical Marijuana Code to operate a business as described in section 12- 43.3 -402, C.R.S. Medical marijuana establishment shall mean a medical marijuana center, a medical marijuana- infused product manufacturer or an optional premises cultivation operation. Medical marijuana- infused product shall mean a product infused with medical marijuana that is intended for use or consumption other than by smoking, including, but not limited to, edible products, ointments, and tinctures. Medical marijuana- infused product manufacturer shall mean a person licensed pursuant to the Colorado Medical Marijuana Code to operate a business as described in section 12- 43.3 -404, C.R.S. Optional premises cultivation operation shall mean a premises licensed pursuant to this ordinance and the Colorado Medical Marijuana Code where a business described in section 12- 43.3 -403, C.R.S will operate. Patient has the meaning provided in section 14(a)(d) of Article XVIII of the Colorado Constitution of the Colorado Constitution as further defined and regulated in section 25- 1.5 -106. C.R.S. and 5 C.C.R. 1006 -2. Person means a natural person, partnership, association, company, corporation, limited liability company, organization, or a manager, agent, owner, director, servant, officer, or employee thereof. Primary care -giver has the meaning provided in section 14(1)(f) of Article XVIII of the Colorado Constitution as further defined and regulated in section 25 -1.5 -106, C.R.S. and 5 C.C.R. 1006 -2. School shall mean a public or private preschool or a public or private elementary, middle, junior high or highschool. (b) In addition to the definitions provided in subsection (a) of this section, the other defined terms in section 14 of Article XVIII of the Colorado Constitution are incorporated into this article by reference. E DIVISION 2. MEDICAL MARIJUANA LICENSES Sec. 11 -292. Local licensing authority established. (a) There is hereby established a local licensing authority, which shall have and is vested with the authority to: 1. Grant and refuse licenses and approve and deny applications for renewal and transfer of licenses for the sale, cultivation and manufacture of medical marijuana and medical marijuana infused products; 2. Promulgate reasonable rules and regulations concerning licenses issued under this division 2; 3. Suspend and revoke licenses issued under this division 2 in the matter provided by law; and 4. Have all of the powers of the local licensing authority as provided in the Colorado Medical Marijuana Code. (b) The Tax and Licensing Division of the City shall serve as the local licensing authority for any administrative purposes described in subsections (a)(1), (a)(2) and (a)(4) of this section An administrative hearing officer shall serve as the local licensing authority for purposes of hearing any requests for suspension or revocation described in subsection (a)(3). Sec. 11 -293. Types of medical marijuana licenses. The local licensing authority may issue the following three types of medical marijuana licenses: (a) Medical marijuana center license; (b) Medical marijuana- infused products manufacturing license; and (c) Optional premises cultivation license. Sec. 11 -294. Medical marijuana license required. No person or entity shall operate a medical marijuana establishment within the City without a valid and appropriate medical marijuana license issued in accordance with this division 2. This requirement to obtain the appropriate medical marijuana license is in addition to the requirement to obtain a business license pursuant to article II of this chapter and any other license or permit required by the city. Sec. 11 -295. Application of Colorado Medical Marijuana Code. Except as otherwise provided herein, the local licensing authority shall be governed by the 0 Colorado Medical Marijuana Code now in effect or subsequently amended. In the event of a conflict between the provisions in this article and those in the Colorado Medical Marijuana Code, the more stringent provision shall apply. Sec. 11 -296. Application for license. (a) A person seeking to obtain a license pursuant to this division 2 shall file an application with the local licensing authority on a form provided by the state, and shall include all additional information required by the Colorado Medical Marijuana Code. (b) The local licensing authority is hereby authorized to request any applicant to provide information that is in addition to the requirements of the Colorado Medical Marijuana Code if it determines that such information is reasonably necessary to complete the investigation and review of the application. Sec. 11 -297. Application fee. An applicant shall pay to the City a non - refundable application fee when the application is filed. The purpose of the fee is to cover the administrative costs of processing the application. The amount of the application fee shall be fixed by the City Council by motion. Sec. 11 -298. Standards for approval of license, no hearing required. (a) The local licensing authority is authorized to administratively approve any license under this division 2 so long as the following conditions are met: 1. The application (including any required attachments and submissions) is complete and signed by the applicant; 2. The applicant has paid the application fee and any other fees required by this code; 3. The application does not contain a material falsehood or misrepresentation; 4. The application complies with all of the requirements of this division 2 and the Colorado Medical Marijuana Code; and 5. The licensing authority has received written approval from the City of Wheat Ridge Police Department as to the applicant's criminal background. 6. The licensing authority has received written approval from the Community Development Department that the location and zoning requirements imposed by this division 2 and Section 26 -204 of the Code have been met. (b) The local licensing authority may, but is not required to hold a hearing as permitted by section 12- 43.3 -302, C.R.S. prior to granting a medical marijuana license. Sec. 11 -299. Authority to recommend and impose conditions on license. (a) Any City department shall have the authority to recommend reasonable terms and conditions on a license as may be necessary to protect the public health, safety, and welfare, and to obtain compliance with the requirements of this division 2 and applicable law, so long as those conditions are not in conflict with the Colorado Medical Marijuana Code. (b) The local licensing authority is authorized to approve any license issued under this division 2 subject to such reasonable conditions as required by the City. (c) In the event an application is conditionally approved, the local licensing authority shall clearly set forth in writing the conditions of approval. Sec. 11 -300. Denial of license. The local licensing authority shall deny an application for a license under this division 2 when the applicant fails to meet all of the standards set forth in section 11 -298 of this division 2. Sec. 11 -301. Appeal of denial or conditional approval of license. (a) An applicant has the right to appeal the denial of an application or condition imposed thereon to an administrative hearing officer. (b) The applicant must file a written notice of appeal with the local licensing authority within fifteen days after the date of mailing of the denial or conditional approval of the application. (c) Upon notice from the local licensing authority that the applicant has satisfied the requirement in subsection (b), the City Manager shall appoint an administrative hearing officer. (d) The applicant shall be provided with not less than ten days' prior written notice of the appeal hearing to be held by the administrative hearing officer. (e) The burden of proof in an appeal filed under this section shall be on the applicant. (f) If the administrative hearing officer finds by a preponderance of the evidence that the decision of the local licensing authority was correct, the administrative hearing officer shall uphold that decision. If the administrative hearing officer finds by a preponderance of the evidence that the decision of the local licensing authority was incorrect, the administrative hearing officer shall set aside the denial and issue the license. The administrative hearing officer may impose additional conditions on the license issued (if it was previously denied) or require that the conditions of approval be stricken or modified. (g) Any decision made by the administrative hearing officer pursuant to this section shall be a final decision and may be appealed to the district court pursuant to 0 Rule 106(a)(4) of the Colorado Rules of Civil Procedure. The applicant's failure to timely appeal the decision is a waiver of the applicant's right to contest the denial or conditional approval of the application. Sec. 11 -302. Duration of license, renewal. (a) Each license issued pursuant to this division 2 shall expire on the first day of the month one year from the month of issuance, and may be renewed as provided in this section. (b) An application for the renewal of an existing license shall be made to the local licensing authority as required by the Colorado Medical Marijuana Code. At the time of the filing of an application for the renewal of an existing license the applicant shall pay a renewal fee in an amount fixed by the City Council by motion. Sec. 11 -303. Duties of licensee. Each licensee shall: (a) Post the license in a conspicuous location on the licensed premises; (b) Comply with all of the terms and conditions of the license; (c) Comply with all of the requirements of this division 2; (d) Comply with all other applicable City ordinances; (e) Comply with the Colorado Medical Marijuana Code; (f) Comply with all state laws and administrative regulations pertaining to the medical use of marijuana; (g) Comply with all applicable federal laws, rules, or regulations, other than a federal law, rule or regulation concerning the possession, sale or distribution of medical marijuana; (h) Permit inspection of its records and operation by the local licensing authority for the purpose of determining the licensee's compliance with the terms and conditions of the license and the City's tax laws; and (i) Permit inspection of the premises by authorized City officials during permitted business hours for the purpose of determining compliance with this division 2. Sec. 11 -304. Hearing, suspension, revocation of license. (a) A license issued pursuant to this division 2 may be suspended or revoked by the local licensing authority after a hearing for the following reasons: 1. Fraud, misrepresentation, or a false statement of material fact contained in the license application; 0 2. A violation of any City ordinance, state, or federal law or regulation, other than a federal law or regulation concerning the possession, sale or distribution of marijuana that conflicts with Article XVIII Section 14 of the Colorado Constitution; 3. A violation of any of the terms and conditions of the license; 4. A violation of any of the provisions of this article; or 5. Good cause. (b) Request for suspension or revocation, notice of hearing, burden. 1. Any authorized City official may request in writing that a license issued under this article be suspended or revoked. 2. The City Manager shall appoint an administrative hearing officer to preside over the hearing on the suspension or revocation of a license. 3. The administrative hearing officer shall a. Set a date and time on which to determine whether to revoke or suspend such license; b. Notify the licensee in writing of the date and time of the hearing at least ten (10) days prior to conducting such hearing. Such notice shall be sent by regular mail postage prepaid. Notice is deemed to have been given upon mailing; C. Conduct a hearing based on the allegations provided in the written request. This shall be an informal hearing where no rules of evidence shall apply. The burden shall be on the City to prove by a preponderance of the evidence that the licensee has violated the provisions in subsection 11 -294 (a); and d. Provide a written decision to the licensee within a reasonable time after the conclusion of the hearing. (c) In deciding whether a license should be suspended or revoked, and in deciding what conditions to impose in the event of a suspension, if any, the administrative hearing officer shall consider: 1. The nature and seriousness of the violation; 10 2. Corrective action, if any, taken by the licensee; 3. Prior violation(s), if any, by the licensee; 4. The likelihood of recurrence; 5. All circumstances surrounding the violation; 6. Whether the violation was willful; 7. The number of previous violations by the licensee; and 8. Previous sanctions, if any, imposed against the licensee. (d) In connection with the suspension of a license, the administrative hearing officer may impose reasonable conditions thereon. (e) Any decision made by the administrative hearing officer pursuant to this section shall be a final decision and may be appealed to the district court pursuant to Rule 106(a)(4) of the Colorado Rules of Civil Procedure. The applicant's failure to timely appeal the decision is a waiver of the applicant's right to contest the decision. (f) No fee previously paid by a licensee in connection with the application shall be refunded if such license is suspended or revoked. Sec. 11 -305. Prohibited locations. (a) Except as provided in subsection (f) of this section, no medical marijuana establishment shall be located at a location that does not conform to the requirements of this section. (b) No medical marijuana center shall be located within one thousand feet of a school, an alcohol or drug treatment facility, or the principal campus of a college, university, or seminary, or a residential child care facility. (c) No medical marijuana center shall be located within three quarters ( 3 /) of a mile of another medical marijuana center. (d) No person shall operate an optional premises cultivation operation within the City unless the licensed premises of the person's optional premises cultivation operation are contiguous with the licensed premises of the person's medical marijuana center license and /or the person's medical marijuana- infused products manufacturing license. (e) Each medical marijuana establishment shall be operated from a permanent location. Except as permitted by the Medical Marijuana Code, no medical marijuana establishment shall be licensed to operate from a moveable, mobile, or transitory location. 11 (f) The suitability of a location for a medical marijuana establishment shall be determined at the time of the issuance of the first license for such establishment. The fact that changes in the neighborhood that occur after the issuance of the first license might render the site unsuitable for a medical marijuana establishment under this section shall not be grounds to suspend, revoke or refuse to renew the license for such establishment so long as the license for the establishment remains in effect. Sec. 11 -306. Signage. (a) All signage for a medical marijuana establishment shall comply with the requirements of chapter 26 of this code. (b) No licensee shall display a sign for the medical marijuana establishment that contains the word "marijuana," "cannabis," or any other word or phrase commonly understood to refer to marijuana unless such word or phrase is immediately preceded or followed by the word "medical." Sec. 11 -307. Taxes. Each licensee shall collect and remit sales tax on all medical marijuana, paraphernalia, and other tangible personal property sold by the licensee at the medical marijuana establishment according to the provisions of chapter 22 of this code and any regulations issued pursuant thereto. Sec. 11 -308. Penalties, injunctive relief. (a) It is a misdemeanor offense for any person to violate any provision of this division 2. Any person convicted of having violated any provision of this division 2 shall be punished as set forth in section 1 -5 of this code. (b) In addition to all other remedies available to the city under this code and by law, the operation of a medical marijuana establishment without a valid license issued pursuant to this division 2 may be enjoined by the City in an action brought in a court of competent jurisdiction. DIVISION 3. PRIMARY CARE -GIVER LICENSE Sec. 11 -320. Primary caregiver license required. No primary care -giver shall produce, offer, sell or grow medical marijuana within the City without a valid and appropriate primary care -giver license issued in accordance with this division 3. Sec. 11 -321. Application for license. (a) A person seeking to obtain a primary care -giver license shall file an application with the Tax and Licensing Division. 12 (b) An application for a primary care -giver license shall contain the following information: 1. The applicant's name, address and telephone number; 2. The street address of the applicant's operation location; 3. If the applicant is not the owner of the proposed location, a notarized statement from the owner of such property authorizing the use of said property for the applicant's operation; 4. A statement by the applicant acknowledging that the applicant may be subject to criminal prosecution under federal law for the distribution of a controlled substance; 5. A statement by the applicant that the applicant is a state approved primary care - giver; 6. A statement by the applicant that the applicant will provide the Wheat Ridge Police Department the registry identification card number of each of his or her patients upon inquiry; 7. A statement by the applicant acknowledging that the City accepts no legal liability in connection with the approval and subsequent operation of the medical marijuana establishment; 8. A statement by the applicant acknowledging that the provisions in chapter 26 of this code concerning home occupations applies to the activities of a primary care - giver; and 9. Any additional information that the Tax and Licensing Division reasonably determines to be necessary in connection with the investigation and review of the application. Sec. 11 -322. Application fee. An applicant shall pay to the City a non - refundable application fee when the application is filed. The purpose of the fee is to cover the administrative costs of processing the application. The amount of the application fee shall be fixed by the City Council by motion. Sec. 11 -323. Standards for approval of license. The Tax and Licensing Division is authorized to approve a primary care -giver license so long as the following conditions are met: (a) The application (including any required attachments and submissions) is complete and signed by the applicant; (b) The applicant has paid the application fee; and 13 (c) The application does not contain a material falsehood or misrepresentation. Sec. 11 -324. Authority to recommend and impose conditions on license. (a) Any City department shall have the authority to recommend reasonable terms and conditions on a primary care -giver license as may be necessary to protect the public health, safety, and welfare, and to obtain compliance with the requirements of this division 3 and applicable law. (b) The Tax and Licensing Division is authorized to approve any primary care- giver license subject to such reasonable conditions as required by the City. (c) In the event an application is conditionally approved, the Tax and Licensing Division shall clearly set forth in writing the conditions of approval. Sec. 11 -325. Denial of license. The Tax and Licensing Division shall deny an application for a primary care -giver license when the applicant fails to meet all of the standards set forth in section 11 -313 of this division 3. Sec. 11 -326. Appeal of denial or conditional approval of license. An applicant has the right to appeal the denial of an application or condition imposed thereon to an administrative hearing officer pursuant to the provisions in code section 11 -291. Sec. 11 -327. Duration of license, renewal. (a) Each license issued pursuant to this division 3 shall expire on the first day of the month one year from the month of issuance, and may be renewed as provided in this section. (b) An application for the renewal of an existing license issued under this division 3 shall be made to the Tax and Licensing Division. At the time of the filing of an application for the renewal of an existing license the applicant shall pay a renewal fee in an amount fixed by the City Council by motion. Sec. 11 -328. Duties of licensee. Each licensee shall (a) Comply with all of the terms and conditions of the license; (b) Comply with all of the requirements of this division 3; (c) Comply with all other applicable City ordinances; (d) Comply with all state laws and administrative regulations pertaining to the medical use of marijuana; 14 (e) Comply with all applicable federal laws, rules, or regulations, other than a federal law, rule or regulation concerning the possession, sale or distribution of medical marijuana; and (f) Permit inspection of the licensed premises by authorized City officials at reasonable hours upon a complaint and after providing twenty -four hours written notice to the licensee. Such written notice may be posted on the licensed premises. Sec. 11 -329. Hearing, suspension, revocation of license. A license issued pursuant to this division 3 may be suspended or revoked by the City pursuant to the provisions in code section 11 -294. Sec. 11 -330. Growing of medical marijuana outdoors prohibited. No primary care- giver may grow medical marijuana outdoors. Sec. 11 -331. Penalties, injunctive relief. (a) It is a misdemeanor offense for any person to violate any provision of this division 3. Any person convicted of having violated any provision of this article shall be punished as set forth in code section 1 -5. (b) In addition to all other remedies available to the City under this code and by law, the growing of medical marijuana by an unlicensed primary care -giver may be enjoined by the City in an action brought in a court of competent jurisdiction. Section 3 . Section 26 -123 of the Code, entitled Definitions, is hereby amended by the addition of the following terms: Medical marijuana center has the meaning provided in Article XII of Chapter 11 of this code. Medical marijuana- infused products manufacturer has the meaning provided in Article XI I of Chapter 11 of this code. Optional premises cultivation operation has the meaning provided in Article XI of Chapter 11 of this code. Section 4 . The Table of Uses for Commercial and Industrial Districts provided for in Section 26 -204 of the Code is hereby amended as follows: Uses Notes NC Rc C -1 C -2 I Medical and dental Pharmacies and P P P P P offices, clinics or optical stores laboratories, excluding are accessory substance abuse use clinics 15 MEDICAL P P MARIJUANA CENTERS MEDICAL P P MARIJUANA - INFUSED PRODUCTS MANUFACTURERS OPTIONAL P P PREMISES CULTIVATION OPERATION Mini - warehouses for P P inside storage Section 5 . Police Power Finding The City Council hereby finds, determines, and declares that this Ordinance is necessary and proper to provide for the safety, preserve the health, promote the prosperity, and improve the order, comfort and convenience of the City of Wheat Ridge and the inhabitants thereof. Section 6 . Authority The City Council hereby finds, determines and declares that it has the power to adopt this Ordinance pursuant to: (i) the Local Government Land Use Control Enabling Act, Article 20 of Title 29, C.R.S.; (ii) Part 3 of Article 23 of Title 31, C.R.S. (concerning municipal zoning powers); (iii) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (iv) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (v) Section 31 -15 -501 (concerning municipal power to regulate businesses); (vi) the authority granted to home rule municipalities by Article XX of the Colorado Constitution; and (vii) the powers contained in the City of Wheat Ridge, Colorado Home Rule Charter (the "Charter "). Section 7 Severabilitv Conflicting Ordinances Repealed If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 8 . Effective Date This Ordinance shall take effect fifteen (15) days after final publication, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of to on this day of 201, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge, and Public Hearing and consideration on final passage set for , 201 at 7:00 p.m., in the Council Chambers, 7500 West 29 Avenue, Wheat Ridge, Colorado. 16 READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of to _, this day of , 201. SIGNED by the Mayor on this day of 201 Jerry DiTullio, Mayor ATTEST: Michael Snow, City Clerk Approved as to Form Gerald E. Dahl, City Attorney First Publication: Second Publication: Wheat Ridge Transcript Effective Date: 17 ".. Rc a'e.ortie.. ii .ur MEMORANDUM TO: Mayor Jerry DiTullio and City Council THROUGH: Randy Young, City Manager FROM: Gerald Dahl, City Attorney, Dan Brennan, Chief of Police and Ken Johnstone, Director of Community Development DATE: January 22, 2010 RE: Medical Marijuana Basics How is marijuana legal? In 2000, Colorado voters passed Amendment 20 to the Colorado Constitution, legalizing the medical use of marijuana. Colo. Const. art. XVIII, § 14. Amendment 20 created an exception to the state's criminal laws for any patient or primary care -giver in lawful possession of a registry identification card to engage or assist in the medical use of marijuana.' Colo. Const. art XVIII, § 14(2)(b). If medical marijuana patients or primary care - givers are not in possession of a registry identification card but they have a physician's recommendation that marijuana may help treat a patient's debilitating medical condition, than the patient and their primary care -giver are entitled to an affirmative defense to the state's criminal laws. Colo. Const. art XVIII, § 14(2)(a). Licensed physicians are also entitled to an exception to the state's criminal laws under Amendment 20 for recommending the medical use of marijuana to patients who have been diagnosed with debilitating medical conditions. Colo. Const. art. XVIII, § 14(2)(c). For purposes of Amendment 20, "medical use" means: The acquisition, possession, production, use, or transportation of marijuana or paraphernalia related to the administration of such marijuana to address the symptoms or effects of a patient's debilitating medical condition, which may be authorized only after diagnosis of the patient's debilitating medical condition by a physician or physicians, as provided in this Section. Colo. Const. art. XVIII, § 14(1)(b). Thus, persons diagnosed with a debilitating medical condition may use, acquire, possess, produce or transport marijuana for medicinal purposes. As of June 14, 2004, the Colorado Department of Public Health and Environment instituted a policy of no longer issuing medical marijuana registry cards to primary- caregivers. Note, that medical use does not include the term dispensing, selling or purchasing. Those words are only included within Amendment 20 under section 14(2)(e) which states: Notwithstanding the foregoing provisions, no person, including a patient or primary care - giver, shall be entitled to the protection .. . for his or her acquisition, possession, manufacture, production, use, ale, distribution, dispensing, or transportation of marijuana for any use other than medical use. However, in a recent decision, a District Court judge determined that the term "acquire" as used within the term "medical use" necessarily included selling or dispensing because of section 14(e). Frasher et at v. City of Centennial, 2009CV1456, Arapahoe County. This was a preliminary decision on a motion for temporary injunctive relief and not a after a full trial. In addition, because this is a decision of a District Court it does not serve as legal precedent and therefore does not necessarily apply to any other municipality besides Centennial. To date, the sale of medical marijuana is not regulated by the state. As a result, medical marijuana dispensaries are being established under the pretense that the individuals operating those businesses do so as a "primary caregiver ". Amendment 20 defines "primary caregiver" as: a person other than the patient and the patient's physician who is eighteen years of age or older and has a significant responsibility for managing the well -being of a patient who has a debilitating medical condition. Colo. Const. art. XVIII, § 14(1)(f). So long as an individual owner of a medical marijuana dispensary is named as a primary giver by patients who have debilitating medical conditions, that individual is entitled to the same protections afforded those patients under Amendment 20. Therefore, a primary care -giver is allowed to acquire, possess, and transport marijuana for use by his or her patients. Combined a patient and his or her primary care -giver may not possess more than two (2) ounces of marijuana in a usable form and not more than six (6) marijuana plants in varying stages of development. Colo. Const. art. XVIII, § 14(4)(a). This limit as applied to a primary care -giver is cumulative as based on the number of patients for whom that primary care -giver is responsible. For example, if a primary care -giver has 10 patients, none of whom grow their own marijuana, than the primary care -giver is entitled to possess up to sixty (60) plants. So why have medical marijuana dispensaries proliferated? In February of last year, the United States Attorney General, Eric Holder, announced that it would no longer be a priority of the Justice Department to enforce the federal prohibition against the sale or use of marijuana. Prior to that announcement, few medical marijuana dispensaries operated within the state and there were a few thousand patients listed on the state's registry. Since that announcement, it has been estimated that there are now 30,000 patients listed on the state's registry and an unknown number of medical marijuana dispensaries. The Attorney General's comments alone do not explain the explosion of medical marijuana dispensaries in the state. The Colorado Department of Public Health (the 'CDPHE ") also shares some responsibility. The CDPHE is charged with promulgating rules to implement P] Amendment 20. In July 2009, the CDPHE proposed an amendment to its regulations to redefine the phrase "significant responsibility for managing the well -being of a patient," as it is used in the definition of "primary caregiver." After a twelve hour hearing, the CDPHE adopted a rule that defines that phrase to mean: assisting a patient with daily activities, including but not limited to transportation or housekeeping or meal preparation or shipping or making any necessary arrangement for access to medical care or services or provision of medical marijuana. Under this definition, a primary care -giver can significantly manage the well -being of a patient solely by providing medical marijuana. However, in October 2009, the Colorado Court of Appeals determined that "supplying marijuana for medical use, by itself, is insufficient to constitute significant management responsibility for a patient's well- being." People v. Clendenin, 08CA0624 (Colo. App. October 29, 2009). Unfortunately, the Court did not describe what other types of activities would satisfy the term. In addition, due to timing, the Court did not address the CDPHE's definition. This case is now before the Colorado Supreme Court. What is the current status of legislation? Currently, the state laws concerning medical marijuana do not address or place requirements on the doctor to patient relationship. There are two bills being proposed for consideration by the General Assembly during this year's term. The first bill would address the doctor to patient relationship. This bill places more stringent requirements on the type of review that must be conducted by the physician prior to that physician recommending that a patient use medical marijuana. The second bill would limit the number of care. If this second bill is adopted as written, patients. It also prohibits primary care - givers from patients. Economically, this would essentially K continued operation. patients for whom a primary care -giver may i primary care -giver may only have five (5) combing to grow or provide marijuana to their - ohibit medical marijuana dispensaries from MuRFtAv DANL is ECUEGHENMEfSTER ATIORNEYE Ai IAW MEMORANDUM TO: Mayor Jerry DiTullio and City Council THROUGH: Patrick Goff, City Manager FROM: Gerald Dahl, City Attorney; Dan Brennan, Chief of Police and Ken Johnstone, Director of Community Development DATE: November 3, 2010 (for the November 15 Study Session) RE: Medical Marijuana Licensing and Regulation The purpose of this memorandum is two -fold: (1) to give an update of recent developments concerning the regulation of the cultivation, production, use and sale of medical marijuana, and (2) to request direction from Council on how to proceed with appropriate licensing and regulation, or banning, of medical marijuana businesses in the City also including primary care - givers and cultivation. I. Background: Regulation of Medical Mariivana Businesses In June 2010, staff produced a memorandum (attached for your reference) describing the licensing and regulation of medical marijuana cultivation, production and use under Amendment 20 to the Colorado Constitution and the newly adopted Colorado Medical Marijuana Code, C.R.S. §§ 12- 43.3 -101 et seq. At that time, the Colorado Department of Revenue (the "DOR "), the state's licensing authority, was expected to produce and adopt regulations concerning its application of the Medical Marijuana Code in September 2010. Council decided to delay further discussion concerning the City's regulations until after the DOR had produced its regulations. Council adopted an ordinance extending the City's moratorium on the issuance of permits and licenses concerning medical marijuana businesses until the date that the DOR regulations "became effective." The DOR released its draft regulations in September. Under state law, the DOR is required to hold hearings on those regulations prior to their implementation. While the DOR has not produced an official calendar, the DOR should begin holding hearings on the regulations in January 2011 with an effective date set for March 2011. At approximately ninety-three pages of text, the draft regulations are extensive. Staff believes that the draft regulations provide enough guidance for the Council to lift the moratorium and enact the City's regulations. I1. Options for Council Action Staff is proposing the following options for Council's consideration: 1. Adopt an ordinance or recommend a ballot measure banning medical marijuana businesses from operating in the City. 2. Adopt an ordinance regulating medical marijuana businesses. Option 1: Adopt an ordinance or resolution or recommend a ballot measure banning medical marijuana businesses from operating in the City. The Colorado Medical Marijuana Code, at C.R.S. § 12- 43.3 -106, contains a local opt out provision authorizing local governments to prohibit medical marijuana businesses from operating in their communities. There are two methods by which a local government may exercise this opt out provision: o By a vote of a majority of registered electors of the local government at a regular or special election; or o By a vote of a majority of the members of the governing board of the local government. Here, Council, acting as the governing board for the City, may, by majority vote, adopt an ordinance or resolution banning medical marijuana businesses from operating in the City. Alternatively, Council could refer this question to the voters of Wheat Ridge at a special election. There are several local governments that have followed one of these two approaches. A list of those communities is attached for your reference. It is important to note that there are two retail medical marijuana businesses currently operating in the City. If the City adopts a ban on those types of businesses, this may create two legal non - conforming uses and/or potentially run afoul of the state's anti- amortization law. Under that law, no business that was legal at the time that it was created may be forced to close. By adopting a ban on medical marijuana businesses, the City would necessarily be forcing the two existing businesses to close. This could subject the City to a lawsuit under the anti - amortization provisions. However, the anti - amortization statute predates the Colorado Medical Marijuana Code. Under general rules of statutory interpretation, in the event that two statutory provisions conflict, the more recent provision prevails. As the more recent provision, the Colorado Medical Marijuana Code authorizes the City to ban medical marijuana businesses. In addition, under the Colorado Medical Marijuana Code, the City's ability to ban must necessarily include the ability of the City to force those existing businesses to close. Thus, while the City may be subject to a lawsuit for forcing those existing businesses to close, it is not likely that the City would be forced to compensate the owners of those businesses for taking actions authorized under the Colorado Medical Marijuana Code. -2- Option 2 - Adopt an ordinance concerning the licensing of medical with changes consistent with the provisions in the Colorado Medical Marijuana Code and DOR regulations. If the Council decides to allow medical marijuana businesses to operate in the City, staff requests direction concerning some specific regulatory options for those businesses. The City is not required to adopt regulations implementing the Colorado Medical Marijuana Code because under C.R.S. § 12- 43.3- 301(2)(a), if the Council does not ban medical marijuana businesses or adopt regulations, then the default provisions of the Colorado Medical Marijuana Code apply. It is staff's recommendation that Council adopt some level of regulation to determine the appropriate zoning and licensing mechanisms for these businesses operating within the City. Here are the questions Staff needs Council to answer if Option 2 is selected: o What types of licenses should the City offer? The Colorado Medical Marijuana Code authorizes the City to issue the following medical marijuana licenses: 1. A medical marijuana center license This is a license for a retail medical marijuana business. 2. A medical marijuana- infused products manufacturer license This is a license for a business that manufacturers a product containing medical marijuana for use or consumption by a patient. Examples of products include edibles, tinctures and ointments. 3. An optional premises cultivation operation license This is a license that can only be issued to either a medical marijuana center or a medical marijuana - infused products manufacturer for a location in which the licensee is authorized to grow and cultivate medical marijuana. o Should the City adopt a vertical integration model for medical marijuana centers? Under the vertical integration model, all cultivation activities under an optional premises license would be required to occur at or immediately adjacent to the location of the medical marijuana center licensed premises. The primary purpose of this regulatory model would be to assist the City in enforcing the Colorado Medical Marijuana Code requirement that medical marijuana centers grow a minimum of 70% of the medical marijuana that they sell at retail. In addition, under this model, no medical marijuana center could obtain a City license unless the applicant also obtained an optional premises cultivation operation license for an adjacent parcel. This type of model could limit the number of medical marijuana centers operating in the City. The City of Lakewood currently operates under this type of vertical integration model. One alternative to the vertical integration model includes allowing optional premises medical marijuana cultivation operations to be in separate and non - adjacent facilities from medical marijuana center locations. One purpose for this is that land use impacts from cultivation operations may include additional electrical power usage, -3- significant water use, chemicals and odors associated with growing plants. These types of impacts are typically not conducive to retail locations. o If the City adopts a vertical integration model, what is the appropriate zoning for those businesses? Community Development Staff proposes that vertically integrated medical marijuana businesses be allowed as a use by right in the City's Cl (light commercial) and I (industrial) zone districts. The Police Department supports keeping medical marijuana businesses in the City's C1 districts for reasons of safety and enforcement. o If the City does not adopt a vertical integration model, what is the appropriate zoning for medical marijuana businesses? Community Development Staff and the Police Department Staff agree that if the City does not adopt a vertical integration model, retail medical marijuana centers should be allowed as a use by right in the City's Cl (light commercial) district and that optional premises cultivation operations and medical marijuana - infused products manufacturers should be permitted in the City's I (industrial) zone district. o Does Council want to reduce or eliminate the Colorado Medical Marijuana Code's default provision that prohibits medical mar Juana businesses from operating within 1000 feet of certain locations? The Colorado Medical Marijuana Code prohibits medical marijuana businesses from operating within 1000 feet of schools, child care facilities or drug treatment and rehabilitation centers. However, it does authorize the City to adopt less stringent distance requirements. Staff previously recommended that the 1000 foot distance limitation be reduced to 500 feet. Maps of the City demonstrating these distance limitations have been attached to this Memorandum. Map A concerns the 500 foot limitation. Map B concerns the default 1000 foot limitation. o Does Council want to adopt a provision limiting the distance between licensed premises? The Colorado Medical Marijuana Code authorizes the City to adopt a provision limiting location of the distance between medical marijuana licensed premises. Currently, the City of Lakewood prohibits medical marijuana centers from operating within three quarters of a mile of another medical marijuana center. Attached to this memorandum is Map C which demonstrates this distance limitation in conjunction with the default 1000 foot limitation described above. As demonstrated on Map C, if both limitations were adopted by the City, the available locations for operating medical marijuana facilities would be limited. As a result, the total number of medical marijuana facilities would also be limited. -a- o Who will serve as the City's local licensing authority? The Colorado Medical Marijuana Code requires all local governments issuing licenses to medical marijuana businesses to name a local licensing authority. Council may designate an administrative office or a division thereof, such as the Tax and Licensing Division of the City Manager's office, as that local licensing authority. Alternatively, Council may designate a deliberative body, like the City's Liquor Authority, as the local licensing authority. Staff recommends that Council name the Tax and Licensing Division of the City Manager's office as the City's local licensing authority for the purpose of issuing medical marijuana business licenses. Staff further recommends that Council provide for a hearing officer to be named by the City Manager (as is done with other regulatory matters in the City) to serve as the licensing authority for the purposes of hearing appeals and show cause matters. Although the Liquor Authority has expressed interest in becoming the licensing authority for medical marijuana business, Staff believes that this would make the process less efficient and effective because the requirements of the Colorado Medical Marijuana Code are detailed and technical. As such, a citizen committee is likely unprepared to interpret and apply those requirements without significant staff involvement. Naming an administrative office is preferable because it will be more efficient and cost effective. o How broad or deep should the City's regulations be? With complex regulatory subjects, such as elections and liquor licenses, some municipalities opt to adopt by reference all or substantially all of the state regulations concerning those subjects in their respective codes. Currently, the City regulates elections and liquor licenses through references to the respective state statutes covering those subjects. This allows the City to regulate those subjects under the extensive state law provisions without the City extending its Code unnecessarily. Does Council favor adopting similar references to state statutes and regulations concerning medical marijuana businesses? The alternative would consist of a lengthy ordinance that contained language that was largely pulled from state statute. Once these decisions have been made, staff will present a draft ordinance for Council's consideration. III. Regulation of the Activities of Primary Caregivers This portion of the memorandum concerns the use of property within the City by primary caregivers. Recall, that Amendment 20 to the Colorado Constitution provides patients and primary caregivers with an affirmative defense or exception to criminal prosecution concerning their medical use of marijuana. Medical use is defined in Amendment 20 as the "acquisition, possession, production, use, or transportation of marijuana or paraphernalia related to the administration of medical marijuana. Under Amendment 20, primary caregivers have significant responsibility for managing the wellbeing of their patients and are authorized to grow up to six plants, in various stages of development, for each patient. A patient is permitted a maximum of six plants in varying stages of development and a maximum of two ounces of -5- marijuana in a usable form. Pursuant to the provisions in C.R.S. § 25 -1.5- 106(8), a primary caregiver may serve up to a maximum of five patients but may not charge those patients more than the primary caregiver's cost to cultivate or purchase medical marijuana. However, the primary caregiver may charge for the cost of providing caregiver services, e.g. grocery shopping, cleaning, etc. This summer, the Police Department and City staff received questions from City residents concerning the use of residential property within the City for cultivation activities of patients and primary caregivers. Recently, the Wheat Ridge officers contacted a resident concerning marijuana plants that were being grown in the backyard of the residence. The resident presented sufficient materials to the officers proving that the resident was a primary caregiver under Amendment 20. As a result of that status, the officers did not take further action. Although Amendment 20 protects patients and primary caregivers from criminal prosecution for the medical use of marijuana, they are not immune from application of the zoning provisions. Thus, the City may adopt some limited regulation concerning marijuana cultivation activities. Currently, under Wheat Ridge Code of Laws § 26 -613, as a home occupation, primary caregivers are permitted to use a residential dwelling for cultivation activities as a use by right. To prevent additional unnecessary contacts by Wheat Ridge officers, alleviate neighbor concerns, and for reasons of protecting the public's health, safety and welfare, staff recommends that Council consider adopting a provision in the zoning code that limits marijuana cultivation activities to inside of structures within the City. This limitation would apply equally to optional premises cultivation operators, patients, and primary caregivers. Some other communities have adopted or considered provisions regulating primary caregivers and/or the cultivation of medical marijuana in their communities. Those regulations include: 1. Limiting the number of medical marijuana plants that can be cultivated in residential zone districts. 2. Requiring primary caregivers to obtain a municipal license or registration. 3. Prohibiting the number of primary caregivers that can operate from a single dwelling unit. 4. Regulating primary caregivers as home occupations under local zoning code provisions. IV. Conclusion The landscape concerning local and state regulation of the cultivation, sale and manufacture of medical marijuana and medical marijuana- infused products continues to develop. We will continue to follow this changing environment and present updates to the Mayor and Council as requested or as necessary to obtain further guidance concerning the City's regulatory position. As always, please let us know if you have any additional questions or concerns. Attachments: 1. Summary of local government ban status 2. Maps A, B, & C M Proposed Separations: Medical Marijuana Dispensaries and Other Land Uses Case No. ZOA -09 -06 Amendments to Chapter 26, Zoning & Development Code, concerning medical marijuana dispensaries r ..�.' .City of Wheat Ridge Boundary • Existing Medical Marijuana Dispensaries Schools Childcare Facilities Drug Treatment Centers 1000 -Foot Buffer 3/4 -Mile Buffer N Zone Districts Commercial -One (C -1) Commercial -Two (C -2) Industrial (1) 2,250 Soo Slate Plane Coordinate Projection Colorado Central Zone Datum: NAD83 DISCLA�IM1 _E NOTICE This is a pictorial representation of geographic and demographic information. Reliance upon the accuracy, reliability and authority of this information is solely requestor's responsibility. The City of Wheat Ridge, in Jefferson County, Colorado - a political subdivision of the Slate of Colorado, has compiled for its use certain computerized mfore ation. This information Is available to assist in identifying general areas of concern only. The computerized information provided should only be relied upon with corobortn on of Me methods. assumptions, and results by a qualified independent source. The user of this information shall indemnify and hold free the City of Wheat Ridge from any and all liabilities, damages. lawsuits, and causes of action Nat result as a consequence of his reliance on information provided herein. �k l� r W head%�idge City of Wheat Ridge, Colorado 7500 West 29th Avenue Wheat Ridge, CO 80033 -8001 301234.5900 Created by Lauren Mikulak, Planner I - 218/2011 Dam Soumos'. C:ly of Mozi Rego, D VWO Delvnmen or Humzn semccs MAP 2 Proposed Eligible Locations: Medical Marijuana Dispensaries Case No. ZOA -09 -06 Amendments to Chapter 26, Zoning & Development Code, concerning medical marijuana dispensaries zzsa <.Au State Plane Coordinate Projection Colorado Central Zone Datum: NAD83 DISCLAIMER NOTICE This is a pictorial representation of geographic and demographic information. Reliance upon the accuracy, reliability and authority of this information is solely requester's responsibility. The City of Wheat Ridge, in Jefferson County, Colorado - a political subdivision of the Slate of Colorado, has compiled for its use certain computerized mfmmation. This information is available to assist in identifying general areas of concern only. The computerized infemut ban provided should only be relied upon with corroboration of the methods. assumptions, and results by a qualified independent source. The user of this information shaft indemnify and hold free the City of Wheat Ridge from any and all liabilities, damages, lawsuits, and causes of action that result as a consequence of his reliance on information provided herein. L! W heatR dge City of Wheat Ridge, Colorado 7500 West 29th Avenue Wheat Ridge, CO 80033 -8001 303.234.5900 Created by Lauren Mikulak, Planner I - 2/8/2011 Dam sm,ces: my or Whorl Rase, coiuxo Nrreimenl or H�mce so,v«s CITY OF WHEAT RIDGE NOTICE OF PUBLIC HEARING BEFORE PLANNING COMMISSION ON PROPOSED ZONING CODE AMENDMENTS NOTICE IS HEREBY GIVEN that the Wheat Ridge Planning Commission will conduct a Public Hearing on February 17, 2011, at 7:00 p.m. in the City Council Chambers, Municipal Building at 7500 West 29 Avenue, Wheat Ridge, Colorado, to consider the following cases: 1) Case No. ZOA- 09 -06, amendments to Chapter 26, Zoning & Development Code, concerning medical marijuana dispensaries; 2) Case No. ZOA- 10 -05, amendments to Chapter 26, Zoning & Development Code, pertaining to the adoption of the streetscape design manual; and 3) Case No. ZOA- 11 -01, amendments to Chapter 26, Zoning & Development Code, concerning residential dumpster regulations. All interested citizens are invited to speak at the Public Hearing or submit written comments. The proposed ordinances are available in electronic form on the City's official website, www.ci.wheatridge.co.us Legal Notices. Copies are also available in printed form in the Community Development Department. Published: Wheat Ridge Transcript, February 10, 2011 Melinda Haag United Stales Attorney John A. Russo, Esq. Oakland City Attorney 1 Frank Ogawa Plaza, 6th Floor Oakland, California 94612 Dear Mr. Russo: U.S. Department of Justice United States Attorney Northern District of California 11th Floor, Federal Building 450 Golden Gate Avenue, Box 36055 San Francisco, Caltlornia 94102 -3495 (415) 436 -7200 FAX: (415) 436 -7234 February 1, 2011 I write in response to your letter dated January 14, 2011 seeking guidance from the Attorney General regarding the City of Oakland Medical Cannabis Cultivation Ordinance. The U.S. Department of Justice is familiar with the City's solicitation of applications for permits to operate "industrial cannabis cultivation and manufacturing facilities" pursuant to Oakland Ordinance No. 13033 (Oakland Ordinance). I have consulted with the Attorney General and the Deputy Attorney General about the Oakland Ordinance. This letter is written to ensure there is no confusion regarding the Department of Justice's view of such facilities. As the Department has stated on many occasions, Congress has determined that marijuana is a controlled substance. Congress placed marijuana in Schedule I of the Controlled Substances Act (CSA) and, as such, growing, distributing, and possessing marijuana in any capacity, other than as part of a federally authorized research program, is a violation of federal law regardless of state laws permitting such activities. The prosecution of individuals and organizations involved in the trade of any illegal drugs and the disruption of drug trafficking organizations is a core priority of the Department. This core priority includes prosecution of business enterprises that unlawfully market and sell marijuana. Accordingly, while the Department does not focus its limited resources on seriously ill individuals who use marijuana as part of a medically recommended treatment regimen in compliance with state law as stated in the October 2009 Ogden Memorandum, we will enforce the CSA vigorously against individuals and organizations that participate in unlawful manufacturing and distribution activity involving marijuana, even if such activities are permitted under state law. The Department's investigative and prosecutorial resources will continue to be directed toward these objectives. Consistent with federal law, the Department maintains the authority to pursue criminal or civil actions for any CSA violations whenever the Department determines that such legal action is warranted. This includes, but is not limited to, actions to enforce the criminal provisions of the CSA such as Title 21 Section 841 making it illegal to manufacture, distribute, or possess with intent to distribute any controlled substance including marijuana; Title 21 Section 856 making it John A. Russo February 1, 2011 Page 2 unlawful to knowingly open, lease, rent, maintain, or use property for the manufacturing, storing, or distribution of controlled substances; and Title 21 Section 846 making it illegal to conspire to commit any of the crimes set forth in the CSA. Federal money laundering and related statutes which prohibit a variety of different types of financial activity involving the movement of drug proceeds may likewise be utilized. The government may also pursue civil injunctions, and the forfeiture of drug proceeds, property traceable to such proceeds, and property used to facilitate drug violations. The Department is concerned about the Oakland Ordinance's creation of a licensing scheme that permits large -scale industrial marijuana cultivation and manufacturing as it authorizes conduct contrary to federal law and threatens the federal government's efforts to regulate the possession, manufacturing, and trafficking of controlled substances. Accordingly, the Department is carefully considering civil and criminal legal remedies regarding those who seek to set up industrial marijuana growing warehouses in Oakland pursuant to licenses issued by the City of Oakland. Individuals who elect to operate "industrial cannabis cultivation and manufacturing facilities" will be doing so in violation of federal law. Others who knowingly facilitate the actions of the licensees, including property owners, landlords, and financiers should also know that their conduct violates federal law. Potential actions the Department is considering include injunctive actions to prevent cultivation and distribution of marijuana and other associated violations of the CSA; civil fines; criminal prosecution; and the forfeiture of any property used to facilitate a violation of the CSA. As the Attorney General has repeatedly stated, the Department of Justice remains firmly committed to enforcing the CSA in all states. I hope this letter assists the City of Oakland and potential licensees in making informed decisions regarding the cultivation, manufacture, and distribution of marijuana. Very truly yours, Melinda Haag United States Attorney Northern District of California cc: Kamala D. Harris, Attorney General of the State of California Nancy E. O'Malley, Alameda County District Attorney Pagel of 3 Kenneth Johnstone From: Kathy Franklin Sent: Monday, December 27, 2010 9:06 AM To: Gerald Dahl Cc: Heather Geyer; Kenneth Johnstone; Daniel Brennan Subject: FW: personal privacy concerns... Hi all, As you know I've used an opt -in email list to keep interested parties regarding MMJ up to date. I recently shared the latest draft of the proposed MMJ ordinance. At least one list member is quite riled up over the caregiver- regulating sections that have somehow made their way into it. The writer, Mr. Howell, expresses deep concern, as you'll see below. Note, too, that I believe his concerns are not without merit while also understanding the city's apprehensions. At any rate, a firestorm is brewing and you need to know. My, but don't we live in interesting times? Kathy Office Phoiic!Irax: "SAVE A TREE. DONY PRINT THIS E -MAIL UNLESS 1I'S kEALLY NECESSARY." From: D K HOWELL [mailto:tcolinlsnyder @msn.com] Sent: Friday, December 24, 2010 8:04 AM To: Kathy Franklin Subject: RE: personal privacy concerns... I tried to forward my letter to all of the city council and the mayor some of the email addresses from the city web sight must need updated. If you want to forward it to whomever you think might be interested that would be great. People have this misconception that patients and caregivers are hiding, but its not because its illegal, its because its personal private health and medical information that is protected by law. I have forwarded the proposal all over the state to several law firms, the City of Wheat Ridge will be subject to law suit if this passes, which is a shame and waste of tax payers money. The City makes plenty of money on this industry with the huge "Cultivation" store and the dispensaries. We know that there are 500 -1000 caregivers in the City cultivating in their homes, again expect a 0% compliance under the current proposal, this is still America you cant go into someones house based on a complaint. Take a look around to see what other cities have done concerning caregivers ....... nothing. Please keep us informed, expect to be contacted by some law firms after the holidays. From: kfranklin @ci.wheatridge.co.us To: tcolinlsnyder @msn.com Subject: RE: personal privacy concerns... Date: Thu, 23 Dec 2010 20:51:10 +0000 You raise some valid points, in my opinion. I hope they are presented to our legal advisors for consideration. If you like, I will forward your letter, although it may have been done already by another recipient. 12/27/2010 Page 2 of') Tax and Licensing was named as the overseeing division because of our peculiar experience in handling issues of licensing and compliance. I like to think of the division as one of reasonability and kind outlook as much as allowed within the law. However, I won't be around forever, nor would anyone I might train. My preference would be to issue normal business licenses to dispensaries and growers with a few conditions as to signage, etc., and let the forces of law and order perform their work as toward any other business. It would be more efficient and enlightened. My case was made and overruled. It could still be done "my" way, but it's not likely to happen unless and until a higher jurisdiction creates a law restricting regulation to itself. (Example: massage therapy only became strictly state - regulated in 2008. It's been a growing industry since the 1980s.) So ... good luck. Kathy Franklin 011 cc PLone;:Fas: 30- 235.2827 "SAVE A TREE. DON'T PRINT THIS E -MAIL UNLESS IT'S REALLY NECESSARY." -- Forwarded Message Attachment- - From: tcolinlsnyder @msn.com To: khberry@hotmail.com; davisbreinhart @edifice.com; meljay831 @aol.com; sangwl @comcast.net; bftireco @aol.com; klpa @comcast.net; jdemott4 @gmail.com; david0126 @peoplepc.com; jerryditu it IoCalcomcast. net Subject: personal privacy concerns... Date: Thu, 23 Dec 2010 19:47:49 +0000 Hello and Happy Holidays! The new proposal for medical marajuana, specifically division 3 dealing with primary caregivers violates personal privacy laws, HIPPA, HB 1284, etc etc.. It seems as though no one reviewed HB 1284 before writing this proposal, as HB 1284 limits a primary caregiver to 5 patients or 30 plants total. Caregivers are not allowed to charge for medicine only for caregiver services. The state maintains a registry of all mmj patients /caregivers that is open for police inquiry 24/7. The Tax and Licensing Division should have nothing to do with a primary caregiver at all. What is a Primary caregiver applying for? Is a permit needed for all indoor gardens? for all plants grown indoors? for house plants? He /She already has their license from The State of Colorado. If you disagree with the State fine vote for change. What if all of the services that are provided are to patients that do not live in Wheat Ridge? Are you asking that a primary caregiver apply for your permit if they are only growing medicine for personal use? husband and wives or family members providing for each other? What if they haven't named a caregiver? What if they have named themselves and a mmj center as their caregiver? State of Colorado maintains a caregiver registry. Why does the City of Wheat Ridge want to maintain another one? Again disagreeing with a State law is fine, but you cant change it. Lets talk about the Wheat Ridge registry. Wheat Ridge makes up about 6% of Jefferson County, which as of 6/2010 had 11,374 patient /caregivers. So lets say Wheat Ridge has between 500 -1000 patients /caregivers, how many do you expect will register or even know too register? My point is that people are their own caregivers everywhere, whether you agree with it or not. Who on earth is going to register with Wheat Ridge and subject themselves to the proposed terms? By registering you violate HIPPA. No one has the right to know what medications your on. No one has the right to information that may lead them to your diagnosis, or what medications your on. This is the law that protect us all. By registering you subject your home to "deemed ok "have plants in it? What makes one dwelling ok and another unfit to be a caregiver in? How is this decided? Who decides this? Who is to judge? How many people get to know that you need and grow mmj? Its medical. Its personal private medical information that is 12/27/2010 Page 3 of 3 protected, by registering, by inspecting, by judging, by disagreeing, this information is not being protected as mandated by law. Does Wheat Ridge require that everyone prescribed narcotics register with them? Of course not that would be illegal and intrusive. By registering you would agree to "Permit inspection on the licensed premises by authorized City officials at reasonable hours upon a complaint.. ". So after someone's decides if your allowed to be a caregiver based on your house, you then agree to have "authorized City officials" in and out of your home at 24 hour notice. What kind of "complaint" gives you the right to enter someone's house? Your flower garden smells to strong? Who gets to enter your house? Is it a search warrant? Do they get to go through everything you own? If the complaint is about an address that isnt in the registry what do you do? What if the complaint is made when your on vacation /traveling for work and entry cant be gained w /in 24 hours? Will you as a caregiver have to get vacation time approved by the city? Caregivers are already registered with the State. Caregivers are not a business. Health information must be protected. Personal privacy must be protected. "Division 3 Primary care -giver license ", grossly violates the aforementioned. The City of Wheat Ridge needs to drop the entire "Division 3. Primary care -giver license ". It is over regulation that will have a less that 1% compliance rate. It will be impossible to regulate /enforce. It violates State law. It opens the City up to numerous law suits. It is a waste of taxpayers money and your efforts. No one in the United States lives under a law that permits City officials to search their house in 24 hours based on a complaint. Think about the privacy you enjoy here in out State and Country, it must be protected. An individuals right's and privacy must be respected and protected even if you disagree .... as a working RN I see and deal with this daily. Sincerely Colin Snyder BSN RN, Certified Rehabilitation RN Father and husband 12/27/2010 Page 1 of 2 Kenneth Johnstone From: Christopher Price [CPrice @mdkrlaw.comj Sent: Friday, December 10, 2010 11:29 AM To: Kenneth Johnstone; Daniel Brennan; Mark Cooney; Patrick Goff; Kathy Franklin Cc: Gerald Dahl Subject: Medical Marijuana Ordinance Attachments: Motion re medical marijuana application fees.doc; WR Med Marijuana Ordinance 2010 12.10.10 clean.docx Greetings, I am writing to attach the draft ordinance that contains the City's medical marijuana licensing provisions for your review and comment. This office will prepare the Council action form once the ordinance is finalized. This ordinance includes a licensing model for the three types of medical marijuana licenses available from the state and a primary care -giver licensing model that was requested by Council at the November 15, 2010 study session. At that study session Council asked for an ordinance that: 1) Authorizes the Tax and Licensing Division to act as the City's licensing authority; 2) Required a vertical integration model for medical marijuana businesses operating in the City; 3) Left unchanged, the state's 1000 foot limitation between medical marijuana centers and schools and drug treatment centers; 4) Limits all medical marijuana business from operating within three quarters of a mile of another medical marijuana business; 5) Limits medical marijuana businesses to the C1 (Light Commercial) and I (Industrial) zone districts; and 6) Required primary care - givers to be licensed by the City. Because the ordinance includes changes to the zoning provisions of the Code, it must be brought before the Planning Commission. In addition, I am attaching a form motion concerning the license application fees that are described in the ordinance under the Code sections 11 -297 and 11 -312. Through the attached motion, Council will fix those application fees. The motion can be acted upon by Council following adoption of the ordinance on second reading. Please let Jerry or I know if you have any questions about the ordinance or the motion. Otherwise, we will look forward to your comments. Thank you for your review, Chris Christopher Price cprice @mdkrlaw.com Murray Dahl Kuechenmeister & Renaud LLP 1530 16th Street, Ste. 200 Denver, CO 80202 12/13/2010 Page 2 of 2 Direct: 303.493.6688 Fax: 303.477.0965 www.mdkrlaw.com This electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. If you are not the intended recipient of this e -mail, you are hereby notified that any dissemination, distribution or copying of this e -mail, and any attachments thereto, is strictly prohibited. If you have received this e -mail in error, please notify me immediately by telephone or e -mail and destroy the original message without making a copy. Thank you. 12/13/2010 STUDY SESSION NOTES CITY COUNCIL MEETING CITY OF WHEAT RIDGE, COLORADO City Council Chambers 7500 W. 29 Ave. November 15, 2010 Mayor DiTullio called the Study Session to order at 6:30p.m. Council Members present: Joyce Jay, Joe DeMott, Karen Adams, Tracy Langworthy, Wanda Sang, Davis Reinhart, Karen Berry and Mike Stites. Also present: City Manager, Patrick Goff; City Attorney, Gerald Dahl; Clerk Assistant, Ann Lazzeri; City Treasurer, Larry Schulz; Community Services Director, Kenneth Johnstone; Police Chief, Dan Brennan; Parks and Recreation Director, Joyce Manwaring; Staff and interested citizens. APPROVAL OF AGENDA 1. Staff Reports Patrick Goff reported on potential changes that Fairmont Fire Protection is considering. r 2. Medical Marijuana Mr. Dahl reviewed his memo presenting an update of recent developments concerning regulation of cultivation, production, use and sale of medical marijuana and requested direction from Council on how to proceed with appropriate licensing and regulation, or banning, of medical marijuana businesses in the City also including primary care - givers and cultivation. There was discussion on whether or not to take steps to ban medical marijuana businesses within the City. The majority of Council Members indicated they were not in favor of banning medical marijuana businesses. Consensus was later reached to authorize the City to issue the following medical marijuana licenses: 1) Medical marijuana center license. 2) Medical marijuana- infused products manufacturer license 3) Optional premises cultivation operation license. There was further consensus to allow, as a use by right, vertically integrated medical marijuana businesses In the City's "C -1" (light commercial) and "I" (industrial) zone districts. Map "C" would be adopted, prohibiting medical marijuana businesses from Study Session Notes, November 15, 2010 Page 2 operating within 500 feet of schools, child care facilities or drug treatment and rehabilitation centers. There was consensus that the City's sales tax department will serve as the local licensing authority. There was consensus to adopt similar references to state statutes and regulations concerning medical marijuana businesses. There was consensus to limit the number of medical marijuana plants that can be cultivated in residential zone districts; require primary caregivers to obtain a municipal license or registration; require plants to be grown indoors; prohibit the number of caregivers that can operate from a single dwelling unit; and require inspections, with notification to the owner, of the dwelling unit if complaints are received. 2_ A draft Ordinance will be brought back to the Council in the near future. In the meantime, the city attorney will research what license fees other cities are charging. 3. Public Art Action Plan Council discussed drafting an Ordinance making an addition to the Code of Laws that would require the City to set aside an additional 1 % of the City's construction costs of all capital projects over $50,000 for acquisition, installation and dedication of public art. There was further consensus for Staff to bring forth a Resolution requiring 1 % of fees charged for private development projects over $50,000 to be for acquisition, installation and dedication of public art. Staff would provide criteria regarding areas of the City where 1 % art fees would be imposed. The Cultural Commission would be charged with choosing which art projects to fund and where to locate them. MLJRRA'' G sxHL dC. L]EG:- IENM.El�T�Ft RENALd3 L -L€ MEMORANDUM TO: Daniel Brennan, Chief of Police Kenneth Johnstone, Director Community Development CC: Christopher Price FROM: Gerald Dahl, City Attorney DATE: November 16, 2010 RE: Notes from November 15 City Council Study Session on Medical Marijuana Below are my notes describing the direction given us by City Council last evening. I would appreciate it if you would confirm or elaborate on these notes and reply to all, such that Chris Price can commence drafting the ordinance. Thank you 1. Ban medical marijuana businesses? i/ Answer Council chose not to take this option 2. What types of licenses should the City offer? Answer Offer all three kinds of available licenses under the state statute. Y 3. Should the City adopt a vertical integration model for medical marijuana centers? r/ Answer Yes. 4. If the City adopts a vertical integration model, what is the appropriate zoning for those businesses? Answer C1 (Light Commercial) and I (Industrial) zone districts. 5. Does Council want to reduce or eliminate the Colorado medical marijuana code default provision that prohibits medical marijuana businesses from operating within 1000 feet of certain locations? >/ Answer No. GED /WR /PD /Med Mar 6. Does Council want to adopt a provision limiting the distance between licensed premises? V Answer Yes; see Map C (attached to 11 -15 -10 Study Session packet) for all of the distance limitations desired by the Council. 7. Who will serve as the City's local licensing authority? Answer The tax and licensing division of the City Manager's office. 'l� 8. How deep or broad should the City's regulations be? Answer Adopt references to state statutes and regulations similar to liquor licensing; minimize length of the City's ordinance. ✓ 9. Does the City wish to regulate the activities of primary caregivers? Answer Yes, as follows: • Require primary caregivers to obtain a municipal license or registration, like a business license • Annual renewal required • City has right to inspect upon complaint, but following notice to the licensee. • Indoor grow operations only (prohibit outdoor grow) • What about limitation on the amount of square feet of grow area indoors? Answer While 120 feet was mentioned, I did not hear Council approve. GED /WR /PD /MedMar w C � w � s _ �G v�• In i!✓ � Y� �� ✓�, h C � � l �'. c se Gt _ ' S � O P S �. 1 71i- _ 0 3 m Ol lfi A W N F� O tD W V Ol In A W N F� O l0 W J Ol Vt A W N f- c n v p p p O O v N D) p = O (D O OA 7 N = r (D (D (D p O 3 N M (OD O W v - O O O w S N N O (D r+ to (D Cr (D � 7 � O n S N 7 z r r S D) I N N N 4 N W — O (D D Q 3 (n S z O S (D (f N S O• O O 0 O' S N O" O O O' 0" O' O' O' v S O S O O S S O' C7 7 7 7 7 7 7 7 O 7 7 7 7 7 7 7 7 O (D (D (D (D (D (D (D (D (D (D (D (D (D (D (D (D (p (D (D fD (D (D O (D !D (D O_ O_ O_ O. O_ O_ O_ p_ Q Q O_ O_ Q O_ O_ O_ p_ O. O_ O_ O_ o_ Q Q Q n. �. m v W c 3 m 0 M M LA r � O Q v v L) N N O tD M V Ol lf� A W N N O �O W J Ol Vf A W N F� C cn < <n v v r 77 7�= m D m (D < (D fll O ID N �O (D = v -s �* O N N n) < 0) Z O O- I N (D N N • rD (D 7 O_ p (D (D � � (D C �• Q O N 7 O O_ 77 = O O (D 7 3 O M < Q O ^ Q (D = Ln N < W r+ m — N �, rt (D m D (A C- IA 0 m . 0 '+ s m .< a < 03 0 m M ((A 0 0 0 n 0 c 0 :rAV411466ft STUDY SESSION AGENDA CITY COUNCIL MEETING CITY OF WHEAT RIDGE, COLORADO City Council Chambers 7500 W. 29 Ave. November 15, 2010 6:30 p.m. Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. Call Heather Geyer, Public Information Officer at 303 - 235 -2826 at least one week in advance of a meeting if you are interested in participating and need inclusion assistance. APPROVAL OF AGENDA 1. Staff Reports 2. Medical Marijuana 3. Public Art Action Plan G tu �V i IV A R AY Y� C_�AHL ,:.',� n.F1EG HENP -t EI TER ATTOI E" AT LAw MEMORANDUM TO: Mayor Jerry DiTullio and City Council THROUGH: Patrick Goff, City Manager FROM: Gerald Dahl, City Attorney; Dan Brennan, Chief of Police and Ken Johnstone, Director of Community Development DATE: November 3, 2010 (for the November 15 Study Session) RE: Medical Marijuana Licensing and Regulation The purpose of this memorandum is two -fold: (1) to give an update of recent developments concerning the regulation of the cultivation, production, use and sale of medical marijuana, and (2) to request direction from Council on how to proceed with appropriate licensing and regulation, or banning, of medical marijuana businesses in the City also including primary care- givers and cultivation. I. Background: Regulation of Medical Mariivana Businesses In June 2010, staff produced a memorandum (attached for your reference) describing the licensing and regulation of medical marijuana cultivation, production and use under Amendment 20 to the Colorado Constitution and the newly adopted Colorado Medical Marijuana Code, C.R.S. §§ 12- 43.3 -101 et seq. At that time, the Colorado Department of Revenue (the "DOR "), the state's licensing authority, was expected to produce and adopt regulations concerning its application of the Medical Marijuana Code in September 2010. Council decided to delay further discussion concerning the City's regulations until after the DOR had produced its regulations. Council adopted an ordinance extending the City's moratorium on the issuance of permits and licenses concerning medical marijuana businesses until the date that the DOR regulations "became effective." The DOR released its draft regulations in September. Under state law, the DOR is required to hold hearings on those regulations prior to their implementation. While the DOR has not produced an official calendar, the DOR should begin holding hearings on the regulations in January 2011 with an effective date set for March 2011. At approximately ninety-three pages of text, the draft regulations are extensive. Staff believes that the draft regulations provide enough guidance for the Council to lift the moratorium and enact the City's regulations. II. Options for Council Action Staff is proposing the following options for Council's consideration: 1. Adopt an ordinance or recommend a ballot measure banning medical marijuana businesses from operating in the City. 2. Adopt an ordinance regulating medical marijuana businesses. Option 1: Adopt an ordinance or resolution or recommend a ballot measure banning medical marijuana businesses from operating in the City. The Colorado Medical Marijuana Code, at C.R.S. § 12- 43.3 -106, contains a local opt out provision authorizing local governments to prohibit medical marijuana businesses from operating in their communities. There are two methods by which a local government may exercise this opt out provision: o By a vote of a majority of registered electors of the local government at a regular or special election; or o By a vote of a majority of the members of the governing board of the local government. Here, Council, acting as the governing board for the City, may, by majority vote, adopt an ordinance or resolution banning medical marijuana businesses from operating in the City. Alternatively, Council could refer this question to the voters of Wheat Ridge at a special election. There are several local governments that have followed one of these two approaches. A list of those communities is attached for your reference. It is important to note that there are two retail medical marijuana businesses currently operating in the City. If the City adopts a ban on those types of businesses, this may create two legal non - conforming uses and/or potentially run afoul of the state's anti - amortization law. Under that law, no business that was legal at the time that it was created may be forced to close. By adopting a ban on medical marijuana businesses, the City would necessarily be forcing the two existing businesses to close. This could subject the City to a lawsuit under the anti - amortization provisions. However, the anti - amortization statute predates the Colorado Medical Marijuana Code. Under general rules of statutory interpretation, in the event that two statutory provisions conflict, the more recent provision prevails. As the more recent provision, the Colorado Medical Marijuana Code authorizes the City to ban medical marijuana businesses. In addition, under the Colorado Medical Marijuana Code, the City's ability to ban must necessarily include the ability of the City to force those existing businesses to close. Thus, while the City may be subject to a lawsuit for forcing those existing businesses to close, it is not likely that the City would be forced to compensate the owners of those businesses for taking actions authorized under the Colorado Medical Marijuana Code. -z- Option 2 - Adopt an ordinance concerning the licensing of medical�wth changes consistent with the provisions in the Colorado Medical Marijuana Code and DOR regulations. If the Council decides to allow medical marijuana businesses to operate in the City, staff requests direction concerning some specific regulatory options for those businesses. The City is not required to adopt regulations implementing the Colorado Medical Marijuana Code because under C.R.S. § 12- 43.3- 301(2)(a), if the Council does not ban medical marijuana businesses or adopt regulations, then the default provisions of the Colorado Medical Marijuana Code apply. It is staffs recommendation that Council adopt some level of regulation to determine the appropriate zoning and licensing mechanisms for these businesses operating within the City. Here are the questions Staff' needs Council to answer if Option 2 is selected: o What types of licenses should the City offer? The Colorado Medical Marijuana Code authorizes the City to issue the following medical marijuana licenses: 1. A medical marijuana center license This is a license for a retail medical marijuana business. 2. A medical marijuana- infused products manufacturer license This is a license for a business that manufacturers a product containing medical marijuana for use or consumption by a patient. Examples of products include edibles, tinctures and ointments. 3. An optional premises cultivation operation license This is a license that can only be issued to either a medical marijuana center or a medical marijuana - infused products manufacturer for a location in which the licensee is authorized to grow and cultivate medical marijuana. o Should the City adopt a vertical integration model for medical marijuana centers? Under the vertical integration model, all cultivation activities under an optional premises license would be required to occur at or immediately adjacent to the location of the medical marijuana center licensed premises. The primary purpose of this regulatory model would be to assist the City in enforcing the Colorado Medical Marijuana Code requirement that medical marijuana centers grow a minimum of 70% of the medical marijuana that they sell at retail. In addition, under this model, no medical marijuana center could obtain a City license unless the applicant also obtained an optional premises cultivation operation license for an adjacent parcel. This type of model could limit the number of medical marijuana centers operating in the City. The City of Lakewood currently operates under this type of vertical integration model. One alternative to the vertical integration model includes allowing optional premises medical marijuana cultivation operations to be in separate and non - adjacent facilities from medical marijuana center locations. One purpose for this is that land use impacts from cultivation operations may include additional electrical power usage, 3- significant water use, chemicals and odors associated with growing plants. These types of impacts are typically not conducive to retail locations. o If the City adopts a vertical integration model, what is the appropriate zoning for those businesses? Community Development Staff proposes that vertically integrated medical marijuana businesses be allowed as a use by right in the City's Cl (light commercial) and I (industrial) zone districts. The Police Department supports keeping medical marijuana businesses in the City's C 1 districts for reasons of safety and enforcement. o If the City does not adopt a vertical integration model, what is the appropriate zoning for medical marijuana businesses? Community Development Staff and the Police Department Staff agree that if the City does not adopt a vertical integration model, retail medical marijuana centers should be allowed as a use by right in the City's C1 (light commercial) district and that optional premises cultivation operations and medical marijuana - infused products manufacturers should be permitted in the City's I (industrial) zone district. o Does Council want to reduce or eliminate the Colorado Medical Maryuana Code's default provision that prohibits medical marijuana businesses from operating within 1000 feet of certain locations? The Colorado Medical Marijuana Code prohibits medical marijuana businesses from operating within 1000 feet of schools, child care facilities or drug treatment and rehabilitation centers. However, it does authorize the City to adopt less stringent distance requirements. Staff previously recommended that the 1000 foot distance limitation be reduced to 500 feet. Maps of the City demonstrating these distance limitations have been attached to this Memorandum. Man A concerns the 500 foot limita M ap B concerns the defau 1000 foot limitation. o Does Council want to adopt a provision limiting the distance between licensed premises. The Colorado Medical Marijuana Code authorizes the City to adopt a provision limiting location of the distance between medical marijuana licensed premises. Currently, the City of Lakewood prohibits medical marijuana centers from operating within three quarters of a mile of another medical marijuana center. Attached to this memorandum is Map C which demonstrates this distance limitation in conjunction with the default 1000 foot limitation described above. As demonstrated on Map C, if both limitations were adopted by the City, the available locations for operating medical marijuana facilities would be limited. As a result, the total number of medical marijuana facilities would also be limited. -a- o Who will serve as the City's local licensing authority? The Colorado Medical Marijuana Code requires all local governments issuing licenses to medical marijuana businesses to name a local licensing authority. Council may designate an administrative office or a division thereof, such as the Tax and Licensing Division of the City Manager's office, as that local licensing authority. Alternatively, Council may designate a deliberative body, like the City's Liquor Authority, as the local licensing authority. Staff recommends that Council name the Tax and Licensing Division of the City Manager's office as the City's local licensing authority for the purpose of issuing medical marijuana business licenses. Staff further recommends that Council provide for a hearing officer to be named by the City Manager (as is done with other regulatory matters in the City) to serve as the licensing authority for the purposes of hearing appeals and show cause matters. Although the Liquor Authority has expressed interest in becoming the licensing authority for medical marijuana business, Staff believes that this would make the process less efficient and effective because the requirements of the Colorado Medical Marijuana Code are detailed and technical. As such, a citizen committee is likely unprepared to interpret and apply those requirements without significant staff involvement. Naming an administrative office is preferable because it will be more efficient and cost effective. o How broad or deep should the City's regulations be? With complex regulatory subjects, such as elections and liquor licenses, some municipalities opt to adopt by reference all or substantially all of the state regulations concerning those subjects in their respective codes. Currently, the City regulates elections and liquor licenses through references to the respective state statutes covering those subjects. This allows the City to regulate those subjects under the extensive state law provisions without the City extending its Code unnecessarily. Does Council favor adopting similar references to state statutes and regulations concerning medical marijuana businesses? The alternative would consist of a lengthy ordinance that contained language that was largely pulled from state statute. Once these decisions have been made, staff will present a draft ordinance for Council's consideration. III. Regulation of the Activities of Primary Caregivers This portion of the memorandum concerns the use of property within the City by primary caregivers. Recall, that Amendment 20 to the Colorado Constitution provides patients and primary caregivers with an affirmative defense or exception to criminal prosecution concerning their medical use of marijuana. Medical use is defined in Amendment 20 as the "acquisition, possession, production, use, or transportation of marijuana or paraphernalia related to the administration of medical marijuana. Under Amendment 20, primary caregivers have significant responsibility for managing the wellbeing of their patients and are authorized to grow up to six plants, in various stages of development, for each patient. A patient is permitted a maximum of six plants in varying stages of development and a maximum of two ounces of -5- marijuana in a usable form. Pursuant to the provisions in C.R.S. § 25- 1.5- 106(8), a primary caregiver may serve up to a maximum of five patients but may not charge those patients more than the primary caregiver's cost to cultivate or purchase medical marijuana. However, the primary caregiver may charge for the cost of providing caregiver services, e.g. grocery shopping, cleaning, etc. This summer, the Police Department and City staff received questions from City residents concerning the use of residential property within the City for cultivation activities of patients and primary caregivers. Recently, the Wheat Ridge officers contacted a resident concerning marijuana plants that were being grown in the backyard of the residence. The resident presented sufficient materials to the officers proving that the resident was a primary caregiver under Amendment 20. As a result of that status, the officers did not take further action. Although Amendment 20 protects patients and primary caregivers from criminal prosecution for the medical use of marijuana, they are not immune from application of the zoning provisions. Thus, the City may adopt some limited regulation concerning marijuana cultivation activities. Currently, under Wheat Ridge Code of Laws § 26 -613, as a home occupation, primary caregivers are permitted to use a residential dwelling for cultivation activities as a use by right. To prevent additional unnecessary contacts by Wheat Ridge officers, alleviate neighbor concerns, and for reasons of protecting the public's health, safety and welfare, staff recommends that Council consider adopting a provision in the zoning code that limits marijuana cultivation activities to inside of structures within the City. This limitation would apply equally to optional premises cultivation operators, patients, and primary caregivers. Some other communities have adopted or considered provisions regulating primary caregivers and/or the cultivation of medical marijuana in their communities. Those regulations include: 1. Limiting the number of medical marijuana plants that can be cultivated in residential zone districts. 2. Requiring primary caregivers to obtain a municipal license or registration. 3. Prohibiting the number of primary caregivers that can operate from a single dwelling unit. 4. Regulating primary caregivers as home occupations under local zoning code provisions. IV. Conclusion The landscape concerning local and state regulation of the cultivation, sale and manufacture of medical marijuana and medical marijuana- infused products continues to develop. We will continue to follow this changing environment and present updates to the Mayor and Council as requested or as necessary to obtain further guidance concerning the City's regulatory position. As always, please let us know if you have any additional questions or concerns. Attachments: 1. Summary of local government ban status 2. Maps A, B, & C 0 n O n m N N N N N N N N N F+ F-• N N 4+ F' �-' N O� V, A W N F� O O 00 J O� 4i A W N N O tD Oo V Ot In A W N F-• N :;a -V 0 0 0 r r r r __ n M T p p m n W D D C D) N C r_r O O W N Dl O _ O N (p Dl C T. Q N 7 N �^ '� rt N (D C (D (n O O (D O (D 0 N rt o O O w C 3 (n S rt -z N O N , 7 O !7 S O< (D 7 rr N Ort � N .< N 93 C Q (D N W 3 C (D (D Q oo ^ O cn s Z 3 a rt O N O ' rt S Q A N a Cr Cr 0 Cr O O N 6 Cr 0 O O O' O' O N O' 0- C7 O' S Cr O O C7 N tlJ N N N N N _ O N N N w w N N — w w 0 w N N N N v 7 7 7 7 O 7 7 O O 7 7 7 7 7 7 7 O O 7 7 7 O O 7 7 3 o_ o_ O_ O_ O_ 0- o_ O, O_ O_ Q C O_ O_ O_ O_ O_ Q O_ o_ o_ O_ O_ o_ O_ O_ O_ � 7 W c N O M V1 N O N O M A O_ y 01 +) N N N N I� N F-• N N N N N N O N N O iD 00 V Ol U'i A W N N O �O 00 V Ol V1 A W N N < C V1 C<--i N - 0 - 0 7Z _ 2 ni G) T T n n W CO D m o� c (D v O Q tD of m m N- 3 M° ;° * N Q ( D O 3 =, ; o 3• rt Q N O v D) D N 7 O_ O (D (D a, (D O OA n O O O_ 70 C? O_ N O Ort 7 O ' (D O w O (D 7 3 G O rD 7 n O_ (A w < C ? O o N • rt ( — m D v+ a (^ O M -0 CA rt a M G Q. C W O m Ln O O -^ 7 n O c 3 n Attachment 1 Medical Marijuana Election Results November 2, 2010 ADAMS County —Federal Heights 57% to ban / 43% to allow ARAPAHOE County —Aurora 53% to ban / 47% to allow AURORA 52% to ban / 47% to allow BOULDER County — Jamestown BOULDER County — Broomfield CUSTER County DOUGLAS County DOUGLAS County— Castle Pines North DOUGLAS County —Lone Tree *EAGLE County- Minturn *EL PASO County *GARFIELD County GRAND County LARIMER County — Loveland LARIMER County— Windsor MESA County *MESA County- DeBeque *PARK County WASHINGTON County -Akron WASHINGTON County —Otis WASHINGTON County Results as of November 3, 2010 10:OOam *Indicates approved dispensaries 69% to ban / 31% to allow 59°/o to ban / 41 % to allow 54% to ban / 46% to allow 67% to ban / 33% to allow 79% to ban / 21% to allow 68% to ban / 32% to allow 134 to ban / 208 to allow 90,641to ban / 90,972to allow allowed dispensaries, ban grows & infusion centers 51' %, to ban / 48% to allow 62% to ban / 38% to allow 66% to ban / 34% to allow 50% to ban / 48% to allow 45% to ban / 53% to allow 3,539 to ban / 3,607 to allow 470 to ban / 227 to allow 139 to ban / 53 to allow 853 to ban / 509 to allow �� - -P orr5 t i i AGENDA City of Wheat Ridge 9/27/10 Staff Meeting Re: Regulation Concerning Medical Marijuana 1. When to hold a Council Study Session re: Medical Marijuana Regulation. 2. Regulatory options to present to Council concerning the Colorado Medical Marijuana Code. a. Do we need to present the opt -out provision to Council as a policy choice? i. If so, do we recommend that the decision to opt -out be put to a vote of the electors? ii. Should Council adopt an ordinance banning medical marijuana licenses under the Colorado Medical Marijuana Code? b. If the City is going to issue licenses, what types of medical marijuana licenses will we propose that the City issue? i. Medical Marijuana Center. ii. Medical Marijuana- Infused Products Manufacturer. iii. Optional Premises Cultivation Operation. c. What zone district are we proposing for these entities? d. Who will serve as the local licensing authority? i. Tax and Licensing Division ii. Licensing Division iii. Hearing Officer iv. City Manager v. Liquor Authority e. Distance limitations. i. From schools, day care facilities, drug treatment facilities 1. 1000 feet 2. 500 feet 3. Some other distance i. Between licensed premises, the Lakewood, Denver models. What are the breadth and /or depth of the City's regulatory position? i. Should the City's ordinance simply adopt the provisions of the Colorado Medical Marijuana Code by reference or include them in full? 3. Regulation of primary -care givers. a. How does the existing Wheat Ridge Municipal Code apply? b. What are the City's regulatory options? 4. Application of Cannabis Kindness. 13 September 2010 Boulder County Caregivers, LLC 2995 Baseline Road, Suite 110 Boulder. CO 80303 RE: Pending State Medical Marijuana License Application for BCC, LLC Attn: Wheat Ridge City Clerk Dear Mr. Snow; This correspondence is official notice and contains a copy of Boulder County Caregivers, LLC's pending State of Colorado Medical Marijuana Business License Application for a location within your jurisdiction. The state application instructions require this copy be submitted to the local authorities for your records and review. Boulder County Caregivers, LLC has applied for a state Medical Marijuana Center License at 20253. This is a retail location open to patients and caregivers that are on the Colorado Medical Marijuana Registry. This correspondence and the attached documents are protected under the Colorado Open Records Act, § 24 -72 -201, et seq., C.R.S. and are not intended for public disclosure without thorough redaction of protected personal and proprietary information contained herein. Furthermore, the Colorado Medical Marijuana Code requires the location of the cultivation premises remain confidential. Please feel free to contact me at the points below with any questions or additional documentation you may require. Respectfully, Kevin Byrne Business Development Director Boulder County Caregivers, LLC Kevin bccare.net 720.273.6600 OR 8530 (07/01/10) ... COLORADO DEPARTMENT OF REWENUE MEDICAL MARIJUANA ENFORCEMENT DIVISION Colorado Medical Marijuana Licensing Authority Business License Application License Types & Fees (Check only one application type. See Application Checklist for details on license types and fees.) © Medical Marijuana Center (Type 1')'. 57,500 application `cc � optional Premises Cultivation License: $1,250 / 50 (X Z-) Medical Marijuana Center (Type 2'): $12,500 application fee ❑ Medical Manuana— Infused Products Manufacturer: $1,250 Medical Marijuana Center (Type 3'): $18 application fee- `Type 1 =3D0 or fewer patients,'Type 2 =301 to 500 patients: - Type 3 =501 or more patients Applicant's Name (Please Print) - Medical Marijuana License Number (Assigned by Division) Boulder County Caregivers LLC _ Trade Name (DBA) (Provide Trade Name Registration) Website Address Colorado Patient. Care Centers wwwbouldercare -corn - -- Street Address of Medical Marijuana Business (Required for Retailer Applicants) City State ZIP (Use Appendix Afar Optional Premises cultivation loormation) Wheat Ridge 4045 Wadsworth Blvd. #270 CO 80033 _ _ Business Phone Number Home Phone Number Email Address jill@bccare.net 303 931 -4994 : 720. .../ 530 -0138 Address City State ZIP 2 J E'3a�� ti� Pd Ito CO ge30 3 Primary Contact Person for Business Title Primary Contact Phone Number Jl k_x._ Mona er ( 720 530 -0138 _ Primary Contact Address (city, state ZIP) - Primary Contact Fax Number 2995 Baseline Rd_ #110 Boulder,CO 80303 ( 720 ) 293 -6643 Federal Taxpayer ID Colorado Sales Tax License #. Email Address 80- 019.6464 28 -58174 ij)l@bcGare.net Type of Business Structure Sole Proprietorship F1 Partnership [] Limited Partnership - ©Limited Liability Company [:] C Corporation 11 S Corporation [_]Publicly Traded Corporation Trust [:] Other State of Incorporation or Creation of Business Entity Date Colorado 0611012008 Date of Qualification to Conduct Business in coforado (Provide Certificate of Authority from due Colorado Secretary of State's Office) 06/1012008 - If a Corporation, Ust all States Where the Corporation is Authorized to Conduct Business List all Trade Names used by the Business Entity (other than above) CDS Boulder Countv Care ivers Colorado Dispensarv Services - - FOR DEPARTMENT OF REVENUE USE ONLY - DO NOT WRITE IN THIS SPACE • County City - - - License Issued Through Industry Type License Account Number Liability Date (Expiation Date) FROM TO State Gily County Managers Reg 1 V ll Gash Fund New License Cash Fund Trvnstur License TOTAL - Pace 1 of 8 I . Is the applicant (including any of the partners, if a partnership; members or manager if a limited liability company. or officers, Yes No stockholders or directors if a corporation) or manager under the age of twenty -one years? 2. Has the applicant (including any of the partners, if a partnership; members or manager it a limited liability company: or officers, stockholders or directors if a corporation) or manager ever (in Colorado or any other state); (a) been denied a privileged license (is: Liquor, Gaming, Racing and Medical Marijuana)? .......❑ (b) had a privileged license (ie: Liquor, Gaming, Racing and Medical Marijuana) suspended or revoked? ........ ...... ......... ❑ 0 (c) had interest in another entity that had a pnviaged (is: Liquor, Gaming Racing and Medical Marijuana) license denied, suspended or revoked?-- ., ❑ If you answered yes to 2a, b or c, explain in detail on a separate sheet. 3. Has a Medical Marijuana Center license application (same license class). that was located wdhi 100 feet of the proposed premises, been denied within the preceding two years? If "yes," explain in detail. 5-ai_.,. _ _.__. ___._..__- _.____, 4. Are the premises to be licensed within 1000 feel of a school (as defined in 12 -43.3 104 (15��C�.R.S.�, altphat or g tie tmen[ facihry principal campus of a college, university, or seminary, or a residential childcare facility ? _.`5, - . x-0a-° ...._... ..._..Z ❑ 5. Has a Medical Marijuana license ever been issued to the applicant (including any of the partners, if a partnership; members or manager if a limited liability company; or officers, stockholders or directors if a corporation)? If yes, identify the name of the bpusinaissi d list any current or former financial interest in said business including any loans to or from a licensee.... -. _..... _.._ ................ d!c!�.`..'r.'.�. NJ S. Does the applicant of this application, have legal possession of the premises by virtue of ownership, lease or other arrangement? Attach all documentation showing legal possession. Deed, Tile, sale or lease agreements eta ❑ Ownership ® Lease ❑ Other (Explain in Detail) (a) If leased, list name of landlord and tenant, and date of expiration, EXACTLY as they appear on the lease: Landlord Tenant I Expires L nne Cottrell Boulder Coun Care fivers PLC Feb. 28 2011 Attach a diagram of the premises to be licensed and outline or designate the area (including dimensions) which shows the limited access areas, watts, Partitions. entrances, exits and what each room shall be utilized for in this business. This diagram should be no larger than 81/2" H 11 ". (It does not have to be to scale) 7. Who, besides fine owners listed in this application (including persons, firms, partnerships, corporations, limited liability companies, trusts), will loan or give money, inventory, fumilure or equipment to or for use in this business; or who will receive money or profits from this business. Attach a separate sheet if necessary. ., NAME DATE OF BIRTH FEIN OR SSN INTEREST Cannabis Kindne Company 25 2009 - ©VI " I ' 000 7 1. 2ZI D Attach copies of all notes and security instruments, and any written agreement,.or details of any oral agreement, by which any person (including partnerships, corporations, limited liability companies, etc.) will share in the profit or gross proceeds of this establishment, and any agreement relating to the business whlctl is contingent or conditional in a w by volume, profit sales, g of advice or consultation. 8. Optional Premises Cultivation License _ Yes No Hasthe Optional Premises License?.. ... .......... ........... _:© ❑ What City or County? ? VZ('CyO , 9 (Fill out Appendix Acompletely) 9_ Does the Applicant have evidence of a good and sufficient bond in the annot ,1 50000 in accordance wish 12113.3 -304 C.R.S. (Include evidence with effective date 7- 1.2011 with application)?...:: he.._ ........ __.__..__ ...............__. _.__....__.__......._..._.._® ❑ e _ e Date appli lion fit d with local authonly Dale C / s 3o offacal authority hearing (if held, for new license applicants; cannel be less than days from date o1 application 12 -03.3- 02 R (1) C. rr \ V� k( m u�xnQ c, gas re a� -I G- 4 J \ tM v THE LOCAL LICENSING AUTHORITY HEREBY AFFIRMS: Yes No - ❑ It has adnpfed an ordinance or resolution containing specific standards for license issuance prior to July 1, 2011 .... _. _.__..._ ........... .....❑ °��( ❑ Give citalion of ordinance or resolution ❑ Has not adopted an ordiync, _ e o (olu6on and will be usjng rr1inirry.rrq licensing requirements in 12113.3-Pan 3 C. R.S ..............__. ❑ The foregoing application, the premises, and business to be conducted have been examined. We do report that such license, it granted, vvill comply with the provisions of Title 12, Article 43.3, C.R.S. THEREFORE, THIS APPLICATION IS APPROVED. Local Licensing Authority for Telephone Number ❑ TOWN, CITY ❑ COUNTY Signature Title Date Signature (aCest) Title Dale MR Pane 2 of 8 Applicant's Printed Trade Name (DBA) Boulder County Caregivers, LLC - Completed Page 1 of 3 List all persons and /or entities with any ownership interest, and all officers and directors, whether they have ownership interest or not. If an entity (cor- poration, partnership, LLC, etc.) has interest, list all persons associated with such entity, their ownership in the entity, and their effective ownership in the license. List all parent, holding or other intermediary business interest. An Associated Person License Application form must be submitted for all persons in a privately held company or a publicly traded corporation, and all officers and directors. Barns Tale SSN /FEIN DOB App submitted? ALL, LLC Managing Membe 27- 3021660 I -- Dyes V] NO Address City . State ZIP Phone Number 2995 Baseline Road #110 Boulder CO 80303 ( 720 ) 530 -0138 Business Associated with (Parent business or sub - entity) Own. % Business Associated with Effective Own. % in Applicant Boulder County Caregivers, LLC 10% 10% Futureworks, LLC Address 1135 Emerson Street LLC FVS, LLC Address 1224 Commerce Court Al istness or suo -ennry LLC Reagan Leane Yeomans Address 1135 Emerson Street Business Associated with (Parer Futureworks, LLC ALL, LLC Address 2995 Baseline Road #110 Michael Patrick I Address PO Box 270387 or or m Member 27- 1526359 City State ZIP Denver CO 80210 Member 27- 1220825 City _ State ZIP Lafayette CO 80026 Own. % Business Associates 41% Title SSN /FEIN - Member 380 -84 -5417 city State ZIP Denver CO 80210 Own. % Business Associates 100% Boulder I CO 180303 Member 274 -78 -4071 Dity Slate 7_IP Louisville CO 80027 Own. % Business Associates 50% rifle SSN /FEIN Member 285 -86 -3055 city State ZIP Lousivilie CO 80027 r Jill Ka thleen Lamoureux Address PO BOx 270387 ❑Yes ©No Phone Number (720 256 -6135 D Yes /DNo Phone Number 303 ) 665 -5082 Effective Own. % in Applicant 41% DOB App submitted? 8.24.1976 [Z] Yes D No Phone Number 303 ) 733 -3082 Effective Own %In Applicant 49% DOB I Apo submitted? DYes V]No Phone Number 720 ) 530 -0138 Effective Own. % in Applicant .3$. Y- BOB App submitted? 9.28 -1965 10yes DNo Phone Number 720 ) 256 -6135 12.17.1975 [Zl y ' s E N ' Phone Number (720 ) 530 -0138 Business Associated with (Parent business or sub - entity) Own. % Business Associated evi[h Effective Own. % in Applicent ALL, LLC 50 % Are there any outstanding options and warrants? I J D Yes No - if YES, attach list of persons with outstanding options and warrants Are there any other persons, other than those listed in the Ownership Structure, inducting but not limited to suppliers, lenders and landlords, who will receive, directly or indirectly, any compensation or rents based upon a percentage or share of gross proceed=- or income of the Ivedical Manjuana business? ❑ Yes ©No If YES, attach list of persons and submit Associate Person License Application to rms for each person Page 3 of a Applicant's Printed Trade Name (DBA) Boulde County Caregivers, LLC - Completed Page 2 of 3 List all persons and /or entities with any ownership interest, and all officers and directors, whether they have ownership interest or not. If an entity (wr- porielion, partnership, LLC, etc) has interest, list all persons associated with such entity, their ownership in the entity, and their effective ownership in the license. List all parent, holding or other intermediary business Interest. An Associated Person License Application form must be submitted for all persons in a privately held company or a publicly traded corporation, and all officers and directors. Name Title SSN /r'EIN DOB App submitted? m Byrne Holdings, LLC Member 27- 3108313 -- []Yes �No Address City State ZIP Phone Number PO Box 7406 Golden CO 80403 ( 303 ) 642 -0836 Business Associated with (Parent business orsub- entity) Own. % Business Associated with Effective Own, %in Applicant FVS, LLC 7.5% 3 -08% Name Title SSNIFEIN DOB I App submitted? Kevin Byrne Member 0 -60 -8075 10.29.1972 ZYes [:] No Address City Stale ZIP Phone Number PO Box 7406 Golden CO 80403 ( 303 ) 642 -0836 Business Associated with (Parent business orsub- entity) Own. % Business Associated with Effective Own. % in Applicant B me Holdings, LLC 100% 3.08% Name Title SN /FEIN DOB Al submitted? Verde Pastures L LC_ Member 27- 1526359 ❑Yes VINO Address city Slate ZIP Phone Number 10958 E. Crestridge Circle Englewood CO 80114 ( 303 ) 861 -1489 Business Associated with (Parent business or sub- entity) Own.% Business Associated with I Effective Own. %in Applicant FVS, LLC 15% 6.15% Name Title SSN /FEIN DOB I App submitted? Heather Micholetti Member 344 -66 -3670 83.1969 ZYes MNo Address City State ZIP Phone Number 10958 E. Crestridge Circle Englewood CO 80111 ( 303 ) 861 -1489 Business Associated with (Parent business or sub- entity) Own. % Business Associated with I Effective Own. '/.in Applicant Verde Pastures, LLC 33.4% 12 -05% Name Title SSN /FEIN DOB App submitted? Todd Runstead Member 059 -58 -5088 8.21.1965 ZYes ❑No Address City State: ZIP Phone Number 1828 Del Rosa Court Boulder CO 80304 ( 303 ) 447 -1840 _ Business Associated with (Parent business or sub - entity) Own, %Business Associated with Effective Own. %in Applicant Verde Pastures, LLC 33.3% 2.05% Name Title SSN /FEIN DOB App submitted? Todd Zimmerman Member 031 -60 -8658 5.1.1969 Yes [] No Address City State ZIP Phune Number 5938 S. Vale Road Boulder CO 80303 t 720 839 -5828 Business Associated with (Parent business or sub - entity) Own. % Business Associated with Effective Own. %in Applicant Verde Pastures, LLC 33.3% 2.05% Name Title SSN /FEIN DOB App submitted? Kelly Wade Brow Member 449 -06 -4803 727.1969 DYes LI No Address City State ZIP Phone Number 1713 Daisy Court Bmornfield CO 80020 ( 303 ) 641 -2335 Business Associated with (Parent business or sub - entity) Own. % Business Associated with Effective Own. %in Applicant FVS, LLC 7.5% 3.08% Are there any outstanding options and warrants? I n Yes U No - if YES, attach list of persons with outstanding options and warrants Are there any ether persons, other than those listed in the Ownership Structure, including but not limited to suppliers, lender=- and landlords, who will receive, directly or indirectly, any compensation or rents based upon a percentage or share of gross proceeds or income of the Medical Marijuana business? C I Yes ©No - If YES, attach list of persons and submit Associate Person License Application forms for each person Applicant's Printed Trade Name (DBA) Boulder County Caregivers, LLC - Completed Page 3 of 3 OWNERSHIP STRUCTURE List a!I persons and /fir entities with any ownership interest, and all officers and directors, whether they have ownership interest or not If an entity (cor- poration, partnership, LLC, etc.) has interest, list all persons associated with such entity, their ownership in the entity, and their effective ownership in the license. List all parent, holding or other intermediary business interest An Associated Person License Application form must be submitted for all persons in a privately held company or a publicly traded corporation, and all officers and directors. Name Title SSN /FEIN DOB A� submitted? Rome Walsh Member 593 -66 -9367 10.14.1976 ZYes ONO Address City State ZIP Phone Number 584 Blue Jay Drive Golden CO 80401 ( 720 447 -3475 Business Asseci -led with (Parent business or sub entity) Own. % Business Associated with Effective Own. %in Applicant FVS, LLC 2.5% 1 103% Name Ttle SSN /FEIN DOB App submitted? KristinaOrlovsky Member 524 -73 -1589 7.4 -1988 [ZYes ElNo _ Address City State ZIP Phone Number 2 Adams Street, Apt 1106 Denver GO 80206 ( 720 ) 238 -7136 Business Associated with (Parent business or sub- entity) Own. % Business Associated with Effective Own. %in Applicant FVS LLC 2.5% 1.03% Name Tale DOH App submitted? OYes ONO Address City *Buslness Phone Number Business Associated with (Parent business or sub - entity) %ed with Effective Own. %in Applicant Name Title SSN /FEIN - DOB App submitted? Yes ONO Address City State ZIP Phone Number Business Associated with (Parent business or sub - entity) Own. °/ Business Associated with Effective Own. %in Applicant Name Title SSN /FEIN DOB App submitted? Yes No Address - City State ZIP Phone Number Business Associated with (Parent business or sub entity) Own. % Business Associated with Effective Own. %in Applicant Name Title SSN /FEIN DOH I App submitted? Yes �No Address City State ZIP Phone Number Business Associated with (Parent business or sub- en[iry) Own. % Business Associated with Ef cove Own- %in Applicant Name Title SSN /FEIN DOH submitted? ' A�pp J Yes [71 No Address City 'Slate ZIP Phone Number Business Fssociated with (Parent business or sub - entity) Own. % Business Associated with Effective Own, % in .Applicant Are there any outstanding options and warrants? Yes O No 'If YES, attach list of persons with outstanding options and warrants Are there any other persons, other than those listed in the Ownership Structure, including but not limited to suppliers, lenders and landlords, who will receive, directly or indirectly, any compensation or rents based upon a percentage or share of gross proceeds or income of the Medical Marijuana business Yes ©No - If YES, attach list of persons and submit Associate Person License Application forms for each person ?zee 3 of 6 1_1ri as the applicant, the upplicant's parent company or any other intermediary business entity ever applied for a Medical Mari- ©Yes 0 No ivana license in this or any other jurisdiction, foreign or domestic, whether or not the license was ever issued? If YES, provide details on a separate sheet, including jurisdiction, type of license, license number, and dates license held or applied for. co 2.Has the applicant, the applicant's parent company or any other intermediary business entity ever been denied a Medical Mari- Yes 0 No juana license, withdrawn a Medical Marijuana license or had any disciplinary action taken against any Medical Marijuana license that they have held in this or any other.jurisdiction, foreign or domestic? If YES, provide details on a separate sheet, including jurisdiction, type of action, and date of action. Financial History 1 Js the applicant, the applicant's parent company or any other intermediary business entity delinquent in the payment of any judg- Yes No ments or tax liabilities due to any governmental agency anywhere? If YES, provide details on a separate sheet and attach any documents to prove seidemenl or resolution of the delinquency. 2.Has the applicant, the applicant's parent company or any other intermediary business entity filed a bankruptcy petition in the Yes 0 No past 5 years, had such a petition filed against it, or had a receiver, fiscal agent, trustee, reorganization trustee or similar person appointed for it? If YES, provide details on a separate sheet and attach any documents from the bankruptcy court. 3.Is the applicant, the applicant's parent company or any other intermediary business entity currently a party to, or has it ever No been a party to, in any capacity, any business trust instrument? if YES, provide details on a separate sheet. 4.Has a complaint, judgment, consent decree, settlement or other disposition related to a violation of federal, state or similar for- ONO eign antitrust, trade or security law or regulation ever been filed or entered against the applicant, the applicant's parent company r[F_:Jypg or any other intermediary business entity? If YES, provide details on a separate sheet and attach any documents to prove the settlement of any of these issues. Include any items currently under formal dispute or legal appeal 5.Has the applicant, the applicant's parent company or any other intermediary business entity been a party to a lawsuit in the past 0 No 5 years, either as a plaintiff or defendant, complainant or respondent, or in any other fashion, in this or any other country? If YES, provide details or. a separate sheet and attach any documents to prove the settlement of any of these issues. Include any items currently under formal dispute or legal appeal 6.Has[he applicant, the applicant's parent company or any other intermediary business entity filed a business tax return in the [Z Yes 0 No past two years? If YES, attach all business tax returns filed in the past two years. 7.Has the applicant, the applicant's parent company or any other intermediary business entity completed financial statements, lY! Yes 0 No either audited or unaudited, in the past two years? If YES, attach all financial statements completed in the past two years. 8.Is the business a prospective business or has it recently begun operations? If so, submit an estimated beginning balance sheet E Yes V] No (proforme) and a statement of amount(s) and son ce(s) or funding for the business and specific documentation to support the declaration. .. 9.1 any interest or share in the profits of the sale of Medical Marijuana been pledged or hypothecated as security for a debt or Yes 0 No deposited as a security for the performance of an act or to secure the performance of a contract? If YES, provide details on a separate sheet. 10.Altach a list detailing the operating and invesbnent accounts for this business, including financial institution name, address, telephone number, and account number for each account. 11.Atlaon a list detailing each outstanding loan and financial obligation obtained fur use in this business, including creditor name, address, phone num- ber, loan number, loan amount, loan terms, date acquired, and date due. Person who maintains Applicant's business records Tfle Jill Lamoureux Manager Phone Number Address ( 1224 Commerce Court #1 Lafayette CO 80226 303 665 -5082 _ Person who prepares Applicant's tax returns, government forms & reports Title Comiskey & Company, P.C. Address Phone Number ( 789 Sherman St. Suite 385, Denver CO 80203 303 830 -2255 Location of financial books and records for Applicant's business 12 24 Commerce Court, #1, Lafayett CO 8002 M Page 4 of 8 Affirmation & Consent I, Jill Lamoureux as an authorized agent for the applicant, state under penalty for offering a false Instrument for recording pursuant to 18 -5-114 C.R.S. that the entire Associated Person & Associated Key License Application Form, statements, . attachments, and supporting schedules are true and correct to the best of my knowledge and belief, and that this statement is executed with the knowledge that misrepresentation or failure to reveal information requested may be deemed sufficient cause for the refusal to issue a Medical Marijuana license by the State Licensing Authority. Further, I am aware that later discovery of an omission or misrepresentation made in the above statements may be grounds for the denial of a temporary Medical Marijuana application or the revocation of the license. I am voluntarily submitting this application to the Colorado Medical Marijuana Licensing Authority under oath with full knowledge that I may be charged with perjury or other crimes for intentional omissions and misrepresentations pursuant to Colorado law or for offering a false instrument for recording pursuant to 18 -5 -114 C.R.S. I further consent to any background investigation necessary to determine my present and continuing suitability and that this consent continues as long as I hold a Colorado Medical Marijuana License, and for 90 days following the expiration or surrender of such Medical Marijuana license. Note: If your check is rejected due to insufficient or uncollected funds, the Department of Revenue may collect the payment amount directly from your banking account electronically. Print Full Legal Agent Name cleady below. Applicant's Business Name - Trade Name (DBA) Boulder County Caregivers, LLC _ Colorado Patient Care Centers Legal Agent Last Name (Please Print) Legal Agent First Name Legal Agent Middle Name Lamoureux Jill Kathleen Signature Date 07/30/2010 Page 5 Of E Investigation Authorization Authorization to Release Information I, Jill Lamoureux as an authorized agent for the applicant, hereby authorize the Colorado Medical Marijuana Licensing Authority, the Medical Marijuana Enforcement Division, (hereafter, the Investigatory Agencies) to conduct a complete investigation into my personal background, using whatever legal means they deem appropriate. I hereby authorize any person or entity contacted by the Investigatory Agencies to provide any and all such information deemed necessary by the Investigatory Agencies_ I hereby waive any rights of confidentiality in this regard. I understand that by signing this authorization, a financial record check may be performed. I authorize any financial institution to surrender to the Investigatory Agencies a complete and accurate record of such transactions that may have occurred with that institution, including, but not limited to, internal banking memoranda, past and present loan applications, financial statements and any other documents relating to my personal or business financial records in whatever form and wherever located. I understand that by signing this authorization, a financial record check of my tax filing and tax obligation status may be performed. 1 authorize the Colorado Department of Revenue to surrender to the Investigatory Agencies a complete and accurate record of any and all tax information or records relating to me. I authorize the Investigatory Agen- cies to obtain, receive, review, copy, discuss and use any such tax information or documents relating to me. I authorize the release of this type of information, even though such information may be designated as "confidential" or "nonpublic' under the provisions of state or federal laws. 1 understand that by signing this authorization, a criminal history check will be performed. I authorize the Investigatory Agencies to obtain and use from any source, any information concerning me contained in any type of criminal history record files, wherever located. I understand that the criminal history record files contain records of arrests which may have resulted in a disposition other than a finding of guilt (i.e., dismissed charges, or charges that resulted in a not guilty finding). I understand that the information may contain listings of charges that resulted in suspended imposition of sentence, even though I successfully completed the conditions of said sentence and was discharged pursuant to law. I authorize the release of this type of information, even though this record may be designated as "confidential" or "nonpublic" under the provisions of state or federal laws. The Investigatory Agencies reserve the right to investigate all relevant information and facts to their satisfaction. I under- stand that the Investigatory Agencies may conduct a complete and comprehensive investigation to determine the accura- cy of all information gathered. However, the State of Colorado, Investigatory Agencies, and other agents or employees of the State of Colorado shall not be held liable for the receipt, use, or dissemination of inaccurate information. I, on behalf of the applicant, its legal representatives, and assigns, hereby release, waive, discharge, and agree to hold harmless, and otherwise waive liability as to the State of Colorado, Investigatory Agencies, and other agents or employees of the State of Colorado for any damages resulting from any use, disclosure, or publication in any manner, other than a willfully unlawful disclosure or publication, of any material or information acquired during inquiries, investigations, or hearings, and hereby authorize the lawful use, disclosure, or publication of this material or information. Any information contained within my application, contained within any financial or personnel record, or otherwise found, obtained, or maintained by the Investigatory Agencies, shall be accessible to law enforcement agents of this or any other state, the government of the United States, or any foreign country. Print Full.Legal Name of Autborized Agent clearly below: P.pplicant'sBusineas - Name - - -- - - Trade Narne (DBA) Boulder County fivers, LLC Colorado Patient Care Centers Legal Agent Last Name (Please Pont) ]Leg, Lamoureux i Agent First Name I Jill Legal Agent Middle Name Kathleen Legal Agent Title Signature (Must be signed in front of two witnesses) 1'Ur1Ag1 � 1 Da led this day of �U _ 20 at 17. month) (year) (day I } (lima) ppp TT (city) (stele) Witness t Signa r bvit ignature Page 6 018 Applicant's Request to Release Information TO FROM: (Applicant's Printed Name) i.1/We hereby authorize and request all persons to whom this request is presented having information relating to or concerning the above named applicant to famish such information to a duly appointed agent of the Medical Marijuana Enforcement Division whether or not such information would otherwise be protected from the disclosure by any constitutional, statutory or common law privilege. 2.11 hereby authorize and request all persons to whom this request is presented having documents relatng to or conceming the above named applicant to permit a duly appointed agent of the Medical Marijuana Enforcement Division to review and copy any such documents, whether or not such documents would otherwise be protected from disclosure by any constitutional, statutory, or common law privilege. 3.1/We hereby authorize and request the Colorado Department of Revenue to permit a duly appointed agent of the Medical Marijuana Enforcement Divi- sion to obtain, receive, review, copy, discuss and use any such lac information or documents relating to or concerning the above named applicant, whether or not such information or documents would otherwise be protected from disclosure by any constitutional, statutory, or common law privilege. 4.1f the person to whom this request is presented is a brokerage firm, bank savings and loan, Brother financial institution or an officer of the same, 11we hereby authorize and request that a duly appointed agent of the Medical Marijuana Enforcement Division be permitted to review and obtain copies of any and all documents, records or correspondence pertaining to me/as, including but no limited to past loan information, notes co- signed by me /us, checking account records, savings deposit records, safe deposit box records, passbook records, and general ledger folio sheets. 5.1/We do hereby make, constitute, and appointany duly appointed agentof the Colorado Medical Marijuana Enforcement Division, mylour We and lawful attorney in fact for me /us in mylour name, place, stead, and on mylour behalf and for mylour use and benefit. (a) To request, review, copy sign for, or otherwise act for investigative purposes with respect to documents and information in the possession of the person to whom this request is presented as Ilwe might; (b) To name the person or entity to whom this request is presented and insert that person's name in the appropriate location in this request. (c) To place the name of the agent presenting this request in the appropriate location on this request. 6.1 grant to said attorney in fact full power and authority to do, take, and perform all and every act and thing whatsoever requisite, proper, or neces- sary to be done, in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as Iiwe might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that said allemey in fact, or his substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. 7 This power of attomey ends twenty -tour (24) months from the date of execution. 8_The above named applicant has filed with the Colorado Medical Marijuana Licensing Authority an application for a Medical Marijuana license. Said applicant understands that it is seeking'the granting of a privilege and acknowledges that the burden of proving its qualifications for a favor- able determination is at all Gores on the applicant. Said applicant accepts any risk of adverse public notice, embarrassment, criticism, or other action of financial less, which may result from action with respect to this application. 9.10e do, for myselflourselves, mylour heirs, executors, administrators, successors, and assigns, hereby release, remise, and forever discharge the person to whom this request is presented, and his agents and employees from all and all manneror actions, causes of action, suits, debts, judgments, executions, claims, and demands whatsoever, known or unknown, in law or equity, which the applicant ever had, now has, may have, or claims to have against the person to whom this request is being presented or his agents or employees arising out of or by reason of complying with the request. 10JNVe agree to indemnify and hold harmless the person to wham This request is presented and his agents and employees from and against ail claims, damages losses, and expenses, including reasonable attomeys' fees arising out of or by reason of complying with this request. 17.A reproduction of this request by photocopying or similar process shall be for all intents and purposes as valid as the original. Print Legal Name of Authorized Agent clearly below. Legal Agerit Last Name (Please Prim) -- Legzi Flgen"t Fiisl Tfarne ' �- - -- Legim Kg ent MiBtlle Naive Lamoureux - Jill Kathleen Legal Agent Title Signature (Must be signed in front of Me witnesses) 1 – Dated this 30 day of JuIY 2g 10 a t 12:00 pm � �— coon T� — year – (lime La a ette Colorado _ Witness I Signature Witness 2 Signature Signature of P.1eUicai Marijuana Enforcement Division a .m opbsenting this re Vest Date Page 7 of 8 Colorado Medical Marijuana Enforcement Divsion App endix A Optional Premises Cultivation License AGPlicanfs Name (Please Print) Medical Marijuana License Number (Assigned by Division) Boulder County Caregivers LLC Trade Name (DBA) (Provide Trade Name Registration) Website Address Colorado. Patient :Care. Center wvvw: bouldereare.com Street Address of Optional Premises Cultivation Ci[ State ZIP 658 Kalamath Avenue CO 80205 Business Phone Number Home Phone Number mail Address 303 )6,65-5082 1 ( 720 530 -0138 �� . Address - City State ZIP Primary Contact Person for Business Title Primary Contact Phone Number DJ�A h ( 720 ) 530 -0138 Primary Contact Address (city, state ZIP) Primary Contact Fax Number ( ) 2995 Baseline Road #110 Boulder CO 80303 720 293 -6643 Federal Taxpayer) D Colorado Sales Tax License# Email Address 80 -0196464 28 -58174 l bccar .net Does the applicant have legal possession of the premises by virtue of ownership, lease or other arrangement? Q Ownership VJ Lease ❑ Other (Explain in Detail) (a) If leased, list name of landlord and tenant, and date of expiration, EXACTLY as they appear on the lease: Landlord Tenant Expires Sunworks Properties, LLC Boulder County Caregivers, LLC 6.302013 Attach a diagram of the premises to be licensed and outline or designate the area (including dimensions) which shows the limited access areas, ". walls, partitions, entrances, exits and what each room shall be utilized for in this business. This diagram should be no larger than 3112" X 11 (Doesn't have to be to scale) Who, besides the owners listed in this application (including persons, films, partnerships, corporations, limited liability companies, trusts), will Ivan or give money, inventory, furniture or equipment to or for use in this business; or who will receive money or profits from this business. Attach a separate sheet if necessary, NAME DATE OF BIRTH FEIN OR SSN INTEREST Cannabis, Kindness Company 5.25.2009 27- 0170844 $50, for ass et urchase a roe _ .Attach copies of all notes and security instruments, and any written agreement, or details of any oral agreement, by which any person (including partnerships, corporations, limited liability companies, etc.) will share in the profit or gross precedes of this establishment, and any agree ,ent relating to the business which is contingent or conditional in any way by volume, profit, sales, giving of advice or consultation. Rp And , s: r A C Date application filed with local authority Date of local authonly hearing (it held for new license applirants: cannot be l from date of applicabou 12 - i3.a 302 (1) C.R.SJ THE LOCAL LICENSING AUTHORITY HEREBY AFFIRMS: It has adopted an ordinance or resolution containing specific standards for license issuance prior to July 1, 2011 ...___ .............._. _Give citation of ordinance or resolution -- Has not adopted an ordinance or resolution and will be using minimum licensing requirements in 12- 433 -Pan 3 C R.S.. The foregoing application, the premises, and business to be conducted have been examined. We do report that such license, if granted, will comply with the provisions of Title 12, Article 43.3, CR.S. THEREFORE, THIS APPLICATION IS APPROVED. Local Licensing Authority for - Telephone Number ❑ TOWN. CITY COUNTY Signature 'rille Date I Signature (attest) Title Date Page a 01 6 Colorado Medical Marijuana Enforcement Divsion Appendix A Optional Premises Cultivation License Applicants Name (Please Print) Medical Marijuana License Number (Assigned by Division) Boulder Counbt Careciivers. LLC Trade Name IDEA) (Provide Trade Name Registration) Website Address Colorado Patient Care Center vvvw✓.bouldercare.com Street Address of Optional Premises Cultivation Ci State ZIP 1,I 5454 Conestoga Court U UQ� CO 80205 Business Phone Number Home Phone Number E mail Address "L L303 665 -5082 720 530 -0138 nx� Address City State ZIP Clo a separate sheet list all principal plac business for the past 10 years if differentfrom above.. Primary Contact Person for Business Title Primary Contact Phone Number J k P ( 720 ) 530 -0138 Primary Contact Address city, state ZIP) Primary Contact Fax Number 2995 Baseline Road #110, Boul CO 80303 ( 720 ) 293 -6643 Federal Taxpayer ID Colorado Sales Tax License Email Address 80- 0196464 1 28-58174 ill bccare.net Does the applicant have legal possession of the premises by virtue of ownership, lease or other arrangement? ❑ Ownership W] Lease ❑ Other (Explain in Detail) (a) If leased, list name of landlord and tenant, and date of expiration, EXACTLY as they appear on the lease: Landlord Tenant Expires Boulder Warehouse Association, Inc. I Boulder County Caregivers, LLC ( b &I Attach a diagram of the premises to be licensed and outline or designate the area (including dimensions) which shows the limited acoes8 areas, walls, partitions, entrances, exits and what each room shall be utilized for in this business. This diagram should be no larger than 81/2" X 11 ". (Doesn't have to be to scale) Who, besides the owners listed in this application (including persons, firms, partnerships, corporations, limited liability companies, trusts), will loan or give money, inventory, furniture or equipment to or for use in this business; orwho will receive money or profits from this business. Attach a separate sheet if necessar. NAME DATE OF BIRTH FEIN OR SSN INTEREST Cannabis Kindness Company 5.252009 27- 0170844 $50,000 for asset purGhase agree Attach copies of all notes and security instruments, and any written agreement, or details of any oral agreement, by which any person (including partnerships, corporations, limited liability companies, eta) will share in the profit or gross proceeds of this establishment, and any greement relating to the business which is contingent or conditional in any way by volume, profit, sales, giving of advice or consultation. Date application filed with local authority Date o` local authority hearing (R held, for new license applicants; cannot be less than 30 days I ftorn date of application 12 -011302 (1) C.R.S.) THE LOCAL LICENSING AUTHORITY HEREBY AFFIRMS: Yes No ❑ It has adopted an ordinance or resolution containing specific standards for license issuance prior to July 1, 2011 .... ..... .0 ❑ ❑ Give citation of ordinance or resolution ❑ Has not adopted an ordinance or resolution and will be using minimum licensing requirements in 12 -43.3 -Part 3 C.R.S__ .... ...... ........ .❑ ❑ The foregoing application, the premises, and business to be conducted have been examined We do report that such license, if granted, will comply with the provisions of Title 12, Article 435, C.R.S. THEREFORE, THIS APPLICATION IS APPROVED. Local Licensing Authenty, for Telephone Number ❑ TOWN, CITY ❑ COUNTY Signature Title Date Signature (attest) Title Date �a 4llr•IY Page 8 of ZONING AND DEVELOPMENT Sec. 26 -613. Home occupations. § 26 -613 A. Home occupation. Hoene occupations are permitted as accessory uses to any conforming (as to use) residential dwelling; provided, however, that the following requirements are met: 1. Such use shall be conducted entirely within a dwelling or accessory structure except for sales of plants and produce grown on the premises and carried on only by the inhabitants living there, with the exception that should the operator be substantially, physically handicapped a nonres- ident may be employed to assist the operator in his work to the extent he requires it to make up for his physical handicap. 2. Not more than one (1) employee may live off - premises. 3. Such use shall be clearly incidental and secondary to the use of the dwelling for dwelling purposes and shall not change the character thereof. 4. The total area used for said purposes shall not exceed twenty -five (25) percent of the gross floor area of the user's dwelling unit. 5. No sign advertising the home occupation shall be permitted. 6. No home occupation shall create negative impacts for the residential neighborhood and it shall not change the residential character thereof. 7. The use shall not generate traffic, noise, vibration, glare, fumes, odors or electrical interference beyond what normally occurs in any residential zone district. 8. There shall be only incidental storage of stocks, supplies or products related to the occupation conducted on the premises. Merchandise stored or merchandized on the premises, which is either for retail sale or for delivery of presold items, shall be limited to a maximum area of one hundred (100) square feet. 9. There shall be no exterior storage on the premises of materials, products or equipment used as part of the home occupation, nor shall there be any visible evidence from any property line of the operation of a home occupation except for the sale of plants and produce grown on the premises. 10. Parking related to the home occupation shall be confined to the street frontage of the lot in question, the driveway and the garage /carport. In instances where the home is used as an office for business conducted off - premises, such as byway of example, a home improvement contractor, lawn care service, etc., storage of materials, tools, equipment, trailers, trucks or vans used in the business, except as specified below, shall not be permitted upon the premises from which the home occupation operates. In addition, parking of the motor vehicle of an employee who works off of the premises shall be confined to the frontage of the lot in question, the driveway, and the garage or carport. The home occupant may park no more than one (1) motor vehicle used in the business upon the premises or confined to the street frontage of the lot in question; provided that any such vehicle does not exceed a one -ton chassis. All tools, equipment and materials shall be totally enclosed within this vehicle or within enclosures attached to the vehicle. 11. Home occupations are limited to the following business or commercial activities: a. Craft work, such as the making of pottery, jewelry or dolls, flower arranging, smithing and woodworking. b. Garment work, such as tailoring, dressmaking, millinery work, ironing and garment repair. c. Office uses, such as office uses for door -to -door, home party and telephone solicitation sales, investment counseling, typing, notary public, travel services, surveyors, physicians, den- tists, lawyers, accountants, architects, engineers and other similar services. Supp. No. 44 1827 § 26 -613 WHEAT RIDGE CITY CODE d. Repair services for electronics, small appliances, and mechanical devices, bicycles and upholstery. e. Tutoring, music lessons, dance lessons, gymnastics lessons, swim lessons and tennis lessons. f Artistic endeavors, such as art studios, portrait studios, photography studios, writing and lithography. g. Garage sales, not to exceed four (4) three -day periods, which need not be consecutive, per calendar year. h. Hair care services carried on by only one (1) inhabitant of the dwelling. No other employee shall be permitted. i. Small day care home. j. Sales directly related but merely ancillary to the primary home occupation, such as: (1) Sale of hair care products by a beautician or barber. (2) Sale of accompaniment items, such as neckties, bows, ribbons or belts for a tailor or dressmaker. (3) Sale of component parts or accessories used in repair services for electronics, small appliances, bicycles, etc. (4) Supplies related to a class, course of instruction, or lessons conducted on the site. (5) Sale of artistic or craft works which were created on the site, such as pottery, jewelry, dolls, portraits, paintings, sculptures, etc. (6) Sale of plants and produce grown on the premises. k. Delivery of pre -sold items which were sold either over the telephone, by door -to -door solicitation or at home parties, such as beauty products, kitchen ware, home products, etc. 1. Massage therapist, restricted to one (1) practitioner, subject to the restrictions of chapter 11, article X of the Code of Laws. m. Other similar uses as approved by the director of community development or board of adjustment and when in conformance with the standards and requirements set forth herein. 12. In no event shall any home occupation include or allow any of the following business or commercial activities: a. Body or mechanical repair or modification of motor vehicles (for hire). b. Animal hospital, kennel or animal grooming. C. Residential health care facility. d. Taxidermy of large animals and large fish and/or curing of hides and skins. e. Parking of vehicles for a fee or any other thing considered of value. (Ord. No. 2001 - 1215, § 1, 2- 26 -01; Ord. No. 1370, § 1, 8- 28 -06) Sec. 26 -614. Trash storage area screening. Amend 26 -614 A. Trash storage for all existing and new multi -unit dwellings, institutional buildings, all business and industrial buildings or uses and agriculturally -zoned properties shall be accommodated within the structure, or if located outside: 1. Shall be located or screened so as not to be visible from any public streets, and; Supp. No. 44 1828 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER SANG Council Bill No. 11 Ordinance No. 1466 Series 2010 TITLE: AN ORDINANCE EXTENDING THE MORATORIUM ENACTED BY SECTION 2 OF ORDINANCE 1453, SERIES 2049 ON THE SUBMISSION, ACCEPTANCE, PROCESSING, AND APPROVAL OF ANY APPLICATION FOR A CITY OF WHEAT RIDGE PERMIT OR LICENSE RELATED TO THE OPERATION OF A BUSINESS OR COOPERATIVE THAT SELLS OR CULTIVATES MEDICAL MARIJUANA WHEREAS, on September 14, 2009 City Council for the City of Wheat Ridge, Colorado ( "City Council ") adopted Ordinance 1453, Series 2009, which Ordinance enacted a temporary moratorium on the submission, acceptance, processing, and approval of all applications for City permits and licenses relating to the operation of businesses or cooperatives that sell, distribute or cultivate medical marijuana ( "Medical Marijuana Dispensaries "); and WHEREAS, on March 8, 2010, City Council adopted Ordinance 1459, Series 2010, which extended that moratorium until July 13, 2010; and WHEREAS, on November 23, 2009 City Council adopted Ordinance 1457, Series 2009, which extended that moratorium until March 13, 2010; and WHEREAS, one purpose for extending the moratorium was to allow state officials time to address and possibly regulate or limit the operation of Medical Marijuana Dispensaries on a state -wide basis; and WHEREAS, Colorado House Bill 10 -1284 concerning the regulation of the cultivation, sale, distribution and manufacture of medical marijuana on a state -wide basis was signed into law by the Governor on June 7, 2010; and WHEREAS, through House Bill 10 -1284, the General Assembly enacted the Colorado Medical Marijuana Code at Article 43.3 of Title 12, C.R.S. (the "Code "); and WHEREAS, the Code is a new state and local licensing model for the cultivation, sale, distribution and manufacture of medical marijuana which will be implemented by the Colorado Department of Revenue, state's licensing authority; and WHEREAS, the Code authorizes the Colorado Department of Revenue to adopt emergency rules to implement the Code's provisions; and WHEREAS, those rules will likely impact pursuant to subsection 202(1)(b)(1) of the Code, municipalities are authorized to extend any temporary moratorium concerning the sale, cultivation, distribution or manufacture of medical marijuana until the effective date of the Colorado Department of Revenue's rules; and WHEREAS, extending the moratorium enacted by Ordinance 1453 until the Colorado Department of Revenue's rules become effective will provide City staff and City Council with additional time to investigate, develop, and if appropriate, adopt and implement regulations with respect to Medical Marijuana Dispensaries consistent with state law; and WHEREAS, proprietors of Medical Marijuana Dispensaries will not be unduly prejudiced by the imposition of such moratorium. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE COLORADO: Section 1. Findings and Intent The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the City Council of the City of Wheat Ridge, Section 2. Extension of Moratorium on Applications For Permits and Licenses Related to Businesses That Cultivate and/or Sell Medical Mariivana Upon the adoption of this Ordinance, the moratorium imposed in Section 2 of Ordinance 1453, Series 2009 shall be extended until the rules that are adopted by the Colorado Department of Revenue pursuant to the authority granted it in the Code become effective. The City staff is directed to continue refusing to accept for filing, and not to process or review, any new applications for permits or licenses related to Medical Marijuana Dispensaries during the moratorium period. Section 3. Authority The City Council hereby finds, determines and declares that it has the power to adopt this Ordinance pursuant to: (i) the Local Government Land Use Control Enabling Act, Article 20 of Title 29, C.R.S.; (ii) Part 3 of Article 23 of Title 31, G.R.S. (concerning municipal zoning powers); (iii) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (iv) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (v) Section 31 -15 -501, C.R.S. (concerning municipal power to regulate businesses); (vi) the authority granted to home rule municipalities by Article XX of the Colorado Constitution; (vii) the powers contained in the City of Wheat Ridge, Colorado Home Rule Charter (the "Charter "); and subsection 12- 43.3- 202(1)(b)(1), C.R.S. (concerning medical marijuana). Section 4. Safety Clause The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Wheat Ridge, that it is promulgated for the health, safety, and welfare of the public and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be attained. Section 5. Severability; Conflicting Ordinances Repealed If any section, subsection or clause of this ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances, parts of ordinances or codes adopted thereby in conflict with the provisions of this ordinance or the code or ordinance adopted hereby are hereby repealed. Section 6. Effective Date This Ordinance shall take effect upon adoption, as permitted by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of 7 to 1 on this 14 day of June, 2010, ordered published by title in a newspaper of general circulation in the City of Wheat Ridge in full on the City's website, public hearing and consideration on final passage set for Monday, the 28 of June, 2010, at 7 p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of 6 to ? ___, this 28th day of June , 2010. SIGNED by the Mayor on this 28th ATTEST: Michael Snow, City Clerk Apprq,yed,As To form:/ , t l �I Gerald E. Dahl, City Attorney' First Publication: June 17, 2010 Second Publication: July 1, 2010 Wheat Ridge Transcript Effective Date: June 28, 2010 CITY COUNCIL MINUTES: June 28, 2010 Page -5- 5. Council Bill 11 -2010 —An Ordinance extending the moratorium enacted by Section 2 of Ordinance 1453, Series 2009, on the submission, acceptance, processing, and approval of any application for a City of Wheat Ridge Permit or License related to the operation of a business or cooperative that sells or cultivates Medical Marijuana, Mayor DiTullio opened the public hearing. Council Bill 11 -2010 was introduced on second reading by Council Member Sang. City Clerk Michael Snow assigned Ordinance No. 1466. No staff report was presented Matthew Durkin, Jefferson County Deputy District Attorney, encouraged the Council to extend the moratorium, citing the many abuses that have resulted on account of the state constitutional amendment to allow medical marijuana in Colorado. Mr. Durkin stated several statistics to indicate abuse of the initial intent of this amendment and asserted there is also evidence to show that it has provided the means for criminals to further fund illegal operations and presents further criminal activity to neighborhoods in Colorado. Scott Storey, District Attorney of Jefferson County, urged Council to not even consider enacting an Ordinance allowing such business in Wheat Ridge, Mr. Storey contends that state citizens voted for a "caretaker" model in the original constitutional amendment, not a "dispensary" model for medical marijuana. He believes the current HB 10 -1280 went beyond the intent of this amendment and will not be upheld legally. He further urged Council to reject a dispensary model, which will present many problems for the City. Mayor DiTullio closed the public hearing. Motion by Mrs. Sang to approve Council Bill 11 -2010 (Ordinance 1466) on second reading, and that it take effect upon adoption; seconded by Mr. Reinhart; carried 6 -1 with Council Member DeMott voting No. City Of Wheat Ac _ V� ITEM NO: E - A DATE: June 28, 2010 ,�\� REQUEST FOR CITY COUNCIL ACTION � . ,`ENGACpyf ` AY SE0.Vi\,f 20M1C Lf ' \ jY O `N ABLf G. U \ /,/ ° MheatP� aO �' IWE \P \LP fWneatP \aq ` 1�iWn a tP� /J �o /\S�BeatP TITLE: COUNCIL BILL NO. 11 -2010 - AN ORDINANCE EXTENDING THE MORATORIUM ENACTED BY SECTION 2 OF ORDINANCE 1453, SERIES 2009 ON THE SUBMISSION, ACCEPTANCE, PROCESSING, AND APPROVAL OF ANY APPLICATION FOR A CITY OF WHEAT RIDGE PERMIT OR LICENSE RELATED TO THE OPERATION OF A BUSINESS OR COOPERATIVE THAT SELLS OR CULTIVATES MEDICAL MARIJUANA ® PUBLIC HEARING ❑ ORDINANCES FOR 1 READING (06/14/2010) ❑ BIDS/MOTIONS ® ORDINANCES FOR 2 READING (06/28/2010) ❑ RESOLUTIONS QUASI - JUDICIAL: ❑ YES City Attorney rI • i City Manager ISSUE: On September 14, 2009, Council adopted Ordinance 1453, Series 2009, which enacted a temporary moratorium on the issuance or consideration of any City license or permit concerning medical marijuana dispensaries. On March 8, 2010, Council adopted Ordinance 1459 which extended the moratorium until July 13, 2010. One purpose for extending the moratorium was to allow the state to adopt a law concerning the regulation of medical marijuana dispensaries and cultivation operations. The General Assembly enacted House Bill 10 -1284 which regulates the sale, distribution, cultivation, growth and manufacture of medical marijuana throughout the state. Through House Bill 10 -1284, the General Assembly enacted the Colorado Medical Marijuana Code into Article 43.3 of Title 12, C.R.S. (the "Code "). The Code is a new state and local licensing model for the sale, distribution, cultivation, growth and manufacture of medical marijuana and medical marijuana - infused products. The Colorado Department of Revenue ( "DOR ") is named as the state's licensing authority. To implement provisions of the Code, the DOR is authorized to adopt emergency rules. The DOR must hold a hearing on those rules by Council Action Form — Medical Marijuana Moratorium June 28, 2010 Page 2 September 1, 2010. Any rules to implement the Code will likely impact any licensing model adopted by the City. The Code authorizes the City to extend its existing temporary moratorium until the effective date of the rules adopted by the DOR. The attached Ordinance will extend the moratorium until that date. This will provide sufficient time for the state to finalize its regulatory model and allow Council to consider appropriate regulations for implementation in the City that are consistent with state law. PRIOR ACTION: Council adopted Ordinance 1453, Series 2009, on September 14, 2009 as an emergency ordinance. Ordinance 1453 enacted a temporary ninety (90) day moratorium on the issuance or consideration of any City license or permit concerning medical marijuana dispensaries. Council adopted Ordinance 1457, Series, 2009, on second reading on November 23, 2009. Ordinance 1457 extended the moratorium in Ordinance 1453 for an additional ninety (90) days. Council adopted Ordinance 1459, Series 2010, on second reading on March 8, 2010. Ordinance 1459 extended the moratorium in Ordinance 1453 until July 13, 2010. FINANCIAL IMPACT: The City will not receive permit or license fees for any new applications concerning medical marijuana dispensaries during the moratorium period. BACKGROUND: In November 2000, the people of the State of Colorado adopted Amendment 20 which amended the Colorado Constitution by adding Article XVIII Section 14 thereto. Under Amendment 20 certain persons are protected from criminal prosecution under state law for the acquisition, possession, production, use or transportation of marijuana for medical purposes. Amendment 20 does not protect those persons from criminal prosecution under federal law. In the spring of 2009, United States Attorney General Eric Holder issued a statement that his office would not seek to prosecute individuals who were acquiring marijuana for medical purposes to the extent that such activity was allowed under state law. As a result of that announcement and limited rule making by the Colorado Department of Public Health and Environment in July of 2009, communities along the Front Range saw a noticeable increase in establishments operating as "medical marijuana dispensaries." Amendment 20 does not discuss "medical marijuana dispensaries" or the retail or for profit sale of medical marijuana. The City enacted the moratorium to allow the state to develop laws regulating medical marijuana operations. On May 12, 2010, the General Assembly adopted House Bill 10 -1284 concerning the regulation of the sale, distribution, cultivation, growth and manufacture of medical marijuana and medical marijuana - infused products. This bill was signed into law by the Governor on June 7, 2010. The bill prohibits primary caregivers from selling medical marijuana for a profit and imposes numerical limits on the number of patients for whom those caregivers can lawfully provide services under Amendment 20. In conjunction with limiting the application of the Council Action Form — Medical Marijuana Moratorium June 28, 2010 Page 3 provisions in Amendment 20, House Bill 10 -1284 enacts the Code which creates a new state and local licensing model for medical marijuana business operations. This licensing model requires implementation by the state's licensing authority, the DOR. The Code authorizes the DOR to adopt emergency rules to implement its provisions. These emergency rules will be adopted by the DOR this summer with a hearing on the rules to be held by September 1, 2010. Those rules will likely impact any regulation adopted by the City. In recognition of this impact, the Code authorizes the City to extend its existing moratorium until the DOR rules become effective. Through Ordinance 1453, Council directed staff to begin investigating and drafting regulations for its consideration concerning medical marijuana dispensaries before the expiration of the moratorium. Staff has presented Council with draft regulations. Those regulations were drafted prior to the enactment of the Code. Council should consider extending the moratorium until the effective date of the DOR rules so that the City's regulations can be consistent therewith. In the interim, Staff will amend the current draft regulations for consideration by Council before the moratorium expires. This will allow the City to develop appropriate regulations in preparation for the state's implementation of this new business licensing model. RECOMMENDATIONS: City staff recommends adoption of this Ordinance. RECOMMENDED MOTION: "I move to approve Council Bill No. 11 -2010 on second reading and that it will take effect upon adoption." Or, "I move to postpone indefinitely Council Bill No. 11 -20 10 extending the moratorium for medical marijuana dispensaries for the following reason(s) " REPORT PREPARED BY: Gerald E. Dahl, City Attorney ATTACHMENTS: 1. Council Bill No. 11 -20 10 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER SANG Council Bill No. 11 Ordinance No. Series 2010 TITLE: AN ORDINANCE EXTENDING THE MORATORIUM ENACTED BY SECTION 2 OF ORDINANCE 1453, SERIES 2009 ON THE SUBMISSION, ACCEPTANCE, PROCESSING, AND APPROVAL OF ANY APPLICATION FOR A CITY OF WHEAT RIDGE PERMIT OR LICENSE RELATED TO THE OPERATION OF A BUSINESS OR COOPERATIVE THAT SELLS OR CULTIVATES MEDICAL MARIJUANA WHEREAS, on September 14, 2009 City Council for the City of Wheat Ridge, Colorado ( "City Council ") adopted Ordinance 1453, Series 2009, which Ordinance enacted a temporary moratorium on the submission, acceptance, processing, and approval of all applications for City permits and licenses relating to the operation of businesses or cooperatives that sell, distribute or cultivate medical marijuana ( "Medical Marijuana Dispensaries "); and WHEREAS, on March 8, 2010, City Council adopted Ordinance 1459, Series 2010, which extended that moratorium until July 13, 2010; and WHEREAS, on November 23, 2009 City Council adopted Ordinance 1457, Series 2009, which extended that moratorium until March 13, 2010; and WHEREAS, one purpose for extending the moratorium was to allow state officials time to address and possibly regulate or limit the operation of Medical Marijuana Dispensaries on a state -wide basis; and WHEREAS, Colorado House Bill 10 -1284 concerning the regulation of the cultivation, sale, distribution and manufacture of medical marijuana on a state -wide basis was signed into law by the Governor on June 7, 2010; and WHEREAS, through House Bill 10 -1284, the General Assembly enacted the Colorado Medical Marijuana Code at Article 43.3 of Title 12, C.R.S. (the "Code "); and WHEREAS, the Code is a new state and local licensing model for the cultivation, sale, distribution and manufacture of medical marijuana which will be implemented by the Colorado Department of Revenue, state's licensing authority; and WHEREAS, the Code authorizes the Colorado Department of Revenue to adopt emergency rules to implement the Code's provisions; and WHEREAS, those rules will likely impact pursuant to subsection 202(1)(b)(1) of the Code, municipalities are authorized to extend any temporary moratorium concerning ATTACHMENT 1 the sale, cultivation, distribution or manufacture of medical marijuana until the effective date of the Colorado Department of Revenue's rules; and WHEREAS, extending the moratorium enacted by Ordinance 1453 until the Colorado Department of Revenue's rules become effective will provide City staff and City Council with additional time to investigate, develop, and if appropriate, adopt and implement regulations with respect to Medical Marijuana Dispensaries consistent with state law; and WHEREAS, proprietors of Medical Marijuana Dispensaries will not be unduly prejudiced by the imposition of such moratorium. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE COLORADO: Section 1. Findings and Intent The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the City Council of the City of Wheat Ridge. Section 2. Upon the adoption of this Ordinance, the moratorium imposed in Section 2 of Ordinance 1453, Series 2009 shall be extended until the rules that are adopted by the Colorado Department of Revenue pursuant to the authority granted it in the Code become effective. The City staff is directed to continue refusing to accept for filing, and not to process or review, any new applications for permits or licenses related to Medical Marijuana Dispensaries during the moratorium period. Section 3. Authority. The City Council hereby finds, determines and declares that it has the power to adopt this Ordinance pursuant to: (i) the Local Government Land Use Control Enabling Act, Article 20 of Title 29, C.R.S.; (ii) Part 3 of Article 23 of Title 31, C.R.S. (concerning municipal zoning powers); (iii) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (iv) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (v) Section 31 -15 -501, C.R.S. (concerning municipal power to regulate businesses); (vi) the authority granted to home rule municipalities by Article XX of the Colorado Constitution; (vii) the powers contained in the City of Wheat Ridge, Colorado Home Rule Charter (the "Charter"); and subsection 12- 43.3- 202(1)(b)(1), C.R.S. (concerning medical marijuana). Section 4. Safety Clause The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Wheat Ridge, that it is promulgated for the health, safety, and welfare of the public and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be attained. Section 5. Severability: Conflicting Ordinances Repealed If any section, subsection or clause of this ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances, parts of ordinances or codes adopted thereby in conflict with the provisions of this ordinance or the code or ordinance adopted hereby are hereby repealed. Section 6. Effective Date This Ordinance shall take effect upon adoption, as permitted by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of 7 to 1 on this 14 day of June, 2010, ordered published by title in a newspaper of general circulation in the City of Wheat Ridge in full on the City's website, public hearing and consideration on final passage set for Monday, the 28 th of June, 2010, at 7 p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of to , this day of 2010. SIGNED by the Mayor on this day of 2010. Jerry DiTullio, Mayor ATTEST: Michael Snow, City Clerk Approved As To Form: Gerald E. Dahl, City Attorney First Publication: June 17, 2010 Second Publication: Wheat Ridge Transcript Effective Date: City of Wheat Midge 1\� 'JA ITEM NO: _ DATE: June 14, 2010 REQUEST FOR CITY COUNCIL ACTION ` PNG�C t q $Eft✓ OMIC V AT bLtY OI � ? ,.BLE 4. °jLya \ lvmexP` on �y�� Pia% `�ip�LA TITLE: COUNCIL BILL NO. 11 -2010 — AN ORDINANCE EXTENDING THE MORATORIUM ENACTED BY SECTION 2 OF ❑ PUBLIC HEARING ❑ BIDS/MOTIONS ❑ RESOLUTIONS QUASI - JUDICIAL: ❑ YES City Attorney am City Manager ISSUE: On September 14, 2009, Council adopted Ordinance 1453, Series 2009, which enacted a temporary moratorium on the issuance or consideration of any City license or permit concerning medical marijuana dispensaries. On March 8, 2010, Council adopted Ordinance 1459 which extended the moratorium until July 13, 2010. One purpose for extending the moratorium was to allow the state to adopt a law concerning the regulation of medical marijuana dispensaries and cultivation operations. The General Assembly enacted House Bill 10 -1284 which regulates the sale, distribution, cultivation, growth and manufacture of medical marijuana throughout the state. Through House Bill 10 -1284, the General Assembly enacted the Colorado Medical Marijuana Code into Article 43.3 of Title 12, C.R.S. (the "Code "). The Code is a new state and local licensing model for the sale, distribution, cultivation, growth and manufacture of medical marijuana and medical marijuana - infused products. The Colorado Department of Revenue ( "DOR ") is named as the state's licensing authority. To implement provisions of the Code, the ORDINANCE 1453 SERIES 2009 ON THE SUBMISSION, ACCEPTANCE, PROCESSING, AND APPROVAL OF ANY APPLICATION FOR A CITY OF WHEAT RIDGE PERMIT OR LICENSE RELATED TO THE OPERATION OF A BUSINESS OR COOPERATIVE THAT SELLS OR CULTIVATES MEDICAL MARIJUANA ® ORDINANCES FOR 1 READING (06/14/2010) ❑ ORDINANCES FOR 2 READING (06/28/2010) Council Action Form June 14, 2010 Page 2 DOR is authorized to adopt emergency rules. The DOR must hold a hearing on those rules by September 1, 2010. Any rules to implement the Code will likely impact any licensing model adopted by the City. The Code authorizes the City to extend its existing temporary moratorium until the effective date of the rules adopted by the DOR. The attached Ordinance will extend the moratorium until that date. This will provide sufficient time for the state to finalize its regulatory model and allow Council to consider appropriate regulations for implementation in the City that are consistent with state law. PRIOR ACTION: Council adopted Ordinance 1453, Series 2009, on September 14, 2009 as an emergency ordinance. Ordinance 1453 enacted a temporary ninety day moratorium on the issuance or consideration of any City license or permit concerning medical marijuana dispensaries. Council adopted Ordinance 1457, Series, 2009, on second reading on November 23, 2009. Ordinance 1457 extended the moratorium in Ordinance 1453 for an additional ninety days. Council adopted Ordinance 1459, Series 2010, on second reading on March 8, 2010. Ordinance 1459 extended the moratorium in Ordinance 1453 until July 13, 2010. FINANCIAL IMPACT: The City will not receive permit or license fees for any new applications concerning medical marijuana dispensaries during the moratorium period. BACKGROUND: In November 2000, the people of the State of Colorado adopted Amendment 20 which amended the Colorado Constitution by adding Article XVIII Section 14 thereto. Under Amendment 20 certain persons are protected from criminal prosecution under state law for the acquisition, possession, production, use or transportation of marijuana for medical purposes. Amendment 20 does not protect those persons from criminal prosecution under federal law. In the spring of 2009, United States Attorney General Eric Holder issued a statement that his office would not seek to prosecute individuals who were acquiring marijuana for medical purposes to the extent that such activity was allowed under state law. As a result of that announcement and limited rule making by the Colorado Department of Public Health and Environment in July of 2009, communities along the Front Range saw a noticeable increase in establishments operating as "medical marijuana dispensaries." Amendment 20 does not discuss "medical marijuana dispensaries" or the retail or for profit sale of medical marijuana. The City enacted the moratorium to allow the state to develop laws regulating medical marijuana operations. On May 12, 2010, the General Assembly adopted House Bill 10 -1284 concerning the regulation of the sale, distribution, cultivation, growth and manufacture of medical marijuana and medical marijuana - infused products. This bill was signed into law by the Governor on June 7, 2010. The bill prohibits primary caregivers from selling medical marijuana for a profit and imposes numerical limits on the number of patients for whom those caregivers can lawfully provide services under Amendment 20. In conjunction with limiting the application of the Council Action Form June 14, 2010 Page 3 provisions in Amendment 20, House Bill 10 -1284 enacts the Code which creates a new state and local licensing model for medical marijuana business operations. This licensing model requires implementation by the state's licensing authority, the DOR. The Code authorizes the DOR to adopt emergency rules to implement its provisions. These emergency rules will be adopted by the DOR this summer with a hearing on the rules to be held by September 1, 2010. Those rules will likely impact any regulation adopted by the City. In recognition of this impact, the Code authorizes the City to extend its existing moratorium until the DOR rules become effective. Through Ordinance 1453, Council directed staff to begin investigating and drafting regulations for its consideration concerning medical marijuana dispensaries before the expiration of the moratorium. Staff has presented Council with draft regulations. Those regulations were drafted prior to the enactment of the Code. Council should consider extending the moratorium until the effective date of the DOR rules so that the City's regulations can be consistent therewith. In the interim, Staff will amend the current draft regulations for consideration by Council before the moratorium expires. This will allow the City to develop appropriate regulations in preparation for the state's implementation of this new business licensing model. RECOMMENDATIONS: City staff recommends adoption of this Ordinance. RECOMMENDED MOTION: "I move to approve Council Bill No. 11 -2010, on first reading, order it published, public hearing set for Monday, June 28, 2010 at 7 p.m. in City Council Chambers, and that it shall take effect upon adoption. Or, "I move to table indefinitely Council Bill No. 11 -2010 extending the moratorium for medical marijuana dispensaries for the following reason(s)-." REPORT PREPARED BY: Gerald E. Dahl, City Attorney ATTACHMENTS: 1. Council Bill No. -2010 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER Council Bill No. 11 Ordinance No. Series 2010 TITLE: AN ORDINANCE EXTENDING THE MORATORIUM ENACTED BY SECTION 2 OF ORDINANCE 1453, SERIES 2009 ON THE SUBMISSION, ACCEPTANCE, PROCESSING, AND APPROVAL OF ANY APPLICATION FOR A CITY OF WHEAT RIDGE PERMIT OR LICENSE RELATED TO THE OPERATION OF A BUSINESS OR COOPERATIVE THAT SELLS OR CULTIVATES MEDICAL MARIJUANA WHEREAS, on September 14, 2009 City Council for the City of Wheat Ridge, Colorado ( "City Council ") adopted Ordinance 1453, Series 2009, which Ordinance enacted a temporary moratorium on the submission, acceptance, processing, and approval of all applications for City permits and licenses relating to the operation of businesses or cooperatives that sell, distribute or cultivate medical marijuana ( "Medical Marijuana Dispensaries "); and WHEREAS, on March 8, 2010, City Council adopted Ordinance 1459, Series 2010, which extended that moratorium until July 13, 2010; and WHEREAS, on November 23, 2009 City Council adopted Ordinance 1457, Series 2009, which extended that moratorium until March 13, 2010; and WHEREAS, one purpose for extending the moratorium was to allow state officials time to address and possibly regulate or limit the operation of Medical Marijuana Dispensaries on a state -wide basis; and WHEREAS, Colorado House Bill 10 -1284 concerning the regulation of the cultivation, sale, distribution and manufacture of medical marijuana on a state -wide basis was signed into law by the Governor on June 7, 2010; and WHEREAS, through House Bill 10 -1284, the General Assembly enacted the Colorado Medical Marijuana Code at Article 43.3 of Title 12, C.R.S. (the "Code "); and WHEREAS, the Code is a new state and local licensing model for the cultivation, sale, distribution and manufacture of medical marijuana which will be implemented by the Colorado Department of Revenue, state's licensing authority; and WHEREAS, the Code authorizes the Colorado Department of Revenue to adopt emergency rules to implement the Code's provisions; and WHEREAS, those rules will likely impact pursuant to subsection 202(1)(b)(1) of the Code, municipalities are authorized to extend any temporary moratorium concerning the sale, cultivation, distribution or manufacture of medical marijuana until the effective date of the Colorado Department of Revenue's rules; and WHEREAS, extending the moratorium enacted by Ordinance 1453 until the Colorado Department of Revenue's rules become effective will provide City staff and City Council with additional time to investigate, develop, and if appropriate, adopt and implement regulations with respect to Medical Marijuana Dispensaries consistent with state law; and WHEREAS, proprietors of Medical Marijuana Dispensaries will not be unduly prejudiced by the imposition of such moratorium. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE COLORADO: Section 1. Findings and Intent The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the City Council of the City of Wheat Ridge. Section 2. Upon the adoption of this Ordinance, the moratorium imposed in Section 2 of Ordinance 1453, Series 2009 shall be extended until the rules that are adopted by the Colorado Department of Revenue pursuant to the authority granted it in the Code become effective. The City staff is directed to continue refusing to accept for filing, and not to process or review, any new applications for permits or licenses related to Medical Marijuana Dispensaries during the moratorium period. Section 3. Author! . The City Council hereby finds, determines and declares that it has the power to adopt this Ordinance pursuant to: (i) the Local Government Land Use Control Enabling Act, Article 20 of Title 29, C.R.S.; (ii) Part 3 of Article 23 of Title 31, C.R.S. (concerning municipal zoning powers); (iii) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (iv) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (v) Section 31 -15 -501, C.R.S. (concerning municipal power to regulate businesses); (vi) the authority granted to home rule municipalities by Article XX of the Colorado Constitution; (vii) the powers contained in the City of Wheat Ridge, Colorado Home Rule Charter (the "Charter"); and subsection 12- 43.3- 202(1)(b)(1), C.R.S. (concerning medical marijuana). Section 4. Safety Clause The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Wheat Ridge, that it is promulgated for the health, safety, and welfare of the public and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be attained. Section 5. Severability: Conflicting Ordinances Repealed If any section, subsection or clause of this ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances, parts of ordinances or codes adopted thereby in conflict with the provisions of this ordinance or the code or ordinance adopted hereby are hereby repealed. Section 6. Effective Date This Ordinance shall take effect upon adoption, as permitted by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of to on this 14 day of June, 2010, ordered published by title in a newspaper of general circulation in the City of Wheat Ridge in full on the City's website, public hearing and consideration on final passage set for the 28 of June, 2010, at 7 p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of to , this day of 2010. SIGNED by the Mayor on this day of 2010. Jerry DiTullio, Mayor ATTEST: Michael Snow, City Clerk Approved As To Form Gerald E. Dahl, City Attorney First Publication: Second Publication: Wheat Ridge Transcript Effective Date: cmLl KN Q=WArLEDGE Medical Marijuana Update, June 2010 The voice of Colorado" Ci[ies ana Towns INFORMATION KNOWLEDGE NOW: MEDICAL MARIJUANA UPDATE By Rachel Allen, Colorado Municipal League staff attorney The Knowledge Now series features practical research on timely topics from the Colorado Municipal League. This information is of a general nature and should not be interpreted as legal advice. Local facts determine which laws may apply and how, so you should always consult your municipal attorney before proceeding. MEDICAL MARIJUANA HAS BEEN the subject of an unprecedented number of inquiries from cities and towns across Colorado. In an effort to keep you informed of the latest developments in this dynamic area of the law, CML is releasing this Knowledge Now to provide an overview of the key medical marijuana bills passed during the 2010 Legislative Session. Senate Bill 10 -109 SB 10 -109 concerns the relationship between physicians and patients. The bill intends to prevent fraud and abuse in obtaining a medical marijuana recommendation from a doctor. SB 10 -109 requires patients to undergo a physical examination by a M.D. or a D.O. to receive a recommendation for medical marijuana and prohibits doctors from being compensated by dispensaries. House Bill 10 -1284 HB 10 -1284 concerns the regulation of medical marijuana. The bill sets up a dual licensing scheme similar to liquor licensing. Municipalities have the authority to allow or prohibit dispensaries, and that option can be exercised in two ways: by city council or town board action or by referring a question to the voters.' Citizens also may initiate a measure. If the municipality chooses to license medical marijuana facilities, they have broad latitude in drafting a local licensing ordinance. Local ordinances may be more stringent than the requirements of the state statute. Licensees are required to obtain a local license before applying for the required state license. 1 C.R.S. § 12 -43.3 -310 HB 1284 includes a number of provisions popular in local ordinances. The bill imposes a 1,000 -foot spacing requirement from schools, residential childcare facilities, and drug treatment facilities, but it allows local governments to "vary' this distance requirement to make it more or less strict 2 The bill expressly requires licensees to comply with local sign and zoning codes. It limits the hours of operation for medical marijuana facilities from 8 a.m. to 7 p.m. The bill prohibits on -site consumption of medical marijuana. HB 1284 was amended late in the process to allow for limited home delivery to certain home- bound patients. The location of grow operations must be kept confidential. The bill expressly states that it is not intended to preempt any existing local government powers. The bill gives equal licensing authority to statutory and home rule municipalities. Local opt-out The bill allows local governments to completely opt -out of the law, effectively prohibiting the commercial growth, manufacturing, and sale of medical marijuana products. Municipalities may choose to do so through legislative action of the governing body or through a popular vote .6 Municipalities may not prohibit patients from growing their own medical marijuana or a caregiver from providing medical marijuana for up to five patients. Go to wwwcml.org, Information > On the issues > Medical marijuana, 2 C.R.S. § 12 -43.3 -308 3 C.R.S. § 12- 43.3- 901(4)(a); C.R.S. § 12- 43.3 -308 (1)(c) 4 C.R.S. § 12 -43.3- 310(14) 5 C.R.S. § 12 -43.3- 305(3) 6 C.R.S. § 12 -03.3 -106 for sample opt -out ordinances and referred ballot questions. Local licenses Applicants are required to obtain a local license before gaining the requisite state license. Licenses are granted for a period of two years. Enforcement authority exists at both the state and local level. The Colorado Department of Revenue will set up an entirely new enforcement division to administer and enforce the new licensing program. There are three types of local licenses: Medical Marijuana Center, Optional Premises Cultivation Operation, and Infused Products Manufacturing. The Medical Marijuana Center license is for retail sales facilities (i.e. dispensaries) where patients may register to obtain medical marijuana sold in various forms. The center must verify that it grows 70 percent of its product, so the Cultivation Operation and Center Licenses must be joined into a vertical grow operation.? Before the passage of HB 1284, dispensaries were operating under the theory that they qualified as caregivers under Amendment 20. Now dispensaries will be required to obtain a Medical Marijuana Center License. HB 1284 recognizes that medical marijuana centers are a statutory creation and are not protected by Section 14, Article XVIII of the Colorado Constitution. The Optional Premises Cultivation license is for grow facilities operated by a medical marijuana center. This license must be held in common ownership with a medical marijuana center license. 7 C.R.S. § 12.43.3- 103(2)(b) JUNE 2010 COLORADO MUNICIPAL LEAGUE The Infused Products Manufacturing license is for facilities that contract with medical marijuana centers to prepare food, ointments, tinctures, or other marijuana infused products. HB10 -1284 leaves it to each local government to define the person or entity that will act as the local licensing authority.BA municipality may consider creating a medical marijuana licensing authority similar to its liquor licensing authority. The city manager, municipal judge, council or board, or a citizen authority are among the options to designate as the local licensing authority. Go to www.cmLorg, Information > On the issues > Medical marijuana, for sample local licensing and regulation ordinances. Background checks Before a license is granted, the applicant must pass a background check including criminal history. Additionally, HB 1284 emphasizes conducting criminal background checks on individual employees of licensees.' Background checks will be administered by the state, but there is no limitation on requirements for local background checks. HB 10 -1284 imposes Colorado residency requirements on both licensees and employees. Because significant numbers of people have reportedly migrated to Colorado in the past year to participate in the medical marijuana industry, fair and consistent implementation of the residency requirement likely will be a focus for state and local regulators. The new law does not define "residency;" therefore, requirements and documentation related to proof of residency should be further clarified in upcoming state rulemaking. The medical marijuana licensing scheme has an extensive system of employee registration requirements, entirely administered by the state licensing authority. HB 1284 requires licensees to establish that they have 8 C.R.S. § 12 -43.3- 104(5) 9 C.R.S. § 12 -43.3 -307 (1)(a)(V) and (IX) 10 C.R.S. §§ 12 -43.3 -307 (1)(a)(XIII), 12 -43 -310 (6) been residents of Colorado since Dec. 15, 2009, or, for anyone who applies after Dec. 15, 2010, they must have been a resident for two years. Once licensed, all owners, managers, officers and employees must be Colorado residents. HB 1284 contains a broad set of disqualifers from licensing based upon prior convictions, persons determined not to be of "good moral character," and other factors. For example, HB 1284 appears to categorically disqualify any person who has ever been convicted of a felony involving controlled substances, regardless of when the felony occurred, but the statute goes on to suggest that an applicant can present evidence of ,. rehabilitation" to overcome the disqualification." Enforcement The bill provides much better clarity on the definition of "primary caregivers." It contains numerous provisions for strengthening the state medical marijuana registry system and requiring clearly documented linkages between patients, primary caregivers, and centers. Most significantly, the bill requires that caregivers be registered with the state, codify the presumptive 1 -5 ratio of caregivers to patients, and codify the principle that merely supplying medical marijuana to a patient does not make a person a primary caregiver. The bill regulates the sourcing of medical marijuana by specifying that registered patients may obtain medical marijuana by selecting one of the following choices: the patient can grow his or her own medical marijuana; the patient can obtain medical marijuana from a "primary caregiver" who can grow the marijuana, and who must be registered with the state; or the patient can obtain medical marijuana from a licensed medical marijuana center. In turn, each center must obtain medical marijuana from its own plants, from another center, or from a medical marijuana infused products manufacturer, but not from any other source. 11 C.R.S. § 12 -43.3 -307 (1)(a)(VIII), C.R.S. § 1243.3 -307 (2)(a) 12 C.R.S. § 25- 1.5- 106(5)(c) HB 10 -1284 places a greater emphasis on medical marijuana quantity - control. Licensees are presumptively limited to six plants per patient, and the transfer of medical marijuana between centers is limited to 30 percent of inventory. Key implementation dates July 1, 2010 is the effective date for most of the provisions of the bill. On July 1, 2010, existing operations (and those that have applied for a license that is subsequently granted) will be allowed to continue operating under applicable local laws until June 30, 2011. Existing dispensaries will be required to file for a state license and pay a fee by Aug. 1, 2010. For local licenses issued after Aug. 1, 2010, the licensee must apply to the state for an interim state license within 30 days. Medical marijuana centers must certify to the state that they grow 70 percent of their product by Sept. 1, 2010. By Sept. 1, 2010, the Colorado Department of Revenue and the Department of Public Health and Environment must conduct a public review hearing to get the input of stakeholders in the rulemaking. Medical marijuana - related businesses that have been locally licensed anywhere in Colorado, or have applied for a local license by July 1, 2010, can continue in existence and remain lawful until July 1, 2011, so long as they apply for an interim license from the state by Aug. 1, 2010, and certify grow requirements by Sept. 1, 2010. On July 1, 2011, only operations licensed by both the state and local licensing authorities under the provisions of HB 10 -1284 will be lawful. Medical marijuana - related businesses should be complying with any local regulatory restrictions or requirements (including moratoria) prior to July 1, 2011. All medical marijuana centers, optional premises grow operations, and medical marijuana- infused 13 C.R.S. § 12- 43.3 -4(e) 14 C.R.S. § 12- 43.3- 103(1)(a) 15 C.R.S. § 12- 43.3- 103(1)(b) 16 C.R.S. § 12- 43.3- 103(2)(b) 17 C.R.S. § 12- 43.3- 103(2)(c) COLORADO MUNICIPAL LEAGUE KNOWLEDGE NOW products manufacturers will be required to obtain a new state and local license to lawfully operate on and after July 1, 2011. The bill is silent as to when forms and processes will be available to begin processing these new types of licenses, but the bill implies that the application process will begin later in 2010. Fees and taxes Local governments have broad discretion to set fees to cover the cost of administration and enforcement. Local licensing fees are entirely determined locally and not dictated by statute. State and local sales tax apply to the sale of medical marijuana products, but there is a qualified state exemption for indigent patients. The provision indicates that the exception will be enjoyed by any patient who receives a fee - waiver as an indigent when the patient registers for his or her medical marijuana card. Another option for local government is to levy an additional tax on the sale of medical marijuana products. For example, Fruita voters approved a 5 percent excise tax in April 2010. Public hearings HB 10 -1284 does not require a finding of "needs and desires," and there is no requirement for public hearings prior to issuance of licenses. Public hearings for all classes of licenses are made optional by the bill 2 The bill grants local option to determine whether or not to conduct public hearings prior to issuing licenses. What's to come While many of the questions about how the state will address medical marijuana have been answered by HB 10 -1284, the legislation is ambiguous in some instances and will require further clarification through rulemaking and potential legislative action in the 2011 session. It is anticipated that many details will be addressed in the upcoming Department of Revenue rulemaking. CIVIL staff will continue to provide updates on items of interest, as well as to distribute guidance documents and respond to questions from members. 18 C.R.S. §§ 12 -43.3- 301(1); 12133.3- 503(2) 19 C.R.S. § 39 -26 -726 20 C.R.S. § 12 -43.3- 302(1) Efforts to develop material that is more detailed are underway. Staff will electronically distribute any guidance documents, sample opt -out ordinances, sample opt -out referred questions, and sample local licensing and regulation ordinances as they become available. Unless otherwise noted in future communications, these and other sample documents are available on CMUs Web site under Information > On the issues > Medical marijuana. Finally, CIVIL will be convening a small, ad hoc group to assist CIVIL staff on several issues where guidance and specific expertise is needed. In particular, the group will be asked to assist in requests and recommendations for specific outcomes when the Department of Revenue holds rulemaking proceedings later this year. Recommendations for technical and substantive changes in the 2011 legislative session to HB 10 -1284 may be developed by this group. For more information, watch CMUs Web site and your email inbox. Please do not hesitate to contact CIVIL if you have any questions. Please direct questions to Kevin Bommer at kbommer @cml.org, Rachel Allen at rallen @cml.org, or Mark Radtke at mradtke @cml.org. All three can also be reached at 303 -831 -6411 or 866- 578 -0936. JUNE 2010 COLORADO MUNICIPAL LEAGUE FAQ: MEDICAL MARIJUANA UPDATE By Rachel Allen, CML staff attorney The FAQ column features frequently asked questions submitted to the Colorado Municipal League. This information is of a general nature and should not be interpreted as legal advice. Local facts determine which laws may apply and how, so you should always consult your municipal attorney before proceeding. Q: When can a municipality opt out of having medical marijuana facilities within its jurisdiction? A: As soon as July 1, 2010, with no expiration date in the future 2 Q: How can municipalities prohibit medical marijuana centers, grow operations, and manufacturing under HB 10 -1284? A: Initiative, referendum, or council or board legislative action. If your council or board opts to refer the measure, then be mindful of the timeline to get on the November ballot if you elect to refer the measure to the voters. Q: Can municipalities enact local bans on caregivers and /or patients? A: No. Caregivers and patients are protected by Section 14, Article XVIII of the Colorado Constitution; therefore, local governments cannot prohibit patients or caregivers. Q: Is there a moratorium on new medical marijuana facilities from July 1, 2010 until July 1, 2011? A: Local licenses can only be issued to applicants who have filed before July 1, 2010. Q: Are existing medical marijuana businesses grandfathered in or precluded from complying with the requirements of HB 10 -1284? A: There is no grandfathering for dispensaries in existence that do not comply with the state and local regulations. The most likely issue will be with the distance requirements, and the spacing requirements in HB 1284 contain no grandfathering or "look -back" provision that would exempt existing medical marijuana businesses. 21 C.R.S. § 12- 43.3- 103(2)(a) COLORADO MUNICIPAL LEAGUE Q: Must existing dispensaries comply with HB 10 -1284 by the July 1, 2010 or July 1, 2011 deadline? A: July 1, 2011, with the exception of the Aug. 1, 2010 requirement to pay a fee and the Sept. 1, 2010 requirement to grow 70 percent of their own product. Q: When will acceptance of applications under the new dual licensing system actually begin? A: The answer to this question will be addressed in the upcoming Department of Revenue rulemaking. HB 1284 implies that to be a lawful commercial cultivator, manufacturer, or retailer of medical marijuana after July 1, 2011, a business will be required to be licensed in accordance with the new statute. However, the bill does not specify when the new local and state license applications will actually begin to be accepted and processed in order to meet this deadline. This timeline is important to local governments, because under the dual licensing structure, local licensing authorities will be the initial point of intake for all licensing applications and will require time to process the applications they receive. Furthermore, local governments need to know the timeline for applications under the new state law in order to adopt and have in place supplemental licensing and operational regulations for those communities that choose to do so, or in order to opt -out of licensing entirely before the application process actually begins. Q: How can a local government hold public hearings if the location of the optional premises cultivation operation must be kept confidential? A: The late amendment to HB 1284 requiring confidentiality for records 22 C.R.S. § 12 -43.3 -103 (2)(c) of licensed medical marijuana grow operations may pose significant difficulties for local governments 2 The language in the bill appears to broadly encompass both the paperwork associated with the granting of an optional premises cultivation license and any record related to the location of the facility. This may include zoning records, building code inspection records, law enforcement records, etc. The law is ambiguous as to what, if any, sanction or penalty will be applied to a local government official who violates these confidentiality requirements. These provisions of HB 1284 may in practicality make it impossible to conduct any sort of public process regarding to the granting of optional premises cultivation licenses, but it does not comport with other language elsewhere in the bill that would have clearly allowed local licensing authorities to conduct public hearings on any class of license, including optional premises cultivation licenses. Hopefully, this issue will be addresses in the Department of Revenue rulemaking or changes to HB 10 -1284 in the 2011 legislative session. Q: Is it possible for a municipality to license a medical marijuana center within its jurisdiction if the medical marijuana will be grown in an optional premises licensed in another jurisdiction? Or, is it necessary to obtain local licenses for a medical marijuana center and an optional premises from the same jurisdiction? A: This is not specifically stated in HB 1284. An optional cultivation license can only be issued in conjunction with a medical marijuana center license. Obviously, a council or board cannot issue a 23 C.R.S. §§ 24 -72 -202 (6)(b)(XIII); 12- 43.3 -310 (14) KNOWLEDGE NOW license for any operation in another jurisdiction. The issue should be clarified when the Department of Revenue regulations are written that will address the requirements that medical marijuana centers grow 70 percent of their own product. Q: Will primary caregivers have to be registered? If so, how? A: Yes. The bill places a new mandate on the Colorado Department of Public Health and Environment ( CDPHE) to begin registering caregivers to be implemented beginning July 1, 2010. CDPHE also is charged with enforcing the 1 -5 maximum ratio of care - givers to patients and other regulations related to caregivers 2 The stricter documentation and regulation of "primary caregivers" in HB 10 -1284 will be of tremendous assistance to local law enforcement to determine exactly who is or is not subject to criminal prosecution under Section 14, Article XVIII of the Colorado Constitution. Practically speaking, however, it is uncertain when the CDPHE will be fully mobilized to implement and enforce the new requirements for primary caregivers. Q: Can primary caregivers profit off of the sale of medical marijuana to licensed patients? A: No. A primary caregiver may not charge a patient more than the cost of cultivating or purchasing the medical marijuana, but may charge for caregiver services2 Q: Will patients have to register the source of their medical marijuana? A: Yes. HB 1284 assumes that registered patients must make an election of their medical marijuana source to CDPHE between self - grow, a caregiver, or a center 24 C.R.S. § 25 -1.5 -106 (5) and (6) 25 C.R.S. § 25- 1.5- 106(6)(d) starting July 1, 201 0 2 This new requirement was apparently intended to implement the letter and spirit of Section 14, Article XVIII of the Colorado Constitution regarding the limitation on the quantity of medical marijuana that any patient can lawfully possess. If the patient must officially designate his or her source, there is less chance of obtaining excessive quantities of medical marijuana by tapping multiple sources. However, licensed centers will not truly exist under the law until July 1, 2011. 26 C.R.S. § 25 -1.5 -106 (6)(f) JUNE 2010 COLORADO MUNICIPAL LEAGUE woe oo'qbpiy 1 ' 416Z'AA 009L 96PN WOW 10 AID euo;suqop UG)4 -�f4evx- 3 �� ea NJUFZRAY a. nAF-t L. ;�_ '.�'LiEG� -lEN h4 EiSTEf� . RENFIU� LLP ATfOW E" AT LAW TO: Mayor Jerry DiTullio and City Council THROUGH: Randy Young, City Manager FROM: Gerald Dahl, City Attorney; Dan Brennan, Chief of Police and Ken Johnstone, Director of Community Development DATE: May 28, 2010 RE: Medical Marijuana Licensing and Regulation Recently the General Assembly adopted House Bill 10 -1284 concerning the regulation of medical marijuana. Through the bill, the General Assembly legalized medical marijuana businesses and clarified terms used in Amendment 20 to the Colorado Constitution. Significantly, House Bill 10 -1284 changes the concept under which existing medical marijuana dispensaries will be able to continue in operation. Dispensaries will no longer be able to operate as "primary caregivers" under Amendment 20, but instead, those businesses will have to obtain state and local licenses to operate as "medical marijuana centers" with "optional premises cultivation operations." In addition, House Bill 10 -1284 creates a new type of a business called a "medical marijuana - infused products manufacturer." If the City chooses to allow the operation of these medical marijuana businesses in the community, the City must license those businesses by, at a minimum, following the state's procedural guidelines as outlined in House Bill 10 -1284. Alternatively, House Bill 10 -1284 authorizes the City to ban medical marijuana businesses from operating in the City. To consider those alternatives, House Bill 10 -1284 also authorizes the City to extend its existing moratorium until the effective date of rules adopted by the Colorado Department of Revenue ( "DOR ") to implement bill's provisions. The purpose of this memorandum is to present an update to the Mayor and City Council on House Bill 10 -1284 and to request from Council further direction on how to proceed with appropriate licensing and regulation, or banning, of medical marijuana businesses in the City. The following documents are attached for your reference: • The "Bill Summary" for House Bill 10 -1284; • A memorandum summary of House Bill 10 -1284 from this office; • A copy of the existing Wheat Ridge draft ordinance concerning medical marijuana; and • A copy of the City of Lakewood ordinance concerning medical marijuana dispensaries. Options for Council Action Staff is proposing the following options for Council's consideration: 1. Extend the City's moratorium until the effective date of rules adopted by the DOR. 2. Adopt the City's ordinance with changes consistent with House Bill 10 -1284. 3. Adopt an ordinance similar to the City of Lakewood's ordinance. 4. Adopt an ordinance banning medical marijuana businesses from operating in the City. Option 1 - Extend the City's moratorium until July 1, 2011. Last year, the City adopted a moratorium concerning medical marijuana dispensaries which is set to expire on July 13, 2010. One of the purposes of the moratorium was to allow the state to adopt provisions so that any City regulation of medical marijuana businesses would be consistent with that law. In adopting House Bill 10 -1284, the General Assembly has now created a licensing and regulatory scheme for medical marijuana businesses. However, to implement House Bill 10 -1284, the state's licensing authority, the DOR, is authorized to adopt emergency rules and regulations for medical marijuana businesses. Those rule making sessions are required to begin immediately with a public hearing on the rules and regulations to be conducted by September 1, 2010. Any regulations adopted by the DOR will likely impact any regulations adopted by the City. The General Assembly recognized this issue and authorized a municipality with an existing moratorium to extend that moratorium until the DOR rules become effective. In addition, House Bill 10 -1284 contains some restrictive dates for legitimizing existing medical marijuana businesses. All medical marijuana businesses that seek to be grandfathered under the bill must be considered "established" by June 30, 2010. To be established, a medical marijuana business must have an existing local business or tax license or have submitted an application for such license to a municipality that is eventually granted. The City currently has three (3) existing medical marijuana businesses that can be considered established under those provisions. Unfortunately, because the City's moratorium does not end until July 13, 2010, no new business is currently able to be grandfathered in the City. In consideration of the issues described above, Staff recommends that Council extend the City's moratorium in accordance with House Bill 10 -1284, to the effective date of the DOR rules. This will provide the City with sufficient time to adopt appropriate rules and regulations in furtherance of House Bill 10 -1284. Option 2 - Adopt the City's ordinance with changes consistent with House Bill 10 -1284. Attached to this memorandum is the current draft of the City's ordinance licensing and regulating medical marijuana establishments. This ordinance needs to be amended to harmonize its provisions with that of House Bill 10 -1284. Some changes to the City's ordinance required by House Bill 10 -1284 include: o Primary caregivers cannot be licensed to operate a medical marijuana business under House Bill 10 -1284. The City's ordinance was drafted based on the premise that the terms in Amendment 20 controlled who was lawfully allowed to possess and distribute medical marijuana. As such, the City's ordinance only authorized "primary caregivers" to operate medical marijuana dispensaries. Under House Bill 10 -1284, that premise has changed, and primary caregivers are prohibited from operating medical marijuana businesses. In addition, House Bill 10 -1284 limits the number of patients for whom a primary caregiver may provide services. As a result, the City's definitions will have to be amended accordingly. House Bill 10 -1284 authorizes local governments to license three types of medical marijuana businesses. The City's ordinance only includes two types of medical marijuana establishments whereas House Bill 10 -1284 authorizes local governments to issue the following medical marijuana business licenses: 1. A medical marijuana center license; This is a license for a business "that sells medical marijuana to registered patients or primary caregivers ... but is not a primary caregiver." 2. A medical marijuana- infused products manufacturer license. This is a license for a business that manufacturers a product containing medical marijuana for use or consumption by a patient. Examples of products include edibles, tinctures and ointments. The City's ordinance does not contemplate this type of operation. Council should consider whether to authorize operation of such facilities in the City. 3. An optional premises cultivation operation license, This is a license that can only be issued to either a medical marijuana center or a medical marijuana- infused products manufacturer for a location in which the licensee is authorized to grow and cultivate medical marijuana. o House Bill 10 -1284 prohibits medical marijuana businesses from operating within 1000 feet of certain locations. The City's draft ordinance prohibits medical marijuana establishments from operating within 500 feet of schools, child care facilities or drug treatment and rehabilitation centers. House Bill 10- 1284's limitation is 1000 feet. However, House Bill 10 -1284 authorizes the City to adopt less stringent distance requirements. Thus, the 500 feet distance provision may remain as is in the City's ordinance. o House Bill 10 -1284 requires that local governments name a local licensing authority. House Bill 10 -1284 requires all local governments issuing licenses to medical marijuana businesses to name a local licensing authority. Council may designate an administrative office or a division thereof, such as the Tax and Licensing Division of the City Manager's office, as that local licensing authority. Alternatively, Council may designate a deliberative body, like the City's Liquor Authority, as the local licensing authority. Staff recommends that Council name the Tax and Licensing Division of the City Manager's office as the City's local licensing authority for medical marijuana businesses. Although, the Liquor Authority has expressed interest in becoming the licensing authority for medical marijuana business, staff contends that such body would make the process less efficient and effective because the requirements of House Bill 10 -1284 are detailed and technical. As such, a citizen committee is unprepared to interpret and apply those requirements. Naming an administrative office is preferable because it is will be more efficient. For instance, regardless of who is named as the City's licensing authority, City staff will be involved in processing license applications. By naming a new or existing deliberative body as the licensing authority, City staff will be required to expend additional time advising that body. This would include members of the Police Department, the Planning Department and the City Attorney's office all assisting the deliberative body's application of the law. That would likely lead to a costly process. Option 3 - Adopt an ordinance with provisions similar to the City of Lakewood's ordinance. Attached to this packet is the City of Lakewood ordinance concerning medical marijuana dispensaries. Council should note that this ordinance was adopted prior to the General Assembly adopting House Bill 10 -1284. Thus, this ordinance needs to be amended so that it is in harmony with House Bill 10 -1284 prior to its consideration by Council. The purpose of including this ordinance is to allow Council to consider a more stringent type of regulatory scheme. Lakewood's ordinance includes the following more stringent provisions: o Limits the location of medical marijuana dispensaries from operating within three quarters of a mile of another medical marijuana facility. Under this provision, no medical marijuana clinic would be authorized to operate within three quarters of a mile of an existing medical marijuana clinic. This is a significant restriction on operation that is not contemplated in the City's draft ordinance. House Bill 10 -1284 would allow this type of more stringent zoning regulation. o Only allows cultivation of marijuana on -site at the retail outlet locations. The current draft of the City's ordinance requires all medical marijuana growing facilities to be off -site of a medical marijuana clinic location. The purpose for distinguishing between the retail clinic location and the industrial growing facility in the City's ordinance was due to the potential land use impacts associated with an operation that grows marijuana. The land use impacts from growing operations may include additional electrical power usage, significant water use, chemicals and odors associated with growing plants. Those types of impacts are typically not conducive to retail locations. Thus, the City's ordinance limited growing operations to its industrial districts. If on -site cultivation is required at all medical marijuana clinic locations, Council should consider whether to prohibit medical marijuana clinics from operating in the City's commercial districts due to the potential land use impacts from cultivation operations. Under the City's draft ordinance zoning limitations, all cultivation operations must occur in the City's industrial districts. As a result, with a combined retail and cultivation operation, all of the City's medical marijuana retail outlets would be pushed into the City's industrial districts. The Police Department does not support this position. Rather, in their professional opinion, it would be safer to keep all medical marijuana retail outlets and cultivation operations in commercial districts. If Council would like to follow the Lakewood ordinance format, Staff seeks guidance from Council concerning the following two issues: - Should the City require that all medical marijuana cultivation operations occur on -site at a retail medical marijuana clinic location? - Should the City require that those combined operations be limited to industrial districts? Option 4 - Adopt an ordinance that bans medical marijuana businesses from operating in the City. House Bill 10 -1284 contains a local opt out provision authorizing local governments to prohibit the operation of medical marijuana businesses from operating in those communities. There are two methods by which a local government may exercise this opt out provision: o By a vote of a majority of registered electors of the local government at a regular or special election; or 4 o By a vote of a majority of the members of the governing board of the local government. Here, Council, acting as the governing board for the City, may, by majority vote, ban medical marijuana businesses from operating in the City. Alternatively, Council could refer this question to the voters of Wheat Ridge, by calling for a special coordinated election. This election would be coordinated with the statewide election set for November 2, 2010. If Council decides to pursue this route, then Staff recommends that Council also adopt the moratorium recommended in Option 1 of this memorandum to provide the City with sufficient time to consider alternatives should a vote not result in a ban. ATTACHMENTS: 1. The 'Bill Summary" for House Bill 10 -1284 2. A memorandum summary of House Bill 10 -1284 from this office 3. A copy of the existing Wheat Ridge draft ordinance concerning medical marijuana 4. A copy of the City of Lakewood ordinance concerning medical marijuana dispensaries 5 Second Regular Session Sixty- seventh General Assembly STATE OF COLORADO REREVISED This Persion Includes d(t �I mendmenls 11dopled in the Second House LLS NO. 10- 0773.02 Michael Dohr HOUSE SILL 1 0 -1284 HOUSE SPONSORSHIP Massey and Summers, McCann, Rice SENATE SPONSORSHIP Romer and Spence, m F v m a EW+ S o g n e House Committees Senate Committees Judiciary Local Government and Energy a Appropriations Appropriations m A BILL FOR AN ACT v ° W C o 10I CONCERNING REGULATIONOFMEDICALNIARTT [1ANAND,IAIGtIIT V 102 1 kR01'1tITION 1BEREF71 m ld m E Bill Summary (Note: This summary applies to this bill as introduced and does b not reflect any amendments that may be subsequently adopted Ifthis bill 5 passes third reading in the house of introduction, a bill sunmlary that N G N applies to the reengrossed version of this bill will be available at o F hitp://wrvw, leg .state.co.zcs /billsztmnzaries.) x v a a Q Section 1. The bill creates the medical marijuana licensing authority (state licensing authority) in the department of revenue. The state licensing authority grants, refuses, or renews a medical marijuana center license after the licensee has received local approval. The state b licensing authority also administers aspects of medical marijuana o w 2 N. a m b tl o O N N P{ yid"; g;,, Double underlinine denotes SENATE amendment v Q , Capital letters indicate new material to be added to avisting statute. Q Dashes through the words Indicate deletions from existing statute. m e a ATTACHMENT 1 licensure, including rulemaking. Many of the functions and duties of the state licensing authority are similar to those held by the state licensing authority for alcoholic beverages. Section 2. Under the bill, the department of public health and environment (department) will promulgate new rules related to standards for issuing registry identification cards, documentation for physicians who prescribe medical marijuana, and sanctions for physicians who violate the bill. A physician who certifies that a patient can use medical marijuana shall certify certain information to the department and maintain a record - keeping system for his or her medical marijuana patients. A physician who certifies that a patient can use medical marijuana shall not receive remuneration from or offer it to a primary caregiver, distributor, or any other provider of medical marijuana. The bill requires patients under 21 years of age who want to be registered medical marijuana patients to receive recommendations from 2 doctors. A primary caregiver may serve no more than 5 patients on the registry at one time, unless the department allows more patients due to exceptional circumstances. A patient who is permitted to use medical marijuana must have in his or her possession a registry identification card at all tines when in possession of medical marijuana. The bill lists various places and situations in which the patient or primary caregiver may not use or possess medical marijuana. Aphysician who certifies that a patient can use medical marijuana may not receive remuneration from a primary caregiver related to medical marijuana or from a medical marijuana center. The bill imposes a one -year moratorium on the opening of new medical marijuana centers, but allows current medical marijuana centers to operate for a year before becoming licensed. Section 3. The bill provides an exception to the adulterated food offenses for medical marijuana centers that manufacture or sell food that contains medical marijuana if the food is labeled as containing medical marijuana and the label specifies the amount of medical marijuana. Sections 4, 5, and 6 make conforming amendments. 2 Be it enacted by the General Assembly of the State of Colorado: M 5I9 �.__.� 1 ffi A F 1 L tore 4 c143 -2- 1284 s ns r Ft M K� Fr: ;..a t: -rte. ':•k_i TF_R ATTORNEYS AT LAW MEMORANDUM TO: Mayor Jerry DiTullio and City Council FROM: Gerald E. Dahl DATE: May 28, 2010 RE: House Bill 10 -1284 concerning medical marijuana In May 2010, the Colorado General Assembly adopted House Bill 10 -1284 concerning the regulation of medical marijuana which was first legalized in this state under Amendment 20 to the Colorado Constitution. In addition to further clarifying the terms used in Amendment 20, House Bill 10 -1284 legalizes and creates a framework for the distribution, sale, cultivation and manufacture of medical marijuana and medical marijuana- infused products. The purpose of this memorandum is to summarize House Bill 10 -1284, provide a review of the legalization of marijuana under Amendment 20, and finally, to take an indepth look at the provisions of House Bill 10- 1284 . I. Summary of House Bill 10 -1284 a. Major Provisions. House Bill 10 -1284 concerning the regulation of medical marijuana does the following: - Adopts the "Medical Marijuana Code," C.R.S. §§ 12- 43.3 -101 et seq. that creates a state and local licensing model for two types of medical marijuana business operations: • The medical marijuana center; and • The medical marijuana- infused products manufacturer. - Creates a third license for optional premises cultivation operations that can only be acquired by either a licensed medical marijuana center or a licensed medical marijuana - infused products manufacturer. Authorizes local governments to ban the operation of medical marijuana business from operating in their communities. This memorandum does not include a specific reference to each provision in House Bill 10 -1284. For more information, please refer to the bill. It can be located at: http: / /www.leo. state. co. us / CLICS/ CLICS2010A/ csl .nsf /fsbilicont3 /OC6B6577EC6DB1 E8872576A80029D7 E2 ?Open &file =1284 enr.odf ATTACHMENT 2 Places a one year moratorium on the opening of new medical marijuana businesses starting July 1, 2010 and ending July 1, 2011. Requires medical marijuana centers to grow 70% of their marijuana. Authorizes medical marijuana centers to sell medical marijuana to other medical marijuana centers. Requires all medical marijuana sold in medical marijuana centers and used in medical marijuana- infused products manufacturing to be grown in the State of Colorado. Only permits Colorado residents to obtain licenses. Requires license applicants to disclose all persons who have a financial interest in obtaining the license. There is no exception from this reporting requirement. Requires all owners, officers, manager, contractors, employees and other support staff working for a medical marijuana center or a medical marijuana- infused products manufacturer to obtain state identification cards. Limits a primary caregiver to serving five patients absent extraordinary circumstances. Names the Colorado Department of Revenue as the state's licensing authority and authorizes the Department to adopt emergency regulations to implement House Bill 10- 1284. b. Important Dates. o December 15, 2009 The date by which an individual must have established Colorado residency in order to obtain a medical marijuana business license. o June 30, 2010 The last date in 2010 by which new medical marijuana businesses can become "established" under state law. To be established, a business must have an existing state or local business /tax license or have submitted an application for such license that is eventually granted. •July 1, 2010 The starting date of the state's moratorium. No new medical marijuana businesses may be established after that date until July 1, 2011. •August 1, 2010 The date by which established medical marijuana businesses must submit an application for an interim state license to operate unless the business was still in the process of receiving their local license. Those in- process applicants have thirty (30) days following issuance of a local license to obtain a state license. • September 1, 2010 The date by which all established medical marijuana businesses must certify to the state that they are cultivating at least 70% of the marijuana that they sell at retail. o September 1, 2010 The date by which the Department of Revenue and the Colorado Department of Public Health and Environment must conduct a public hearing to receive input on any interim emergency rules adopted pursuant to House Bill 10 -1284. oJuly 1, 2011 The end date of the state's moratorium. The date by which all medical marijuana businesses must be licensed under the Medical Marijuana Code to properly conduct business. II. Overview of Amendment 20 to the Colorado Constitution In the 2000 November election, Colorado voters passed Amendment 20 to the Colorado Constitution. Amendment 20 legalizes the medical use of marijuana by provision an exception and an affirmative defense to the state's criminal laws for patients and their primary caregivers. Colo. Const. Art. XVIII, § 14. Under Amendment 20, a "patient" is a person who suffers from a debilitating medical condition. Amendment 20 defines "primary caregiver" as: a person other than the patient and the patient's physician who is eighteen years of age or older and has a significant responsibility for managing the well -being of a patient who has a debilitating medical condition. Colo. Const. Art. XVIII, § 14(1)(f). Upon adoption, Amendment 20 required the state to name a public agency as the entity responsible for implementing Amendment 20's provisions. In 2001, the General Assembly named the Colorado Department of Public Health and Environment ( "CDPHE ") as that governmental entity. See C.R.S. § 25 -1.5 -106. One of the programs the CDPHE was tasked with creating was the patient registry program. Under this program, a patient submits a state application to the CDPHE with a doctor's recommendation for the use of medical marijuana in order to obtain a patient registry card. A patient in possession of a patient registry card is entitled to the exception from criminal prosecution under Amendment 20. On the CDPHE application for a registry card, the patient is afforded the opportunity to name a primary caregiver. Under Amendment 20, primary caregivers are also entitled to an exception from criminal prosecution when in possession of a registry card. However, the CDPHE has not directly issued registry cards to primary caregivers since 2004. An individual in possession of patient registry cards that name that individual as a primary caregiver is entitled to the exception from prosecution afforded patients under Amendment 20. Thus, so long as patients or primary caregivers have actual or photocopies of CDPHE registry cards with their names listed thereon, they are entitled to an exception from criminal prosecution for the medical use of marijuana. Amendment 20 defines "medical use" to include the "acquisition, possession, production, use, or transportation of marijuana or paraphernalia related to the administration of such marijuana...." Colo. Const. Art. XVIII, § 14(1)(b). The term medical use does not include cultivating, growing, dispensing, selling or purchasing marijuana. In July 2009, the CDPHE adopted a rule to define the phrase used in Amendment 20's definition of a primary caregiver, "significant responsibility for managing the well being of a patient," to mean: assisting a patient with daily activities, including but not limited to transportation or housekeeping or meal preparation or shipping or making any necessary arrangement for access to medical care or services or provision of medical marijuana. Under this definition, a primary caregiver could significantly manage the well -being of a patient solely by providing him or her with medical marijuana. Although this rule was not adopted by the CDPHE until 2009, as early as 2006, commercial operations known as medical marijuana dispensaries were being established by primary caregivers under this premise. Thus, so long as a patient registry card named the owner of a medical marijuana dispensary as that patient's primary giver, the dispensary owner was entitled to the same protections afforded the patient under Amendment 20. Those protections have limitations. Under Amendment 20, a patient and his or her primary caregiver may not possess more than two (2) ounces of medical marijuana in a usable form and not more than six (6) marijuana plants in varying stages of development at any one time. Colo. Const. Art. XVIII, § 14(4)(a). This limit as applied to a primary caregiver is cumulative as based on the number of patients for whom that primary caregiver is responsible. For example, if a primary caregiver has 10 patients, none of whom grow their own marijuana, than the primary caregiver is entitled to possess up to sixty (60) plants. III. Substantive Review of House Bill 10 -1284 a. House Bill 10 -1284 is the General Assembly's response to the growth of medical marijuana dispensaries in the state. In July 2009, there were approximately 13,000 CDPHE registered patients. As of April 2010, it has been rumored that there are now more than 80,000 individuals who have submitted applications for a CDPHE registry card. Thus, in less than one year, the state has seen a 600% increase in patient registration. Due to the substantial increase in patient demand, a significant number of medical marijuana dispensaries began operating throughout the state in 2009. Most municipalities and the state were unprepared for this growth. Because the state did not have licensing requirements for primary caregivers and /or medical marijuana dispensaries, some local governments created their own regulatory systems. All of those systems were based, at a minimum, on the idea that the person operating the medical marijuana dispensary was a primary caregiver as defined in Amendment 20. House Bill 10 -1284 discontinues this model by, at a minimum, prohibiting a primary caregiver from operating a medical marijuana dispensary. b. House Bill 10- 1284s new primary caregiver requirements and limitations. Section 2 of House Bill 10 -1284 amends C.R.S. § 25 -1.5 -106 to clarify the patient to primary caregiver relationship described in Amendment 20. As amended, under the new language, a primary caregiver must be a natural person who will be limited to providing services to a maximum of five (5) patients at any one time absent exceptional circumstances. C.R.S. § 25 -1.5 -106 (6). Previously, there was no limit under state law on the number of patients that a primary caregiver could serve. Next, the act of supplying marijuana or marijuana paraphernalia alone will no longer allow a primary caregiver to claim that he or she has "significant responsibility for managing the well -being of a patient." C.R.S. § 25 -1.5 -106 (3)(b)(1). Currently, some medical marijuana dispensaries are providing additional services to their patients. Under the provisions in House Bill 10 -1284, all primary caregivers will be required to provide their patients with a service(s) in additional to providing them with medical marijuana to qualify for the protections described in Amendment 20. Other provisions in House Bill 10 -1284 prohibit patients from naming more than one primary caregiver at a given time. C.R.S. § 25- 1.5- 106(6)(b). In addition, a patient will be prohibited from naming a primary caregiver if he or she is named as a primary caregiver on another patient's registry card. C.R.S. § 25- 1.5- 106(6)(c). Under House Bill 10 -1284, primary caregivers are prohibited from joining together to cultivate medical marijuana. C.R.S. § 25- 1.5- 106(5)(b). In addition, primary caregivers may not charge more than the "cost of cultivating or purchasing the medical marijuana, but may charge for caregiver services." C.R.S. § 25- 1.5- 106(6)(d). Due to House Bill 10- 1284's provisions clarifying the role of the primary caregiver and his or her relationship with patients, it is likely that existing medical marijuana dispensaries will no longer be able to operate as primary caregivers. Those medical marijuana dispensaries will have to obtain state licenses under the model provided in House Bill 10 -1284. c. House Bill 10 -1284 adopts the Medical Marijuana Code. Section 1 of House Bill 10 -1284 adopts the Medical Marijuana Code in a new Article 43.3 of Title 12, Colorado Revised Statutes (the "Code "). Rather than legitimizing the primary caregiver model of operation for medical marijuana dispensaries, the Code legalizes a vertically integrated (seed to retail sale) business model for the distribution, sale, manufacture and cultivation of medical marijuana and medical marijuana- infused products. In so doing, the General Assembly has created a new business licensing model that requires some municipal action in response. i. Local governments may ban medical marijuana businesses Under the Code, local governments may ban medical marijuana businesses from operating in their jurisdictions. C.R.S. § 12- 43.3 -106. This provision is known as the local opt out provision. There are two methods by which a local government may exercise this opt out provision: By a vote of a majority of registered electors of the local government at a regular or special election; or By a vote of a majority of the members of the governing board of the local government. ii. State and local government licensing Both a state and local government license are required for the operation of a medical marijuana business. If a municipality does not choose to ban medical marijuana businesses under the local opt out provisions of the Code or otherwise by July 1, 2011, and does not adopt an ordinance containing licensing requirements for medical marijuana businesses, than the Code's licensing and regulatory requirements will act as the minimum licensing requirements In 2009, some municipalities banned the operation of medical marijuana dispensaries in their jurisdictions under their municipal zoning powers. within the municipality. Thus, it is recommended that every Colorado municipality adopt some measure of regulation as permitted under the Code. ♦ Local licensing authority Under the Code, a local government is empowered to license medical marijuana businesses through a local licensing authority. The Code defines local licensing authority as "an authority designated by municipal or county charter, municipal ordinance or county resolution." C.R.S. § 12- 43.3- 104(5). Under this provision, unless a municipal government is otherwise limited by its charter, the municipality is empowered to designate its local licensing authority. The local licensing authority is responsible for issuing and approving medical marijuana business licenses authorized in the Code. Although the Code provides a local licensing authority with the option of holding a public hearing on every application for a license, such hearing is not required. Thus, local consideration of an application for a medical marijuana business license can be a purely administrative process. If a municipality opts to require a public hearing on each application for a medical marijuana business license, that municipality must adhere to the Code's hearing requirements. These requirements include posting notice of the public hearing on the property of the proposed medical marijuana business and publicizing notice of the public hearing in a newspaper of general circulation in the county in which the medical marijuana business will be located at least ten (10) days prior to the hearing. A local licensing authority must issue a decision on the application in writing within thirty (30) days of completing its investigation or conclusion of the public hearing. The written decision must be sent to the applicant by certified mail. Upon approval of a local license, the local licensing authority must notify the state licensing authority of that approval. A local licensing authority may request that the state conduct a concurrent review of any license application. This procedure is recommended because the state may deny issuing its license even if the local government has already approved. During the concurrent review, the state may advise the municipality of "items that it finds that could result in the denial of the license application." C.R.S. 12- 43.3- 302(5)(b). A local licensing authority is prohibited from issuing a license until the state license application has been approved. If a local licensing authority seeks to suspend a license issued under the Code, it must conduct a hearing pursuant to the procedures outlined in Part 6 of the Code. These procedures require that the local licensing authority notify the licensee in writing s State licensing authority Under the Code, the Colorado Department of Revenue ( "DOR ") is named as the state's medical marijuana licensing authority. Before the DOR will issue a medical marijuana business license, the license applicant must obtain and file a five thousand dollar ($5,000.00) surety bond with the DOR for the payment of sales and use taxes. Failure to obtain this bond is grounds to deny a license. There are no provisions in the Code describing the specific licensing procedures for DOR consideration of license applications. Under the Code, the DOR is authorized to adopt emergency rules for enforcement and implementation of the Code that include: 1) Instructions for local licensing authorities and law enforcement officers; 2) Development of individual identification cards for owners, officers, managers, contractors, employees and others employed by medical marijuana businesses licensed by the DOR; 3) Minimum security requirements for operation of medical marijuana businesses; 4) Regulations for the storage, warehousing and transportation of medical marijuana; 5) Medical marijuana product labeling standards; 6) Record keeping and reporting requirements; 7) Reporting requirements for medical marijuana businesses; The DOR is required to hold a joint public hearing with the CDPHE by September 1, 2010 to receive public input on emergency rules adopted pursuant to the Code. ♦ Licenses offered The Code authorizes state and local licensing authorities to issue three types of medical marijuana business licenses for a period not to exceed two (2) years: 1) A medical marijuana center license; A medical marijuana center is a retail location where patients will be able to obtain their medical marijuana and /or medical marijuana - infused products. Under House Bill 10 -1284, if using a medical marijuana center to obtain his or her marijuana, a patient is limited to obtaining that medical marijuana from a single medical marijuana center. The patient will name his or her primary center in the application for a medical marijuana registry card. 2) A medical marijuana- infused products manufacturer license; and A medical marijuana- Infused products manufacturer produces products infused with medical marijuana that are intended to be consumed in manner other than by smoking. Examples of infused products include edible products, ointments and tinctures. None of the products produced by a manufacturer will be considered a food or drug under Colorado's Food and Drug Act, C.R.S. §§ 25 -5- 401 at seq. All products must be include a label stating that the product includes marijuana, that it has been produced without regulatory oversight and that there may be risks associated with consumption of the product. Medical marijuana from five (5) centers may be incorporated into a single infused product. 3) An optional premises cultivation operation license. An optional premises cultivation operation is the location where a medical marijuana center or a medical marijuana- infused product manufacturer grows marijuana. Although the Code describes these licenses as separate and distinct, only a licensed medical marijuana center or medical marijuana- infused products manufacturer may obtain an optional premises cultivation license. Under the Code, a medical marijuana center must obtain an optional premises cultivation license because it is required to cultivate seventy percent (70 %) of the marijuana that the center sells at retail. A center may only obtain the remaining thirty percent of medical marijuana that it sells at retail from another licensed medical marijuana center. A medical marijuana- infused products manufacturer is not required to cultivate medical marijuana used in its products and is thus not required to obtain an optional premises license unless and until it seeks to cultivate marijuana. Some in the municipal government community have opined that the optional premises cultivation license is jurisdictionally restrained to the location of the medical marijuana center or medical marijuana- infused product manufacturer. So long as a licensee cultivates its marijuana at its optional premises cultivation operation, there is no restriction or requirement in House Bill 10 -1284, that the licensee operate those premises within a single jurisdiction. The Colorado Municipal League expects that this issue will be resolved through DOR rulemaking and /or in the 2011 legislative session. The League expects the state to require each medical marijuana center to obtain an optional premises cultivation operation license within each jurisdiction that the licensee operates a medical marijuana center. ♦ Limitations on licensees The Code prohibits a significant number of persons from serving as licensees including: 1) Persons not of good moral character. This provision is expanded to include corporations whose officers, directors or stockholders are not of good moral character and any person who employs, is assisted by or is financed by a person who is not of good moral character; 2) A licensed physician that makes recommendations concerning the use of medical marijuana to patients under Amendment 20; 3) A person under twenty -one years of age; 4) A person who has discharged a sentence for a felony conviction within the past five years; 5) A person who has been convicted of felony drug possession, distribution or use; 6) A person who employs a person at a medical marijuana business who has failed a criminal background check; 7) A person whom the CDPHE has prohibited from acting as a primary caregiver; 8) Any law enforcement personnel including prosecutors; 9) Any employee of a state or local licensing authority; and 10) Any individual who was not a resident of Colorado as of December 15, 2009. s Application requirements Under House Bill 10 -1284, license applicants must submit the name and address of every person who is an owner, officer, director or manager of the applicant. The applicant must also include the name and address of every person who has provided financing for operation of the licensed premises. Each of those individuals must submit to and pass a criminal history background investigation. The applicant must also submit a copy of his or her fingerprints to the DOR for the purposes of conducting a criminal history background investigation. Those fingerprints will be kept on file with the license application. Local governments may require applicants to submit a license application fee with the local license application. In addition, applicants must provide the plan for the interior layout for licensed premises showing where marijuana will be stored, grown or manufactured. ♦ Some local licensing and zoning law control Under the Code, municipalities are authorized to adopt more stringent licensing standards pursuant to their zoning and general welfare powers. These standards include, but not limited to, distance limitations between licensed premises and reasonable restrictions on the size of licensed premises. The Code limits licensed premises from locating within 1000 feet of any schools, alcohol and drug treatment facilities and child care facilities. Under the Code, a municipality may adopt a shorter distance requirement. However, when the local licensing authority approves a license application, it must identify whether a school, alcohol and drug treatment facility or child care facility is within 1000 feet of the licensed premises. In addition, the Code defers to local sign laws and regulations. All licensee's are prohibited from displaying signs not in conformity with local sign code provisions. ♦ Limited access areas and employee identification requirements The Code restricts who is authorized to enter portions of a licensed medical marijuana business. All licensed operations will be required to clearly designate the limited access areas within the licensed premises. Limited access areas are those areas where medical marijuana is "grown, cultivated, stored, weighed, displayed, packaged, sold, or possessed for sale by the licensee." Only the following individuals may access those areas: 1) Patients and primary caregivers with CDPHE registry cards and appropriate state identification cards, e.g. driver's license; The licensee's employees, owners, managers, staff with appropriate DOR identification cards; DOR investigators; Local law enforcement officers; and Local licensing authority investigators. directors, contractors and support 2) 3) 4) 5) Under the Code, each person employed by the licensee must obtain a DOR identification card and submit to and pass a background investigation. A licensee may not employ any person until such time as that person passes the criminal background investigation. Failure to follow this requirement will result in an immediate suspension of a medical marijuana license. All employees must display their DOR identifications while in limited access areas. A licensee must notify the DOR in writing within ten (10) days of when an owner, officer or employee is no longer associated with the licensee. That individual must surrender the identification card to the DOR prior to the notification date. s Prohibited acts Under the Code, the following are prohibited: 1) No person may consume medical marijuana in a medical marijuana center; 2) No licensee shall allow consumption of medical marijuana upon its licensed premises. 3) No medical marijuana business may operate without obtaining the required state and local licenses. 4) No medical marijuana center may possess more than two ounces of a usable form of medical marijuana or six (6) plants for each patient who has named the center as their primary center unless authorization to exceed these amounts has been obtained. 5) No licensee shall fail to report a change of managers. 6) No licensee shall sell medical marijuana except from the specific location designated in the license. 7) No licensee may sell or distribute marijuana except between the hours of 8:00 a.m. and 7:00 p.m., Monday through Sunday. 8) No licensee may sell medical marijuana below its cost or otherwise violate the state's anti - competitive laws. 9) No licensee may acquire medical marijuana from or sell medical marijuana to an unlicensed person. s Disciplinary actions Under the Code, local licensing authorities are authorized to suspend or revoke a license and fine licensees for violating any provisions of the Code or the local licensing requirements. After proper notice and an opportunity for a hearing, the licensing authority may suspend a license for a maximum of six (6) months except in the case of a summary suspension. A summary suspension is authorized when the licensing authority finds that the licensee has committed a deliberate or willful violation or that the public health, safety and welfare require imperative action. All summary suspensions must proceed promptly to a suspension and /or revocation hearing as provided in C.R.S. § 24 -4- 104(4). Local licensing authorities must report to the DOR all actions that it takes that result in fines, suspensions, or revocations concerning a medical marijuana business license. iii. Local governments are authorized to extend moratoria until after the effective of any rules adopted by the Department of Revenue. In response to the growth of medical marijuana dispensaries, many municipalities adopted temporary moratoria on the acceptance and processing of business licenses and permits in order to allow sufficient time to consider appropriate local regulation of those business operations consistent with state law. The Code authorizes those municipalities to extend their moratoria until the effective date of the rules adopted by the DOR pursuant thereto. d. Other Issues in House Bill 10 -1284. • Home delivery Medical marijuana centers and primary caregivers are prohibited from delivering medical marijuana to a patient's home unless that patient has obtained a waiver from the CDPHE. Smoking clubs The bill prohibits the formation of a business that permits patients to smoke or consume medical marijuana on -site. • State Sunshine Law A state or local license application, a state or local license and the location for any optional premises cultivation operation will NOT be considered a "public record" under the Colorado Open Records Act. C.R.S. § 24-72 - 202(6)(b)(XII I). Law enforcement access to records The CDPHE must provide twenty -four hour per day access to its patient and primary caregiver registry information to law enforcement personnel to the extent that the release of such information is consistent with the provisions in Amendment 20. If a patient or primary caregiver has not registered with the CDPHE then the agency is authorized to respond accordingly to law enforcement inquiries. Possession and use limitations Under House Bill 10 -1284, no person may possess medical marijuana on the grounds of school or in a school bus or engage in the use of medical marijuana in any vehicle, in a correctional facility, while subject to incarceration, in a place open to the public or in plain view, or if the person does not suffer from a debilitating medical condition. IV. Conclusion There is much discussion in the state concerning House Bill 10 -1284 and the expected rules and regulations that will be adopted by the DOR and the CDPHE for its implementation. Because this is a new business model in the state, those discussions and the law concerning the regulation of medical marijuana will take time to fully develop. As those events occur, our office will keep you up to date. CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER Council Bill No. Ordinance No. Series 2010 TITLE: AN ORDINANCE AMENDING ARTICLE 11 OF THE WHEAT RIDGE CODE OF LAWS BY ADDING A NEW ARTICLE XII CONCERNING MEDICAL MARIJUANA ESTABLISHMENTS WHEREAS, in the November 2000 general election, the voters of the State of Colorado adopted Amendment 20 to the Colorado Constitution ( "Amendment 20 ") which authorizes and limits the sale of medical marijuana for use in the treatment of debilitating medical conditions; and WHEREAS, the City Council has been made aware of a proliferation of businesses wishing to cultivate medical marijuana and /or provide it to those who qualify under state law; and WHEREAS, the City has no current land use or business regulation governing the operation of businesses or cooperatives that cultivate and /or offer medical marijuana for sale and /or distribution ( "Medical Marijuana Establishments "); and WHEREAS, the City imposed a one hundred eighty (180) day moratorium on the submission, acceptance, processing, and approval of all applications for City licenses and licenses relating to the operation of Medical Marijuana Establishments to allow the City staff and the City Council to investigate the City's ability to regulate such establishments, and to develop and implement any appropriate regulations consistent with state law; and WHEREAS, because marijuana is a controlled substance under Colorado and federal law the use as contemplated by Amendment 20 has the potential for abuse that should be closely monitored and regulated by local authorities to the extent possible; and WHEREAS, if not closely monitored and regulated the presence of marijuana, even for the purposes legally permitted by Amendment 20, can potentially cause an increase in illegal activities within the City affecting the health, safety, order, comfort, convenience and general welfare of the residents of the City; and WHEREAS, if Medical Marijuana Establishments operating pursuant to Amendment 20 were allowed to be established and to operate without appropriate local regulation of their location, such establishments might be established in areas that would conflict with the City's comprehensive land use plan; be inconsistent with surrounding uses; or otherwise be detrimental to the public health, safety and welfare. ATTACHMENT 3 NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1 . Moratorium Concluded. The moratorium imposed by Ordinance 1453 on September 14, 2009 shall conclude upon the effective date of this ordinance.. Section 2 . Chapter 11 of the Code is hereby amended by the adoption of a new Article XII to read in its entirety as follows: Article XII. Medical Marijuana Establishments Sec. 11 -270. Authority Sec. 11 -271. Definitions Sec. 11 -272. Medical marijuana establishment license required. Sec. 11 -273. Application for license. Sec. 11 -274. Application fee. Sec. 11 -275. Standards for issuance of license. Sec. 11 -276. Authority to recommend and impose conditions on license. Sec. 11 -277. Contents of license Sec. 11 -278. Denial of license. Sec. 11 -279. Notice of decision. Sec. 11 -280. Appeal of denial or conditional approval of license. Sec. 11 -281. License not transferable. Sec. 11 -282. Duration of license, renewal. Sec. 11 -283. Duties of licensee. Sec. 11 -284. Hearing, suspension, revocation of license Sec. 11 -285. Operation limitations for medical marijuana clinics. Sec. 11 -286. Operation limitations for medical marijuana growers. Sec. 11 -287 Prohibited locations. Sec. 11 -288. Signage. Sec. 11 -289. Required warnings to be posted. Sec. 11 -290. Paraphernalia. Sec. 11 -291. Taxes. Sec. 11 -292. Penalties, injunctive relief. Sec. 11 -270. Authority. The City Council hereby finds, determines, and declares that it has the power to adopt this article pursuant to: (a) The Local Government Land Use Control Enabling Act, article 20 of title 29, C.R.S.; (b) Part 3 of article 23 of title 31, C.R.S. (concerning municipal zoning powers); (c) Section 31 -15 -103, C.R.S. (concerning municipal police powers); 2 (d) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (e) Section 31 -15 -501, C.R.S. (concerning municipal authority to regulate businesses); (f) The authority granted to home rule municipalities by article XX of the Colorado Constitution; and (g) The powers contained in the Wheat Ridge City Charter. Sec. 11 -271. Definitions. As used in this article the following words shall have the following meanings, unless the context clearly requires otherwise: Administrative hearing officer has the meaning provided in section 2 -87 of this code. Amendment 20 means the voter initiated amendment to the Colorado Constitution adopted November 7, 2000 which added Section 14 of Article XVIII to the Colorado Constitution. Applicant means and includes: (1) If an individual, that person making an application for a license under this article; (2) If a partnership, the partners owning ten (10) percent or more of the partnership, or all partners if there are ten (10) or total partners in the partnership which is making application for a license under this article; (3) if a corporation, the president, vice - president, secretary, treasurer, the directors, manager and each stockholder owning ten (10) percent or more of the outstanding stock of the corporation. Application means an application for license submitted pursuant to this article. City Manager shall have the meaning provided in section 2 -26 of this Code. Good cause means and includes (1) When a licensee violates, does not meet, or fails to comply with any of the terms, conditions, or provisions of this article and any rule and regulation promulgated pursuant to this article; (2) When the licensee has failed to comply with any special terms or conditions that were placed on its license at the time the license was issued, or that were placed on 3 its license in prior disciplinary proceedings or that arose in the context of potential disciplinary proceedings; or (3) When the licensee's medical marijuana clinic has been operated in a manner that adversely affects the pubic health, welfare, or safety of the immediate neighborhood in which the medical marijuana clinic is located. Evidence to support such a finding can include: (i) a pattern of disorderly conduct as defined in section 11- 54(a)(1) of this code within or immediately adjacent to the premises of the licensee; (ii) a pattern of drug - related criminal conduct within the premises of the medical marijuana clinic, or in the immediate area surrounding the medical marijuana clinic; (iii) a pattern of criminal conduct directly related to or arising from the operation of the medical marijuana clinic; (iv) a conviction in any local, state or federal court of any employee of a licensee for the distribution or sale of marijuana. License means a license to operate a medical marijuana establishment issued by the City pursuant to this article. Licensee means the person or entity to whom a license has been issued pursuant to this article. Marijuana means all parts of the plant cannabis sativa L., whether growing or not, the seeds thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or its resin. It does not include fiber produced from the stalks, oil or cake made from the seeds of the plant, or sterilized seed of the plant which is incapable of germination if these items exist apart from any other item defined as "marijuana" herein. "Marijuana" does not mean marijuana concentrate which includes hashish, tetrahydrocannabinols, or any alkaloid, salt, derivative, preparation, compound, or mixture, whether natural or synthesized, of tetrahydrocannabinols. Medical marjuana clinic means the use of any property or structure within the City by primary care - givers to distribute, transmit, give, dispense, or otherwise provide marijuana in any manner to their patients in accordance with Amendment 20 and its implementing state statutes and administrative regulations. Medical marijuana establishment means either a medical marijuana grower or a medical marijuana clinic. Medical marijuana grower means the use of any property or structure within the City by primary care - givers for the purposes of growing medical marijuana for distribution to their patients in accordance with Amendment 20 and its implementing state statutes and administrative regulations. Patient has the meaning provided in Amendment 20, the implementing state statutes and administrative regulations. 4 Primary care -giver has the meaning provided in Amendment 20, the implementing state statutes and administrative regulations. (b) In addition to the definitions provided in subsection A of this section, the other defined terms in Amendment 20 are incorporated into this article by reference. Sec. 11 -272. Medical marijuana establishment license required. No person or entity shall operate a medical marijuana establishment within the City without a valid medical marijuana establishment license issued in accordance with this article. This requirement to obtain a medical marijuana establishment license is in addition to the requirement to obtain a business license pursuant to Article II of this chapter and any other license or permit as so required by the City. Sec. 11 -273. Application for license. (a) A person seeking to obtain a license pursuant to this article shall file an application with the Tax and Licensing Division on a form provided by the Tax and Licensing Division. (b) An application for a license under this article shall contain the following information: 1. The applicant's name, address, telephone number and last four digits of the applicant's social security number; 2. The name, address, telephone number and last four digits of the social security number for each primary care -giver authorized to operate out of the applicant's proposed location; 3. The street address of the proposed medical marijuana establishment; 4. If the applicant is not the owner of the proposed location of the medical marijuana establishment, a notarized statement from the owner of such property authorizing the submission of the application; 5. A completed set of the applicant's fingerprints and the fingerprints of each primary care -giver authorized to operate out of the applicant's proposed location; 6. The number of patients for whom the applicant serves as primary care -giver and the number of patients for whom each primary care- giver authorized to operate out of the applicant's proposed location serve as primary care - giver; 7. A business plan that contains the following items: 5 a. A security plan that includes but is not limited to a description of the security provisions and systems to be utilized; b. Hours of operation; C. Number of employees and /or volunteers expected to be onsite; d. An external lighting plan; and e. A description of any cultivation activities including; i. Where plants will be grown; ii. The expected number of plants that will be grown on site; iii. A description of the internal lighting system; iv. A list of the fertilizers, pesticides and /or other chemicals to that will be utilized; and V. Expected water usage. 8. A statement by the applicant that the applicant and the applicant's employees understand that they may be subject to prosecution under federal law; 9. A statement by the applicant that the applicant is a primary care- giver; 10. A statement by the applicant that the City accepts no legal liability in connection with the approval and subsequent operation of the medical marijuana establishment; and 11. Any additional information that the Tax and Licensing Division reasonably determines to be necessary in connection with the investigation and review of the application. Sec. 11 -274. Application Fee. An applicant shall pay to the City a non - refundable application fee when the application is filed. The purpose of the fee is to cover the administrative costs of processing the application. The amount of the application fee shall be fixed by the City Council by motion. Sec. 11 -275. Standards for issuance of license. The Tax and Licensing Division shall issue a license under this article when: (a) The application (including any required attachments and submissions) is complete and signed by the applicant; (b) The applicant has paid the application fee and any other fees required by the code; (c) The application does not contain a material falsehood or misrepresentation; A (d) The application complies with all of the requirements of this article; (e) Written approval from the City of Wheat Ridge Police Department as to: 1. The applicant's business plan; and 2. The applicant's criminal background. No written approval will be issued to an applicant whose criminal history reflects a prior conviction for a felony offense. (f) Written approval from the Community Development Department that the location and zoning requirements imposed by this article and Section 26 -204 of the Code have been met. Sec. 11 -276. Authority to recommend and impose conditions on license. (a) Any City department shall have the authority to recommend reasonable terms and conditions on a license as may be necessary to protect the public health, safety, and welfare, and to obtain compliance with the requirements of this article and applicable law. (b) The Tax and Licensing Division is authorized to approve a license subject to such reasonable conditions as required by the City. (c) In the event an application is conditionally approved, the Tax and Licensing Division shall clearly set forth in writing the conditions of approval. Sec. 11 -277. Contents of license. A license shall contain the following information (a) The name of the licensee; (b) The date of the issuance of the license; (c) The address at which the licensee is authorized to operate the medical marijuana establishment; (d) Any special conditions of approval imposed upon the license; and (e) The date of the expiration of the license. Sec.. 11 -278. Denial of license. The Tax and Licensing Division shall deny an application for a license under this article when the applicant fails to meet all of the standards set forth in section 11 -275. Sec. 11 -279. Notice of denial or conditional approval of license. The Tax and Licensing Division shall notify the applicant of its decision to deny or conditionally approve the application in writing within three business days of rendering the decision. Notice shall be given by mailing a copy of the decision to the applicant by regular mail, postage prepaid, at the address shown in the application. Notice shall be deemed to have been properly given upon mailing. Sec. 11 -280. Appeal of denial or conditional approval of license. (a) An applicant has the right to appeal the denial of an application or condition imposed thereon to an administrative hearing officer. (b) The applicant must file a written notice of appeal with the Tax and Licensing Division within fifteen days after the date of mailing of the denial or conditional approval of the application. (c) Upon notice from the Tax and Licensing Division that the applicant has satisfied the requirement in subsection (b), the City Manager shall appoint an administrative hearing officer. (d) The applicant shall be provided with not less than ten days' prior written notice of the appeal hearing to be held by the administrative hearing officer. (e) The burden of proof in an appeal filed under this section shall be on the applicant. (f) If the administrative hearing officer finds by a preponderance of the evidence that the decision of the Tax and Licensing Division was correct, the administrative hearing officer shall uphold that decision. If the administrative hearing officer finds by a preponderance of the evidence that the decision of the Tax and Licensing was incorrect, the administrative hearing officer shall set aside the denial and issue the license. The administrative hearing officer may impose additional conditions on the license issued (if it was previously denied) or the conditions of approval stricken or modified. (g) Any decision made by the administrative hearing officer pursuant to this section shall be a final decision and may be appealed to the district court pursuant to Rule 106(a)(4) of the Colorado Rules of Civil Procedure. The applicant's failure to timely appeal the decision is a waiver of the applicant's right to contest the denial or conditional approval of the application. Sec. 11 -281. License not transferable. A license is non - transferable and non - assignable. Any attempt to transfer or assign a license voids the license. Sec. 11 -282. Duration of license, renewal. (a) Each license issued pursuant to this article shall expire on the first day of the month one year from the month of issuance, and may be renewed as provided in this section. (b) An application for the renewal of an existing license shall be made to the Tax and Licensing Division not less than forty-five (45) days prior to the date of 0 expiration. No application for renewal shall be accepted by the Tax and Licensing Division after the date of expiration. The City Manager or his or her designee may waive the forty -five (45) days time requirement set forth in this subsection if the applicant demonstrates adequate justification. (c) If a renewal application has not been filed by a licensee, the City shall send a renewal notice no less than sixty (60) days prior to the expiration of the license. (d) At the time of the filing of an application for the renewal of an existing license the applicant shall pay a renewal fee in an amount fixed by the City Council by motion. Sec. 11 -283. Duties of licensee. Each licensee shall: (a) Post the license in a conspicuous location on the premises of the medical marijuana clinic; (b) Comply with all of the terms and conditions of the license; (b) Comply with all of the requirements of this article; (c) Comply with all other applicable City ordinances; (d) Comply with all state laws and administrative regulations pertaining to the medical use of marijuana, including, but not limited to, Amendment 20; section 18 -18- 406.3, C.R.S.; and the administrative regulations issued by the Colorado Department of Public Health and Environment found at 5 CCR 1006 -2, all as amended from time to time; (e) Comply with all applicable federal laws, rules, or regulations, other than a federal law, rule or regulation concerning the possession, sale or distribution of marijuana that conflicts with Amendment 20; (f) Permit inspection of its records and operation by the Tax and Licensing Division for the purpose of determining the licensee's compliance with the terms and conditions of the license and the City's tax laws; and (g) Permit inspection of the premises by authorized City officials during permitted business hours for the purpose of determining compliance with this Article. Sec. 11 -284. Hearing, suspension, revocation of license. (a) A license issued pursuant to this article may be suspended or revoked by an administrative hearing officer after a hearing for the following reasons: 1. Fraud, misrepresentation, or a false statement of material fact contained in the license application; 2. A violation of any City, state, or federal law or regulation, other than a federal law or regulation concerning the possession, sale or distribution of marijuana that conflicts with Amendment 20; 3. A violation of any of the terms and conditions of the license; 4. A violation of any of the provisions of this article; or 5. Good cause. (b) Request for suspension or revocation, notice of hearing, burden. 1. Any authorized City official may request in writing that a license issued under this article be suspended or revoked. 2. The City Manager shall appoint an administrative hearing officer to preside over the hearing on the suspension or revocation of a license. 3. The administrative hearing officer shall a. Set a date and time on which to determine whether to revoke or suspend such license; b. Notify the licensee in writing of the date and time of the hearing at least ten (10) days prior to conducting such hearing. Such notice shall be sent by regular mail postage prepaid. Notice is deemed to have been given upon mailing; C. Conduct a hearing based on the allegations provided in the written request. This shall be an informal hearing where no rules of evidence shall apply. The burden shall be on the City to prove by a preponderance of the evidence that the licensee has violated the provisions in subsection 11 -284 (a); and d. Provide a written decision to the licensee within a reasonable time after the conclusion of the hearing. (c) In deciding whether a license should be suspended or revoked, and in deciding what conditions to impose in the event of a suspension, if any, the administrative hearing officer shall consider: 1. The nature and seriousness of the violation; 2. Corrective action, if any, taken by the licensee; 10 3. Prior violation(s), if any, by the licensee; 4. The likelihood of recurrence; 5. All circumstances surrounding the violation; 6. Whether the violation was willful; 7. The number of previous violations by the licensee; and 8. Previous sanctions, if any, imposed against the licensee. (d) In connection with the suspension of a license, the administrative hearing officer may impose reasonable conditions thereon. (e) Any decision made by the administrative hearing officer pursuant to this section shall be a final decision and may be appealed to the district court pursuant to Rule 106(a)(4) of the Colorado Rules of Civil Procedure. The applicant's failure to timely appeal the decision is a waiver of the applicant's right to contest the decision. (f) No fee previously paid by a licensee in connection with the application shall be refunded if such license is suspended or revoked. Sec. 11 -285. Operation limitations for medical marijuana clinics. Medical marijuana clinics shall be subject to the following additional requirements: (a) No marijuana may be distributed, sold, given away, or transferred at a medical marijuana clinic except to the licensee's patients. (b) All product storage shall be indoors. Products, accessories, and associated paraphernalia shall not be visible from a public sidewalk or right of way. All products shall be in a sealed /locked cabinet except when being accessed for distribution. (c) A medical marijuana clinic may be open seven days per week from the hours of 9:00 am to 7:00 pm. (d) No on -site consumption of marijuana is allowed on the premises. (e) The sale or consumption of alcohol on the premises is prohibited. (f) Cultivation, growing, processing. The growing, cultivation, or processing of marijuana on or within the premises of a medical marijuana clinic is prohibited. (g) All medical marijuana clinics shall provide adequate security on the premises. At a minimum the security shall include: 11 1. Security surveillance cameras installed to monitor the main entrance along the interior and exterior of the premises and all other entrances or exits only along the interior of the premises. Security video shall be preserved for at least 72 hours by the licensee; 2. Robbery and burglary alarm systems that are professionally monitored and maintained in good working condition; 3. Exterior lighting that illuminates the exterior walls of the business during evening hours and is compliant with the City Code; and 4. A locking safe permanently affixed to the premises that is suitable for storage of the entire inventory of saleable marijuana. (h) No person under the age of eighteen (18) is permitted on the premises when not accompanied by a parent or legal guardian. Sec. 11 -286. Operation limitations for medical marijuana growers. Medical marijuana growers shall be subject to the following additional requirements: (a) A medical marijuana grower may not: 1. Distribute, sell, give away, or transfer a usable form of marijuana or marijuana plants on or from its premises except to its patients. 2. Distribute sell, give away, or transfer other products, accessories, or associated paraphernalia of any kind on or from its growing premises. (b) A medical marijuana grower may be open seven days a week during the hours of 9:00 a.m. to 7:00 p.m. (c) No on -site consumption of marijuana is allowed on the premises. (d) The sale or consumption of alcohol on the premises is prohibited. (e) Cultivation, growing, processing. The growing, cultivation, or processing of marijuana on or within the premises of a medical marijuana grower: 1. Shall be conducted indoors in such a manner that marijuana plants at any stage of development are not visible from a public sidewalk or right -of -way; 2. Shall be prohibited unless the operation is equipped with a proper ventilation system that filters out the odor of marijuana so that the 12 odor is not capable of being detected by a person with a normal sense of smell at the exterior of the clinic or any adjoining business, parcel or tract of real property. (f) All medical marijuana growers shall provide adequate security on the premises. At a minimum the security shall include: 1. Security surveillance cameras installed to monitor all entrances and exits of the premises. Security video shall be preserved for at least 72 hours by the licensee; 2. Robbery and burglary alarm systems that are professionally monitored and maintained in good working condition; 3. Exterior lighting that illuminates all entrances and exits of the business during evening hours and is compliant with the City Code; and 4. A locking safe permanently affixed to the premises that is suitable for storage of the entire inventory of usable marijuana. (g) No person under the age of eighteen (18) is permitted on the premises when not accompanied by a parent or legal guardian. Sec. 11 -287. Prohibited locations. (a) Except as provided in subsection a of this section, no medical marijuana establishment shall be located at a location that does not conform to the requirements of this section. (b) No medical marijuana establishment shall be located: 1. Within 500 feet of a licensed child care facility; 2. Within 500 feet of any educational institution or school, college or university, either public or private; and 3. Within 500 feet of any drug rehabilitation or drug treatment center (c) The distances described in subsection (b) shall be computed by direct measurement from the nearest property line of the land used for child care, school, or halfway house purposes to the nearest portion of the building housing the medical marijuana establishment using a straight line. (d) Each medical marijuana establishment shall be operated from a permanent location. No medical marijuana establishment shall be licensee to operate from a moveable, mobile, or transitory location. 13 (e) The suitability of a location for a medical marijuana establishment shall be determined at the time of the issuance of the first license for such establishment. The fact that changes in the neighborhood that occur after the issuance of the first license might render the site unsuitable for a medical marijuana establishment under this section shall not be grounds to suspend, revoke or refuse to renew the license for such establishment so long as the license for the establishment remains in effect. Sec. 11 -288. Signage. (a) All signage for a medical marijuana establishment shall comply with the requirements of chapter 26 of this code. (b) No licensee shall display a sign for the medical marijuana establishment that contains the word "marijuana," "cannabis," or any other word or phrase commonly understood to refer to marijuana unless such word or phrase is immediately preceded or followed by the word "medical." Sec. 11 -289. Required warnings to be posted. There shall be posted in a conspicuous location in each medical marijuana establishment a legible sign containing the following warnings: (a) A warning that the diversion of marijuana for non - medical purposes is a violation of state and federal laws; (b) A warning that the use of medical marijuana may impair a person's ability to drive a motor vehicle or operate machinery, and that it is illegal under state law to drive a motor vehicle or to operate machinery when under the influence of or impaired by marijuana; (c) A warning that loitering in or around the medical marijuana establishment is prohibited by state law; (d) A warning that possession and distribution of marijuana is a violation of federal law; and (e) A warning that no person under the age of eighteen (18) is permitted on site without the presence of his or her parent or legal guardian. Sec. 11 -290. Paraphernalia. Devices, contrivances, instruments, and paraphernalia for inhaling or otherwise consuming marijuana including, but not limited to, rolling papers and related tools, water pipes, and vaporizers may lawfully be sold at a medical marijuana clinic. Such items may be sold or provided only to patients or primary care- givers. Sec. 11 -291. Taxes. Each licensee shall collect and remit sales tax on all medical marijuana, paraphernalia, and other tangible personal property sold by the licensee at 14 the medical marijuana establishment according to the provisions of Code chapter 22 and any regulations issued pursuant to it. Sec. 11 -292. Penalties, injunctive relief. (a) It is a misdemeanor offense for any person to violate any provision of this article. Any person convicted of having violated any provision of this article shall be punished as set forth in section 1 -5 of this code. (b) The operation of a medical marijuana establishment without a valid license issued pursuant to this article may be enjoined by the City in an action brought in a court of competent jurisdiction. Section 3 . Section 26 -123 of the Code, entitled Definitions, is hereby amended by the addition of the following terms: Medical marijuana clinic has the meaning provided in Article XII of Chapter 11 of this code. Medical marijuana grower has the meaning provided in Article XI of Chapter 11 of this code. Section 4 . The Table of Uses for Commercial and Industrial Districts provided for in Section 26 -204 of the Code is hereby amended as follows: Uses Notes NC RC C -1 C -2 1 Medical and dental Pharmacies and P P P P P offices, clinics or optical stores laboratories, excluding are accessory substance abuse use clinics MEDICAL P P P MARIJUANA CLINICS MEDICAL P MARIJUANA GROWERS Mini - warehouses for P P inside storage Section 5 . Police Power Finding The City Council hereby finds, determines, and declares that this Ordinance is necessary and proper to provide for the safety, preserve the health, promote the prosperity, and improve the order, comfort and convenience of the City of Wheat Ridge and the inhabitants thereof. 15 Section 6 . Authori . The City Council hereby finds, determines and declares that it has the power to adopt this Ordinance pursuant to: (i) the Local Government Land Use Control Enabling Act, Article 20 of Title 29, C.R.S.; (ii) Part 3 of Article 23 of Title 31, C.R.S. (concerning municipal zoning powers); (iii) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (iv) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (v) Section 31 -15 -501 (concerning municipal power to regulate businesses); (vi) the authority granted to home rule municipalities by Article XX of the Colorado Constitution; and (vii) the powers contained in the City of Wheat Ridge, Colorado Home Rule Charter (the "Charter "). Section 7 Severability, Conflicting Ordinances Repealed If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 8 . Effective Date This Ordinance shall take effect upon adoption as permitted by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of _ to on this day of 2010, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge, and Public Hearing and consideration on final passage set for , 2010 at 7:00 p.m., in the Council Chambers, 7500 West 29� Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of _ to _, this day of 2010. SIGNED by the Mayor on this day of 2010. Jerry DiTullio, Mayor ATTEST: Michael Snow, City Clerk Approved as to Form Gerald E. Dahl, City Attorney 16 First Publication: Second Publication: Wheat Ridge Transcript Effective Date: 17 FINAL AS AMENDED 02/08/10 0- 2010 -1 AN ORDINANCE AMENDING ARTICLE 5 OF THE LAKEWOOD MUNICIPAL CODE BY ADDING A NEW CHAPTER 5.51 CONCERNING MEDICAL MARIJUANA CARE -GIVER FACILITIES AND AMENDING TITLE 17, ARTICLES 2, 5, 9, 13, 19, AND 22 OF THE LAKEWOOD ZONING ORDINANCE RELATING TO THE LOCATION OF CARE -GIVER FACILITIES WHEREAS, in the November 2000 general election, the voters of the State of Colorado adopted Amendment 20 to the Colorado Constitution ( "Amendment 20 ") which authorizes and limits the sale of medical marijuana for use in the treatment of debilitating medical conditions. Amendment 20 added Section 14 to Article 18 to the Colorado Constitution, and created a limited exception from criminal liability under Colorado law (as opposed to federal law) for seriously ill persons who are in need of marijuana for specified medical purposes and who obtain and use medical marijuana under the limited, specified circumstances described in Amendment 20; and WHEREAS, federal and state law prohibit the possession and sale of marijuana generally, and marijuana sales have never been specifically addressed in the Lakewood Municipal Code; and WHEREAS, notwithstanding the adoption of Amendment 20, marijuana is still a controlled substance under Colorado and federal law. As a result, making it legal for a person to obtain, possess, cultivate, grow, use, or distribute marijuana, even for medical use as contemplated by Amendment 20, has the potential for abuse that should be closely monitored and regulated by local authorities to the extent possible; and WHEREAS, if not closely monitored and regulated, the presence of marijuana, even for the purposes legally permitted by Amendment 20, can potentially lead to an increase in illegal activities within the City affecting the health, safety, order, comfort, convenience and general welfare of the residents of the City; and WHEREAS, marijuana is a valuable controlled substance and the possession, cultivation, or distribution of marijuana for medical purposes and the storage of large volumes of marijuana is reasonably likely to lead to robberies, burglaries, and other related crimes; and WHEREAS, in fact several instances of aggravated robbery, burglary, and theft related to the sale of medical marijuana have recently occurred within the City; and WHEREAS, the City Council has been made aware of a proliferation of businesses wishing to dispense medical marijuana and /or provide it to those who qualify under state law; and ATTACHMENT 4 FINAL AS AMENDED 02/08/2010 0- 2010 -1 Page 2 WHEREAS, the City has no current land use or business regulations governing the cultivation, distribution, or use of medical marijuana; and WHEREAS, if businesses wishing to dispense medical marijuana pursuant to Amendment 20 were allowed to be established and to operate without appropriate local regulation, such establishments might conflict with the City's comprehensive land use plan, be inconsistent with surrounding uses, or otherwise be detrimental to the public health, safety and welfare; and WHEREAS, the concentration of one type of business is not conducive to the need for a diversity of businesses to create a balanced neighborhood and an invigorated economy; and WHEREAS, the City Council of the City of Lakewood finds and determines that it is necessary to enact an ordinance to provide for the licensing and location of Care- giver Facilities. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Lakewood, Colorado, that: SECTION 1. A new Chapter 5.51 is hereby added to the Lakewood Municipal Code to read as follows: Chapter 5.51 Medical Marijuana 5.51.010 Purpose. A. It is the purpose of this Chapter to adopt reasonable regulations governing the operation of medical marijuana dispensaries, referred to herein as "Care -giver Facilities," consistent with the provisions of Amendment 20 and the statutes and administrative regulations implementing Amendment 20, including: 1.. Requiring that any business dispensing medical marijuana pursuant to Amendment 20 ( "Care -giver Facility") be operated in a safe manner that does not endanger the public welfare; 2.. Mitigating potential negative impacts that Care -giver Facilities might cause on surrounding properties and persons; and 3. Establishing a non - discriminatory mechanism by which the City can control, through appropriate regulation, the location and operation of Care -giver Facilities within the City. FINAL AS AMENDED 02/08/2010 0- 2010 -1 Page 3 B. Nothing in this Chapter allows a person to: Engage in conduct that endangers others or causes a public nuisance; 2. Possess, cultivate, grow, use, or distribute marijuana that is otherwise illegal under applicable law; or 3. Engage in any activity related to the possession, cultivation, growing, use, or distribution of marijuana that is not otherwise permitted under the laws of the City or the State of Colorado. 5.51.020 Definitions. A. As used in this Chapter, the following words and terms shall be defined as follows: "Amendment 20" means the voter - initiated amendment to the Colorado Constitution adopted November 7, 2000 which added Section 14 of Article 18 to the Colorado Constitution. "Applicant" means and includes an individual who is a Primary Care -giver and who is making an application for a license under this Chapter. "Care -giver Facility" means a business operated by a Primary Care -giver on any property or in any structure within the City for the purpose of cultivating, processing, preparing, distributing, transmitting, dispensing, or otherwise providing marijuana in any manner or form to patients in accordance with Amendment 20 and the implementing state statutes and administrative regulations. "City Manager" means the City Manager of the City of Lakewood or his /her designee. "License" means a license to operate a Care -giver Facility issued by the City pursuant to this Chapter to a Primary Care - giver. "Licensee" means the person to whom a license has been issued pursuant to this Chapter. A Licensee is an individual who is a Primary Care -giver authorized to distribute, transmit, dispense, or otherwise provide marijuana to patients only in an approved Care -giver Facility or by delivery from a Care -giver Facility. "Patient' has the meaning provided in Amendment 20 and the implementing state statutes and administrative regulations. FINAL AS AMENDED 02/08/2010 0- 2010 -1 Page 4 "Primary Care - giver" has the meaning provided in Amendment 20 and the implementing state statutes and administrative regulations. B. In addition to the definitions provided in Subsection A of this Section, the other defined terms in Amendment 20 are incorporated by reference into this Chapter as if those terms were defined herein. 5.51.030 License Required to Operate a Care -giver Facility A. No person shall operate or cause or permit the operation of a Care -giver Facility within the City without having first obtained a valid Care -giver Facility license pursuant to the terms of this Chapter. The requirement to obtain a Care -giver Facility license is in addition to the requirement to obtain a sales tax license and any other license required by the City. No sales tax license may be issued for a Care -giver Facility until a license has been issued pursuant to this Chapter. B. This licensing requirement shall apply regardless of whether or not a Care -giver Facility has commenced operation prior to the adoption date of this Chapter. Any Care- giver Facility that commenced operation and submitted a complete sales tax license application for a Care -giver Facility prior to the adoption date of this Chapter may continue in operation pending final action by the City Clerk on the application for Care- giver Facility license. Any such preexisting Care -giver Facility that does not or cannot meet the licensing requirements set forth in this Chapter and therefore fails to obtain a license shall cease operation immediately upon such denial. 5.51.040 Location of Care -giver Facility. A. It is unlawful to operate or to cause or permit the operation of a Care -giver Facility in any location except as provided in the Lakewood Zoning Ordinance. Notwithstanding the foregoing, any business for which the City had issued a sales tax license for a Care -giver Facility prior to the effective date of this Chapter for a location that is not in a zone district in which a Care -giver Facility is a permitted use may continue to operate as a legal non - conforming use to the extent allowed by Section 5.51.030 (B). B. It is unlawful to operate, or to cause or permit the operation, of a Care -giver Facility within three quarters (3/4) of a mile of any other licensed Care -giver Facility. For the purposes of this Section, the minimum distance shall be measured in a straight line, without regard to intervening structures, from the nearest property line of one Care- giver Facility to the nearest property line of the parcel on which the structure of another Care -giver Facility is located. FINAL AS AMENDED 02/08/2010 0- 2010 -1 Page 5 C. It is unlawful to operate, or to cause or permit the operation of, a Care -giver Facility from a moveable, mobile or transitory location. A Care -giver Facility shall be permitted to operate only from a fixed location. D. It is unlawful to operate, or to cause or permit the operation of, a Care -giver Facility within one thousand (1,000) feet of any elementary, middle or high school, or any athletic facilities associated with such schools, regardless of the jurisdiction in which the school is located. For the purposes of this Section, the minimum distance shall be measured in a straight line, without regard to intervening structures, from the nearest property line of any Care -giver Facility to the nearest property line of the parcel on which the school or athletic facility is located. 5.51.050 Application. A. All applicants for a Care -giver Facility shall file a completed application for such license with the City Clerk on a form to be provided by the City Clerk. Each applicant, each partner of a partnership, each officer, director or person owning ten percent (10 %) or more of the stock of a corporation, and each manager or member holding ten percent (10 %) or more of the interest of a limited liability company applying for a license for a Care -giver Facility shall be named in each application form and each such individual shall be photographed and fingerprinted by the Lakewood Police Department. The applicant shall pay all fees for the photographs and fingerprints. B. Each application for a Care -giver Facility shall be accompanied by a current state driver's license or government- issued photo identification card showing proof that the applicant is at least eighteen (18) years of age, or other proof of lawful presence in the United States, and shall contain the following information verified by oath or affirmation of the applicant: The application shall include: a. The applicant's name or any other names or aliases used by the individual; b. The applicant's date of birth, place of birth, height, weight, color of eyes and hair; C. The current residential and business addresses and telephone number of the applicant; d. Every residential and business address of the applicant for the five (5) years immediately preceding the date of the application, and the dates the applicant resided and /or conducted business at such address; FINAL AS AMENDED 02/08/2010 0- 2010 -1 Page 6 e. The applicant's business, occupation and employment history for the five (5) years immediately preceding the date of application; and f. A statement by the applicant that the applicant is a Primary Care- giver together with: i. a listing of the current registry identification numbers of the Primary Care - giver's patients; or ii. such alternative documentation deemed acceptable by Amendment 20 to establish an individual's status as a patient of the Care - Giver. Such documentation may be redacted to the minimum extent necessary to conceal the Patient's identity. 2. If the applicant is a partner in a partnership, the applicant shall state the partnership's complete name, the names of all partners and whether the partnership is general or limited, and shall provide a copy of the partnership agreement, if any; 3. If the applicant is an officer, director or shareholder of a corporation, the applicant shall state the corporation's complete name, the date of its incorporation, evidence that the corporation is in good standing under the statutes of the State of Colorado, or in the case of a foreign corporation, evidence that it is currently authorized to do business in the State of Colorado, the names and capacities of all officers, directors, and persons owning ten percent (10 %) or more of the stock thereof, and the name of the registered corporate agent and the address of the registered office for service of process; 4. If the applicant is a member of a limited liability company, the applicant shall state the company's complete name and the date of its formation, and shall submit evidence that the company is in good standing under the statutes of the State of Colorado, or in the case of a foreign company, evidence that it is currently authorized to do business in the State of Colorado, and the name of all the members owning ten percent (10 %) or more interest therein, and the manager and registered agent and the address of the registered office for service of process. 5. The City shall have the authority to investigate the financial background of the applicant and all individuals required by Section 5.51.050 to undergo a background investigation. C. Each license application for a Care -giver Facility shall contain the following information verified by oath or affirmation of any individual applicant, and of any of the other individuals set forth in Subsections B. 2, 3, and 4 of this Section 5.51.050: FINAL AS AMENDED 02/08/2010 0- 2010 -1 Page 7 1. The license or permit history for the five (5) years immediately preceding the date of the filing of the application, including whether such applicant has ever had a license, permit, or authorization to do business denied, revoked, or suspended, or had any professional or vocational license or permit denied, revoked, or suspended. In the event of any such denial, revocation, or suspension, state the date, the name of the issuing or denying jurisdiction, and describe in full the reasons for the denial, revocation, or suspension. The applicant shall list any licenses or permits previously or currently held from any other jurisdiction, and if so, the name and jurisdiction that issued such other license or permit; 2. Whether the applicant has been arrested for any criminal act, the date of the arrest, and the location of the offense; 3. The street address of the proposed Care -giver Facility; 4. If the applicant is not the owner of the proposed location of the Care -giver Facility establishment, a notarized statement from the owner of such property authorizing the submission of the application; 5. A description of any cultivation activities including; a. Where plants are grown; b. The expected number of plants that will be grown on site; and C. A description of the ventilation system for the premises; D. Each applicant for a license to operate a Care -giver Facility license shall submit written verification from the City that the location requirements imposed by this Chapter and the Lakewood Zoning Ordinance have been met. E. The Police Department may require each applicant for a Care -giver Facility license to submit a copy of the applicant's criminal history and those of any individuals set forth above in Subsections B. 2, 3 and 4 of this Section 5.51.050 from additional states as warranted. F. The City Clerk shall not accept any application that is not complete in every detail. If the City Clerk discovers an omission or error, the application shall be rejected and returned to the applicant for completion or correction without further action by the City Clerk. All fees shall be returned with the application. For the purposes of this Chapter, the date the City Clerk accepts an application that is complete in every detail shall be considered the filing date. G. Each individual applicant shall pay an application processing fee of three thousand dollars ($3,000) at the time of submitting any application to the City Clerk. In FINAL AS AMENDED 02/08/2010 0- 2010 -1 Page 8 the future, all fees required by this Chapter will be set by City Council resolution. Such application fee shall be nonrefundable, unless the application is returned for being incomplete. H. Each applicant shall pay an application investigation fee in the amount then charged by the Colorado Department of Public Safety for each person who will be investigated as required by this Chapter. I. Complete applications for a license to operate a Care -giver Facility shall be processed in the order in which they are received by the City Clerk for the purpose of applying the location restrictions referenced in Section 5.51.040 (B). In the case of any business which submitted a complete sales tax license application for a Care -giver Facility on or before the adoption date of this Chapter, priority will be established for the purposes of the location restrictions referenced in Section 5.51.040 (B) based on the date of the submission of the sales tax license application to the City. 5.51.060 Investigation of Application. When a complete application for a license has been accepted for filing, the required individuals have been fingerprinted and photographed, and the license fee has been paid, the City Clerk shall transmit the application to the Lakewood Police Department for the following: A. Investigate the background of each individual applicant and each of the other individuals required to be listed in the license application, and to investigate the accuracy of all the information submitted as a part of the application. The investigation required by this section should be completed within ninety (90) days from the date the application is submitted to the Police Department. Failure to complete the investigation within ninety (90) days shall not constitute approval of the application. The Police Department shall promptly forward the application and its completed investigation to the City Clerk for administrative review; and B. Conduct a Crime Prevention through Environmental Design (CPTED) evaluation to address any security concerns regarding the exterior of the facility. A police agent trained in conducting CPTED evaluations shall conduct the review. The purpose of the CPTED review is to create an environment that impedes criminal activity by improving lighting, mitigating obstructions caused by such things as trees, bushes, fences, and dumpsters that create blind spots or hiding spots, and using security cameras to monitor the property. The Police Department shall promptly forward the results and recommendations of the CPTED evaluation to the City Clerk for administrative review. 5.51.070 Approval or Denial of Application FINAL AS AMENDED 02/08/2010 0- 2010 -1 Page 9 A. An application with completed background investigation shall be administratively approved or denied by the City Clerk. The requirements set forth below shall apply to the applicant and any individuals set forth above in Subsections 2, 3 and 4 of Section 5.51.060. An application shall be approved and a license shall be issued unless the City Clerk or his /her designee finds that the applicant or any of the individuals required by Section 5.51.050 to undergo a background investigation: 1. Knowingly made a false statement or knowingly gave false information in connection with the application; 2. Is under eighteen (18) years of age; 3. Is not of good moral character at the time of the application as evidenced by a conviction of a felony or other offense involving moral turpitude, after giving consideration to the pertinent circumstances connected with such conviction; 4. Will operate the Care -giver Facility as a business prohibited by local or state law, statute, rule or regulation; 5. Has had a Care -giver Facility license, care -giver certificate, or similar local or state license or approval revoked or suspended within five (5) years of the date of the current application; or 6. Has failed to comply with the results of the CPTED evaluation unless the City Clerk finds good cause to grant the applicant additional time to implement CPTED requirements; or 7. Has otherwise failed to comply with the provisions of this Chapter. B. The applicant and any individuals set forth above in Subsections 2, 3, and 4 of Section 5.51.050 may present written documentation to the City Clerk regarding his /her criminal history, including but not limited to evidence of mitigating factors, rehabilitation, character references, and educational achievements, especially those items pertaining to the period of time between the applicant's last criminal conviction and the consideration of the application for a license. 5.51.080 Appeal of Application Denial. A. Written Findings. In the event that the City Clerk denies a license application, the City Clerk shall prepare written findings of fact stating the reasons or basis for the denial. A copy of the City Clerk's findings shall be sent by certified mail, return receipt requested, to the address of the applicant as shown in the application within ten (10) days after the date of the City Clerk's denial. The City Clerk's decision to deny a license application shall become a final administrative decision of the City on the fourteenth FINAL AS AMENDED 02/0812010 0- 2010 -1 Page 10 (14th) day following the date of the denial unless the applicant files a timely request for appeal to the City Manager as provided in this section. B. Appeal Hearing. In the event that the City Clerk denies a license application, an applicant shall have the right to a quasi-judicial hearing before the City Manager for the purpose of appealing the City Clerk's administrative decision. Any request for a hearing must be made in writing to the City Manager within ten (10) days of the date of the mailing of the City Clerk's written findings and denial of the license application. The hearing shall be conducted within fourteen (14) days of the City Manager's receipt of the written request for a hearing unless the applicant requests a later date. C. Scheduling. Upon receipt of a timely request for a hearing, the City Manager shall schedule a hearing and notify the applicant of the date, time, and place of the hearing. The City may make such notification by telephone provided that a written notice shall also be mailed or delivered to the applicant at the applicant's address shown in the application. An attorney or other representative may represent an applicant at the hearing. An applicant or the City may request a continuation or postponement of the hearing date. D. Subpoenas. The City Manager shall have the power to administer oaths, issue subpoenas to require the presence of persons, and when necessary, grant continuances. Subpoenas may be issued to require the presence of persons and production of papers, books, and records necessary to the determination of any hearing which the City Manager conducts. It is unlawful for any person to fail to comply with any subpoena issued by the City Manager. A subpoena shall be served in the same manner as a subpoena issued by the District Court of the State. Upon failure of any witness to comply with such subpoena, the City Attorney or the applicant may: 1. Petition any judge of the Municipal Court of the City, setting forth that due notice has been given of the time and place of attendance of the witness and the service of the subpoena, requesting that the court, after hearing evidence in support of or contrary to the petition, enter its order compelling the witness to attend and testify or produce books, records or other evidence, under penalty of punishment for contempt in case of willful failure to comply with such order of court; or 2. Petition the District Court in and for Jefferson County, setting forth that due notice has been given of the time and place of attendance of the witness and the service of the subpoena, requesting that the court, after hearing evidence in support of or contrary to the petition, enter its order as in other civil actions, compelling the witness to attend and testify or produce books, records or other evidence, under penalty of punishment for contempt in case of willful failure to comply with such order of court. FINAL AS AMENDED 02/08/2010 0- 2010 -1 Page 11 E. Conduct of Hearing. At the hearing, the City Manager shall hear and consider such evidence and testimony presented by the City, the applicant, or any other witnesses called by the City or the applicant which evidence is relevant to the stated reason and basis for the City Clerk's denial of the license application. The City Manager shall conduct the hearing in accordance with quasi - judicial proceedings and shall permit the relevant testimony of witnesses, cross - examination, and presentation of relevant documents and other evidence. The hearing shall be recorded stenographically or by electronic recording device. Any person requesting a transcript of such record shall pay the reasonable cost of preparing the record. F. Written Order. Not less than fourteen (14) days following the conclusion of the hearing, the City Manager shall send a written order by delivery confirmation, to the applicant at the address as shown on the application. The order shall include findings of fact and a final decision concerning the approval or denial of the application. In the event that the City Manager concludes that the application is approved, such approval shall constitute approval by the City Clerk, and the applicant may seek issuance of a license in accordance with this Chapter. G. Appeal of Order. The order of the City Manager made pursuant to this section shall be a final decision and may be appealed to the District Court pursuant to Colorado Rules of Civil Procedure 106(a)(4). For purposes of any appeal, the City Manager's decision shall be final upon the earlier of the date of the applicant's receipt of the order or four (4) days following the date of mailing. 5.51.090 License Fee. The annual license fee for any license issued pursuant to this Chapter shall be payable to the City Clerk at the time an initial license application is filed or at the time a renewal application is filed. The license fee is in addition to any application fee required by this Chapter. The license fee shall be nonrefundable unless an application is denied. The fee shall be two thousand five hundred dollars ($2,500.00). In the future, all fees required by this Chapter will be set by City Council resolution. 5.51.100 Term of the License. A Care -giver Facility license shall be valid for a period of one year from date of issuance, unless revoked or suspended. 5.51.110 Renewal. A. As a prerequisite to renewal of an existing license issued pursuant to this Chapter, the applicant must pay the annual license fee and file a completed renewal application with the City Clerk not less than forty -five (45) days prior to the date of the license expiration. The City Clerk may waive the timely filing requirement where the licensee demonstrates in writing that the failure to timely file is not solely the result of the licensee's negligence; provided that no renewal application shall be accepted by the FINAL AS AMENDED 02/08/2010 0- 2010 -1 Page 12 City Clerk from any licensee after the license for which renewal is requested has expired. B. A license that is under suspension may be renewed in accordance with this Section provided that such renewal shall not modify, alter, terminate, or shorten the period or term of the suspension. The suspension of a license shall not extend the term of the license or otherwise relieve the licensee from timely seeking renewal of the license in accordance with this Section. The City Clerk may administratively renew a license. 5.51.120 Denial of Renewal, Suspension or Revocation of License. A. Denial of Renewal, Suspension or Revocation. The City Manager may deny renewal of, suspend, revoke, modify, or place conditions on the continuation of a Care- giver Facility license upon a finding that the licensee: Has violated any of the provisions of this Chapter; 2. Has operated the Care -giver Facility in a manner that adversely affects the public health, welfare, or safety of the immediate neighborhood in which the Care -giver Facility is located. Evidence to support such a finding includes but is not limited to the occurrence of disturbances upon the licensed premises or upon any parking areas, sidewalks, access ways or grounds within the immediate neighborhood of the licensed premises involving a patient or customer, manager, employee, or the licensee; 3. Has violated City, state, or federal law or regulation regarding the possession, distribution, or cultivation of controlled substances, other than a federal law or regulation concerning the possession, sale or distribution of marijuana that conflicts with Amendment 20; or 4. Has failed to comply with the results of the CPTED evaluation regarding the exterior of the facility; or 5. Has allowed or permitted any other person to violate any of the provisions of this Chapter or engage in criminal conduct on the premises. B. Other Enforcement Authorized. A licensee shall be entitled to a quasi - judicial hearing before the City Manager if the City seeks to deny renewal, suspend, revoke, modify, or place conditions on a license based on a violation of this Chapter. 1. When there is probable cause to believe that a licensee has violated or permitted a violation of this Chapter or other laws, the City Attorney may file a written complaint with the City Manager setting forth the circumstances of the violation. FINAL AS AMENDED 02/08/2010 0- 2010 -1 Page 13 2. The City Manager shall send a copy of the complaint by delivery confirmation to the licensee at the address as shown on the license application, together with a notice to appear before the City Manager for the purpose of a hearing to be conducted at a specified date and time and at a place designated in the notice to show cause why the licensee's license should not be suspended. Such hearing shall be held on a date not less than fourteen (14) days following the date of mailing of the complaint and notice to the licensee. A licensee may be represented at the hearing by an attorney or other representative. C. Conduct of Hearing. At the hearing, the City Manager shall hear and consider such evidence and testimony presented by the Police Department or other enforcement officers, the City, the licensee, or any other witnesses called by the City or the licensee, which evidence is relevant to the violations alleged in the complaint. The City Manager shall conduct the hearing in conformity with quasi - judicial proceedings and shall permit the relevant testimony of witnesses, cross - examination, and presentation of relevant documents and other evidence. The hearing shall be recorded either stenographically or by electronic recording device. Any person requesting a transcript of such record shall pay the reasonable cost of preparing the record. Subpoenas may be issued in accordance with the provisions of Section 5.51.080. D. Written Findings. The City Manager shall make written findings of fact from the statements and evidence offered and shall reach a conclusion as to whether the alleged violations occurred. Such written findings and conclusion shall be prepared and issued not less than fourteen (14) days following the conclusion of the hearing. If the City Manager determines that a violation did occur which warrants denial of renewal, suspension, revocation, modification, or conditioning of the license pursuant to this section, he or she shall also issue an order suspending, revoking, modifying, or placing conditions on the license. A copy of the findings, conclusion, and order shall be hand delivered or mailed to the licensee by delivery confirmation, at the address as shown on the license application. E. Appeal. The order of the City Manager shall be a final decision and may be appealed to the District Court pursuant to Colorado Rules of Civil Procedure 106(a)(4). For purposes of any appeal to the District Court, the City Manager's decision shall be final either on the date the applicant receives the findings, conclusion, and order or four (4) days following the date of mailing of the City Manager's decision, whichever is earlier. F. No Refund and Costs of Enforcement. In the event of suspension, revocation, modification, conditioning, or cessation of business, no portion of the license fee shall be refunded. Any person whose license is suspended, revoked, modified, or conditioned under this Section shall be required to pay the costs incurred by the City to FINAL AS AMENDED 02/08/2010 0- 2010 -1 Page 14 enforce this Chapter, including but not limited to attorneys' fees, expert witness and /or consultant fees. 5.51.130 Transferability. A license issued under this Chapter shall not be transferable. 5.51.140 Unlawful acts. It shall be unlawful for any licensed Care -giver to: A. Consume or allow any other person to consume, inhale, or ingest any marijuana or product containing marijuana on, or within, the premises of a Care -giver Facility; B. Distribute, sell, or transfer any marijuana or any product containing marijuana at a Care -giver Facility or by way of delivery from a Care -giver Facility to anyone other than a patient or to a Primary Care -giver who is the parent of a minor patient; C. Dispense more than the amount of medical marijuana permitted under the provisions of Amendment 20 and /or the statutes or administrative regulations implementing Amendment 20; D. Store or display any marijuana or product containing marijuana outdoors, or in a manner in which it is visible from a public sidewalk or right of way; E. Operate a Care -giver Facility earlier than 8 a.m. or later than 9 p.m. the same day. A Care -giver Facility may be open seven (7) days a week; F. Allow the possession of marijuana or any product containing marijuana in a Care- giver Facility by anyone who is not a Primary Care -giver or patient; G. Sell or allow any person to consume alcohol on the premises of a Care -giver Facility; H. Cultivate, process, or store marijuana at any location within the City of Lakewood other than at the Care -giver Facility; I. Violate any of the provisions of Amendment 20, or the statutes or administrative regulations implementing Amendment 20; or J. Employ any person under the age of eighteen (18) years old.. 5.51.150 Ventilation. A Care -giver Facility shall be equipped with a proper ventilation system that filters out the odor of marijuana so that the odor is not capable of being detected by a person with a normal sense of smell at the exterior of the Care -giver Facility or any adjoining business, parcel, or tract of real property. FINAL AS AMENDED 02/08/2010 0- 2010 -1 Page 15 5.51.160 Security Requirements for Licensed Premise. All Care -giver Facilities shall provide adequate security on the premises, which shall include: A. Security surveillance cameras installed to monitor the main entrance along the interior and exterior of the premises and all other entrances or exits only along the interior of the premises. Security video shall be preserved for at least one week by the licensee and shall be available to the City upon the demand; B. Robbery and burglary alarm systems that are professionally monitored and maintained in good working condition; C. A locking safe permanently affixed to the premises that is suitable for storage of the entire inventory of processed marijuana and any product containing marijuana except when being accessed for distribution to a patient; and D. A secure environment for the storage of live marijuana plants 5.51.170 Ledger Required. A licensee shall keep a ledger for at least three (3) years which shall record the following information, and which shall be made available to the City upon demand: A. The quantity of medical marijuana dispensed in each transaction; B. The type of medical marijuana or a description of the product containing marijuana that was dispensed; C. The total amount paid by the patient for the transaction for all goods and services provided; D. The patient's medical marijuana Card Number or if no number has been issued, such alternative documentation deemed acceptable by Amendment 20 to establish an individual's status as a patient of the Care - Giver. Such documentation may be redacted to the minimum extent necessary to conceal the Patient's identity. E. Confirmation that the licensee verified the identity of the patient receiving the medical marijuana with a governmental issued photo identification; F. The date and time that the medical marijuana or the product containing marijuana was dispensed; and G. The source of the medical marijuana dispensed in the Care -giver Facility. FINAL AS AMENDED 02/08/2010 0- 2010 -1 Page 16 5.51.180 Right of Entry. The application for a Care -giver Facility license shall constitute consent of the licensee and his agents or employees to permit the Lakewood Police Department or any other authorized agent of the City to conduct routine inspections, from time to time, of any licensed Care -giver Facility to ensure compliance with the requirements of this Chapter. 5.51.190 Required Warnings to be Posted. There shall be posted in a conspicuous location in each Care -giver Facility a legible sign containing the following warnings: A. A warning that the use of medical marijuana may impair a person's ability to drive a motor vehicle or operate machinery, and that it is illegal under state law to drive a motor vehicle or to operate machinery when under the influence of, or impaired by, marijuana; and B. A warning that possession and distribution of marijuana is a violation of federal law. 5.51.200 Duties of Licensee. Each licensee shall: A. Post the license in a conspicuous location on the premises of the Care -giver Facility that may be readily seen by persons entering the premises; B. Comply with all of the terms and conditions of the license; C. Comply with all of the requirements of this Chapter; D. Comply with all other applicable City ordinances; E. Comply with all state laws and administrative regulations pertaining to the medical use of marijuana, including, but not limited to, Amendment 20; Section 18 -18- 406.3, C.R.S.; and the administrative regulations issued by the Colorado Department of Public Health and Environment found at 5 CCR 1006 -2, all as amended from time to time; and F. Comply with all applicable federal laws, rules, or regulations, other than a federal law, rule or regulation concerning the possession, sale or distribution of marijuana that conflicts with Amendment 20. 5.51.210 Signage. No licensee shall display a sign for the Care -giver Facility establishment that contains the word "marijuana," "cannabis," or any other word or phrase commonly understood to refer to marijuana unless such word or phrase is immediately preceded or followed by the word "medical" in substantially similar size print or font. FINAL AS AMENDED 02/08/2010 0- 2010 -1 Page 17 5.51.220 Penalty. A. Any person violating any provision of this Chapter shall be punished pursuant to Chapter 1.16 of the Lakewood Municipal Code. Each violation or non - compliance shall be considered a separate and distinct offense. Further, each day of continued violation or non - compliance shall be considered as a separate offense. B. All remedies and penalties provided for in this Chapter shall be cumulative and independently available to the City, and the City shall be authorized to pursue any and all remedies to the full extent allowed by law. C. Nothing herein contained shall prevent or restrict the City from taking such other lawful action in any court of competent jurisdiction as is necessary to prevent or remedy any violation or non - compliance. Such other lawful actions shall include, but shall not be limited to, an equitable action for injunctive relief or an action at law for damages. 5.51.230 Reasonable Procedures. The City Clerk is hereby authorized to adopt such reasonable policies and procedures as are deemed necessary to implement the provisions of this Chapter. SECTION 2. Subsection 17 -2 -2 Lakewood Zoning Ordinance is hereby amended by the addition of new subsections 51, 275, 285 with subsequent subsections to be renumbered accordingly: (51) Care -giver Facility: Care -giver Facility means a business operated by a Primary Care -giver on any property or in any structure within the City for the purpose of cultivating , processing, preparing, distributing, transmitting, dispensing, or otherwise providing marijuana in any manner or form to patients in accordance with Amendment 20 and the implementing state statutes and administrative regulations. (275) Patient. Patient has the meaning provided in Section 14 of Article 18 to the Colorado Constitution (Amendment 20) and the implementing state statutes and administrative regulations. (285) Primary Care - giver. Primary Care -giver has the meaning provided in Section 14 of Article 18 to the Colorado Constitution (Amendment 20) and the implementing state statutes and administrative regulations. SECTION 3. Section 17 -5 -16, 1 -C: Convenience Commercial District of the Lakewood Zoning Ordinance is hereby amended by the addition of a new Subsection 17- 5- 16(2)(a)(4) with subsequent subsections to be renumbered accordingly: FINAL AS AMENDED 02/08/2010 0- 2010 -1 Page 18 17- 5- 16(2)(a)(4). Care -giver Facilities, subject to the spacing and licensing requirements established in the Lakewood Municipal Code. SECTION 4. Section 17 -5 -17, 2 -C: Neighborhood Commercial District of the Lakewood Zoning Ordinance is hereby amended by the addition of a new Subsection 17- 5- 17(2)(a)(4) with subsequent subsections to be renumbered accordingly: 17- 5- 17(2)(a)(4). Care -giver Facilities, subject to the spacing and licensing requirements established in the Lakewood Municipal Code. SECTION 5. Section 17 -5 -18, 3 -C: Community Commercial District of the Lakewood Zoning Ordinance is hereby amended by the addition of a new Subsection 17- 5- 18(2)(a)(8) with subsequent subsections to be renumbered accordingly: 17- 5- 18(2)(a)(8). Care -giver Facilities, subject to the spacing and licensing requirements established in the Lakewood Municipal Code. SECTION 6. Section 17 -5 -19, 4 -C: Regional Commercial District of the Lakewood Zoning Ordinance is hereby amended by the addition of a new Subsection 17- 5- 19(2)(a)(9) with subsequent subsections to be renumbered accordingly: 17- 5- 19(2)(a)(9). Care -giver Facilities, subject to the spacing and licensing requirements established in the Lakewood Municipal Code. SECTION 7. Section 17 -5 -20, 5 -C: Large Lot Commercial District of the Lakewood Zoning Ordinance is hereby amended by the addition of a new Subsection 17- 5- 20(2)(a)(11) with subsequent subsections to be renumbered accordingly: 17- 5- 20(2)(a)(11). Care -giver Facilities, subject to the spacing and licensing requirements established in the Lakewood Municipal Code. SECTION 8. Section 17 -5 -22, PD: Planned Development Zone District of the Lakewood Zoning Ordinance is hereby amended by the addition of a new Subsection 17- 5- 22(2)(c) with subsequent subsections to be renumbered accordingly: 17- 5- 22(2)(c). A Care -giver Facility shall not be permitted in a Planned Development Zone District unless the Planned Development Zone District explicitly names Care -giver Facilities as a permitted use and shall comply with all spacing and licensing requirements for a Care -giver Facility as specified in the Lakewood Municipal Code. SECTION 9. Section 17- 19- 6(1)(a), Colfax Mixed Use Zone District - Neighborhood Sub - District (CMU -N) Permitted Uses — Colfax Frontage Parcels of the FINAL AS AMENDED 02/08/2010 0- 2010 -1 Page 19 Lakewood Zoning Ordinance is hereby amended by the addition of a new Subsection 17- 19- 6(1)(a)(4) with subsequent subsections to be renumbered accordingly: 17- 19- 6(1)(a)(4). Care -giver Facilities, subject to the spacing and licensing requirements established in the Lakewood Municipal Code. SECTION 10. Subsection 17- 19- 6(2)(a), Colfax Mixed Use Zone District — Community Sub - District (CMU -C) Permitted Uses - Colfax Frontage Parcels of the Lakewood Zoning Ordinance is hereby amended by the addition of a new Subsection 17- 19- 6(2)(a)(7) with subsequent subsections to be renumbered accordingly: 17- 19- 6(2)(a)(7). Care -giver Facilities, subject to the spacing and licensing requirements established in the Lakewood Municipal Code. SECTION 11. Subsection 17- 19- 6(2)(b), Colfax Mixed Use Zone District — Community Sub - District (CMU -C) Permitted Uses — Non - Colfax Frontage Parcels of the Lakewood Zoning Ordinance is hereby amended by the addition of a new Subsection 17- 19- 6(2)(b)(2) with subsequent subsections to be renumbered accordingly: 17- 19- 6(2)(b)(2). Care -giver Facilities, subject to the spacing and licensing requirements established in the Lakewood Municipal Code. SECTION 12. Subsection 17- 19- 6(3)(a), Colfax Mixed Use Zone District — Roadside Sub - District (CMU -R) Permitted Uses — Colfax Frontaoe Parcels of the Lakewood Zoning Ordinance is hereby amended by the addition of a new Subsection 17- 19- 6(3)(a)(11) with subsequent subsections to be renumbered accordingly: 17- 19- 6(3)(a)(11). Care -giver Facilities, subject to the spacing and licensing requirements established in the Lakewood Municipal Code. SECTION 13. Subsection 17- 19- 6(3)(b), Colfax Mixed Use Zone District — Roadside Sub - District (CMU -R) Permitted Uses — Non - Colfax Frontage Parcels of the Lakewood Zoning Ordinance is hereby amended by the addition of a new Subsection (2) with subsequent subsections to be renumbered accordingly: 17- 19- 6(3)(b)(2). Care -giver Facilities, subject to the spacing and licensing requirements established in the Lakewood Municipal Code. SECTION 14. Subsection 17- 22- 6(2)(a), Transit Mixed Use Zone District — Commercial (TMU -C) Permitted Uses of the Lakewood Zoning Ordinance is hereby amended by the addition of a new Subsection (4) with subsequent subsections to be renumbered accordingly: FINAL AS AMENDED 02/08/2010 0- 2010 -1 Page 20 17- 22- 6(2)(a)(4) Care -giver Facilities, subject to the spacing and licensing requirements established in the Lakewood Municipal Code. SECTION 15. Subsection 17 -9, TABLE 9 -4 Required Parkins Ratios of the Lakewood Zoning Ordinance is hereby amended by inserting Care -giver Facility into the table alphabetically. USE DESCRIPTION I RATIO Care -giver Facility Medical marijuana facilities 4.0 spaces /1,000 s.f. of g ross floor area SECTION 16. Section 17- 13 -10, Home Occupations — Specific Exclusions of the Lakewood Zoning Ordinance is hereby amended by the addition of a new Subsection (5): (5) Care -giver Facilities. SECTION 17. If any section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of any such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. SECTION 18. This Ordinance shall take effect forty -five (45) days after final publication. All persons conducting business as a Primary Care -giver at the time of adoption of this Ordinance shall submit a completed license application to the City Clerk as required by Chapter 5.51 within thirty (30) days of the effective date of this Ordinance. I hereby attest and certify that the within and foregoing ordinance was introduced and read on first reading at a regular meeting of the Lakewood City Council on the 25 day of January, 2010; published by title in the Denver Post and in full on the City of Lakewood's website, www.lakewood.ors on the 28 day of January, 2010; set for public hearing on the 8 th day of February, 2010, read, finally passed and adopted by the City Council on the day of February, 2010 and, signed and approved by the Mayor on the day of February, 2010. Bob Murphy, Mayor ATTEST: FINAL AS AMENDED 02/08/2010 0- 2010 -1 Page 21 Margy Greer, City Clerk APPROVED AS TO FORM: Tim Cox, City Attorney 5 /(y/z -b10 r 1 1,.,.1./- /TO l` CJ2 1 WM�� Second Regular Session Sixty- seventh General Assembly STATE OF COLORADO REREVISED This Version Includes All Amendments Adopted in the Second House LLS NO. 10- 0773.02 Michael Dohr HOUSE BILL 10 -1284 HOUSE SPONSORSHIP Massey and Summers, McCann, Rice Romer and Spence, SENATE SPONSORSHIP to A ro o E a o r1 N Z N N � v m House Committees Senate Committees Judiciary Local Government and Energy e Appropriations Appropriations F ro A BILL FOR AN ACT v w a 101 CONCERNING REGULATION OF MEDICAL MARIJUANA, AND MAKING AN z 102 APPROPRIATION THEREFOR. ro m e Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that maybe subsequently adopted. If this bill 0 passes third reading in the house of introduction, a bill summary that w applies to the reengrossed version of this bill will be available at o m N http:// www. leg.state.co.uslbillsummaries.) x � p v a a � Section 1. The bill creates the medical marijuana licensing authority (state licensing authorl m t e apartment of revenue. Th M state licensing authority grants, refuses, or renews a medical marijuana center license after the licensee has received local annroval The state 0 licensing authority also administers aspects of medical marijuana w 0 o m a N LD 'd o O N N Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. x ro a Capital letters indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. 5 licensure, including rulemaking. Many of the functions and duties of the state licensing authority are similar to those held by the state licensi authority for alcoholic beverages. ec ion n er t e i , the departm of public hea lth and new rules related to standards 2 3 for issuing registry i dentification car d ocumentation for physicia who prescribe medical marijuana, and sanctions for physicia who violate the bill. A physician who certifies that a patient can use medical marijuana shall certify certain information to the department and maintain a record - keeping system for his or her medical marijuana patients. A physician who certifies that a patient can use medical marijuana shall no t receive remuneration from or offer it to a prim caregiv distributor, or any other provider o m� e:Tic manjuana. The bill requires patient under 21 years of age w want to b e registered medical marijuana patien to receive recommendations from o A p rimary caregiver may serve no more than 5 pati on the registry at one time, unless the department allows more patients due to exceptional circumstances. A patien who is permitted to use medical marijuana must hav in his or her possession a registry identification card at all times when in possession of medical marijuana. The bill lists various places and situations in which the patient or primary caregiver may not use or possess medical marijuana. Aphysician who certifies that a patient can use medical marijuana may not receive remuneration from a primary caregiver related to medical marijuana or from a medical marijuana center. The bill imposes a one-year moratorium on the opening of new medical marijuana centers, but allows current medical marijuana centers to op erate for a Section 3. The bill p rovides an exception to the adulter an offense for medical marijuana centers that manufacture or sell food that contams medical marijuana if the food is labeled as containing medical marijuana and the l abel specifies the amount of medical marij Sections 4, 5, and 6 make conforming amendments. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Title 12, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW ARTICLE to read: 4 ARTICLE 43.3 -2- P jr kp o- 1284 84 I Medical Marijuana 2 PART 1 3 COLORADO MEDICAL MARIJUANA CODE 4 12- 43.3 -101. Short title. THIS ARTICLE SHALL BE KNOWN AND 5 MAY BE CITED AS THE "COLORADO MEDICAL MARIJUANA CODE ". 6 12- 43.3 -102. Legislative declaration. (1) THE GENERAL 7 ASSEMBLY HEREBY DECLARES THAT THIS ARTICLE SHALL BE DEEMED AN 8 EXERCISE OF THE POLICE POWERS OF THE STATE FOR THE PROTECTION OF 9 THE ECONOMIC AND SOCIAL WELFARE AND THE HEALTH, PEACE, AND 10 MORALS OF THE PEOPLE OF THIS STATE. 11 (2) THE GENERAL ASSEMBLY FURTHER DECLARES THAT IT IS 12 UNLAWFUL UNDER STATE LAW TO CULTIVATE, MANUFACTURE, 13 DISTRIBUTE, OR SELL MEDICAL MARIJUANA, EXCEPT IN COMPLIANCE WITH 14 THE TERMS, CONDITIONS, LIMITATIONS, AND RESTRICTIONS IN SECTION 14 15 OF ARTICLE XVIII OF THE STATE CONSTITUTION AND THIS ARTICLE OR 16 WHEN ACTING ASA PRIMARY CAREGIVERIN COMPLIANCE WITH THE TERMS, 17 CONDITIONS, LIMITATIONS, AND RESTRICTIONS OF SECTION 25 -1.5 -106, 18 C.R.S. 19 12- 43.3 -103. Applicability. (1) (a) ON JULY 1 2010 A PERSON 20 WHO IS OPERATING AN ESTABLISHED, LOCALLY APPROVED BUSINESS FOR 21 THE PURPOSE OF CULTIVATION, MANUFACTURE, OR SALE OF MEDICAL 22 MARIJUANA OR MEDICAL MARUUANA- INFUSED PRODUCTS OR A PERSON 23 WHO HAS APPLIED TO A LOCAL GOVERNMENT TO OPERATE A LOCALLY 24 APPROVED BUSINESS FOR THE PURPOSE OF CULTIVATION, MANUFACTURE 25 OR SALE OF MEDICAL MARIJUANA OR MEDICAL MARLIUANA- INFUSED 26 PRODUCTS WHICH IS SUBSEQUENTLY GRANTED MAY CONTINUE TO 27 OPERATE THAT BUSINESS IN ACCORDANCE WITH ANY APPLICABLE STATE -3- 1284 ORLOCAL LAWS. "ESTABLISHED" AS USED IN THIS PARAGRAPH (a),SHALL 2 MEAN OWNING OR LEASING A SPACE WITH A STOREFRONT AND REMITTING SALES TAXES IN A TIMELY MANNER ON RETAIL SALES OF THE BUSINESS AS 4 REQUIRED PURSUANT TO 39 -26 -105, C.R.S., AS WELLAS ANY APPLICABLE LOCAL SALES TAXES. (b) TO CONTINUE OPERATING A BUSINESS OR OPERATION AS DESCRIBED IN PARAGRAPH (al OF THIS SUBSECTION (1), THE OWNER SHALL, 0 10 11 PURSUANT TO SECTION 12- 43.3 -501. THE PURPOSE OF THE FEE SHALL BE 12 TO Y FOR THE DIRECT AND INDIRECT COST OF THE STATE LICENSING 13 AUTHORITY AND THE DEVELOPMENT OF APPLICATION PROCEDURES AND 14 RULES NECESSARY TO IMPLEMENT THIS ARTICLE. PAYMENT OF THE FEE r 15 AND COMPLETION OF THE FORM SHALL NOT CREATE A LOCAL OR STATE 16 LICENSE OR A PRESENT OR FUTURE ENTITLEMENT TO RECEIVE A LICENSE. 17 18 COMPLETE THE FORMS AND PAY THE FEE PURSUANT TO THIS PARAGRAPH 19 (b) WITHIN THIRTY DAYS OF ISSUANCE OF THE LOCAL LICENSE. IN 20 ADDITION TO ANY CRIMINAL PENALTIES FOR SELLING WITHOUT A LICENSE 21 IT SHALL BE UNLAWFUL TO CONTINUE OPERATING A BUSINESS OR 22 OPERATION WITHOUT FILING THE FORMS AND PAYING THE FEE AS 23 DESCRIBED IN THIS SUBSECTION (b) AND ANY VIOLATION OF THIS SECTION 24 SHALL BE PRIMA -FACIE EVIDENCE OF UNSATISFACTORY CHARACTER, 25 RECORD AND REPUTATION FOR ANY FUTURE APPLICATION FOR LICENSE 26 UNDER THIS ARTICLE. 27 (C) A COUNTY CITY AND COUNTY OR MUNICIPALITY SHALL 4- 1284 CREDITED TO THE MEDICAL MARIJUANA LICENSE CASH FUND ESTABLISHED PROVIDE TO THE STATE LICENSING AUTHORITY UPON REQUEST A LIST 2 THAT INCLUDES THE NAME AND LOCATION OF EACH LOCAL CENTER OR OPERATION LICENSED IN SAID COUNTY, CITY AND COUNTY OR 4 MUNICIPALITY SO THAT THE STATE LICENSING AUTHORITY CAN IDENTIFY 5 ANY CENTER OR OPERATION OPERATING UNLAWFULLY 6 (2) (a) PRIOR TO JULY 1, 2011 A COUNTY CITY AND COUNTY OR MUNICIPALITY MAY ADOPT AND ENFORCE A RESOLUTION OR ORDINANCE 8 LICENSING, REGULATING, OR PROHIBITING THE CULTIVATION OR SALE OF 9 MEDICAL MARIJUANA. INACOUNTY, CITY AND CQUNTY ORMUNICIPALITY 10 WHERE SUCH AN ORDINANCE OR RESOLUTION HAS BEEN ADOPTED A 11 PERSON WHO IS NOT REGISTERED AS A PATIENT OR PRIMARY CAREGIVER 12 PURSUANT TO SECTION 25 -1.5 -106, C.R.S.. AND WHO IS CULTIVATING OR 13 SELLING MEDICAL MARIJUANA SHALL NOT BE ENTITLED TO AN 14 AFFIRMATIVE DEFENSE TO A CRIMINAL PROSECUTION AS PROVIDED FOR IN 15 SECTION 14 OF ARTICLE XVIII OF THE STATE CONSTITUTION UNLESS THE 16 PERSON IS IN COMPLIANCE WITH THE APPLICABLE COUNTY OR MUNICIPAL 17 LAW. -7 18 (b) ONORBEFORESEPTEMBERI 2010 A BUSINESS OR OPERATION Dale yU� 19 SHALL CERTIFY THAT IT IS CULTIVATING AT LEAST SEVENTY PERCENT OF ' ry I 20 THE MEDICAL MARIJUANA NECESSARY FOR ITS OPERATION O - 21 (C) ON AND AFTER JULY 1, 2011 ALL BUSINESSES FOR THE 22 PURPOSE OF CULTIVATION, MANUFACTURE, OR SALE OF MEDICAL 23 MARIJUANA OR MEDICAL MARIJUANA- INFUSED PRODUCTS AS DEFINED IN 24 THIS ARTICLE, SHALL BE SUBJECT TO THE TERMS AND CONDITIONS OF THIS 25 ARTICLE AND ANY RULES PROMULGATED PURSUANT TO TIIIS ARTICLE 26 27 12- 43.3 -104 Definitions. AS USED IN THIS ARTICLE, UNLESS THE 5- 1284 I CONTEXT OTHERWISE REQUIRES: 2 (1) "GOOD CAUSE ", FOR PURPOSES OF REFUSING OR DENYING A 3 LICENSE RENEWAL, REINSTATEMENT, OR INITIAL LICENSE ISSUANCE, 4 MEANS: 5 (a) THE LICENSEE OR APPLICANT HAS VIOLATED, DOES NOT MEET, 6 OR HAS FAILED TO COMPLY WITH ANY OF THE TERMS, CONDITIONS, OR 1 7 PROVISIONS OF THIS ARTICLE, ANY RULES PROMULGATED PURSUANT TO 8 THIS ARTICLE, OR ANY SUPPLEMENTAL LOCAL LAW, RULES, OR 9 REGULATIONS; 10 (b) THE LICENSEE OR APPLICANT HAS FAILED TO COMPLY WITH ANY 11 SPECIAL TERMS OR CONDITIONS THAT WERE PLACED ON ITS LICENSE 12 PURSUANT TO AN ORDER OF THE STATE OR LOCAL LICENSING AUTHORITY; 13 (o) THE LICENSED PREMISES HAVE BEEN OPERATED IN A MANNER 14 THAT ADVERSELY AFFECTS THE PUBLIC HEALTH OR WELFARE OR THE 15 SAFETY OF THE IMMEDIATE NEIGHBORHOOD IN WHICH THE 16 ESTABLISHMENT IS LOCATED. 17 (2) "LICENSE" MEANS TO GRANT A LICENSE OR REGISTRATION 18 PURSUANT TO THIS ARTICLE. 19 (3) "LICENSED PREMISES" MEANS THE PREMISES SPECIFIED IN AN 20 APPLICATION FOR A LICENSE UNDER THIS ARTICLE, WHICH ARE OWNED OR 21 IN POSSESSION OF THE LICENSEE AND WITHIN WHICH THE LICENSEE IS 22 AUTHORIZED TO CULTIVATE, MANUFACTURE, DISTRIBUTE, OR SELL 23 MEDICAL MARIJUANA IN ACCORDANCE WITH THE PROVISIONS OF THIS 24 ARTICLE. 25 (4) "LICENSEE" MEANS A PERSON LICENSED OR REGISTERED 26 PURSUANT TO THIS ARTICLE. 27 (5) "LOCAL LICENSING AUTHORITY" MEANS AN AUTHORITY 6- 1284 I DESIGNATED BY MUNICIPAL OR COUNTY CHARTER, MUNICIPAL ORDINANCE, 2 OR COUNTY RESOLUTION. 3 (6) " LOCATION" MEANS A PARTICULAR PARCELOF LAND THAT MAY 4 BE IDENTIFIED BY AN ADDRESS OR OTHER DESCRIPTIVE MEANS. 5 (7) "MEDICAL MARIJUANA" MEANS MARIJUANA THAT IS GROWN 6 AND SOLD PURSUANT TO THE PROVISIONS OF THIS ARTICLE AND FOR A 7 PURPOSE AUTHORIZED BY SECTION 14 OF ARTICLE XVIII OF THE STATE 8 CONSTITUTION. 9 (8) "MEDICAL MARIJUANA CENTER" MEANS A PERSON LICENSED 10 PURSUANT TO THIS ARTICLE TO OPERATE A BUSINESS AS DESCRIBED IN I 1 SECTION 12- 43.3 -402 THAT SELLS MEDICAL MARIJUANA TO REGISTERED 12 PATIENTS OR PRIMARY CAREGIVERS AS DEFINED IN SECTION 14 OF ARTICLE 13 XVIII OF THE STATE CONSTITUTION, BUT IS NOT A PRIMARY CAREGIVER. 14 (9) "MEDICAL MARDUANA- INFUSED PRODUCT" MEANS APRODUCT 15 INFUSED WITH MEDICAL MARIJUANA THAT IS INTENDED FOR USE OR 16 CONSUMPTION OTHER THAN BY SMOKING, INCLUDING BUT NOT LIMITED TO 17 EDIBLE PRODUCTS, OINTMENTS, AND TINCTURES. THESE PRODUCTS, WHEN 18 MANUFACTURED OR SOLD BY A LICENSED MEDICAL MARIJUANA CENTER OR 19 A MEDICAL MARIJUANA- INFUSED PRODUCT MANUFACTURER, SHALL NOT 20 BE CONSIDERED A FOOD OR DRUG FOR THE PURPOSES OF THE "COLORADO 21 FOOD AND DRUG ACT ", PART 4 OF ARTICLE 5 OF TITLE 25, C.R.S. 22 (10) " MEDICALMARIJUANA -INFUSEDPRODUCTSMANUFACTURER" 23 MEANS A PERSON LICENSED PURSUANT TO THIS ARTICLE TO OPERATE A 24 BUSINESS AS DESCRIBED IN SECTION 12- 43.3 -404. 25 (11) "OPTIONALPREMISES" MEANS THE PREMISES SPECIFIED IN AN 26 APPLICATION FOR A MEDICAL MARIJUANA CENTER LICENSE WITH RELATED 27 GROWING FACILITIES IN COLORADO FOR WHICH THE LICENSEE IS 7- 1284 I AUTHORIZED TO GROW AND CULTIVATE MARIJUANA FOR A PURPOSE 2 AUTHORIZED BY SECTION 14 OF ARTICLE XVIII OF THE STATE 3 CONSTITUTION. 4 (12) "OPTIONAL PREMISES CULTIVATION OPERATION" MEANS A 5 PERSON LICENSED PURSUANT TO THIS ARTICLE TO OPERATE A BUSINESS AS 6 DESCRIBED IN SECTION 12- 43.3 -403. 7 (13) "PERSON" MEANS A NATURAL PERSON, PARTNERSHIP, 8 ASSOCIATION, COMPANY, CORPORATION, LIMITED LIABILITY COMPANY, OR 9 ORGANIZATION, OR A MANAGER, AGENT, OWNER, DIRECTOR, SERVANT, 10 OFFICER, OR EMPLOYEE THEREOF. 11 (14) "PREMISES" MEANS A DISTINCT AND DEFINITE LOCATION, 12 WHICH MAY INCLUDE A BUILDING, A PART OF A BUILDING, A ROOM, OR ANY 13 OTHER DEFINITE CONTIGUOUS AREA. 14 (15) "SCHOOL" MEANS A PUBLIC OR PRIVATE PRESCHOOL OR A 15 PUBLIC ORPRIVATE ELEMENTARY, MIDDLE, JUNIORHIGH, ORHIGH SCHOOL. 16 (16) "STATE LICENSING AUTHORITY" MEANS THE AUTHORITY 17 CREATED FOR THE PURPOSE OF REGULATING AND CONTROLLING THE 18 LICENSING OF THE CULTIVATION, MANUFACTURE, DISTRIBUTION, AND SALE 19 OF MEDICAL MARIJUANA IN THIS STATE, PURSUANT TO SECTION 20 12- 43.3 -201. 21 12- 43.3 -105. Limited access areas. SUBJECT TO THE PROVISIONS 22 OF 12-43.3 -70 1, A LIMITED ACCESS AREA SHALL BEA BUILDING, ROOM OR 23 OTH CONTIGUOUS AREA UPON THE LICENSED PREMISES WHERE MEDICAL 24 MARIJUANA IS GROWN, CULTIVATED, STORED, WEIGHED, DISPLAYED, 25 PACKAGED, SOLD, OR POSSESSED FOR SALE, UNDER CONTROL OF THE 26 LICENSEE, WITH LIMITED ACCESS TO ONLY THOSE PERSONS LICENSED BY 27 THE STATE LICENSING AUTHORITY. ALL AREAS OF INGRESS OR EGRESS TO -8- 1284 I LIMITED ACCESS AREAS SHALL BE CLEARLY IDENTIFIED AS SUCH BY A SI 2 AS DESIGN BY THE STATE LICENSING AUTHORI 3 0 12- 43.3 -106. Local optio THE OPERATION OF THIS ARTICLE 4 SHALL BE STATEWIDE UNL A MUNICIPALITY, COUNTY, CITY, OR CI 5 AND CO UNTY, BY EITHER A MAJORITY OF THE REGISTERED ELECTORS O 6 T HE MUNI CIPALITY, COUNTY, CITY, OR CIT AND COUNTY VOTING AT A 7 REGULAR ELECTION O SPECIAL ELECTION CALLED IN ACCORDANC WITH 8 THE "COLORADO MUNICIPAL ELECTION CODE OF 1965 ", ARTICLE 10 OF 9 TITLE 31, C.R.S., OR THE "UNIFORM ELECTION CODE OF 1992 ", ARTICLES F/I 10 1 TO 13 OF TITLE 1, C.R.S., AS APPLICABLE, OR A MAJORITY OF THE 11 MEMBERS OF THE G OVER NING BOARD FOR THE MUNICIPAL COUNTY, 12 CITY. OR CITY AND COUNTY, VOTE TO PROHIBIT THE OPERATION OF 13 MEDICAL MARIJUANA CENTERS, OPTIONAL PREMISES CULTIVATION 14 OPERATIONS, AND MEDICAL MARIJUANA - INFUSED PRODUCTS 15 MANUFACTURERS' LICENSES. 16 PART 2 17 STATE LICENSING AUTHORITY 18 12- 43.3 -201. State licensing authority - creation - repeal. 19 ( 1) FOR THE PURPOSE OF REGULATING AND CONTROLLING THE LICENSING 20 OF THE CULTIVATION, MANUFACTURE, DISTRIBUTION, AND SALE OF 21 MEDICAL MARIJUANA IN THIS STATE, THERE IS HEREBY CREATED THE 22 STATE LICENSING AUTHORITY, WHICH SHALLBE THEEXECUTIVE DIRECTOR 23 OF THE DEPARTMENT OF REVENUE OR THE DEPUTY DIRECTOR OF THE 24 DEPARTMENT OF REVENUE IF THE EXECUTIVE DIRECTOR SO DESIGNATES. 25 (2) THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE 26 SHALL BE THE CHIEF ADMINISTRATIVE OFFICER OF THE STATE LICENSING 27 AUTHORITY AND MAY EMPLOY, PURSUANT TO SECTION 13 OF ARTICLE XII -9- 1284 I OF THE STATE CONSTITUTION, SUCH OFFICERS AND EMPLOYEES AS MAY BE 2 DETERMINED TO BE NECESSARY, WHICH OFFICERS AND EMPLOYEES SHALL 3 BE PART OF THE DEPARTMENT OF REVENUE. THE STATE LICENSING 4 AUTHORITY SHALL, AT ITS DISCRETION, BASED UPON WORKLOAD, EMPLOY 5 NO MORE THAN ONE FULL TIME EQUIVALENT EMPLOYEE FOR EACH TEN 6 MEDICAL MARIJUANA CENTERS LICENSED BY OR MAKING APPLICATION 7 WITH THE AUTHORITY. NO MONEYS SHALL BE APPROPRIATED TO THE 8 STATE LICENSING AUTHORITY FROM THE GENERAL FUND FOR THE 9 OPERATION OF THIS ARTICLE, NOR SHALL THE STATE LICENSING 10 AUTHORITY EXPEND ANY GENERAL FUND MONEYS FOR THE OPERATION OF 11 THIS ARTICLE. 12 3 a DURING FISCAL YEAR 2010 -2011, THE STATE LICENSING 13 AUTHORITY SHALL CONSIDEREMPLOYMENT OF TEMPORARY ORCONTRACT 14 STAFF TO CONDUCT BACKGROUND INVESTIGATIONS. THE ADDITIONAL 15 COST OF THE BACKGROUND INVESTIGATIONS SHALL NOT EXCEED FIVE 16 HUNDRED THOUSAND DOLLARS. 17 b) ON JULY 1, 2010, THE DEPARTMENT OF PUBLIC HEALTH AND 18 ENVIRONMENT SHALL LOAN TO THE STATE LICENSING AUTHORITY, 19 CREATED IN 12- 43.3 -201, A SUM NOT TO EXCEED ONE MILLION DOLLARS 20 FROM THE MEDICAL MARIJUANA CASH FUND CREATED IN 25 -1.5 -106. THE 21 STATE LICENSING AUTHORITY SHALL PAY BACK THE ONE MILLION DOLLAR 22 LOAN TO THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT NO 23 LATER THAN DECEMBER 31, 2010. 24 C THIS SUBSECTION (3) IS REPEALED, EFFECTIVE JULY 1201 , 1. 25 12- 43.3 -202. Powers and duties of state licensing authori - 26 reveal (1) THE STATE LICENSING AUTHORITY SHALL: 27 (a) GRANT OR REFUSE STATE LICENSES FOR THE CULTIVATION, -10- 1284 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 MANUFACTURE, DISTRIBUTION, AND SALE OF MEDICAL MARIJUANA AS PROVIDED BY LAW; SUSPEND, FINE, RESTRICT, OR REVOKE SUCH LICENSES UPON A VIOLATION OF THIS ARTICLE, OR A RULE PROMULGATED PURSUANT TO THIS ARTICLE; AND IMPOSE ANY PENALTY AUTHORIZED BY THIS ARTICLE OR ANY RULE PROMULGATED PURSUANT TO THIS ARTICLE. THE STATE LICENSING AUTHORITY MAY TAKE ANY ACTION WITH RESPECT TO A REGISTRATION PURSUANT TO THIS ARTICLE AS IT MAY WITH RESPECT TO A LICENSE PURSUANT TO THIS ARTICLE, IN ACCORDANCE WITH THE PROCEDURES ESTABLISHED PURSUANT TO THIS ARTICLE. (b) (I) PROMULGATE SUCH RULES AND SUCH SPECIAL RULINGS AND FINDINGS AS NECESSARYFOR THE PROPER REGULATION AND CONTROL OF THE CULTIVATION, MANUFACTURE, DISTRIBUTION, AND SALE OF MEDICAL MARIJUANA AND FOR THE ENFORCEMENT OF THIS ARTICLE. A COUNTY, MUNICIPALITY, OR CITY AND COUNTY THAT HA ADO PTED A TEMPORARY MORATORIUM REGARDING THE SUBJECT MATTER OF THIS ARTICLE SHALL BE SPECIFICALLY AUTHORIZED TO EXTEND THE MORATO UNTIL THE EFFECTIVE DATE OF THE RULES ADOPTED BY THE DEPARTMENT OF REVENUE IN ACCORDANCE WITH THIS ARIICLF _ (II) (A) THE STATE LICENSING AUTHORITY SHALL CONDUCT A PATIENTS, AND OTHER STAKEHOLDERS REGARDING THE INDUSTRY'S CURRENT STATUS. THE STATE LICENSING AUTHORITY SHALL PROVIDE AT LEAST FIVE BUSINESS DAYS' NOTICE PRIOR TO THE HEARING (B) THIS SUBPARAGRAPH (II) IS REPEALED EFFECTIVE JULY 1 -11- 1284 BE PROVIDED WITH AN UPDATE FROM THE INDUSTRY CAREGNERS 1 2011. 2 (C) HEAR AND DETERMINE AT A PUBLIC HEARING ANY APPEALS OF 3 A STATE LICENSE DENIAL AND ANY COMPLAINTS AGAINST A LICENSEE AND 4 ADMINISTER OATHS AND ISSUE SUBPOENAS TO REQUIRE THE PRESENCE OF 5 PERSONS AND THE PRODUCTION OF PAPERS, BOOKS, AND RECORDS 6 NECESSARY TO THE DETERMINATION OF ANY HEARING SO HELD, ALL IN 7 ACCORDANCE WITH ARTICLE 4 OF TITLE 24, C.R. S. THE STATE LICENSING r S� 8 AUTHORITY MAY, AT ITS DISCRETION, DELEGATE TO THE DEPARTMENT OF 9 REVENUE HEARING OFFICERS THE AUTHORITY TO CONDUCT LICENSING, 10 DISCIPLINARY, AND RULEMAKING HEARINGS UNDER SECTION 24 -4 -105, 11 C.R.S. WHEN CONDUCTING SUCH HEARINGS, THE HEARING OFFICERS 12 SHALL BE EMPLOYEES OF THE STATE LICENSING AUTHORITY UNDER THE 13 DIRECTION AND SUPERVISION OF THE EXECUTIVE DIRECTOR AND THE 14 STATE LICENSING AUTHORITY. 15 (d) MAINTAIN THE CONFIDENTIALITY OF REPORTS OBTAINED FROM 16 A LICENSEE SHOWING THE SALES VOLUME OR QUANTITY OF MEDICAL 17 MARIJUANA SOLD OR ANY OTHER RECORDS THAT ARE EXEMPT FROM 18 PUBLIC INSPECTION PURSUANT TO STATE LAW; 19 (e) DEVELOP SUCHFORMS, LICENSES, IDENTIFICATION CARDS, AND 20 APPLICATIONS AS ARE NECESSARY OR CONVENIENT IN THE DISCRETION OF 21 THE STATE LICENSING AUTHORITY FOR THE ADMINISTRATION OF THIS 22 ARTICLE OR ANY OF THE RULES PROMULGATED UNDER THIS ARTICLE; 23 (f) PREPARE AND TRANSMIT ANNUALLY, IN THE FORM AND 24 MANNER PRESCRIBED BY THE HEADS OF THE PRINCIPAL DEPARTMENTS 25 PURSUANT TO SECTION 24 -1 -136, C.R.S., A REPORT ACCOUNTING TO THE 26 GOVERNOR FOR THE EFFICIENT DISCHARGE OF ALL RESPONSIBILITIES 27 ASSIGNED BY LAW OR DIRECTIVE TO THE STATE LICENSING AUTHORITY; 12- 1284 I AND 2 (g) IN RECOGNITION OF THE POTENTIAL MEDICINAL VALUE OF 3 MEDICAL MARIJUANA, MAKE A REQUEST BY JANUARY 1, 2012, TO THE a, P 4 FEDERAL DRUG ENFORCEMENT ADMINISTRATION TO CONSIDER a� 5 RESCHEDULING, FOR PHARMACEUTICAL PURPOSES, MEDICAL MARIJUANA 6 FROM A SCHEDULE I CONTROLLED SUBSTANCE TO A SCHEDULE II 7 CONTROLLED SUBSTANCE. 8 (2) (a) RULES PROMULGATED PURSUANT TO PARAGRAPH (b) OF 9 SUBSECTION (1) OF THIS SECTION MAYINCLUDE, BUT NEEDNOTBE LIMITED 10 TO, THE FOLLOWING SUBJECTS: 11 (I) COMPLIANCE WITH, ENFORCEMENT OF, OR VIOLATION OF ANY 12 PROVISION OF THIS ARTICLE, OR ANY RULE ISSUED PURSUANT TO THIS 13 ARTICLE, INCLUDING PROCEDURES AND GROUNDS FOR DENYING, 14 SUSPENDING, FINING, RESTRICTING, OR REVOKING A STATE LICENSE ISSUED 15 PURSUANT TO THIS ARTICLE; 16 (II) SPECIFICATIONS OF DUTIES OF OFFICERS AND EMPLOYEES OF 17 THE STATE LICENSING AUTHORITY; 18 (III) INSTRUCTIONS FOR LOCAL LICENSING AUTHORITIES AND LAW 19 ENFORCEMENT OFFICERS; 20 (IV) REQUIREMENTS FOR INSPECTIONS, INVESTIGATIONS, ItS�e�1S l 21 SEARCHES, SEIZURES, AND SUCH ADDITIONAL ACTIVITIES ASMAYBECOME 22 NECESSARY FROM TIME TO TIME; 23 (V) CREATION OF A RANGE OF PENALTIES FOR USE BY THE STATE I n ' a I l Ao 24 LICENSING AUTHORITY; 6' 25 (VI) PROHIBITION OF MISREPRESENTATION AND UNFAIR 26 PRACTICES; 27 (VII) CONTROL OF INFORMATIONAL AND PRODUCT DISPLAYS ON 13- 1284 I LICENSED PREMISES; 2 (VIII DEVELOPMENT OF INDIVIDUAL IDENTIFICATION CARDS FOR 3 OWNERS, OFFICERS, MANAGERS, CONTRACTORS, EMPLOYEES, AND OTHER 4 SUPPORT STAFF OF ENTITIES LICENSED PURSUANT TO THIS ARTICLE, 5 INCLUDING A FINGERPRINT -BASED CRIMINAL HISTORY RECORD CHECK AS 6 MAY BE REQUIRED BYTHE STATE LICENSING AUTHORITY PRIOR TO ISSUING 7 A CARD; 8 (IX) IDENTIFICATION OF STATE LICENSEES AND THEIR OWNERS, 9 OFFICERS, MANAGERS, AND EMPLOYEES; 10 (X) SECURITY REQUIREMENTS FOR ANY PREMISES LICENSED 11 PURSUANT TO THIS ARTICLE, INCLUDING, AT A _ MINIMUM, LIGHTING, „Qp 12 PHYSICAL SECURITY, VIDEO, ALARM REQUIREMENTS, AND OTHERMINIMUM 13 PROCEDURES FOR INTERNAL CONTROL AS DEEMED NECESSARY BY THE 14 STATE LICENSING AUTHORITY TO PROPERLY ADMINISTER AND ENFORCE 15 THE PROVISIONS OF THIS ARTICLE, INCLUDING REPORTING REQUIREMENTS 16 FOR CHANGES, ALTERATIONS, OR MODIFICATIONS TO THE PREMISES; 17 (XI) REGULATION OF THE STORAGE OF, WAREHOUSES FOR, AND (� 18 TRANSPORTATION OF MEDICAL MARIJUANA; V 19 (XII SANITARY REQUIREMENTS FOR MEDICAL MARIJUANA 20 CENTERS, INCLUDING BUT NOT LIMITED TO SANITARY REQUIREMENTS FOR 21 THE PREPARATION OF MEDICAL MARIJUANA- INFUSED PRODUCTS; 22 (XIII) THE SPECIFICATION OF ACCEPTABLE FORMS OF PICTURE 23 IDENTIFICATION THAT A MEDICAL MARIJUANA CENTER MAY ACCEPT WHEN 24 VERIFYING A SALE; 25 (XIV) LABELING STANDARDS; 26 (XV) RECORDS TO BE KEPT BY LICENSEES AND THE REQUIRED 27 AVAILABILITY OF THE RECORDS; -14- 1284 I (XVI) STATE LICENSING PROCEDURES, INCLUDING PROCEDURES 2 FOR RENEWALS, REINSTATEMENTS, INITIAL LICENSES, AND THE PAYMENT 3 OF LICENSING FEES; 4 (XVII) THE REPORTING AND TRANSMITTAL OF MONTHLY SALES 5 TAX PAYMENTS BY MEDICAL MARIJUANA CENTERS; 6 (XVIII) AUTHORIZATION FOR THE DEPARTMENT OF REVENUE TO 7 HAVE ACCESS TO LICENSING INFORMATION TO ENSURE SALES AND INCOME 8 TAX PAYMENT AND THE EFFECTIVE ADMINISTRATION OF THIS ARTICLE; 9 (XIX) A i TION FOR THE DEPARTMENT OF REVENUE TO 10 ISSUE ADMIN ISTRATIVE CITATIONS PROCEDURES FOR ISSUING, 11 APPEALING AND CREATING A CITATION VIOLATION LIST AND SCHEDULE OF 12 PENALTIES; AND 13 (XX) SUCH OTHER MATTERS AS ARE NECESSARY FOR THE FAIR, 14 IMPARTIAL, STRINGENT, AND COMPREHENSIVE ADMINISTRATION OF THIS 15 ARTICLE. 16 (b) NOTHING IN THIS ARTICLE SHALL BE CONSTRUED AS 17 DELEGATING TO THE STATE LICENSING AUTHORITY THE POWER TO FIX 18 PRICES FOR MEDICAL MARIJUANA. 19 (o) NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO LIMIT A 20 LAW ENFORCEMENT AGENCY'S ABILITY TO INVESTIGATE UNLAWFUL V 21 ACTIVITY IN RELATION TO A MEDICAL MARIJUANA CENTER, OPTIONAL 22 PREMISES CULTIVATION OPERATION, OR MEDICAL MARIJUANA- INFUSED 23 PRODUCTS MANUFACTURER. A LAW ENFORCEMENT AGENCY SHALL HAVE 24 THE AUTHORITY TO RUN A COLORADO CRIME INFORMATI CENTE 25 CRIMINAL HISTORY RECORD CHECK OF A PRIMARY CAREGI LICENSEE 26 O R EMPLOYEE OF A LICENSEE DURING AN INVESTIGATION OF UNLAWF 27 A CTIVITY RELATED TO MEDICAL M A R I JU ANA. -15- 1284 I MUM 2 STATE AND LOCAL LICENSING 3 12 -43.3 -301. Local licensing authority - applications - licenses. j' 1 4 (1) A LOCAL LICENSING AUTHORITY MAY ISSUE ONLY THE FOLLOWING 1:01 1 5 MEDICAL MARIJUANA LICENSES UPON PAYMENT OF THE FEE AND 6 COMPLIANCE WITH ALL LOCAL LICENSING REQUIREMENTS TO BE 7 DETERMINED BY THE LOCAL LICENSING AUTHORITY: 8 (a) A MEDICAL MARIJUANA CENTER LICENSE; 9 (b) AN OPTIONAL PREMISES CULTIVATION LICENSE; 10 (C) A MEDICALMARIJUANA- INFUSED PRODUCTS MANUFACTURING 11 LICENSE. 12 (2) (a) A LOCAL LICENSING AUTHORITY SHALL NOT ISSUE A LOCAL 13 LICENSE WITHIN A MUNICIPALITY, CITY AND COUNTY, OR THE 14 UNINCORPORATED PORTION OF A COUNTY UNLESS THE GOVERNING BODY 15 OF THE MUNICIPALITYORCITY AND COUNTY HAS ADOPTED ANORDINANCE, 16 OR THE GOVERNING BODY OF THE COUNTY HAS ADOPTED A RESOLUTION, 17 CONTAINING SPECIFIC STANDARDS FOR LICENSE ISSUANCE, OR IF NO SUCH 18 ORDINANCE OR RESOLUTION IS ADOPTED PRIOR TO JULY 1, 2011, THEN A 19 LOCAL LICENSING AUTHORITY S CONSIDER THE MINIMUM LICENSING 20 R EQUIREMENTS OF THIS P ART 3 WHEN ISSUIN A LICENSE 21 (b) IN ADDITION TO ALL OTHER STANDARDS APPLICABLE TO THE 22 ISSUANCE OF LICENSES UNDER THIS ARTICLE, THE LOCAL GOVERNING BODY 23 MAY ADOPT ADDITIONAL STANDARDS FOR THE ISSUANCE OF MEDICAL 24 MARIJUANA CENTER, OPTIONAL PREMISES CULTIVATION, OR MEDICAL 25 MARIJUANA- INFUSED PRODUCTS MANUFACTURER LICENSES CONSISTENT 26 WITH THE INTENT OF THIS ARTICLE THAT MAY INCLUDE, BUT NEED NOT BE 27 LIMITED TO: -16- 1284 1 (I) DISTANCE RESTRICTIONS BETWEENPREMISES FORWHICHLOCAL 2 LICENSES ARE ISSUED; 3 (II)KRE ON THE SIZE OF AN APPLICANT'S 4 LICENSED PREMISES; AND 5 (III) ANY OTHER REQUIREMENTS NECESSARY TO ENSURE THE 6 CONTROL OF THE PREMISES AND THE EASE OF ENFORCEMENT OF THE 7 TERMS AND CONDITIONS OF THE LICENSE. _ 8 (3) AN APPLICATION FOR A LICENSE SPECIFIED IN SUBSECTION (1) 9 OF THIS SECTION SHALL BE FILED WITH THE APPROPRIATE LOCAL 10 LICENSING AUTHORITY ON FORMS PROVIDED BY THE STATE LICENSING 11 AUTHORITY AND SHALL CONTAIN SUCH INFORMATION AS THE STATE 12 LICENSING AUTHORITY MAY REQUIRE AND ANY FORMS AS THE LOCAL 13 LICENSING AUTHORITY MAY REQUIRE. EACH APPLICATION SHALL BE 14 VERIFIED BY THE OATH OR AFFIRMATION OF THE PERSONS PRESCRIBED BY 15 THE STATE LICENSING AUTHORITY. 16 (4) AN APPLICANT SHALL FILE AT THE TIME OF APPLICATION FOR 17 A LOCAL LICENSE PLANS AND SPECIFICATIONS FOR THE INTERIOR OF THE 18 BUILDING IF THE BUILDING TO BE OCCUPIED IS IN EXISTENCE AT THE TIME. 19 IF THE BUILDING IS NOT IN EXISTENCE, THE APPLICANT SHALL FILE A PLOT 20 PLAN AND A DETAILED SKETCH FOR THE INTERIOR AND SUBMIT AN 21 ARCHITECT'S DRAWING OF THE BUILDING TO BE CONSTRUCTED. IN ITS 22 DISCRETION, THE LOCAL OR STATE LICENSING AUTHORITY MAY IMPOSE 23 ADDITIONAL REQUIREMENTS NECESSARY FOR THE APPROVAL OF THE 24 APPLICATION. 25 12- 43.3 -302. Public hearing notice - posting and publication. 26 (1) UPON RECEIPT OF AN APPLICATION FOR A LOCAL LICENSE, EXCEPT AN 27 APPLICATION FOR RENEWAL OR FOR TRANSFER OF OWNERSHIP, A LOCAL -17- 1284 I LICENSING AUTHORITY MAY SCHEDULE A PUBLIC HEARING UPON THE 2 A PPLICATION TO BE HE NOT LESS THAN THIRTY DAYS AFTER THE DATE S 3 OF THE APPLICATION. IF THE LOCAL LICENSING AUTHORITY SCHEDULES A 4 HEARING FOR AMEDICALMARIJUANA CENTER APPLICATION, ITSHALLPOST 5 AND PUBLISH PUBLIC NOTICE THEREOF NOT LESS THAN TEN DAYS PRIOR TO 6 THE HEARING. THE LOCAL LICENSING AUTHORITY SHALL GIVE PUBLIC 7 NOTICE BY THE POSTING OF A SIGN IN A CONSPICUOUS PLACE ON THE 8 MEDICAL MARIJUANA CENTER PREMISES FOR WHICH APPLICATION HAS 9 BEEN MADE AND BY PUBLICATION IN A NEWSPAPER OF G ENERAL 10 CIRCULATION IN THE COUNTY IN WHICH THE MEDICAL MARIJUANA CENTER 11 PREMISES ARE LOCATED. 12 (2) PUBLIC NOTICE GIVEN BY POSTING SHALL INCLUDE A SIGN OF 13 SUITABLE MATERIAL, NOT LESS THAN TWENTY -TWO INCHES WIDE AND 14 TWENTY -SIX INCHES HIGH, COMPOSED OF LETTERS NOT LESS THAN ONE 15 INCH IN HEIGHT AND STATING THE TYPE OF LICENSE APPLIED FOR, THE 16 DATE OF THE APPLICATION, THE DATE OF THE HEARING, THE NAME AND 17 ADDRESS OF THE APPLICANT, AND SUCH OTHER INFORMATION AS MAY BE 18 REQUIRED TO FULLY APPRISE THE PUBLIC OF THE NATURE OF THE 19 APPLICATION. THE SIGN SHALL CONTAIN THE NAMES AND ADDRESSES OF 20 THE OFFICERS, DIRECTORS, ORMANAGEROF THEFACILITY TO BE LICENSED. 21 (3) PUBLIC NOTICE GIVEN BY PUBLICATION SHALL CONTAIN THE 22 SAME INFORMATION AS THAT REQUIRED FOR SIGNS. 23 (4) IF THE BUILDING IN WHICH MEDICAL MARINANA IS TO BE SOLD 24 IS IN EXISTENCE AT THE TIME OF THE APPLICATION, A SIGN POS TED AS 25 REQUIRED IN SUBSECTIONS (1) AND (2) OF THIS SECTION SHALL BE PLACED 26 S O AS TO BE CONSPICUOUS AND PLAINLY VISIBLE TO THE GENERAL PUBLIC 27 IF THE BUILDING IS NOT CONSTRUCTED AT THE TIME OF THE APPLICATION, -18- 1284 I THE APPLICANT SHALL POST A SIGN AT THE PREMISES UPON WHICH THE 2 BUILDING IS TO BE CONSTRUCTED IN SUCH A MANNER THAT THE NOTIC 3 SHALL BE CONSPICUOUS AND PLAINLY VISIBLE TO THE GENERAL PUBLIC. 4 (5) (a) A LOCAL LICENSING AUTHORITY, OR A LICENSE APPLICANT 5 WITH LOCAL LICENSING AUTHORITY APPROVAL, MAY REQUEST THAT THE 6 STATE LICENSING AUTHORITYCONDUCT A CONCURRENT REVIEW OF ANEW 7 LICENSE APPLICATION PRIOR TO THE LOCAL LICENSING AUTHORITY'S FINAL 8 APPROVAL OF THE LICENSE APPLICATION. LOCAL LICENSING AUTHORITIES 9 WHO PERMIT A CONCURRENT REVIEW WILL CONTINUE TO INDEPENDENTLY 10 REVIEW THE APPLICANT'S LICENSE APPLICATION. 11 (U) WHEN CONDUCTINGA CONCURRENT APPLICATIONREVIEW, THE 12 STATE LICENSING AUTHORITY MAY ADVISE THE LOCAL LICENSING 13 AUTHORITY OF ANY ITEMS THAT IT FINDS THAT COULD RESULT IN THE 14 DENIAL OF THE LICENSE APPLICATION. UPON CORRECTION OF THE NOTED 15 DISCREPANCIES IF THE CORRECTION IS PERMITTED BY THE STATE 16 LICENSING AUTHORITY, THE STATE LICENSING AUTHORITY SHALL NOTIFY 17 THE LOCAL LICENSING AUTHORITY OF ITS CONDITIONAL APPROVAL OF THE 18 LICENSE APPLICATION SUBJECT TO THE FINAL APPROVAL BY THE LOCAL 19 LICENSING AUTHORITY. THE STATE LICENSING AUTHORITY SHALL THEN 20 ISSUE THE APPLICANT'S STATE LICENSE UPON RECEIVING EVIDENCE OF 21 FINAL APPROVAL BY THE LOCAL LICENSING AUTHORITY. 22 (C) ALL APPLICATIONS SUBMITTED FOR CONCURRENT REVIEW 23 SHALL BE ACCOMPANIED BY ALL APPLICABLE STATE LICENSE AND 24 APPLICATION FEES. ANY APPLICATIONS THAT ARE LATER DENIED OR 25 WITHDRAWN MAY ALLOW FOR A REFUND OF LICENSE FEES ONLY. ALL 26 APPLICATION FEES PROVIDED BY AN APPLICANT SHALL BE RETAINED BY 27 THE RESPECTIVE LICENSING AUTHORITY. -19- 1284 1 12- 43.3 -303. Results of investigation - decision of authorities. 2 (1) NOT LESS THAN FIVE DAYS PRIOR TO THE DATE OF THE PUBLIC 3 HEARING AUTHORIZED IN SECTION 12- 43.3 -302, THE LOCAL LICENSING 4 AUTHORITY SHALL MAKE KNOWN ITS FINDINGS BASED ON ITS 5 I NVESTIGATION, IN WRITING TO THE APPLICANT AND OTHER PARTIES O 6 INTEREST. THE LOCAL LICENSING AUTHORITY HA S AUTHORITY TO REFUSE 7 TO ISSUE A LICENSE 8 SUBJECT TO JUDICIAL REVIEW. 9 (2) BEFORE ENTERING A DECISION APPROVING OR DENYING THE 10 APPLICATION FOR A LOCAL LICENSE, THE LOCAL LICENSING AUTHORITY I I MAY CONSIDER, EXCEPT WHERE THIS ARTICLE SPECIFICALLY PROVIDES 12 OTHERWISE, THE FACTS AND EVIDENCE ADDUCED AS A RESULT OF ITS 13 INVESTIGATION, AS WELL AS ANY OTHER FACTS PERTINENT TO THE TYPE 14 OF LICENSE FOR WHICH APPLICATION HAS BEEN MADE, INCLUDING THE 15 NUMBER, TYPE, AND AVAILABILITY OF MEDICAL MARIJUANA OUTLETS 16 LOCATED IN OR NEAR THE PREMISES UNDER CONSIDERATION, AND ANY 17 OTHER PERTINENT MATTERS AFFECTING THE QUALIFICATIONS OF THE 18 APPLICANT FOR THE CONDUCT OF THE TYPE OF BUSINESS PROPOSED. 19 (3) WITHIN THIRTY DAYS AFTER THE PUBLIC HEARING OR 20 COMPLETION OF THE APPLICATION INVESTIGATION, A LOCAL LICENSING 21 AUTHORITY SHALL ISSUE ITS DECISION APPROVING OR DENYING AN 22 APPLICATION FOR LOCAL LICENSURE. THE DECISION SHALL BE IN WRITING 23 AND SHALL STATE THE REASONS FORTHE DECISION. THE LOCAL LICENSING 24 AUTHORITY SHALL SEND A COPY OF THE DECISION BY CERTIFIED MAIL TO 25 THE APPLICANT AT THE ADDRESS SHOWN IN THE APPLICATION. 26 (4) AFTER APPROVAL OF AN APPLICATION, A LOCAL LICENSING 27 AUTHORITY SHALL NOT ISSUE A LOCAL LICENSE UNTIL THE BUILDING IN -20- 1284 I WHICH THE B USINESS TO BE CONDUCTED IS READY FOR OCCUPANCY KI 2 SUCH FU RNITUR E, FIXTURES, AND EQUIPMENT IN PLACE AS ARE NECESSARY 3 TO COMPLY WITH THE APPLICABLE PROVISIONS OF THIS ARTICLE, AND THEN 4 ONLY AFTER THE LOCAL LICENSING AUTHORITY HAS INSPECTED THE 5 PREMISES TO DETERMINE THAT THE APPLICANT HAS COMPLIED WITH THE 6 ARCHITECT'S DRAWING AND THE PLOT PLAN AND DETAILED SKETCH FOR 7 THE INTERIOR OF THE BUILDING SUBMITTED WITH THE APPLICATION. 8 (5) AFTER APPROVAL OF AN APPLICATION FOR LOCAL LICENSURE, 9 THE LOCAL LICENSING AUTHORITY SHALL NOTIFY THE STATE LICENSING 10 AUTHORITY OF SUCH APPROVAL, WHO SHALL INVESTIGATE AND EITHER 11 APPROVE OR DISAPPROVE THE APPLICATION FOR STATE LICENSURE. 12 12- 43.3 -304. Medical marijuana license bond. (1) BEFORE THE 13 STATE LICENSING AUTHORITY ISSUES A STATE LICENSE TO AN APPLICANT, 14 THE APPLICANT SHALL PROCURE AND FILE WITH THE STATE LICENSING 15 AUTHORITY EVIDENCE OF A GOOD AND SUFFICIENT BOND IN THE AMOUNT 16 OF FI THOUSAND DOLLARS WITH CORPORATE SURETY THEREON DULY 17 LICENSED TO DO BUSINESS WITH THE STATE, APPROVED AS TO FORM BY 18 THE ATTORNEY GENERAL OF THE STATE, AND CONDITIONED THAT THE 19 APPLICANT SHALL REPORT AND PAY ALL SALE AND USE TAXES DUE TO T HE 20 STATE, OR FOR WHICH T STATE IS THE COLLECTOR OR COLLECTING 21 AGENT, IN A TIMELY MANNER, AS PROVIDED IN LAW. 22 (2) A CORPORATE SURETY SHALL NOT BE REQUIRED TO MAKE 23 PAYMENTS TO THE STATE CLAIMING UNDER SUCH BOND UNTIL A FINAL 24 DETERMINATION OF FAILURE TO PAY TAXES DUE TO THE STATE HAS BEEN 25 MADE BY THE STATE LICENSING AUTHORITY OR A COURT OF COMPETENT 26 JURISDICTION. 27 (3) ALL BONDS REQUIRED PURSUANT TO THIS SECTION SHALL BE 21- 1284 1 RENEWED AT SUCH TIME AS THE BONDHOLDER'S LICENSE IS RENEWED. 2 THE RENEWAL MAY BE ACCOMPLISHED THROUGH A CONTINUATION 3 CERTIFICATE ISSUED BY THE SURETY. 4 12- 43.3 -305. State licensing authority - application and 5 issuance procedures. (1) APPLICATIONS FOR A STATE LICENSE UNDER 6 THE PROVISIONS OF THIS ARTICLE SHALL BE MADE TO THE STATE 7 LICENSING AUTHORITY ON FORMS PREPARED AND FURNISHED BY THE 8 STATE LICENSING AUTHORITY AND SHALL SET FORTH SUCH INFORMATION 9 AS THE STATE LICENSING AUTHORITY MAY REQUIRE TO ENABLE THE STATE 10 LICENSING AUTHORITY TO DETERMINE WHETHERA STATE LICENSE SHOULD 11 BE GRANTED. THE INFORMATION SHALL INCLUDE THE NAME AND ADDRESS 12 OF THE APPLICANT, THE NAMES AND ADDRESSES OF THE OFFICERS, 13 DIRECTORS, OR MANAGERS, AND ALL OTHER INFORMATION DEEMED 14 NECESSARY BY THE STATE LICENSING AUTHORITY. EACH APPLICATION 15 SHALL BE VERIFIED BY THE OATH OR AFFIRMATION OF SUCH PERSON OR 16 PERSONS AS THE STATE LICENSING AUTHORITY MAY PRESCRIBE. 17 (2) THE STATE LICENSING AUTHORITY SHALL NOT ISSUE A STATE 18 LICENSE PURSUANT TO THIS SECTION UNTIL THE LOCAL LICENSING 19 AUTHORITY HAS APPROVED THE APPLICATION FOR A LOCAL LICENSE AND 20 ISSUED A LOCAL LICENSE AS PROVIDED FOR IN SECTIONS 12- 43.3 -301 TO 21 12- 43.3 -303. 22 (3) NOTHING IN T HIS ARTICLE SHALL PREEM OR O THERWISE 23 I MPABZ THE POWER OF A LOCAL GOVERNMENT TO EN ACT ORDINANCES OR 24 R ESOLUTIONS CONCERNING MATT ERS AUTHORIZED TO LOCAL 25 GOVERNM� 26 12- 43.3 -306. Denial of application. (1) THE STATE LICENSING 27 AUTHORITY SHALL DENY A STATE LICENSE IF THE PREMISES ON WHICH THE -22- 1284 I APPLICANT PROPOSES TO CONDUCT ITS BUSINESS DO NOT MEET THE 2 REQUIREMENTS OF THIS ARTICLE OR FOR REASONS SET FORTH IN SECTION 3 12- 43.3 -104 1 c OR 12- 43.3 -305. 4 (2) IF THE S T A TE LICENSING AUTHORITY DENIES A STATE LICENSE 5 PURSUANT TO SUBSECTION (1) OF THIS S THE APPLICANT SHALL BE 6 ENT TO A HEARING PURSUANT TO ARTICLE 4 OF TITLE 24, C.R. S. THE 7 STATE LICENSING AUTHORITY SHALL PROVIDE WRITTEN NOTICE OF THE 8 GROUNDS FOR DENIAL OF THE STATE LICENSE TO THE APPLICANT AND TO 9 THE LOCAL LICENSING AUTHORITY AT LEAST FIFTEEN DAYS PRIOR TO THE 10 HEARING. 11 12- 43.3 -307. Persons prohibited as licensees. (1) (a) ALICENSE 12 PROVIDED BY THIS ARTICLE SHALL NOT BE ISSUED TO OR HELD BY: 1 13 (I) A PERSON UNTIL THE ANNUAL FEE THEREFORE HAS BEEN PAID; IJ� 14 (II) A PERSON WHOSE CRIMINAL HISTORY INDICATES THAT HE OR 15 SHE IS NOT OF GOOD MORAL CHARACTER; 16 (III) A CORPORATION, IF THE CRIMINAL HISTORY OF ANY OF ITS 17 OFFICERS, DIRECTORS, OR STOCKHOLDERS INDICATES THAT THE OFFICER, 18 DIRECTOR, OR STOCKHOLDER IS NOT OF GOOD MORAL CHARACTER; 19 (IV) A LICENSED PHYSICIAN MAKING PATIENT 20 RECOMMENDATIONS; 21 (V) A PERSON EMPLOYING, ASSISTED BY, OR FINANCED IN WHOLE 22 OR IN PART BY ANY OTHER PERSON WHOSE CRIMINAL HISTORY INDICATES 23 HE OR SHE IS NOT OF GOOD CHARACTER AND REPUTATION SATISFACTORY 24 TO THE RESPECTIVE LICENSING AUTHORITY; 25 (VI) A PERSON UNDER TWENTY -ONE YEARS OF AGE; 26 (VII) A PERSON LICENSED PURSUANT TO THIS ARTICLE WHO, 27 DURING A PERIOD OF LICENSURE, OR WHO, AT THE TIME OF APPLICATION, -23- 1284 I HAS FAILED TO: 2 (A) PROVIDE A SURETY BOND OR FILE ANY TAX RETURN WITH A 3 TAXING AGENCY; 4 (B) PAY ANY TAXES, INTEREST, OR PENALTIES DUE; 5 (C) PAY ANY JUDGMENTS DUE TO A GOVERNMENT AGENCY; 6 (D) STAY OUT OF DEFAULT ON A GOVERNMENT- ISSUED STUDENT 7 LOAN. 8 (E) PAY CHILD SUPPORT; OR 9 (F) REMEDY AN OUTSTANDING DELINQUENCY FOR TAXES OWED, 10 AN OUTSTANDING DELINQUENCY FOR JUDGMENTS OWED TO A 11 GOVERNMENT AGENCY, OR AN OUTSTANDING DELINQUENCY FOR CHILD 12 SUPPORT. 13 (VIII A PERSON WHO HAS DISCHARGED A SENTENCE IN THE FIVE 14 YEARS IMMEDIATELY PRECEDING THE APPLICATION DATE FOR A 15 CONVICTION OF A FELONY OR A PERSON WHO AT ANY TIME HAS BEEN 16 CONVICTED OF A FELONY PURSUANT TO ANY STATE OR FEDERAL LAW 17 REGARDING THE POSSESSION, DISTRIBUTION, OR USE OF A CONTROLLED 18 SUBSTANCE. 19 (IX) A PERSON WHO EMPLOYS ANOTHER PERSON AT A MEDICAL 20 MARIJUANA FACILITY WHO HAS NOT PASSED A CRIMINAL HISTORY RECORD 21 CHECK; 22 (X) A SHERIFF, DEPUTY SHERIFF, POLICE OFFICER, ORPROSECUTING 23 OFFICER, OR AN OFFICER OR EMPLOYEE OF THE STATE LICENSING 24 AUTHORITY OR A LOCAL LICENSING AUTHORITY; 25 (XI A PERSON WHOSE AUTHORITY TO BE A PRIMARY CAREGIVER 26 AS DEFINED IN SECTION 25 -1.5 -106 (2) HAS BEEN REVOKED BY THE STATE 27 HEALTH AGENCY; _ -24- 1284 I (XII) A PERSON FOR A LICENSE FOR A LOCATION THAT IS 2 CURRENTLY LICENSED ASA RETAIL FOOD ESTABLISHMENT OR WHOLESALE 3 FOOD REGISTRANT, OR 4 (XIII) A PERSON WHO HAS NOT BEEN A RESIDENT OF COLORADO 5 FOR AT LEAST TWO YEARS PRIOR TO THE DATE OF THE PERSON'S 6 APPLICATION; EXCEPT THAT FOR A PERSON WHO SUBMITS AN APPLICATION 7 FOR LICENSURE PURSUANT TO THIS ARTICLE BY DECEMBER 15.2010, THIS 8 REQUIREMENT SHALL NOT APPLY TO THAT PERSON IF THE PERSON WAS A 9 RESIDENT OF THE STATE OF COLORADO ON DECEMBER 15, 2009. 10 (2) (a) IN INVESTIGATING THE QUALIFICATIONS OF AN APPLICANT 11 OR A LICENSEE, THE STATE LICENSING AUTHORITY MAY HAVE ACCESS TO 12 CRIMINAL HISTORY RECORD INFORMATION FURNISHED BY A CRIMINAL 13 JUSTICE AGENCY SUBJECT TO ANY RESTRICTIONS IMPOSED BY SUCH 14 AGENCY. INTHE EVENT THE STATE LICENSING AUTHORITY CONSIDERS THE 15 APPLICANT'S CRIMINAL HISTORY RECORD, THE STATE LICENSING 16 AUTHORITY SHALL ALSO CONSIDER ANY INFORMATION PROVIDED BY THE 17 APPLICANT REGARDING SUCH CRIMINALHISTORYRECORD, INCLUDING BUT 18 NOT LIMITED TO EVIDENCE OF REHABILITATION ,CHARACTERREFERENCES, 19 AND EDUCATIONALACHIEVEMENTS , ESPECIALLY THOSEITEMSPERTAINING 20 TO THE PERIOD OF TIME BETWEEN THE APPLICANT'S LAST CRIMINAL 21 CONVICTION AND THE CONSIDERATION OF THE APPLICATION FOR A STATE 22 LICENSE. 23 (b) AS USED IN PARAGRAPH (a) OF THIS SUBSECTION (2), 24 "CRIMINALJUSTICEAGENCY" MEANS ANYFEDERAL, STATE, ORMUNICIPAL 25 COURT OR ANY GOVERNMENTAL AGENCY OR SUBUNIT OF SUCH AGENCY 26 THAT ADMINISTERS CRIMINAL JUSTICE PURSUANT TO A STATUTE OR 27 EXECUTIVE ORDER AND THAT ALLOCATES A SUBSTANTIAL PART OF ITS -25- 1284 I ANNUAL BUDGET TO THE ADMINISTRATION OF CRIMINAL JUSTICE. 2 (c) AT THE TIME OF FILING AN APPLICATION FOR ISSUANCE OR 3 RENEWAL OF A STATE MEDICAL MARIJUANA CENTER LICENSE, MEDICAL 4 MARIJUANA- INFUSED PRODUCT MANUFACTURER LICENSE, OR OPTIONAL 5 PREMISES CULTIVATION LICENSE, AN APPLICANT SHALL SUBMIT A SET OF 6 HIS OR HER FINGERPRINTS AND FILE PERSONAL HISTORY INFORMATION 7 CONCERNING THE APPLICANT'S QUALIFICATIONS FOR A STATE LICENSE ON 8 FORMS PREPARED BY THE STATE LICENSING AUTHORITY. THE STATE 9 LICENSING AUTHORITY SHALL SUBMIT THE FINGERPRINTS TO THE 10 COLORADO BUREAU OF INVESTIGATION FOR THE PURPOSE OF CONDUCTING 11 FINGERPRINT -BASED CRUVHNALHISTORY RECORD CHECKS. THECOLORADO 12 BUREAU OF INVESTIGATION SHALL FORWARD THE FINGERPRINTS TO THE 13 FEDERAL BUREAU OF INVESTIGATION FOR THE PURPOSE OF CONDUCTING 14 FINGERPRINT -BASED CRIMINAL HISTORY RECORD CHECKS. THE STATE 15 LICENSING AUTHORITY MAY ACQUIRE A NAME -BASED CRIMINAL HISTORY 16 RECORD CHECK FOR AN APPLICANT OR A LICENSE HOLDER WHO HAS TWICE 17 SUBMITTED TO A FINGERPRINT -BASED CRINIINAL HISTORY RECORD CHECK 18 AND WHOSE FINGERPRINTS ARE UNCLASSIFIABLE. AN APPLICANT WHO HAS 19 PREVIOUSLY SUBMITTED FINGERPRINTS FOR STATE LICENSING PURPOSES 20 MAY REQUEST THAT THE FINGERPRINTS ON FILE BE USED. THE STATE 21 LICENSING AUTHORITY SHALL USE THE INFORMATION RESULTING FROM 22 THE FINGERPRINT -BASED CRIMINAL HISTORY RECORD CHECK TO 23 INVESTIGATE AND DETERMINE WHETHER AN APPLICANT IS QUALIFIED TO 24 HOLD A STATE LICENSE PURSUANT TO THIS ARTICLE. THE STATE 25 LICENSING AUTHORITY MAY VERIFY ANY OF THE INFORMATION AN 26 APPLICANT IS REQUIRED TO SUBMIT. 27 12- 43.3 -308. Restrictions for applications for new licenses. -26- 1284 1 (1) THE STATE ORA LOCAL LICENSING AUTHORITY SHALLNOT RECEIVE OR 2 ACT UPON AN APPLICATION FOR THE ISSUANCE OF A STATE OR LOCAL 3 LICENSE PURSUANT TO THIS ARTICLE: 4 (a) IF THE APPLICATIONFOR A STATE OR LOCAL LICENSE CONCERNS 5 A PARTICULAR LOCATION THAT IS THE SAME AS OR WITHIN ONE THOUSAND 6 FEET OF A LOCATION FOR WHICH, WITHIN THE TWO YEARS IMMEDIATELY 7 PRECEDING THE DATE OF THE APPLICATION, THE STATE OR A LOCAL 8 LICENSING AUTHORITY DENIED AN APPLICATION FOR THE SAME CLASS OF 9 LICENSE DUE TO THE NATURE OF THE USE OR OTHER CONCERN RELATED 10 TO THE LOCATION; 11 (b) UNTIL IT IS ESTABLISHED THAT THE APPLICANT IS, OR WILL BE, 12 ENTITLED TO POSSESSION OF THE PREMISES FOR WHICH APPLICATION IS 13 MADE UNDER A LEASE, RENTAL AGREEMENT, OR OTHER ARRANGEMENT 14 FOR POSSESSION OF THE PREMISES OR BY VIRTUE OF OWNERSHIP OF THE 15 PREMISES; 16 (o) FOR A LOCATION IN AN AREA WHERE THE CULTIVATION, 17 MANUFACTURE, AND SALE OF MEDICAL MARIJUANA AS CONTEMPLATED IS n 18 NOT PERMITTED UNDER THE APPLICABLE ZONING LAWS OF THE C• 19 MUNICIPALITY, CITY AND COUNTY, OR COUNTY; 20 (d) (1) IF THE BUILDING IN WHICH MEDICAL MARIJUANA IS TO BE 21 SOLD IS LOCATED WITHIN ONE THOUSAND FEET OF A SCHOOL, AN ALCOH 22 OR DRUG TREATMENT FACILITY, OR THE PRINCIPAL CAMPUS OF A COLLEGE, 23 UNIVERSITY, OR SEMINARY, OR A RESIDENTIAL CHILD CARE FACILITY. THE 24 PROVISIONS OF THIS SECTION SHALL N AFFECT THE RENEWAL OR 25 RE- ISSUANCE OF A LICENSE ONCE GRAN OR APPLY TO LICENSE 26 PREMISES LOCATED OR TO BE LOCATED ON LAND OWNED BY A 27 MUNICIPALITY, NOR SHALL THE PROVISIONS OF THIS SECTIONAPPLY TO AN -27- 1284 I EXISTING LICENSED PREMISES ON LAND OWNED BY THE STATE, OR APPLY 2 TO A LICENSE IN EFFECT AND ACTIVELY DOING BUSINESS BEFORE SAID 3 PRINCIPAL CAMPUS WAS CONSTRUCTED. IHE LOCAL LICENSING 4 AUTHORITY OF A CITY AND COUNTY, BY RULE OR REGULATION, THE 5 GOVERNING BODY OF A MUNICIPALITY, BY ORDINANCE, AND THE 6 GOVERNING BODY OF A COUNTY, BY RESOLUTION, MAY VARY THE 7 DISTANCE RESTRICTIONS IMPOSED BY THIS SU (Il FOR A 8 LICENSE OR MAY ELIMINATE ONE OR MORE TYPES OF SCHOOLS, CAMPUSES, - 9 OR FACILITIES FROM THE APPLICATION OF A DISTANCE RESTRICTION 10 ESTABLISHED BY OR PURSUANT TO THIS SUBPARAGRAPH (I). 11 (II) THE DISTANCES REFERRED TO IN THIS PARAGRAPH (d) ARE TO 12 BE COMPUTED BY DIRECT MEASUREMENT FROM THE NEAREST PROPERTY 13 LINE OF THE LAND USED FOR A SCHOOL OR CAMPUS TO THE NEAREST 14 PORTION OF THE BUILDING IN WHICH MEDICAL MARIJUANA IS TO BE SOLD, 15 USING A ROUTE OF DIRECT PEDESTRIAN ACCESS. 16 (III) IN ADDITION TO THE REQUIREMENTS OF SECTION 12- 43.3 -303 17 (2), THE LOCAL LICENSING AUTHORITY SHALL CONSIDER THE EVIDENCE 18 AND MAKE A SPECIFIC FINDING OF FACT AS TO WHETHER THE BUILDING IN 19 WHICH THE MEDICAL MARIJUANA IS TO BE SOLD IS LOCATED WITHIN ANY 20 DISTANCE RESTRICTIONS ESTABLISHED BY OR PURSUANT TO THIS 21 PARAGRAPH (d) 22 12- 43.3 -309. Transfer of ownership. (1) A STATE OR LOCAL 23 LICENSE G RANTE D UNDER THE PROVISIONS OF THIS ARTICLE SHALL NOT BE 24 T EXCEPT AS PROVIDED IN THIS SECTION, BUT THIS SECTION 25 SHALL NOT PREVENT A CHANGE OF LOCATION AS PROVIDED IN SECTION 26 12- 43.3 -310 (13). 27 (2) FOR A TRANSFER OF OWNERSHIP, A LICENSE HOLDER SHALL -28- 1284 I APPLY TO THE STATE AND LOCAL LICENSING AUTHORITIES ON FORMS 2 PREPARED AND FURNISHED BY THE STATE LICENSING AUTHORITY. IN 3 DETERMINING WHETHER TO PERMIT A TRANSFER OF OWNERSHIP, THE 4 STATE AND LOCAL LICENSING AUTHORITIES SHALL CONSIDER ONLY THE 5 REQUIREMENTS OF THIS ARTICLE, ANY RULES PROMULGATED BY THE 6 STATE LICENSING AUTHORITY, AND ANY OTHERLOCALRESTRICTIONS. THE 7 LOCAL LICENSING AUTHORITY MAY HOLD A HEARING ON THE APPLICATION 8 FOR TRANSFER OF OWNERSHIP. THE LOCAL LICENSING AUTHORITY SHALL 9 NOT HOLD A HEARING PURSUANT TO THIS SUBSECTION (2) UNTIL THE 10 LOCAL LICENSING AUTHORITY HAS POSTED A NOTICE OF HEARING IN THE 11 MANNER DESCRIBED IN SECTION 12- 43.3 -302 (2) ON THE LICENSED 12 MEDICAL MARIJUANA CENTER PREMISES FOR A PERIOD OF TEN DAYS AND 13 HAS PROVIDED NOTICE OF THE HEARING TO THE APPLICANT AT LEAST TEN 14 DAYS PRIOR TO THE HEARING. ANY TRANSFER OF OWNERSHIP HEARING BY 15 THE STATE LICENSING AUTHORITY SHALL BE HELD IN COMPLIANCE WITH 16 THE REQUIREMENTS SPECIFIED IN SECTION 12- 43.3 -302. 17 12- 43.3 -310. Licensing in general. (1) THIS ARTICLE 18 AUTHORIZES A COUNTY, MUNICIPALITY, OR CITY AND COUNTY TO PROHIBIT 19 THE OPERATION OF MEDICAL MARIJUANA CENTERS, OPTIONAL PREMISES 20 CULTIVATIONOPERATIONS, AND MEDICALMARIJUANA- INFUSEDPRODUCTS 21 MANUFACTURERS' LICENSESANDTOENACTREASONABLEREGULATIONSOR 22 OTHER RESTRICTIONS APPLICABLE TO MEDICAL MARIJUANA CENTERS, 23 OPTIONAL PREMISES CULTIVATION LICENSES, AND MEDICAL 24 MARIJUANA- INFUSED PRODUCTS MANUFACTURERS' LICENSES BASED ON 25 LOCAL GOVERNMENT ZONING, HEALTH, SAFETY, AND PUBLIC WELFARE 26 LAWS FOR THE DISTRIBUTION OF MEDICAL MARIJUANA THAT ARE MORE 27 RESTRICTIVE THAN THIS ARTICLE. -29- 1284 1 (2) A MEDICAL MARIJUANA CENTER, OPTIONAL PREMISES 2 CULTIVATION OPERATION, OR MEDICAL MARIJUANA- INFUSED PRODUCTS 3 MANUFACTURER MAY NOT OPERATE UNTIL IT HAS BEEN LICENSED BY THE 4 LOCAL LICENSING AUTHORITY AND THE STATE LICENSING AUTHORITY 5 PURSUANT TO THIS ARTICLE. IN CONNECTION WITH A LICENSE, THE 6 APPLICANT SHALL PROVIDE A COMPLETE AND ACCURATE LIST OF ALL 7 OWNERS, OFFICERS, AND EMPLOYEES WHO WORK AT, MANAGE, OWN, OR 8 ARE OTHERWISE ASSOCIATED WITH THE OPERATION AND SHALL PROVIDE 9 A COMPLETE AND ACCURATE APPLICATION AS REQUIRED BY THE STATE 10 LICENSING AUTHORITY. 11 (3) A MEDICAL MARIJUANA CENTER, OPTIONAL PREMISES 12 CULTIVATION OPERATION, OR MEDICAL MARIJUANA- INFUSED PRODUCTS 13 MANUFACTURER SHALL NOTIFY THE STATE LICENSING AUTHORITY IN 14 WRITING WITHIN TEN DAYS AFTER AN OWNER, OFFICER, OR EMPLOYEE 15 CEASESTOWORKAT, MANAGE, OWN, OR OTHERWISE BE ASSOCIATED WITH 16 THE OPERATION. THE OWNER, OFFICER, OR EMPLOYEE SHALL SURRENDER 17 HIS OR HER IDENTIFICATION CARD TO THE STATE LICENSING AUTHORITY ON 18 OR BEFORE THE DATE OF THE NOTIFICATION. 19 (4) A MEDICAL MARIJUANA CENTER, OPTIONAL PREMISES 20 CULTIVATION OPERATION, OR MEDICAL MARIJUANA- INFUSED PRODUCTS 21 MANUFACTURER SHALL NOTIFY THE STATE LICENSING AUTHORITY IN 22 WRITING OF THE NAME, ADDRESS, AND DATE OF BIRTH OF AN OWNER, 23 OFFICER, MANAGER, OR EMPLOYEE BEFORE THE NEW OWNER, OFFICER, OR 24 EMPLOYEE BEGINS WORKING AT, MANAGING, OWNING, OR BEING 25 ASSOCIATED WITH THE OPERATION. THE OWNER, OFFICER, MANAGER, OR 26 EMPLOYEE SHALLPASSA FINGERPRINT-BASED CRIMINALHISTORYRECORD 27 CHECK AS REQUIRED BY THE STATE LICENSING AUTHORITY AND OBTAIN -30- 1284 I THE REQUIRED IDENTIFICATION PRIOR TO BEING ASSOCIATED WITH, 2 MANAGING, OWNING, OR WORKING AT THE OPERATION. 3 (5) A MEDICAL MARIJUANA CENTER, OPTIONAL PREMISES 4 CULTIVATION OPERATION, OR MEDICAL MARIJUANA- INFUSED PRODUCTS 5 MANUFACTURER SHALL NOT ACQUIRE, POSSESS, CULTIVATE, DELIVER, 6 TRANSFER, TRANSPORT, SUPPLY, OR DISPENSE MARIJUANA FOR ANY 7 PURPOSE EXCEPT TO ASSIST PATIENTS, AS DEFINED BY SECTION 14(1) OF 8 ARTICLE XVIII OF THE STATE CONSTITUTION. 9 (6) ALL OWNERS, OFFICERS, MANAGERS, AND EMPLOYEES OF A 10 MEDICAL MARIJUANA CENTER, OPTIONAL PREMISES CULTIVATION 11 OPERATION, OR MEDICAL MARIJUANA- INFUSED PRODUCTS MANUFACTURER 12 SHALL BE RESIDENTS OF COLORADO. A LOCAL LICENSING AUTHORITY 13 SHALL NOT ISSUE A LICENSE PROVIDED FOR IN THIS ARTICLE UNTIL THAT 14 SHARE OF THE LICENSE APPLICATION FEE DUE TO THE STATE HAS BEEN 15 RECEIVED BY THE DEPARTMENT OF REVENUE. ALL LICENSES GRANTED 16 PURSUANT TO THIS ARTICLE SHALL BE VALID FORAPERIOD NOT TO EXCEED 17 TWO YEARS FROM THE DATE OF ISSUANCE UNLESS REVOKED OR 18 SUSPENDED PURSUANT TO THIS ARTICLE OR THE RULES PROMULGATED 19 PURSUANT TO THIS ARTICLE. 20 (7) BEFORE GRANTING A LOCAL OR STATE LICENSE, THE 21 RESPECTIVE LICENSING AUTHORITY MAY CONSIDER, EXCEPT WHERE THIS 22 ARTICLE SPECIFICALLYPROVIDES OTHERWISE, THE REQUIREMENTS OF THIS 23 ARTICLE AND ANYRULES PROMULGATED PURSUANT TO THIS ARTICLE, AND 24 ALL OTHER REASONABLE RESTRICTIONS THAT ARE OR MAY BE PLACED 25 UPON THE LICENSEE BY THE LICENSING AUTHORITY. WITH RESPECT TO A 26 SECOND OR ADDITIONAL LICENSE FOR THE SAME LICENSEE OR THE SAME 27 OWNER OF ANOTHER LICENSED BUSINESS PURSUANT TO THIS ARTICLE, 31- 1284 I EACH LICENSING AUTHORITY SHALL CONSIDER THE EFFECT ON 2 COMPETITION OF GRANTING OR DENYING THE ADDITIONAL LICENSES TO 3 SUCH LICENSEE AND SHALL NOT APPROVE AN APPLICATION FOR A SECOND 4 OR ADDITIONAL LICENSE THAT WOULD HAVE THE EFFECT OF RESTRAINING 5 COMPETITION. 6 (8) (a) EACH LICENSE ISSUED UNDER THIS ARTICLE IS SEPARATE 7 AND DISTINCT. IT IS UNLAWFUL FOR A PERSON TO EXERCISE ANY OF THE 8 PRIVILEGES GRANTED UNDER A LICENSE OTHER THAN THE LICENSE THAT 9 THE PERSON HOLDS OR FOR A LICENSEE TO ALLOW ANY OTHER PERSON TO 10 EXERCISE THE PRIVILEGES GRANTED UNDER THE LICENSEE'S LICENSE. A 11 SEPARATE LICENSE SHALL BE REQUIRED FOR EACH SPECIFIC BUSINESS OR 12 BUSINESS ENTITY AND EACH GEOGRAPHICAL LOCATION. 13 (b) AT ALL TIMES, A LICENSEE SHALL POSSESS AND MAINTAIN 14 POSSESSION OF THE PREMISES OR OPTIONAL PREMISES FOR WHICH THE 15 LICENSE IS ISSUED BY OWNERSHIP, LEASE, RENTAL, OR OTHER 16 ARRANGEMENT FOR POSSESSION OF THE PREMISES. 17 (9) (a) THE LICENSES PROVIDED PURSUANT TO THIS ARTICLE SHALL 18 SPECIFY THE DATE OF ISSUANCE, THE PERIOD OF LICENSURE, THE NAME OF 19 THE LICENSEE, AND THE PREMISES OR OPTIONALPREMISES LICENSED. THE 20 LICENSEE SHALL CONSPICUOUSLY PLACE THE LICENSE AT ALL TIMES ON 21 THE LICENSED PREMISES OR OPTIONAL PREMISES. 22 (b) A LOCAL LICENSING AUTHORITY SHALL NOT TRANSFER 23 LOCATION OF OR RENEW A LICENSE TO SELL MEDICAL MARIJUANA UNTIL 24 THE APPLICANT FOR THE LICENSE PRODUCES A LICENSE ISSUED AND 25 GRANTED BY THE STATE LICENSING AUTHORITY COVERING THE WHOLE 26 PERIOD FOR WHICH A LICENSE OR LICENSE RENEWAL IS SOUGHT. 27 (10) IN COMPUTING ANY PERIOD OF TIME PRESCRIBED BY THIS -32- 1284 I ARTICLE, THE DAY OF THE ACT, EVENT, OR DEFAULT FROM WHICH THE 2 DESIGNATED PERIOD OF TIME BEGINS TO RUN SHALL NOT BE INCLUDED, 3 SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS SHALL BE COUNTED AS ANY 4 OTHER DAY. 5 (11) A LICENSEE SHALL REPORT EACH TRANSFER OR CHANGE OF 6 FINANCIAL INTEREST IN THE LICENSE TO THE STATE AND LOCAL LICENSING 7 AUTHORITIES, THIRTY DAYS PRIOR TO ANY TRANSFER OR CHANGE 8 PURSUANT TO SECTION 12- 43.3 -309. A REPORT SHALL BE REQUIRED FOR 9 TRANSFERS OF CAPITAL STOCK OF ANY CORPORATION REGARDLESS OF 10 SIZE. 11 (12) EACH LICENSEE SHALL MANAGE THE LICENSED PREMISES 12 HIMSELF OR HERSELF OR EMPLOY A SEPARATE AND DISTINCT MANAGER ON 13 THE PREMISES AND SHALL REPORT THE NAME OF THE MANAGER TO THE 14 STATE AND LOCAL LICENSING AUTHORITIES. THE LICENSEE SHALL REPORT 15 ANY CHANGE IN MANAGER TO THE STATE AND LOCAL LICENSING 16 AUTHORITIES THIRTY DAYS PRIOR TO THE CHANGE PURSUANT TO SECTION 17 12- 43.3 -309. 18 (13)(a) A LICENSEE MAYMOVE HIS OR HER PERMANENT LOCATION 19 TO ANY OTHER PLACE IN THE SAME MUNICIPALITY OR CITY AND COUNTY 20 FOR WHICH THE LICENSE WAS ORIGINALLY GRANTED, OR IN THE SAME 21 COUNTY IF THE LICENSE WAS GRANTED FOR A PLACE OUTSIDE THE 22 CORPORATE LIMITS OF A MUNICIPALITY OR CITY AND COUNTY, BUT IT 23 SHALLBE UNLAWFUL TO CULTIVATE, MANUFACTURE, DISTRIBUTE OR SELL 24 MEDICAL MARIJUANA AT ANY SUCH PLACE UNTIL PERMISSION TO DO SO IS 25 GRANTED BY THE STATE AND LOCAL LICENSING AUTHORITIES PROVIDED 26 FOR IN THIS ARTICLE. 27 (b) INPERMITTINGACHANGEOF LOCATION, THE STATE AND LOCAL -33- 1284 F 1 LICENSINGAUTHORITIES SHALL CONSIDERALLREASONABLERESTRICTIONS 2 THAT ARE OR MAY BE PLACED UPON THE NEW LOCATION BY THE 3 GOVERNING BOARD OR LOCAL LICENSING AUTHORITY OF THE 4 MUNICIPALITY, CITY AND COUNTY, OR COUNTY AND ANY SUCH CHANGE IN 5 LOCATION SHALL BE IN ACCORDANCE WITH ALL REQUIREMENTS OF THIS 6 ARTICLE AND RULES PROMULGATED PURSUANT TO THIS ARTICLE. ( ' 7 (14) THE LOCATION OF AN OPTIONAL PREMISES CULTIVATION I� 8 OPERATION AS DESCRIBED IN SECTION 12- 43.3 -403 SHALL BE A�l 1111 9 CONFIDENTIAL RECORD AND SHALL BE EXEMPT FROM THE COLORADO 10 OPEN RECORDS ACT. STATE AND LOCAL LICENSING AUTHORITIES SHALL , �J C� 11 KEEP THE LOCATION OF AN OPTIONALPREMISES CULTIVATION OPERATION 12 CONFIDENTIAL AND SHALL REDACT THE LOCATION FROM ALL PUBLIC 13 RECORDS. NOTWITHSTANDINGANYPROVISIONOFLAWTO THE CONTRARY 14 A STATE OR LOCAL LICENSING AGENCY MAY SHARE INFORMATION 15 REGARDING THE LOCATION OF AN OPTIONAL PREMISES CULTIVATION 16 OPERATION WITH A PEACE OFFICER OR A LAW ENFORCEMENT AGENCY. 17 12 -43.3 -311. License renewal. (1) NINETY DAYS PRIOR TO THE 18 EXPIRATION DATE OF AN EXISTING LICENSE, THE STATE LICENSING 19 AUTHORITY SHALL NOTIFY THE LICENSEE OF THE EXPIRATION DATE BY 20 FIRST CLASS MAIL AT THE LICENSEE'S ADDRESS OF RECORD WITH THE 21 STATE LICENSING AUTHORITY. A LICENSEE SHALL APPLY FOR THE 22 RENEWAL OF AN EXISTING LICENSE TO THE LOCAL LICENSING AUTHORITY 23 NOT LESS THAN FORTY -FIVE DAYS AND TO THE STATE LICENSING 24 AUTHORITY NOT LESS THAN THIRTY DAYS PRIOR TO THE DATE OF 25 EXPIRATION. A LOCAL LICENSING AUTHORITY SHALL NOT ACCEPT AN 26 APPLICATION FORRENEWALOFA LICENSE AFTERTHE DATE OF EXPIRATION, 27 EXCEPT AS PROVIDED IN SUBSECTION (2) OF THIS SECTION. THE STATE -34- 1284 I LICENSING AUTHORITY MAY EXTEND THE EXPIRATION DATE OF THE 2 LICENSE AND ACCEPT A LATE APPLICATION FOR RENEWAL OF A LICENSE 3 PROVIDED THAT THE APPLICANT HAS FILED A TIMELY RENEWAL 4 APPLICATION WITH THE LOCAL LICENSING AUTHORITY. ALL RENEWALS 5 FILED WITH THE LOCAL LICENSING AUTHORITY AND SUBSEQUENTLY 6 APPROVED BY THE LOCAL LICENSING AUTHORITY SHALL NEXT BE 7 PROCESSED BY THE STATE LICENSING AUTHORITY. THE STATE OR THE 8 LOCAL LICENSING AUTHORITY, IN ITS DISCRETION, SUBJECT TO THE 9 REQUIREMENTS OF THIS SUBSECTION (1) AND SUBSECTION (2) OF THIS 10 SECTION AND BASED UPON REASONABLE GROUNDS, MAY WAIVE THE 11 FORTY -FIVE -DAY OR THIRTY -DAY TIME REQUIREMENTS SET FORTH IN THIS 12 SUBSECTION (1 ). THE LOCAL LICENSING AUTHORITY MAY HOLD A HEARING 13 ON THE APPLICATION FOR RENEWAL ONLY IF THE LICENSEE HAS HAD 14 COMPLAINTS FILED AGAINST IT, HAS A HISTORY OF VIOLATIONS, OR THERE 15 ARE ALLEGATIONS AGAINST THE LICENSEE THAT WOULD CONSTITUTE 16 GOOD CAUSE. THE LOCAL LICENSING AUTHORITY SHALL NOT HOLD A 17 RENEWALHEARINGPROVIDED FOR BY THIS SUBSECTION (1) FORAMEDICAL 18 MARIJUANA CENTER UNTIL IT HAS POSTED A NOTICE OF HEARING ON THE 19 LICENSED MEDICAL MARIJUANA CENTER PREMISES IN THE MANNER 20 DESCRIBED IN SECTION 12- 43.3 -302 (2) FOR A PERIOD OF TEN DAYS AND 21 PROVIDED NOTICE TO THE APPLICANT AT LEAST TEN DAYS PRIOR TO THE 22 HEARING. THE LOCALLICENSING AUTHORITY MAYREFUSE TO RENEWANY 23 LICENSE FOR GOOD CAUSE, SUBJECT TO JUDICIAL REVIEW. 24 (2) (a) NOTWITHSTANDING THE PROVISIONS OF SUBSECTION(1)OF 25 THIS SECTION, A LICENSEE WHOSE LICENSE HAS BEEN EXPIRED FOR NOT 26 MORE THAN NINETY DAYS MAY FILE A LATE RENEWAL APPLICATION UPON 27 THE PAYMENT OF A NONREFUNDABLE LATE APPLICATION FEE OF FIVE -35- 1284 I HUNDRED DOLLARS TO THE LOCAL LICENSING AUTHORITY. A LICENSEE 2 WHO FILES A LATE RENEWAL APPLICATION AND PAYS THE REQUISITE FEES 3 MAY CONTINUE TO OPERATE UNTIL BOTH THE STATE AND LOCAL LICENSING 4 AUTHORITIES HAVE TAKEN FINAL ACTION TO APPROVE OR DENY THE 5 LICENSEE'S LATE RENEWAL APPLICATION UNLESS THE STATE OR LOCAL 6 LICENSING AUTHORITY SUMMARILY SUSPENDS THE LICENSE PURSUANT TO 7 ARTICLE 4 OF TITLE 24, C.R.S., THIS ARTICLE, AND RULES PROMULGATED 8 PURSUANT TO THIS ARTICLE. 9 (b) THE STATE AND LOCAL LICENSING AUTHORITIES MAY NOT 10 ACCEPT A LATE RENEWAL APPLICATION MORE THAN NINETY DAYS AFTER 11 THE EXPIRATION OF A LICENSEE'S PERMANENT ANNUAL LICENSE. A 12 LICENSEE WHOSE PERMANENT ANNUAL LICENSE HAS BEEN EXPIRED FOR 13 MORE THAN NINETY DAYS SHALL NOT CULTIVATE, MANUFACTURE, 14 DISTRIBUTE, OR SELL ANY MEDICAL MARIJUANA UNTIL ALL REQUIRED 15 LICENSES HAVE BEEN OBTAINED. 16 (c) NOTWITHSTANDING THE AMOUNT SPECIFIED FOR THE LATE 17 APPLICATION FEE IN PARAGRAPH (a) OF THIS SUBSECTION (2), THE STATE 18 LICENSING AUTHORITY BY RULEORAS OTHERWISE PROVIDED BY LAWMAY 19 REDUCE THE AMOUNT OF THE FEE IF NECESSARY PURSUANT TO SECTION 20 24-75-402 (3), C.R.S., BY REDUCING THE UNCOMMITTED RESERVES OFTHE 21 FUND TO WHICH ALL OR ANY PORTION OF THE FEE IS CREDITED. AFTER THE 22 UNCOMMITTED RESERVES OF THE FUND ARE SUFFICIENTLY REDUCED, THE 23 STATE LICENSING AUTHORITY BY RULE OR AS OTHERWISE PROVIDED BY 24 LAW MAY INCREASE THE AMOUNT OF THE FEE AS PROVIDED IN SECTION 25 24 -75 -402 (4), C.R.S. 26 12- 43.3 -312. Inactive licenses. THE STATE OR LOCAL LICENSING 27 AUTHORITY, IN ITS DISCRETION, MAY REVOKE OR ELECT NOT TO RENEW -36- 1284 I ANY LICENSE IF IT DETERMINES THAT THE LICENSED PREMISES HAVE BEEN 2 INACTIVE, WITHOUT GOOD CAUSE, FOR AT LEAST ONE YEAR. 3 12- 43.3 -313. Unlawful financial assistance. (1) THE STATE 4 LICENSING AUTHORITY, BY RULE AND REGULATION, SHALL REQUIRE A 5 COMPLETE DISCLOSURE OF ALL PERSONS HAVING A DIRECT OR INDIRECT 6 FINANCIAL INTEREST, AND THE EXTENT OF SUCH INTEREST, IN EACH 7 LICENSE ISSUED UNDER THIS ARTICLE. 8 (2) A PERSON SHALL NOT HAVE AN UNREPORTED FINANCIAL 9 INTEREST IN A LICENSE PURSUANT TO THIS ARTICLE UNLESS THAT PERSON 10 HAS UNDERGONE A FINGERPRINT -BASED CRIMINAL HISTORY RECORD 11 CHECK AS PROVIDED FOR BY THE STATE LICENSING AUTHORITY IN ITS 12 RULES; EXCEPT THAT THIS SUBSECTION (2) SHALL NOT APPLY TO BANKS, 13 SAVINGS AND LOAN ASSOCIATIONS, OR INDUSTRIAL BANKS SUPERVISED 14 AND REGULATED BY AN AGENCY OF THE STATE ORFEDERALGOVERNMENT, 15 OR TO FHA - APPROVED MORTGAGEES, OR TO STOCKHOLDERS, DIRECTORS, 16 OR OFFICERS THEREOF. 17 (3) THIS SECTION IS INTENDED TO PROHIBIT AND PREVENT THE 18 CONTROL OF THE OUTLETS FOR THE SALE OF MEDICAL MARIJUANA BY A 19 PERSON OR PARTY OTHER THAN THE PERSONS LICENSED PURSUANT TO THE 20 PROVISIONS OF THIS ARTICLE. 21 PART 4 22 LICENSE TYPES 23 12- 43.3 -401. Classes of licenses. (1) FOR THE PURPOSE OF 24 REGULATING THE CULTIVATION, MANUFACTURE, DISTRIBUTION, AND SALE 25 OF MEDICAL MARIJUANA, THE STATE LICENSING AUTHORITY IN ITS 26 DISCRETION, UPON APPLICATION IN THE PRESCRIBED FORM MADE TO IT, 27 MAY ISSUE AND GRANT TO THE APPLICANT A LICENSE FROM ANY OF THE -37- 1284 1 FOLLOWING CLASSES, SUBJECT TO THE PROVISIONS AND RESTRICTIONS 2 PROVIDED BY THIS ARTICLE: 3 (a) MEDICAL MARIJUANA CENTER LICENSE; 4 (b) OPTIONAL PREMISES CULTIVATION LICENSE; 5 (C) MEDICAL MARIJUANA- INFUSED PRODUCTS MANUFACTURING 6 LICENSE; AND 7 (d) OCCUPATIONAL LICENSES AND REGISTRATIONS FOR OWNERS, 8 MANAGERS, OPERATORS, EMPLOYEES, CONTRACTORS, AND OTHER 9 SUPPORT STAFF EMPLOYED BY, WORKING IN, OR HAVING ACCESS TO 10 RESTRICTED AREAS OF THE LICENSED PREMISES, AS DETERMINED BY THE 11 STATE LICENSING AUTHORITY. THE STATE LICENSING AUTHORITY MAY 12 TAKE ANY ACTION WITH RESPECT TO A REGISTRATION PURSUANT TO THIS 13 ARTICLE AS IT MAY WITH RESPECT TO A LICENSE PURSUANT TO THIS 14 ARTICLE, INACCORDANCE WITH THE PROCEDURES ESTABLISHEDPURSUANT 15 TO THIS ARTICLE. 16 (2) ALL PERSONS LICENSED PURSUANT TO THIS ARTICLE SHALL 17 COLLECT SALES TAX ON ALL SALES MADE PURSUANT TO THE LICENSING 18 ACTIVITIES 19 (3) A STATE CHARTERED BANK OR A CREDIT UNION MAY LOAN 20 MONEY TO ANY PERSON LICENSED PURSUANT TO THIS ARTICLE FOR THE 21 OPERATION OF A LICENSED BUSINESS. 22 12- 43.3 -402. Medical marijuana center license. (1) AMEDICAL 23 MARIJUANACENTERLICENSE SHALLBEISSUED ONLY TO APERSON SELLING 24 MEDICAL MARIJUANA PURSUANT TO THE TERMS AND CONDITIONS OF THIS 25 ARTICLE. 26 (2) (a) NOTWITHSTANDING THE PROVISIONS OF THIS SECTION, A 27 MEDICAL MARIJUANA CENTER LICENSEE MAY ALSO SELL — MEDICAL -38- 1284 I MARIJUANA- INFUSED PRODUCTS THAT ARE PREPACKAGED AND LABELED 2 SO AS TO CLEARLY INDICATE ALL OF THE FOLLOWING: 3 (1) THAT THE PRODUCT CONTAINS MEDICAL MARIJUANA; 4 (II) THAT THE PRODUCT IS MANUFACTURED WITHOUT ANY 5 REGULATORY OVERSIGHT FOR HEALTH, SAFETY, OR EFFICACY; AND 6 (III) THAT THERE MAY BE HEALTH RISKS ASSOCIATED WITH THE 7 CONSUMPTION OR USE OF THE PRODUCT. 8 (U) A MEDICAL MARIJUANA LICENSEE MAY CONTRACT WITH A 9 MEDICAL MARWANA- INFUSED PRODUCTS MANUFACTURING LICENSEE FOR 10 THE MANUFACTURE OF MEDICAL MARIJUANA- INFUSED PRODUCTS UPON A 11 MEDICAL MARIJUANA- INFUSED PRODUCTS MANUFACTURING LICENSEE'S 12 LICENSED PREMISES. 13 (3) EVERY PERSON SELLING MEDICAL MARIJUANA AS PROVIDED 14 FOR INTHIS ARTICLE SHALL SELL ONLYMEDICAL MARIJUANA GROWN WITS 15 MEDICAL MARIJUANA OPTIONAL PREMISES LICENSED PURSUANT TO THIS 16 ARTICLE. THE PROVISIONS OF THIS SUBSECTION (3) SHALL NOT APPLY TO 17 MEDICAL MARIJUANA- INFUSED PRODUCTS. 18 (4) NOTWITHSTANDING THE REQUIREMENTS OF SUBSECTION(3)OF 19 (INVENTORY S SECTION TO THE CONTRARY, A MEDICAL MARIJUANA LICENSEE MAY 20 CHASE NOT MORE THAN THIRTY PERCENT OF ITS TOTAL ON -HAND 21 OF MEDICAL MARIJUANA FROM ANOTHER LICENSED MEDICAL 22 IJUANA CENTER IN COLORADO. A MEDICAL MARIJUANA CENTER MAY 23 L NO MORE THAN THIRTY PERCENT OF ITS TOTAL ON -HAND INVENTORY 24 NOTHER COLORADO LICENSED MEDICAL MARIJUANA LICENSEE. 25 (5) PRIOR TO INITIATING A SALE, THE EMPLOYEE OF THE MEDICAL 26 MARIJUANA CENTER MAKING THE SALE SHALL VERIFY THAT THE 27 PURCHASER HAS A VALID REGISTRATION CARD ISSUED PURSUANT TO -39- 1284 I SECTION 25-1.5-106, C.R.S., AND AVALID PICTURE IDENTIFICATION CARD 2 THAT MATCHES THE NAME ON THE REGISTRATION CARD. 3 (6) A LICENSED MEDICAL MARIJUANA CENTER MAY PROVIDE A 4 SMALL AMOUNT OF ITS MEDICAL MARIJUANA FOR TESTING TO A 5 LABORATORY THAT IS LICENSED PURSUANT TO THE OCCUPATIONAL 6 LICENSING RULES PROMULGATED PURSUANT TO SECTION 12- 43.3 -202 (2) 7 (a) 8 (7) ALL MEDICAL MARIJUANA SOLD AT A LICENSED MEDICAL 9 MARIJUANA CENTER SHALL BE LABELED WITH A LIST OF ALL CHEMICAL 10 ADDITIVES, INCLUDING BUT NOT LIMITED TO NONORGANIC PESTICIDES, 11 HERBICIDES, AND FERTILIZERS, THAT WERE USED IN THE CULTIVATION AND 12 THE PRODUCTION OF THE MEDICAL MARIJUANA. 13 (8) ALICENSEDMEDICALMARDUANA CENTER SHALLCOMPLYWITH 14 ALL PROVISIONS OF ARTICLE 34 OF TITLE 24 C.R.S.. AS THE PROVISIONS 15 RELATE TO PERSONS WITH DISABILITIES. 16 12- 43.3 -403. Optional premises cultivation license. AN 17 OPTIONAL PREMISES CULTIVATION LICENSE MAY BE ISSUED ONLY TO A 18 PERSON LICENSED PURSUANT TO SECTION 12- 43.3 -402 (1) OR 19 12- 43.3 -404 (1) WHO GROWS AND CULTIVATES MEDICAL MARIJUANA AT 20 AN ADDITIONAL COLORADO LICENSED PREMISES CONTIGUOUS OR NOT 21 CONTIGUOUS WITH THE LICENSED PREMISES OF THE PERSON'S MEDICAL 22 MARIJUANA CENTER LICENSE OR THE PERSON'S MEDICAL 23 MARIJUANA- INFUSED PRODUCTS MANUFACTURING LICENSE. 24 12- 43.3 -404. Medical marijuana- infused products 25 manufacturing license. (1) AMEDICALMARIJUANA - INFUSED PRODUCTS 26 MANUFACTURING LICENSE MAY BE ISSUED TO A PERSON WHO 27 MANUFACTURES MEDICALMARIJUANA-INFUSED PRODUCTS, PURSUANT TO -40- 1284 I THE TERMS AND CONDITIONS OF THIS ARTICLE. 2 (2) MEDICALMARUUANA- INFUSED PRODUCTS SHALLBEPREPARED 3 ON A LICENSED PREMISES THAT IS USED EXCLUSIVELY FOR THE 4 MANUFACTURE AND PREPARATION OF MEDICAL MARIJUANA- INFUSED 5 PRODUCTS AND USING EQUIPMENT THAT IS USED EXCLUSIVELY FOR THE 6 MANUFACTURE AND PREPARATION OF MEDICAL MARIJUANA- INFUSED 7 PRODUCTS. 8 (3) A MEDICAL MARIJUANA- INFUSED PRODUCTS LICENSEE SHALL 9 HAVE A WRITTEN AGREEMENT OR CONTRACT WITH A MEDICAL MARIJUANA 10 CENTERLICENSEE, WHICHCONTRACT SHALLATAMINIMUM SETFORTHTHE 11 TOTAL AMOUNT OF MEDICAL MARIJUANA OBTAINED FROM A MEDICAL 12 MARIJUANA CENTER LICENSEE TO BE USED IN THE MANUFACTURING 13 PROCESS, AND THE TOTAL AMOUNT OF MEDICAL MARIJUANA- INFUSED 14 PRODUCTS TO BE MANUFACTURED FROM THE MEDICAL MARIJUANA 15 OBTAINED FROM THE MEDICAL MARIJUANA CENTER. A MEDICAL 16 MARIJUANA- INFUSED PRODUCTS LICENSEE SHALL NOT USE MEDICAL 17 MARIJUANA FROM MORE THAN FIVE DIFFERENT MEDICAL MARIJUANA 18 CENTERS IN THE PRODUCTION OF ONE MEDICAL MARIJUANA- INFUSED 19 PRODUCT. THE MEDICAL MARIJUANA - INFUSED PRODUCTS 20 MANUFACTURING LICENSEE MAY SELL ITS PRODUCTS TO ANY LICENSED 21 MEDICAL MARIJUANA CENTER. 22 (4) ALL LICENSED PREMISES ON WHICH MEDICAL 23 MARIJUANA- INFUSED PRODUCTS ARE MANUFACTURED SHALL MEET THE 24 SANITARY STANDARDS FOR MEDICAL MARIJUANA- INFUSED PRODUCT 25 PREPARATION PROMULGATED PURSUANT TO SECTION 12 -43.3 -202 (2) (a) 26 (XII). 27 (5) THE MEDICALMARDUANA-INFUSEDPRODUCT SHALLBE SEALED 41- 1284 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 AND CONSPICUOUSLY LABELED IN COMPLIANCE WITH THIS ARTICLE AND ANY RULES PROMULGATED PURSUANT TO THIS ARTICLE. (6) MEDICAL MARIJUANA- INFUSED PRODUCTS MAY NOT BE CONSUMED ON A PREMISES LICENSED PURSUANT TO THIS ARTICLE. (7) NOTWITHSTANDING ANY OTHER PROVISION OF STATE LAW, SALES OF MEDICAL MARIJUANA- INFUSED PRODUCTS SHALL NOT BE EXEMPT FROM STATE OR LOCAL SALES TAX. (8) A MEDICAL MARIJUANA- INFUSED PRODUCTS LICENSEE THAT HAS AN OPTIONAL PREMISES CULTIVATION LICENSE SHALL NOT SELL ANY OF THE MEDICAL MARIJUANA THAT IT CULTIVATES. PART 5 FEES 12- 43.3 -501. Medical marijuana license cash fund. (1) ALL MONEYS COLLECTED BY THE STATE LICENSING AUTHORITY PURSUANT TO THIS ARTICLE SHALL BE TRANSMITTED TO THE STATE TREASURER, WHO SHALL CREDIT THE SAME TO THE MEDICAL MARIJUANA LICENSE CASH FUND, WHICH FUND IS HEREBY CREATED AND REFERRED TO IN THIS SECTION AS THE "FUND ". THE MONEYS IN THE FUND SHALL BE SUBJECT TO ANNUAL APPROPRIATION BY THE GENERAL ASSEMBLY TO THE DEPARTMENT OF REVENUE FOR THE DIRECT AND INDIRECT COSTS ASSOCIATED WITH IMPLEMENTING THIS ARTICLE. ANY MONEYS IN THE FUND NOT EXPENDED FOR THE PURPOSE OF THIS ARTICLE MAY BE INVESTED BY THE STATE TREASURERAS PROVIDED BYLAW. ALLINTEREST AND INCOME DERIVED FROM THE INVESTMENT AND DEPOSIT OF MONEYS IN THE FUND SHALL BE CREDITED TO THE FUND. ANY UNEXPENDED AND UNENCUMBERED MONEYS REMAINING IN THE FUND AT THE END OF A FISCAL YEAR SHALL REMAIN IN THE FUND AND SHALL NOT BE CREDITED OR -42- 1284 I TRANSFERRED TO THE GENERAL FUND OR ANOTHER FUND. 2 (2) THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE 3 BY RULE OR AS OTHERWISE PROVIDED BY LAW MAY REDUCE THE AMOUNT 4 OF ONE OR MORE OF THE FEES IF NECESSARY PURSUANT TO SECTION 5 24 -75 -402 (3), C.R.S., TO REDUCE THE UNCOMMITTED RESERVES OF THE 6 FUND TO WHICH ALL OR ANY PORTION OF ONE OR MORE OF THE FEES IS 7 CREDITED. AFTER THE UNCOMMITTED RESERVES OF THE FUND ARE 8 SUFFICIENTLY REDUCED, THE EXECUTIVE DIRECTOR BY RULE OR AS 9 OTHERWISE PROVIDED BY LAW MAY INCREASE THE AMOUNT OF ONE OR 10 MORE OF THE FEES AS PROVIDED IN SECTION 24 -75 -402 (4), C.R.S. 11 (3) (a) THE STATE LICENSING AUTHORITY SHALL ESTABLISH FEES 12 FOR PROCESSING THE FOLLOWING TYPES OF APPLICATIONS, LICENSES, 13 NOTICES, OR REPORTS REQUIRED TO BE SUBMITTED TO THE STATE 14 LICENSING AUTHORITY: 15 (I) APPLICATIONS FOR LICENSES LISTED IN SECTION 12- 43.3 -401 16 AND RULES PROMULGATED PURSUANT TO THAT SECTION; 17 (II) APPLICATIONS TO CHANGE LOCATION PURSUANT TO SECTION 18 12 -43.3 -310 AND RULES PROMULGATED PURSUANT TO THAT SECTION; 19 (III) APPLICATIONS FOR TRANSFER OF OWNERSHIP PURSUANT TO 20 SECTION 12- 43.3 -310 AND RULES PROMULGATED PURSUANT TO THAT 21 SECTION; 22 (IV) LICENSE RENEWAL AND EXPIRED LICENSE RENEWAL 23 APPLICATIONS PURSUANT TO SECTION 12 -43.3 -311; AND 24 (V) LICENSES AS LISTED IN SECTION 12- 43.3 -401. 25 (b) THE AMOUNTS OF SUCHFEES, WHEN ADDED TO THE OTHERFEES 26 TRANSFERRED TO THE FUND PURSUANT TO THIS SECTION SHALL REFLECT 27 THE ACTUAL DIRECT AND INDIRECT COSTS OF THE STATE LICENSING -43- 1284 1 AUTHORITY IN THE ADMINISTRATION AND ENFORCEMENT OF THIS ARTICLE 2 SO THAT THE FEES AVOID EXCEEDING THE STATUTORY LIMIT ON 3 UNCOMMITTED RESERVES IN ADMINISTRATIVE AGENCY CASH FUNDS AS 4 FORTH IN SECTION 24-75-402-(31 C.R.S. 5 (o) THE STATE LICENSING AUTHORITY MAY CHARGE APPLICANTS 6 LICENSED UNDER THIS ARTICLE A FEE FOR THE COST OF EACH FINGERPRINT 7 ANALYSIS AND BACKGROUND INVESTIGATION UNDERTAKEN TO QUALIFY 8 NEW OFFICERS, DIRECTORS, MANAGERS, OR EMPLOYEES. 9 ((1) AT LEAST ANNUALLY, THE STATE LICENSING AUTHORITY SHALL 10 REVIEW THE AMOUNTS OF THE FEES AND, IF NECESSARY, ADJUST THE 11 AMOUNTS TO REFLECT THE DIRECT AND INDIRECT COSTS OF THE STATE 12 LICENSING AUTHORITY. 13 (3) EXCEPT AS PROVIDED IN SUBSECTION (4) OF THIS SECTION, THE 14 STATE LICENSING AUTHORITY SHALL ESTABLISH A BASIC FEE THAT SHALL 15 BE PAID AT THE TIME OF SERVICE OF ANY SUBPOENA UPON THE STATE 16 LICENSING AUTHORITY, PLUS A FEE FOR MEALS AND A FEE FOR MILEAGE AT 17 THE RATE PRESCRIBED FOR STATE OFFICERS AND EMPLOYEES IN SECTION 18 24-9-104, C.R.S., FOREACH MILEACTUALLY AND NECESSARILY TRAVELED 19 IN GOING TO AND RETURNING FROM THE PLACE NAMED IN THE SUBPOENA. 20 IF THE PERSON NAMED IN THE SUBPOENA IS REQUIRED TO ATTEND THE 21 PLACE NAMED IN THE SUBPOENA FOR MORE THAN ONE DAY, THERE SHALL 22 BE PAID, IN ADVANCE, A SUM TO BE ESTABLISHED BY THE STATE LICENSING 23 AUTHORITY FOR EACH DAY OF ATTENDANCE TO COVER THE EXPENSES OF 24 THE PERSON NAMED IN THE SUBPOENA. 25 (4) THE SUBPOENA FEE ESTABLISHED PURSUANT TO SUBSECTION 26 (3) OF THIS SECTION SHALL NOT BE APPLICABLE TO ANY FEDERAL, STATE 27 OR LOCAL GOVERNMENTAL AGENCY. -44- 1284 1 12- 43.3 -502. Fees - allocation. (1) EXCEPT AS OTHERWISE 2 PROVIDED, ALL FEES AND FINES PROVIDED FOR BY THIS ARTICLE SHALL BE 3 PAID TO THE DEPARTMENT OF REVENUE, WHICH SHALL TRANSMIT THE FEES 4 TO THE STATE TREASURER. THE STATE TREASURER SHALL CREDIT THE 5 FEES _ TO THE MEDICAL MARIJUANA LICENSE CASH FUND CREATED IN 6 SECTION 12- 43.3 -501. 7 (2) THE EXPENDITURES OF THE STATE LICENSING AUTHORITY 8 SHALL BE PAID OUT OF APPROPRIATIONS FROM MEDICAL MARIJUANA 9 LICENSE CASH FUND CREATED IN SECTION 12- 43.3 -501. 10 12- 43.3 -503. Local license fees. (1) EACH APPLICATION FOR A 11 LOCAL LICENSE PROVIDED FOR IN THIS ARTICLE FILED WITH A LOCAL 12 LICENSING AUTHORITY SHALL BE ACCOMPANIED BY AN APPLICATION FEE 13 IN AN AMOUNT DETERMINED BY THE LOCAL LICENSING AUTHORITY. 14 (2) LICENSE FEES AS DETERMINED BY THE LOCAL LICENSING 15 AUTHORITY SHALL BE PAID TO THE TREASURER OF THE MUNICIPALITY, 16 CITY AND COUNTY, OR COUNTY WHERE THE LICENSED PREMISES IS 17 LOCATED IN ADVANCE OF THE APPROVAL, DENIAL, OR RENEWAL OF THE 18 LICENSE. 19 ---- 6 20 DISCIPLINARY ACTIONS,,) 21 12- 43.3 -601. Suspension - revocation n- - fines. (1) IN ADDITION 22 TO ANY OTHER SANCTIONS PRESCRIBED BY THIS ARTICLE OR RULES f'q 23 PROMULGATED PURSUANT TO THIS ARTICLE, THE STATE LICENSING 24 AUTHORITY OR A LOCAL LICENSING AUTHORITY HAS THE POWER, ON ITS d��4 25 OWN MOTION ORONCOMPLAINT, AFTER INVESTIGATION AND OPPORTUNITY { � o C r 26 FOR A PUBLIC HEARING AT WHICH THE LICENSEE SHALL BE AFFORDED AN 27 OPPORTUNITY TO BE HEARD, TO SUSPEND OR REVOKE A LICENSE ISSUED BY -45- 1284 I THE RESPECTIVE AUTHORITY FOR A VIOLATION BY THE LICENSEE OR BY 2 ANY OF THE AGENTS OR EMPLOYEES OF THE LICENSEE OF THE PROVISIONS 3 OF THIS ARTICLE, OR ANY OF THE RULES PROMULGATED PURSUANT TO THIS 4 ARTICLE, OR OF ANY OF THE TERMS, CONDITIONS, OR PROVISIONS OF THE 5 LICENSE ISSUED BY THE STATE OR LOCAL LICENSING AUTHORITY. THE 6 STATE LICENSING AUTHORITY OR A LOCAL LICENSING AUTHORITY HAS THE 7 POWER TO ADMINISTER OATHS AND ISSUE SUBPOENAS TO REQUIRE THE 8 PRESENCE OF PERSONS AND THE PRODUCTION OF PAPERS, BOOKS, AND 9 RECORDS NECESSARY TO THE DETERMINATION OF A HEARING THAT THE 10 STATE OR LOCAL LICENSING AUTHORITY IS AUTHORIZED TO CONDUCT. 11 (2) THE STATE OR LOCAL LICENSING AUTHORITY SHALL PROVIDE 12 NOTICE OF SUSPENSION, REVOCATION, FINE, OROTHER SANCTION, AS WELL 13 AS THE REQUIRED NOTICE OF THE HEARING PURSUANT TO SUBSECTION (1) 14 OF THIS SECTION, BY MAILING THE SAME IN WRITING TO THE LICENSEE AT 15 THE ADDRESS CONTAINED IN THE LICENSE. EXCEPT IN THE CASE OF A 16 SUMMARY SUSPENSION, A SUSPENSION SHALL NOT BE FOR A LONGE 17 PERIOD THAN SIX MONTHS. IF A LICENSE IS SUSPENDED OR REVOKED, A 18 PART OF THE FEES PAID THEREFORE SHALL NOT BE RETURNED 19 LICENSEE. ANY LICENSE OR PERMIT MAY BE SUMMARILY SUSPENDED BY 20 THE ISSUING LICENSING AUTHORITY WITHOUT NOTICE PENDING ANY 21 PROSECUTION, INVESTIGATION, OR PUBLIC HEARING PURSUANT TO THE 22 TERMS OF SECTION 24 -4 -104 (4), C.R.S. NOTHING IN THIS SECTION SHALL 23 PREVENT THE SUMMARY SUSPENSION OF A LICENSE PURSUANT TO SECTION 24 24 -4 -104 (4), C.R.S. EACH PATIENT REGISTERED WITH A MEDICAL 25 MARIJUANA CENTER THAT HAS HAD ITS LICENSE SUMMARILY SUSPENDED 26 MAY IMMEDIATELY TRANSFER HIS OR HER PRIMARY CENTER TO ANOTHER 27 LICENSED MEDICAL MARIJUANA CENTER. -46- 1284 1 (3) (a) WHENEVER A DECISION OF THE STATE LICENSING 2 AUTHORITY OR A LOCAL LICENSING AUTHORITY SUSPENDING A LICENSE 3 FORFOURTEEN DAYS ORLESS BECOMES FINAL, THE LICENSEE MAY, BEFORE 4 THE OPERATIVE DATE OF THE SUSPENSION, PETITION FOR PERMISSION TO 5 PAY A FINE IN LIEU OF HAVING THE LICENSE SUSPENDED FOR ALL OR PART 6 OF THE SUSPENSION PERIOD. UPON THE RECEIPT OF THE PETITION, THE 7 STATE OR LOCAL LICENSING AUTHORITY MAY, IN ITS SOLE DISCRETION, 8 STAY THE PROPOSED SUSPENSION AND CAUSE ANY INVESTIGATION TO BE 9 MADE WHICH IT DEEMS DESIRABLE AND MAY, IN ITS SOLE DISCRETION, 10 GRANT THE PETITION IF THE STATE OR LOCAL LICENSING AUTHORITY IS 11 SATISFIED THAT: le 12 (I) THE PUBLIC WELFARE AND MORALS WOULD NOT BE IMPAIRED S 13 BY PERMITTING THE LICENSEE TO OPERATE DURING THE PERIOD SET FOR 14 SUSPENSION AND THAT THE PAYMENT OF THE FINE WILL ACHIEVE THE 15 DESIRED DISCIPLINARY PURPOSES; 16 (II) THE BOOKS AND RECORDS OF THE LICENSEE ARE KEPT IN SUCH 17 A MANNER THAT THE LOSS OF SALES THAT THE LICENSEE WOULD HAVE 18 SUFFERED HAD THE SUSPENSION GONE INTO EFFECT CAN BE DETERMINED 19 WITH REASONABLE ACCURACY; AND 20 (III) THE LICENSEE HAS NOT HAD HIS OR HER LICENSE SUSPENDED 21 OR REVOKED, NOR HAD ANY SUSPENSION STAYED BY PAYMENT OF A FINE, 22 DURING THE TWO YEARS IMMEDIATELY PRECEDING THE DATE OF THE 23 MOTION OR COMPLAINT THAT RESULTED IN A FINAL DECISION TO SUSPEND 24 THE LICENSE OR PERMIT. 25 (b) THE FINE ACCEPTED SHALL BE NOT LESS THAN FIVE HUNDRED 26 DOLLARS NOR MORE T HAN ONE HUNDRED THO USAND DO LLARS. 27 (C) PAYMENT OF A FINE PURSUANT TO THE PROVISIONS OF THIS -47- 1284 I SUBSECTION (3) SHALL BE IN THE FORM OF CASH OR IN THE FORM OF A 2 CERTIFIED CHECK OR CASHIER'S CHECK MADE PAYABLE TO THE STATE OR 3 LOCAL LICENSING AUTHORITY, WHICHEVER IS APPROPRIATE. 4 (4) UPON PAYMENT OF THE FINE PURSUANT TO SUBSECTION (3) OF 5 THIS SECTION, THE STATE OR LOCAL LICENSING AUTHORITY SHALL ENTER 6 ITS FURTHER ORDER PERMANENTLY STAYING THE IMPOSITION OF THE 7 SUSPENSION. IF THE FINE IS PAID TO A LOCAL LICENSING AUTHORITY, THE 8 GOVERNING BODY OF THE AUTHORITY SHALL CAUSE THE MONEYS TO BE 9 PAID INTO THE GENERAL FUND OF THE LOCAL LICENSING AUTHORITY. 10 FINES PAID TO THE STATE LICENSING AUTHORITY PURSUANT TO 11 SUBSECTION (3) OF THIS SECTION SHALL BE TRANSMITTED TO THE STATE 12 TREASURER WHO SHALL CREDIT THE SAME TO THE MEDICAL MARIJUANA 13 LICENSE CASH FUND CREATED IN SECTION 12- 43.3 -501. 14 (5) INCONNECTIONWITHAPETITION PURSUANT TO SUBSECTION (3) 15 OF THIS SECTION, THE AUTHORITY OF THE STATE OR LOCAL LICENSING 16 AUTHORITY IS LIMITED TO THE GRANTING OF SUCH STAYS AS ARE 17 NECESSARY FOR THE AUTHORITY TO COMPLETE ITS INVESTIGATION AND 18 MAKE ITS FINDINGS AND, IF THE AUTHORITY MAKES SUCH FINDINGS, TO 19 THE GRANTING OF AN ORDER PERMANENTLY STAYING THE IMPOSITION OF 20 THE ENTIRE SUSPENSION OR THAT PORTION OF THE SUSPENSION NOT 21 OTHERWISE CONDITIONALLY STAYED. 22 (6) IF THE STATE ORLOCAL LICENSING AUTHORITYDOES NOT MAKE 23 THE FINDINGS REQUIRED IN PARAGRAPH (a) OF SUBSECTION (3) OF THIS 24 SECTION AND DOES NOT ORDER THE SUSPENSION PERMANENTLY STAYED, 25 THE SUSPENSION SHALL GO INTO EFFECT ON THE OPERATIVE DATE FINALLY 26 SET BY THE STATE OR LOCAL LICENSING AUTHORITY. 27 (7) EACH LOCAL LICENSING AUTHORITY SHALL REPORT ALL -48- 1284 I ACTIONS TAKEN TO IMPOSE FINES, SUSPENSIONS, AND REVOCATIONS TO 2 THE STATE LICENSING AUTHORITY IN A MANNER REQUIRED BY THE STATE 3 LICENSING AUTHORITY. NO LATER THAN JANUARY 15 OF EACH YEAR, THE 4 STATE LICENSING AUTHORITY SHALL COMPILE A REPORT OF THE 5 PRECEDING YEAR'S ACTIONS IN WHICH FINES, SUSPENSIONS, OR 6 REVOCATIONS WERE IMPOSED BY LOCAL LICENSING AUTHORITIES AND BY 7 THE STATE LICENSING AUTHORITY. THE STATE LICENSING AUTHORITY 8 SHALL FILE ONE COPY OF THE REPORT WITH THE CHIEF CLERK OF THE 9 HOUSE OF REPRESENTATIVES, ONE COPY WITH THE SECRETARY OF THE 10 SENATE, AND SIX COPIES IN THE JOINT LEGISLATIVE LIBRARY. 11 PART 7 12 INSPECTION OF BOOKS AND RECORDS 13 12- 43.3 -701. Inspection procedures. (1) EACH LICENSEE SHALL 14 KEEP A COMPLETE SET OF ALL RECORDS NECESSARY TO SHOW FULLY THE 15 BUSINESS TRANSACTIONS OF THE LICENSEE, ALL OF WHICH SHALL BE OPEN 16 AT ALL TIMES DURING BUSINESS HOURS FOR THE INSPECTION AND 17 EXAMINATION OF THE STATE LICENSING AUTHORITY OR ITS DULY 18 AUTHORIZED REPRESENTATIVES. THE STATE LICENSING AUTHORITY MAY 19 REQUIRE ANY LICENSEE TO FURNISH SUCH INFORMATION AS IT CONSIDERS 20 NECESSARY FOR THE PROPER ADMINISTRATION OF THIS ARTICLE AND MAY 21 REQUIRE AN AUDIT TO BE MADE OF THE BOOKS OF ACCOUNT AND RECORDS 22 ON SUCH OCCASIONS AS IT MAY CONSIDER NECESSARY BY AN AUDITOR TO 23 BE SELECTED BY THE STATE LICENSING AUTHORITY WHO SHALL LIKEWISE 24 HAVE ACCESS TO ALL BOOKS AND RECORDS OF THE LICENSEE, AND THE 25 EXPENSE THEREOF SHALL BE PAID BY THE LICENSEE. 26 (2) THE LICENSED PREMISES, INCLUDING ANY PLACES OF STORAGE 27 WHERE MEDICAL MARIJUANA IS GROWN, STORED, CULTIVATED, SOLD, OR -49- 1284 I DISPENSED, SHALL BE SUBJECT TO INSPECTION BY THE STATE OR LOCAL 2 LICENSING AUTHORITIES AND THEIR IN VESTIGATORS, D ALL 3 BUSI E SS--d=I9IIRS AND OTHER TIMES OF APPARENT ACTIVITY, FOR THE 4 PURPOSE OF INSPECT OR I NVESTIGATION. FOR EXAMINATION OF ANY 5 INVENTORY OR BOOKS AND RECORDS REQUIRED TO BE KEPT BY THE 6 LICENSEES, ACCESS SHALLBEREQUIREDDURINGBUSINESSHOURS. WHERE 7 ANY PART OF THE LICENSED PREMISES CONSISTS OF A LOCKED AREA, UPON 8 DEMAND TO THE LICENSEE, SUCH AREA SHALL BE MADE AVAILABLE FOR 9 INSPECTION WITHOUT DELAY, AND, UPON REQUEST BY AUTHORIZED 10 REPRESENTATIVES OF THE STATE OR LOCAL LICENSING AUTHORITY, THE 11 LICENSEE SHALL OPEN THE AREA FOR INSPECTION. 12 (3) EACH LICENSEE SHALL RETAIN ALL BOOKS AND RECORDS 13 NECESSARY TO SHOW FULLY THE BUSINESS TRANSACTIONS OF THE 14 LICENSEE FOR A PERIOD OF THE CURRENT TAX YEAR AND THE THREE 15 IMMEDIATELY PRIOR TAX YEARS. 16 PART 8 17 JUDICIAL REVIEW 18 12- 43.3 -801. Judicial review. DECISIONS BY THE STATE 19 LICENSING AUTHORITY OR A LOCAL LICENSING AUTHORITY SHALL BE 20 SUBJECT TO JUDICIAL R E V IEW PURSUANT TO SECTION 2 4 -4 -106, C.R.S. " 7 21 PART 9 22 UNLAWFUL ACTS - ENFORCEMENT 23 12- 43.3 -901 Unlawful acts - exceptions. ) EXCEPT AS 24 OTHERWISE PROVIDED IN THIS ARTICLE, IT IS UNLAWFUL FOR A PERSON: 25 (a) TO CONSUME MEDICAL MARIJUANA IN A LICENSED MEDICAL 26 MARIJUANA CENTER, AND IT SHALL BE UNLAWFUL FOR A MEDICAL 27 MARIJUANA LICENSEE TO ALLOW MEDICAL MARIJUANA TO BE CONSUMED -50- 1284 I UPON ITS LICENSED PREMISES; 2 (b) WITH KNOWLEDGE, TO PERMIT OR FAIL TO PREVENT THE USE OF 3 HIS OR HER REGISTRY IDENTIFICATION BY ANY OTHER PERSON FOR THE 4 UNLAWFUL PURCHASING OF MEDICAL MARIJUANA: OR 5 C) TO CONTINUE OPERATING A BUSINESS FOR THE PURPOSE OF 6 CULTIVATION, MANUFACTURE, OR SALE OF MEDICAL MARIJUANA OR 7 MEDICAL MARIJUANA- INFUSED PRODUCTS WITHOUT FILING THE FORMS 8 AND PAYING THE FEE AS DESCRIBED IN SECTION 12- 43.3 -103 (1) (bl. �v� o/ 9 d) TO CONTINUE A OPERATING A BUSINESS FOR THE PURPOSE OF � ' 10 CULTIVATION, MANUFACTURE, OR SALE OF MEDICAL MARIJUANA OR 11 MEDICAL MARIJUANA- INFUSED PRODUCTS WITHOUT SATISFYING THE 12 CONDITIONS OF SECTION 12- 43.3 -103 (2) (bl. 13 (2) IT IS UNLAWFUL FOR A PERSON TO BUY, SELL, TRANSFER, GIVE 14 AWAY, OR ACQUIRE MEDICAL MARIJUANA EXCEPT AS ALLOWED PURSUANT 15 TO THIS ARTICLE. 16 (3) IT IS UNLAWFUL FOR A PERSON LICENSED PURSUANT TO THIS 17 ARTICLE: 18 (a) TO BE WITHIN A LIMITED- ACCESS AREA UNLESS THE PERSON'S 19 LICENSE BADGE IS DISPLAYED AS REQUIRED BY THIS ARTICLE, EXCEPT AS 20 PROVIDED IN SECTION 12- 43.3 -701; 21 (b) TO FAIL TO DESIGNATE AREAS OF INGRESS AND EGRESS FOR 22 LIMFFED- ACCESS AREAS AND POST SIGNS IN CONSPICUOUS LOCATIONS AS 23 REQUIRED BY THIS ARTICLE; 24 (C) TO FAIL TO REPORT A TRANSFER REQUIRED BY SECTION 25 12- 43.3 -310 (11); OR 26 ((1) TO FAIL TO REPORT THE NAME OF OR A CHANGE IN MANAGERS 27 AS REQUIRED BY SECTION 12- 43.3 -310 (12). 51- 1284 1 (4) IT IS UNLAWFUL FOR ANY PERSON LICENSED TO SELL MEDICAL 2 MARIJUANA PURSUANT TO THIS ARTICLE: 3 (a) TO DISPLAY ANY SIGNS THAT ARE INCONSISTENT WITH = — 4 LOCAL LAWS OR REGULATIONS; 5 (b) TO USE ADVERTISING MATERIAL THAT IS MISLEADING, 6 DECEPTIVE, OR FALSE, OR THAT IS DESIGNED TO APPEAL TO MINORS; 7 (o) TO PROVIDE PUBLIC PREMISES, OR ANY PORTION THEREOF, FOR 8 THE PURPOSE OF CONSUMPTION OF MEDICAL MARIJUANA IN ANY FORM; 9 (d) (I) TO SELL MEDICAL MARIJUANA TO A PERSON NOT LICENSED 10 PURSUANT TO THIS ARTICLE OR TO A PERSON NOT ABLE TO PRODUCE A 11 VALID PATIENT REGISTRY IDENTIFICATIONCARD. NOTWITHSTANDINGANY 12 PROVISION IN THIS SUBPARAGRAPH (I) TO THE CONTRARY, A PERSON 13 UNDER TWENTY -ONE YEARS OF AGE SHALL NOT BE EMPLOYED TO SELL OR 14 DISPENSE MEDICAL MARIJUANA AT A MEDICAL MARIJUANA CENTER OR 15 GROW OR CULTIVATE MEDICAL MARIJUANA AT AN OPTIONAL PREMISES 16 CULTIVATION OPERATION. 17 (II) IF A LICENSEE OR A LICENSEE'S EMPLOYEE HAS REASONABLE 18 CAUSE TO BELIEVE THAT A PERSON IS EXHIBITING A FRAUDULENT PATIENT 19 REGISTRY IDENTIFICATION CARD IN AN ATTEMPT TO OBTAIN MEDICAL 20 MARIJUANA, THE LICENSEE OR EMPLOYEE SHALL BE AUTHORIZED TO 21 CONFISCATE THE FRAUDULENT PATIENT REGISTRY IDENTIFICATION CARD, 22 IF POSSIBLE, AND SHALL, WITHIN SEVENTY -TWO HOURS AFTER THE 23 CONFISCATION, TURN IT OVER TO THE STATE HEALTH DEPARTMENT OR 24 LOCAL LAW ENFORCEMENT AGENCY. THE FAILURE TO CONFISCATE THE 25 FRAUDULENT PATIENT REGISTRY IDENTIFICATION CARD OR TO TURN IT 26 OVER TO THE STATE HEALTH DEPARTMENT OR A STATE OR LOCAL LAW 27 ENFORCEMENT AGENCY WITHIN SEVENTY -TWO HOURS AFTER THE -52- 1284 I CONFISCATION SHALL NOT CONSTITUTE A CRIMINAL OFFENSE. 2 (e) TO POSSESS MORE THAN SIX MEDICAL MARIJUANA PLANTS AND 3 TWO OUNCES OF MEDICAL MARIJUANA FOR EACH PATIENT WHO HAS 4 REGISTERED THE CENTER AS HIS OR HER PRIMARY CENTER PURSUANT TO 5 SECTION 25 -1.5- 106 (6) (f), C.R. S.; EXCEPT THAT A MEDICAL MARIJUANA 6 CENTER MAY HAVE AN AMOUNT THAT EXCEEDS THE SIX -PLANT AND 7 TWO -OUNCE PRODUCT PER PATIENT LIMIT IF THE CENTER SELLS TO 8 PATIENTS THAT ARE AUTHORIZED TO HAVE MORE THAN SIX PLANTS AND 9 TWO OUNCES OF PRODUCT. IN THE CASE OF A PATIENT AUTHORIZED TO 10 EXCEED THE SIX -PLANT AND TWO -OUNCE LIMIT, THE CENTER SHALL 11 OBTAIN DOCUMENTATION FROM THE PATIENT'S PHYSICIAN THAT THE 12 PATIENT NEEDS MORE THAN SIX PLANTS AND TWO OUNCES OF PRODUCT. 13 (f) TO OFFER FOR SALE OR SOLICIT AN ORDER FOR MEDICAL 14 MARIJUANA IN PERSON EXCEPT WITHIN THE LICENSED PREMISES; 15 (g) TO HAVE IN POSSESSION OR UPON THE LICENSED PREMISES ANY 16 MEDICAL MARIJUANA, THE SALE OF WHICH IS NOT PERMITTED BY THE 17 LICENSE; 18 (h) TO BUY MEDICAL MARIJUANA FROM A PERSON NOT LICENSED 19 TO SELL AS PROVIDED BY THIS ARTICLE; 20 (1) TO SELL MEDICAL MARIJUANA EXCEPT IN THE PERMANENT 21 LOCATION SPECIFICALLY DESIGNATED IN THE LICENSE FOR SALE; 22 (j) TO HAVE ONTHE LICENSED PREMISES ANYMEDICALMARIJUANA 23 OR MARIJUANA PARAPHERNALIA THAT SHOWS EVIDENCE OF THE MEDICAL 24 MARIJUANA HAVING BEEN CONSUMED OR PARTIALLY CONSUMED; 25 (k) TO REQUIRE A MEDICAL MARIJUANA CENTER OR MEDICAL 26 MARIJUANA CENTER WITH AN OPTIONAL PREMISES CULTIVATION LICENSE 27 TO MAKE DELIVERY TO ANY PREMISES OTHER THAN THE SPECIFIC LICENSED -53- 1284 I PREMISES WHERE THE MEDICAL MARIJUANA IS TO BE SOLD; OR 2 (1) TO SELL, SERVE, OR DISTRIBUTE MEDICAL MARIJUANA AT ANY 3 TIME OTHER THAN BETWEEN THE HOURS OF 8:00 A.M. AND 7:00 P.M. 4 MONDAY THROUGH SUNDAY. 5 (m) TO VIOLATE THE PROVISIONS OF SECTION 6- 2- 103OR6 -2 -105 6 C.R.S. 7 (5) EXCEPT AS PROVIDED IN SECTIONS 12- 43.3 -402 (4), 8 12- 43.3 -403, AND 12- 43.3 -404, IT IS UNLAWFUL FOR A MEDICAL 9 MARIJUANA CENTER MEDICAL MARIJUANA - INFUSED PRODUCTS 10 MANUFACTURING OPERATION WITH AN OPTIONAL PREMISES CULTIVATION 11 LICENSE OR MEDICAL MARIJUANA CENTER WITH AN OPTIONAL PREMISES 12 CULTIVATION LICENSE TO SELL, DELIVER, OR CAUSE TO BE DELIVERED TO 13 A LICENSEE ANY MEDICAL MARIJUANA NOT GROWN UPON ITS LICENSED 14 PREMISES, OR FOR A LICENSEE OR MEDICAL MARIJUANA CENTER WITH AN 15 OPTIONAL PREMISES CULTIVATION LICENSE OR MEDICAL 16 MARIJUANA- INFUSED PRODUCTS MANUFACTURING OPERATION WITH AN 17 OPTIONAL PREMISES CULTIVATION LICENSE TO SELL, POSSESS, OR PERMIT 18 SALE OF MEDICAL MARIJUANA NOT GROWN UPON ITS LICENSED PREMISES. 19 20 21 22 23 24 25 26 27 A VIOLATION OF THE PROVISIONS OF THIS SUBSECTION (5) BY A LICENSEE SHALL BE GROUNDS FOR THE IMMEDIATE REVOCATION OF THE LICENSE GRANTED UNDER THIS ARTICLE. (6) IT SHALL BE UNLAWFUL FOR APHYSICIAN WHO MAKES PATIENT REFERRALS TO A LICENSED MEDICAL MARIJUANA CENTER TO RECEIVE ANYTHING OF VALUE FROM THE MEDICAL MARIJUANA CENTER LICENSEE OR ITS AGENTS, SERVANTS, OFFICERS, OR OWNERS OR ANYONE FINANCIALLY INTERESTED IN THE LICENSEE, AND IT SHALL BE UNLAWFUL FOR A LICENSEE LICENSED PURSUANT TO THIS ARTICLE TO OFFER -54- 1284 I ANYTHING OF VALUE TO A PHYSICIAN FORMAKING PATIENT REFERRALS TO 2 THE LICENSED MEDICAL MARIJUANA CENTER. 3 (7) A PERSON WHO COMMITS ANY ACTS THAT ARE UNLAWFUL 4 PURSUANT TO THIS SECTION COMMITS A CLASS 2 MISDEMEANOR AND 5 SHALL BE PUNISHED AS PROVIDED IN SECTION 18 -1.3 -501, C.R.S.; EXCEPT 6 FOR VIOLATIONS THAT WOULD ALSO CONSTITUTE A VIOLATION OF TITLE 7 18 C.R.S. WHICH VIOLATION SHALL BE CHARGED AND PROSECUTED 8 PURSUANT TO TITLE 18, C.R.S. — 9 PART 10 10 SUNSET REVIEW 11 12- 43.3 -1001. Sunset review - article repeal. (1) THIS ARTICLE 12 IS REPEALED, FFECTIVE JULY 1, 2015 13 (2) PRIOR TO T HE REPEAL OF THIS ART DEPARTMENT OF 14 REGULATORY AGENCIES SHALL CONDUCT SUNSET REVIEW DESCRIBED 15 IN SECTION 24-34-404J8). C.R.S. 16 SECTION 2. 25 -1.5 -106, Colorado Revised Statutes, is amended 17 to read 18 25 -1.5 -106. Medical marijuana program - powers and duties 19 of the state health aeency - repeal. (1) Legislative declaration. 20 (a) THE GENERALASSEMBLY HEREBYDECLARES THAT IT IS NECESSARY TO 21 IMPLEMENT RULES TO ENSURE THAT PATIENTS SUFFERING FROM 22 LEGITIMATE DEBILITATING MEDICAL CONDITIONS ARE ABLE TO SAFELY 23 GAIN ACCESS TO MEDICAL MARIJUANA AND TO ENSURE THAT THESE 24 PATIENTS: 25 (1) ARE NOT SUBJECT TO CRIMINAL PROSECUTION FOR THEIR USE 26 OF MEDICAL MARIJUANA IN ACCORDANCE WITH SECTION 14 OF ARTICLE 27 XVIII OF THE STATE CONSTITUTION, THIS SECTION, AND THE RULES OF THE -55- 1284 I STATE HEALTH AGENCY; AND 2 (II) ARE ABLE TO ESTABLISH AN AFFIRMATIVE DEFENSE TO THEIR 3 USE OF MEDICAL MARIJUANA IN ACCORDANCE WITH SECTION 14 OF 4 ARTICLE XVIII OF THE STATE CONSTITUTION, THIS SECTION, AND THE 5 RULES OF THE STATE HEALTH AGENCY. 6 (b) THE GENERAL ASSEMBLY HEREBY DECLARES THAT IT IS 7 NECESSARY TO IMPLEMENT RULES TO PREVENT PERSONS WHO DO NOT 8 SUFFER FROM LEGITIMATE DEBILITATING MEDICAL CONDITIONS FROM 9 USING SECTION 14 OF ARTICLE XVIII OF THE STATE CONSTITUTION AS A 10 MEANS TO SELL, ACQUIRE, POSSESS, PRODUCE, USE, OR TRANSPORT 1 1 MARIJUANA IN VIOLATION OF STATE AND FEDERAL LAWS. 12 (2) Definitions. IN ADDITION TO THE DEFINITIONS SET FORTH IN 13 SECTION 14 (1) OF ARTICLE XVIII OF THE STATE CONSTITUTION, AS USED 14 IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES, "PRIMARY 15 CAREGIVER" MEANS A NATURAL PERSON, OTHER THAN THE PATIENT OR 16 THE PATIENT'S PHYSICIAN, WHO IS EIGHTEEN YEARS OF AGE OR OLDER AND 17 HAS SIGNIFICANT RESPONSIBILITY FOR MANAGING THE WELL -BEING OF A 18 PATIENT WHO HAS A DEBILITATING MEDICAL CONDITION. 19 () (3) Rule- making. (a) The department shall, pursuant to 20 section 14 of article XVIII of the state constitution, promulgate rules of 21 administration concerning the implementation of the medical marijuana 22 program established by such section and that specifically govern the 23 following: 24 (a) (I) The establishment and maintenance of a confidential 25 registry of patients who have applied for and are entitled to receive a 26 registry identification card; 27 (b) (II) The development by the department of an application form -56- 1284 I and making such form available to residents of this state seeking to be 2 listed on the confidential registry of patients who are entitled to receive 3 a registry identification card; 4 (e)( III) The verification by the department of medical information 5 concerning patients who have applied for a confidential registry card; 6 (d) (IV) The issuance and form of confidential registry 7 identification cards; 8 (e) (V) Communications with law enforcement officials about 9 confidential registry identification cards that have been suspended where 10 a patient is no longer diagnosed as having a debilitating medical 11 condition; and 12 (f) (VI) The manner in which the department may consider adding 13 debilitating medical conditions to the list of debilitating medical 14 conditions contained in section 14 of article XVIII of the state 15 constitution. AND 16 (VII) A WAIVER PROCESS TO ALLOW A HOMEBOUND PATIENT WHO 17 IS ON THE REGISTRY TO HAVE A PRIMARY CAREGIVER TRANSPORT THE 18 PATIENT'S MEDICAL MARIJUANA FROM A LICENSED MEDICAL MARIJUANA 19 CENTER TO THE PATIENT. 20 21 (b) THE STATE HEALTH AGENCY MAY PROMULGATE RULES 22 RWARDING THE FOLLOWING: 23 / (I) WHAT CONSTITUTES "SIGNIFICANT RESPONSIBILITY FOR Y 24 MANAGING THE WELL -BEING OF A PATIENT'; EXCEPT THAT THE ACT OF 2 SUPPLYING MEDICAL MARIJUANA OR MARIJUANA PARAPHERNALIA. BY ITSELF IS INSUFFICIENT TO CONSTITUTE "SIGNIFICANT RESPONSIBILITY FOR 2 MANAGING THE WELL -BEING OF A PATIENT"; -57- 1284 1 (II) THE DEVELOPMENT OF A FORM FOR A PRIMARY CAREGPER TO 2 USE IN APPLYING TO THE REGISTRY, WHICH FORM SHALL REQUIRE, AT A 3 MINIMUM, THAT THE APPLICANT PROVIDE HIS OR HER FULL NAME, HOME 4 ADDRESS, DATE OF BIRTH, AND ANATTESTATION THAT THE APPLICANTHAS 5 A SIGNIFICANT RESPONSIBILITY FOR MANAGING THE WELL -BEING OF THE 6 PATIENT FOR WHOM HE OR SHE IS DESIGNATED AS THE PRIMARY 7 CAREGIVER AND THAT HE OR SHE UNDERSTANDS AND WILL ABIDE BY 8 SECTION 14 OF ARTICLE XVIII OFTHE STATE CONSTITUTION, THIS SECTION, 9 AND THERULESPROMULGATEDBY THE STATE HEALTHAGENCYPURSUANT 10 TO THIS SECTION; 11 (III) THE DEVELOPMENT OF A FORM THAT CONSTITUTES "WRITTEN 12 DOCUMENTATION ", AS DEFINED AND USED IN SECTION 14 OF ARTICLE 13 XVIII OF THE STATE CONSTITUTION, WHICH FORM A PHYSICIAN SHALL USE 14 WHEN MAKING A MEDICAL MARD UANA RECOMMENDATION FOR A PATIENT; 15 AND 16 (IV) THE GROUNDS AND PROCEDURE FOR A PATIENT TO CHANGE 17 HIS OR HER DESIGNATED PRIMARY CAREGIVER. 18 (C) (I) THE STATE HEALTH AGENCY SHALL CONDUCT A PUBLIC 19 REVIEW HEARING WITH THE DEPARTMENT OF REVENUE BY SEPTEMBER 1, 20 2010 TO RECEIVE PUBLIC INPUT ON ANY EMERGENCY RULES ADOPTED BY 21 THE STATE HEALTH AGENCY AND BE PROVIDED WITH AN UPDATE FROM THE 22 INDUSTRY CAREGIVERS, PATIENTS, AND OTHER STAKEHOLDERS 23 REGARDING THE INDUSTRY'S CURRENT STATUS. THE STATE HEALTH 24 AGENCY SHALL PROVIDE AT LEAST FIVE BUSINESS DAYS' NOTICE PRIOR TO 25 THE HEARING. 26 (II) THIS PARAGRAPH (C) IS REPEALED, EFFECTIVE JULY 1, 2011. 27 (4) NOTWITHSTANDING ANY OTHER REQUIREMENTS TO THE -58- 1284 I CONTRARY, NOTICE ISSUED BY THE STATE HEALTH AGENCY FOR A 2 RULEMAKING HEARING PURSUANT TO SECTION 24 -4 -103, C.R.S., FOR 3 RULES CONCERNING THE MEDICAL MARIJUANA PROGRAM SHALL BE 4 SUFFICIENT IF THE STATE HEALTH AGENCY PROVIDES THE NOTICE NO 5 LATER THAN FORTY -FIVE DAYS IN ADVANCE OF THE RULEMAKING HEARING 6 IN AT LEAST ONE PUBLICATION IN A NEWSPAPER OF GENERAL 7 DISTRIBUTION IN THE STATE AND POSTS THE NOTICE ON THE STATE HEALTH 8 AGENCY'S WEB SITE; EXCEPT THAT EMERGENCY RULES PURSUANT TO 9 SECTION 24 -4 -103 (6), C.R.S., SHALL NOT REQUIRE ADVANCE NOTICE. 10 (5) Primary caregivers. (a) A PRIMARY CAREGIVER MAY NOT 11 DELEGATE TO ANY OTHER PERSON HIS OR HER AUTHORITY TO PROVIDE 12 MEDICAL MARIJUANA TO A PATIENT NOR MAY A PRIMARY CAREGIVER 13 ENGAGE OTHERS TO ASSIST IN PROVIDING MEDICAL MARIJUANA TO A 14 PATIENT. 15 (b) TWO OR MORE PRIMARY CAREGIVERS SHALL NOT JOIN 16 TOGETHER FOR THE PURPOSE OF CULTIVATING MEDICAL MARIJUANA. 17 (C) ONLY A MEDICAL MARIJUANA CENTER WITH AN OPTIONAL 18 PREMISES CULTIVATION LICENSE, A MEDICAL MARIJUANA- INFUSED 19 PRODUCTS MANUFACTURING OPERATION WITH AN OPTIONAL PREMISES 20 CULTIVATION LICENSE, OR A PRIMARY CAREGIVER FOR HIS OR HER 21 PATIENTS OR A PATIENT FOR HIMSELF OR HERSELF MAY CULTIVATE OR 22 PROVIDE MARIJUANA AND ONLY FOR MEDICAL USE. 23 (d) A PRIMARY CAREGIVER SHALL PROVIDE TO A LAW 24 ENFORCEMENT AGENCY, UPON INQUIRY, THE REGISTRY IDENTIFICATION 25 CARD NUMBER OF EACH OF HIS OR HER PATIENTS. THE STATE HEALTH 26 AGENCY SHALL MAINTAIN A REGISTRY OF THIS INFORMATION AND MAKE 27 IT AVAILABLE TWENTY -FOUR HOURS PER DAY AND SEVEN DAYS A WEEK TO -59- 1284 I LAW ENFORCEMENT FOR VERIFICATION PURPOSES. UPON INQUIRY BY A 2 LAW ENFORCEMENT OFFICER AS TO AN INDIVIDUAL'S STATUS ASAPATIENT 3 OR PRIMARY CAREGIVER, THE STATE HEALTH AGENCY SHALL CHECK THE 4 REGISTRY. IF THE INDIVIDUAL IS NOT REGISTERED AS A PATIENT OR 5 PRIMARY CAREGIVER, THE STATE HEALTH AGENCY MAY PROVIDE THAT 6 RESPONSE TO LAW ENFORCEMENT. IF THE PERSON IS A REGISTERED 7 PATIENT OR PRIMARY CAREGIVER, THE STATE HEALTH AGENCY MAY NOT 8 RELEASE INFORMATION UNLESS CONSISTENT WITH SECTION 14OFARTICLE 9 XVIII OF THE STATE CONSTITUTION. THE STATE HEALTH AGENCY MAY 10 PROMULGATE RULES TO PROVIDE FOR THE EFFICIENT ADMINISTRATION OF 11 THIS PARAGRAPH (d). 12 (6) Patient - primary caregiver relationship. (a) A PERSON 13 SHALL BE LISTED AS A PRIMARY CAREGIVER FOR NO MORE THAN FIVE 14 PATIENTS ON THE MEDICAL MARIJUANA PROGRAM REGISTRY AT ANY GIVEN 15 TIME; EXCEPT THAT THE STATE HEALTH AGENCY MAY ALLOW A PRIMARY 16 CAREGIVER TO SERVE MORE THAN FIVE PATIENTS IN EXCEPTIONAL 17 CIRCUMSTANCES. IN DETERMINING WHETHER EXCEPTIONAL 18 CIRCUMSTANCES EXIST, THE STATE HEALTH AGENCY MAY CONSIDER THE 19 PROXIMITY OF MEDICAL MARIJUANA CENTERS TO THE PATIENT. A 20 PRIMARY CAREGIVER SHALL MAINTAIN A LIST OF HIS OR HER PATIENTS 21 INCLUDING THE REGISTRY IDENTIFICATION CARD NUMBER OF EACH 22 PATIENT AT ALL TIMES. 23 (b) A PATIENT SHALL HAVE ONLY ONE PRIMARY CAREGIVER AT 24 ANY GIVEN TIME. 25 (o) A PATIENT WHO HAS DESIGNATED A PRIMARY CAREGIVER FOR 26 HIMSELF OR HERSELF MAY NOT BE DESIGNATED AS A PRIMARY CAREGIVER 27 FOR ANOTHER PATIENT. -60- 1284 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 (d) A PRIMARY CAREGIVER MAY NOT CHARGE A PATIENT MORE THAN THE COST OF CULTIVATING OR PURCHASING THE MEDICAL MARIJUANA, BUT MAY CHARGE FOR CAREGIVER SERVICES. (e) (I) THE STATE HEALTH AGENCY SHALL MAINTAIN A SECURE AND CONFIDENTIAL REGISTRY OF AVAILABLE PRIMARY CAREGIVERS FOR THOSE PATIENTS WHO ARE UNABLE TO SECURE THE SERVICES OF A PRIMARY CAREGIVER. (II) ANEXISTINGPRIMARY CAREGIVER MAY INDICATE AT THE TIME OF REGISTRATION WHETHER HE OR SHE WOULD BE WILLING TO HANDLE ADDITIONAL PATIENTS AND WAIVE CONFIDENTIALITY TO ALLOW RELEASE OF HIS OR HER CONTACT INFORMATION TO PHYSICIANS OR REGISTERED PATIENTS ONLY. (III) AN INDIVIDUAL WHO IS NOT REGISTERED BUT IS WILLING TO PROVIDE PRIMARY CAREGIVING SERVICES MAY SUBMIT HIS OR HER CONTACT INFORMATION TO BE PLACED ON THE PRIMARY CAREGIVER REGISTRY. (IV) A PATIENT - PRIMARY CAREGIVER ARRANGEMENT SECURED PURSUANT TO THIS PARAGRAPH (e) SHALL BE STRICTLY BETWEEN THE PATIENT AND THE POTENTIAL PRIMARY CAREGIVER. THE STATE HEALTH AGENCY, BY PROVIDING THE INFORMATION REQUIRED BY THIS PARAGRAPH (e), SHALL NOT ENDORSE OR VOUCH FOR A PRIMARY CAREGIVER. —_— (V) THE STATEHEALTH AGENCY MAY MAKE ANEXCEPTION, BASED ON A REQUEST FROM A PATIENT, TO PARAGRAPH (a) OF THIS SUBSECTION (6) LIMITING PRIMARY CAREGIVERS TO FIVE PATIENTS. IF THE STATE HEALTH AGENCY MAKES AN EXCEPTION TO THE LIMIT, THE STATE HEALTH AGENCY SHALL NOTE THE EXCEPTION ON THE PRIMARY CAREGIVER'S RECORD IN THE REGISTRY. -61- 1284 I (f) AT THE TIME A PATIENT APPLIES FOR INCLUSION ON THE 2 CONFIDENTIAL REGISTRY, THE PATIENT SHALL INDICATE WHETHER THE 3 PATIENT INTENDS TO CULTIVATE HIS OR HER OWN MEDICAL MARIJUANA, 4 BOTH CULTIVATE HIS OR HER OWN MEDICAL MARIJUANA AND OBTAIN IT 5 FROM EITHER A PRIMARY CAREGIVER OR LICENSED MEDICAL MARIJUANA 6 CENTER, OR INTENDS TO OBTAIN IT FROM EITHER A PRIMARY CAREGIVER 7 OR A LICENSED MEDICAL MARIJUANA CENTER. IF THE PATIENT ELECTS TO 8 USE A LICENSED MEDICAL MARIJUANA CENTER, THE PATIENT SHALL 9 REGISTER THE PRIMARY CENTER HE OR SHE INTENDS TO USE. 10 (7) Registry identification card required - denial - revocation 11 - renewal. (a) TO BE CONSIDERED IN COMPLIANCE WITH THE PROVISIONS 12 OF SECTION 14 OF ARTICLE XVIII OF THE STATE CONSTITUTION, THIS 13 SECTION, AND THE RULES OF THE STATE HEALTH AGENCY, A PATIENT OR 14 PRIMARY CAREGIVER SHALL HAVE HIS OR HER REGISTRY IDENTIFICATION 15 CARD IN HIS OR HER POSSESSION AT ALL TIMES THAT HE OR SHE IS IN 16 POSSESSION OF ANY FORM OF MEDICAL MARIJUANA AND PRODUCE THE 17 SAME UPON REQUEST OF A LAW ENFORCEMENT OFFICER TO DEMONSTRATE 18 THAT THE PATIENT OR PRIMARY CAREGIVER IS NOT IN VIOLATION OF THE 19 LAW; EXCEPT THAT, IF MORE THANTHIRTY-FIVE DAYS HAVE PASSED SINCE 20 THE DATE THE PATIENT OR PRIMARY CAREGIVER FILED HIS OR HER 21 MEDICAL MARIJUANA PROGRAM APPLICATION AND THE STATE HEALTH 22 AGENCY HAS NOT YET ISSUED OR DENIED A REGISTRY IDENTIFICATION 23 CARD, A COPY OF THE PATIENT'S OR PRIMARY CAREGIVER'S APPLICATION 24 ALONG WITH PROOF OF THE DATE OF SUBMISSION SHALL BE IN THE 25 PATIENT'S OR PRIMARY CAREGIVER'S POSSESSION AT ALL TIMES THAT HE 26 OR SHE ISIN POSSESSIONOFANYFORMOF MEDICAL MARIJUANA UNTH .THE 27 STATE HEALTH AGENCY ISSUES OR DENIES THE REGISTRY IDENTIFICATION -62- 1284 I CARD. A PERSON WHO VIOLATES SECTION 14 OF ARTICLE XVIII OF THE 2 STATE CONSTITUTION, THIS SECTION, OR THE RULES PROMULGATED BY THE 3 STATE HEALTH AGENCY MAY BE SUBJECT TO CRIMINAL PROSECUTION FOR 4 VIOLATIONS OF SECTION 18 -18 -406, C.R.S. 5 (b) THE STATE HEALTH AGENCY MAY DENY A PATIENT'S OR 6 PRIMARY CAREGIVER'S APPLICATION FOR A REGISTRY IDENTIFICATION 7 CARD OR REVOKE THE CARD IF THE STATE HEALTH AGENCY, IN 8 ACCORDANCE WITH ARTICLE 4 OF TITLE 24, C.R.S., DETERMINES THAT THE 9 PHYSICIAN WHO DIAGNOSED THE PATIENT'S DEBILITATING MEDICAL 10 CONDITION, THE PATIENT, OR THE PRIMARY CAREGIVER V IOLATED SECTION 11 14 OF ARTICLE XVIII OF THE STATE CONSTITUTION, THIS SECTION, OR THE 12 RULES PROMULGATED BY THE STATE HEALTH AGENCY PURSUANT TO THIS 13 SECTION; EXCEPT THAT, WHEN A PHYSICIAN'S VIOLATION IS THE BASIS FOR 14 ADVERSE ACTION THE STATE HEALTH AGENCY MAY ONLY DENY OR 15 REVOKE A PATIENT'S APPLICATION OR REGISTRY IDENTIFICATION CARD 16 WHEN THE PHYSICIAN'S VIOLATION IS RELATED TO THE ISSUANCE OF A 17 MEDICAL MARIJUANA RECOMMENDATION. 18 (o) A PATIENT OR PRIMARY CAREGIVER REGISTRY IDENTIFICATION 19 CARD SHALL BE VALID FOR ONE YEAR AND SHALL CONTAIN A UNIQUE 20 IDENTIFICATION NUMBER. IT SHALL BE THE RESPONSIBILITY OF THE 21 PATIENT OR PRIMARY CAREGIVER TO APPLY TO RENEW HIS OR HER 22 REGISTRY IDENTIFICATION CARD PRIOR TO THE DATE ON WHICH THE CARD 23 EXPIRES. THE STATE HEALTH AGENCY SHALL DEVELOP A FORM FOR A 24 PATIENT OR PRIMARY CAREGIVER TO USE IN RENEWING HIS OR HER 25 REGISTRY IDENTIFICATION CARD. 26 (d) IF THE STATE HEALTH AGENCYGRANTSAPATIENTAWAIVERTO 27 ALLOW A PRIMARY CAREGIVER TO TRANSPORT THE PATIENT'S MEDICAL -63- 1284 I MARIJUANA FROM A MEDICAL MARIJUANA CENTER TO THE PATIENT. THE 2 STATE HEALTH AGENCY SHALLDESIGNATE THE WANERONTHEPATIENT 'S 3 REGISTRY IDENTIFICATION CARD. 4 (e) A HOMEBOUND PATIENT WHO RECEIVES A WAIVER FROM THE 5 STATE HEALTH AGENCY TO ALLOW A PRIMARY CAREGIVER TO TRANSPORT 6 THE PATIENT'S MEDICAL MARIJUANA TO THE PATIENT FROM A MEDICAL 7 MARIJUANA CENTER SHALL PROVIDE THE PRIMARY CAREGIVER WITH THE 8 PATIENT'S REGISTRY IDENTIFICATION CARD. WHICH THE PRIMARY 9 CAREGIVER SHALL CARRY WHEN THE PRIMARY CAREGIVER IS 10 TRANSPORTING THE MEDICAL MARIJUANA. A MEDICAL MARIJUANA 11 CENTER MAY PROVIDE THE MEDICAL MARIJUANA TO THE PRIMARY 12 CAREGIVER FOR TRANSPORT TO THE PATIENT IF THE PRIMARY CAREGIVER 13 PRODUCES THE PATIENT'S REGISTRY IDENTIFICATION CARD. 14 (8) Use of medical marijuana. (a) THE USE OF MEDICAL 15 MARIJUANA IS ALLOWED UNDER STATE LAW TO THE EXTENT THAT IT IS 16 CARRIED OUT IN ACCORDANCE WITH THE PROVISIONS OF SECTION 14 OF 17 ARTICLE XVIII OF THE STATE CONSTITUTION, THIS SECTION, AND THE 18 RULES OF THE STATE HEALTH AGENCY. 19 (U) A PATIENT OR PRIMARY CAREGIVER SHALL NOT: 20 (I) ENGAGE IN THE MEDICAL USE OF MARIJUANA IN A WAY THAT 21 ENDANGERS THE HEALTH AND WELL -BEING OF A PERSON; 22 (II) ENGAGE IN THE MEDICAL USE OF MARIJUANA IN PLAIN VIEW OF 23 OR IN A PLACE OPEN TO THE GENERAL PUBLIC; 24 (III) UNDERTAKE ANY TASK WHILE UNDER THE INFLUENCE OF 25 MEDICAL MARIJUANA, WHEN DOING SO WOULD CONSTITUTE NEGLIGENCE 26 OR PROFESSIONAL MALPRACTICE; 27 (IV) POSSESS MEDICALMARIJ JANAOROTHERWISEENGAGEINTHE -64- 1284 I USE OF MEDICAL MARIJUANA IN OR ON THE GROUNDS OF A SCHOOL OR IN 2 A SCHOOL BUS; 3 (V) ENGAGE IN THE USE OF MEDICAL MARIJUANA WHILE: 4 (A) INA CORRECTIONAL FACILITY ORA COMMUNITYCORRECTIONS 5 FACILITY; 6 (B) SUBJECT TO A SENTENCE TO INCARCERATION; OR 7 (C) IN A VEHICLE, AIRCRAFT, OR MOTORBOAT; 8 (VI) OPERATE, NAVIGATE, OR BE IN ACTUAL PHYSICAL CONTROL 9 OF ANY VEHICLE, AIRCRAFT, OR MOTORBOAT WHILE UNDER THE 10 INFLUENCE OF MEDICAL MARIJUANA; OR 11 (VII) USE MEDICAL MARIJUANA IF THE PERSON DOES NOT HAVE A 12 DEBILITATING MEDICAL CONDITION AS DIAGNOSED BY THE PERSON'S 13 PHYSICIAN IN THE COURSE OF A BONA FIDE PHYSICIAN- PATIENT 14 RELATIONSHIP AND FOR WHICH THE PHYSICIAN HAS RECOMMENDED THE 15 USE OF MEDICAL MARIJUANA. 16 (c) A PERSON SHALL NOT ESTABLISH A BUSINESS TO PERMIT 17 PATIENTS TO CONGREGATE AND SMOKE OR OTHERWISE CONSUME MEDICAL 18 MARIJUANA. 19 (9) Limit on cultivation of medical marijuana. ONLY 20 REGISTERED PATIENTS, LICENSED PRIMARY CAREGIVERS, MEDICAL 21 MARIJUANA- INFUSED PRODUCTS MANUFACTURING OPERATIONS WITH AN 22 OPTIONAL PREMISES CULTIVATION LICENSE AND LICENSED MEDICAL 23 MARIJUANA CENTERS WITH OPTIONAL PREMISES CULTIVATION LICENSES 24 MAY CULTIVATE MEDICAL MARIJUANA. 25 (10) Affirmative defense. IF A PATIENT OR PRIMARY CAREGIVER 26 RAISES AN AFFIRMATIVE DEFENSE AS PROVIDED IN SECTION 14 (4) (b) OF 27 ARTICLE XVIII OF THE STATE CONSTITUTION, THE PATIENT'S PHYSICIAN -65- 1284 I SHALL CERTIFY THE SPECIFIC AMOUNTS IN EXCESS OF TWO OUNCES THAT 2 ARE NECESSARY TO ADDRESS THE PATIENT'S DEBILITATING MEDICAL 3 CONDITION AND WHY SUCH AMOUNTS ARE NECESSARY. A PATIENT WHO 4 ASSERTS THIS AFFIRMATIVE DEFENSE SHALL WAIVE CONFIDENTIALITY 5 PRIVILEGES RELATED TO THE CONDITION OR CONDITIONS THAT WERE THE 6 BASIS FOR THE RECOMMENDATION .IFAPATIENT,PRIMARYCAREGIVER,OR 7 PHYSICIAN RAISES AN EXCEPTION TO THE STATE CRIMINAL LAWS AS 8 PROVIDED IN SECTION 14 (2) (b) OR (C) OF ARTICLE XVIII OF THE STATE 9 CONSTITUTION, THEPATIENT, PRIMARYCAREGIVERORPHYSICIANWAIVES 10 THE CONFIDENTIALITY OF HIS OR HER RECORDS RELATED TO THE 11 CONDITION OR CONDITIONS THAT WERE THE BASIS FOR THE 12 RECOMMENDATION MAINTAINED BY THE STATE HEALTH AGENCY FOR THE 13 MEDICAL MARIJUANA PROGRAM. UPON REQUEST OF A LAW ENFORCEMENT 14 AGENCY FOR SUCH RECORDS, THE STATE HEALTH AGENCY SHALL ONLY 15 PROVIDE RECORDS PERTAINING TO THE INDIVIDUAL RAISING THE 16 EXCEPTION, AND SHALL REDACT ALL OTHER PATIENT, PRIMARY 17 CAREGIVER, OR PHYSICIAN IDENTIFYING INFORMATION. 18 (11) (a) EXCEPT AS PROVIDED IN PARAGRAPH (b) OF THIS 19 SUBSECTION (11), THE STATE HEALTH AGENCY SHALL ESTABLISH A BASIC 20 FEE THAT SHALL BE PAID AT THE TIME OF SERVICE OF ANY SUBPOENA UPON 21 THE STATE HEALTH AGENCY, PLUS A FEE FOR MEALS AND A FEE FOR 22 MILEAGE AT THE RATE PRESCRIBED FOR STATE OFFICERS AND EMPLOYEES 23 IN SECTION 24 -9 -104, C.R.S., FOR EACH MILE ACTUALLY AND 24 NECESSARILY TRAVELED IN GOING TO AND RETURNING FROM THE PLACE 25 NAMED IN THE SUBPOENA. IF THE PERSON NAMED IN THE SUBPOENA IS 26 REQUIRED TO ATTEND THE PLACE NAMED IN THE SUBPOENA FOR MORE 27 THAN ONE DAY, THERE SHALL BE PAID, IN ADVANCE, A SUM TO BE -66- 1284 1 ESTABLISHED BY THE STATE HEALTH AGENCY FOR EACH DAY OF 2 ATTENDANCE TO COVER THE EXPENSES OF THE PERSON NAMED IN THE 3 SUBPOENA. 4 (b) THE SUBPOENA FEE ESTABLISHED PURSUANT TO PARAGRAPH 5 (a) OF THIS SUBSECTION (11) SHALL NOT BE APPLICABLE TO ANY FEDERAL, 6 STATE, OR LOCAL GOVERNMENTAL AGENCY. 7 (2) (12) Fees. The department STATE HEALTH AGENCY may 8 collect fees from patients who, pursuant to section 14 of article XVIII of 9 the state constitution, apply to the medical marijuana program _ _ `-cscau lished 10 by sueh- seetien for a rnar�uart registry identification CARD for the 11 purpose of offsetting the department's STATE HEALTH AGENCY'S direct and 12 indirect costs of administering the program. The amount of sueh THE fees 13 shall be set by rule of the state bo ard of h __, L STATE HEALTH AGENCY. 14 THE AMOUNT OF THE FEES SET PURSUANT TO THIS SECTION SHALL REFLECT 15 THE ACTUAL DIRECT AND INDIRECT COSTS OF THE STATE LICENSING 16 AUTHORITY IN THE ADMINISTRATION AND ENFORCEMENT OF THIS ARTICLE 17 SO THAT THE FEES AVOID EXCEEDING THE STATUTORY LIMIT ON 18 UNCOMMITTED RESERVES IN ADMINISTRATIVE AGENCY CASH FUNDS AS SET 19 FORTH IN SECTION 24 -75 -402 (3). C.R.S. All fees collected by the 20 department STATE HEALTH AGENCY through the medical marijuana 21 program shall be transferred to the state treasurer who shall credit the 22 same to the medical marijuana program cash fund, which fund is hereby 23 created. 24 (3) (13) Cash fund. (a) The medical marijuana program cash 25 fund shall be subject to annual appropriation by the general assembly to 26 the depaltmen STATE HEALTH AGENCY for the purpose of establishing, 27 operating, and maintaining the medical marijuana program. established -67- 1284 I section . All moneys 2 credited to the medical marijuana program cash fund and all interest 3 derived from the deposit of such moneys that are not expended during the 4 fiscal year shall be retained in the fund for future use and shall not be 5 credited or transferred to the general fund or any other fund. 6 (b) Notwithstanding any ptovision of paTagtaph (a) of d1i.9 7 subsection (3) to tite contrity, on April 20, 2009, the state treasurer shall 8 deduct two hundred fifty-eight - 9 10 11 SECTION 3. 25 -5 -403, Colorado Revised Statutes, is amended 12 BY THE ADDITION OF A NEW SUBSECTION to read: 13 25 -5 -403. Offenses. (3) THE PROVISIONS OF THIS SECTION SHALL 14 NOT APPLY TO A MEDICAL MARIJUANA CENTER OR A 15 MEDICAL - MARIJUANA - INFUSED PRODUCTS MANUFACTURER LICENSED 16 PURSUANT TO ARTICLE 43.3 OF TITLE 12, C.R.S., THAT MANUFACTURES OR 17 SELLS A FOOD PRODUCT THAT CONTAINS MEDICAL MARIJUANA SO LONG AS 18 THE FOOD PRODUCT IS LABELEDAS CONTAININGMEDICALMARIJUANAAND 19 THE LABEL SPECIFIES THAT THE PRODUCT IS MANUFACTURED WITHOUT 20 ANY REGULATORY OVERSIGHT FOR HEALTH, SAFETY, OR EFFICACY, AND 21 THAT THERE MAYBEHEALTH RISKS ASSOCIATED WITH THE CONSUMPTION 22 OR USE OF THE PRODUCT. 23 SECTION 4. 16 -2.5 -121, Colorado Revised Statutes, is amended 24 to read: 25 16 -2.5 -121. Executive director of the department of revenue 26 - senior director of enforcement for the department of revenue. The 27 executive director and the senior director of enforcement of the -68- 1284 I department of revenue are peace officers while engaged in the 2 performance of their duties whose authority includes the enforcement of 3 laws and rules regarding automobile dealers pursuant to section 12 -6 -105 4 (1) (d) (I1), C.R.S., the lottery pursuant to sections 24 -35 -205 (3) and 5 24 -35 -206 (7), C.R.S., MEDICAL MARIJUANA PURSUANT TO ARTICLE 43.3 6 OF TITLE 12, C.R.S., limited gaming pursuant to section 12- 47.1 -204, 7 C.R.S., liquor pursuant to section 12 -47 -904 (1), C.R.S., and racing 8 events pursuant to section 12 -60 -203 (1), C.R.S., and the enforcement of 9 all laws of the state of Colorado and who may be certified by the P.O.S.T. 10 board 11 SECTION 5. Part 1 of article 2.5 of title 16, Colorado Revised 12 Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION 13 to read: 14 16 -2.5- 124.5. Director of marijuana enforcement and medical 15 marijuana enforcement investigator. A MEDICAL MARIJUANA 16 ENFORCEMENT INVESTIGATORISA PEACE OFFICERWHILE ENGAGED INTHE 17 PERFORMANCE OF HIS OR HER DUTIES AND WHILE ACTING UNDER PROPER 18 ORDERS OR RULES PURSUANT TO ARTICLE 43.3 OF TITLE 12, C.R.S., AND 19 SHALL ALSO INCLUDE THE ENFORCEMENT OF ALL LAWS OF THE STATE OF 20 COLORADO AND WHO MAY BE CERTIFIED BY THE P.O.S.T. BOARD. 21 SECTION 6. 24 -75 -402 (5), Colorado Revised Statutes, is 22 amended BY THE ADDITION OF A NEW PARAGRAPH to read: 23 24 -75 -402. Cash funds - limit on uncommitted reserves - 24 reduction in amount of fees - exclusions. (5) Notwithstanding any 25 provision of this section to the contrary, the following cash funds are 26 excluded from the limitations specified in this section: 27 (Z) THE MEDICAL MARIJUANA LICENSE CASH FUND CREATED IN -69- 1284 I SECTION 12- 43.3 -501, C.R.S. 2 SECTION 7. 39 -26 -102, Colorado Revised Statutes, is amended 3 BY THE ADDITION OF A NEW SUBSECTION to read: 4 39 -26 -102. Definitions. As used in this article, unless the context 5 otherwise requires 6 (5.8) "MEDICAL MARIJUANA" SHALL HAVE THE SAME MEANING AS 7 SET FORTH IN SECTION 12- 43.3 -104 (7), C.R.S. 8 SECTION 8. 39 -26 -123 (1), Colorado Revised Statutes, is 9 amended BY THE ADDITION OF A NEW PARAGRAPH to read: 10 39 -26 -123. Receipts - disposition - transfers of general fund 11 surplus - sales . tax holding fund - creation - definitions - repeal. 12 (1) As used in this section, unless the context otherwise requires: 13 (a.5) "SALES_ TAXES ATTRIBUTABLE TO SALES_ OF MEDICAL 14 MARIJUANA" MEANS THE NET REVENUE RAISED FROM THE STATE SALES = 15 TAXES IMPOSED PURSUANT TO THIS ARTICLE ON THE SALES — OF MEDICAL 16 MARIJUANA 17 SECTION 9. 39 -26 -123, Colorado Revised Statutes, is amended 18 BY THE ADDITION OF A NEW SUBSECTION to read: 19 39 -26 -123. Receipts - disposition - transfers of general fund 20 surplus - sales . tax holding fund - creation - definitions - repeal. 21 (6) (a) FOR ANY STATE FISCAL YEAR COMMENCING ON OR AFTER JULY 1, 22 2010, THE GENERAL ASSEMBLY SHALL ANNUALLY APPROPRIATE THE FIRST 23 TWO MILLION DOLLARS OF SALES _ TAXES ATTRIBUTABLE TO SALES . OF 24 MEDICAL MARIJUANA OR EQUALLY APPROPRIATE THE SALES — TAXES 25 ATTRIBUTABLE TO SALES _ _ OF MEDICAL MARIJUANA IF TWO MILLION 26 DOLLARS IS NOT GENERATED. 27 (b) (I) ONE HALF OF THE MONEYS DESCRIBED IN PARAGRAPH (a) OF -70- 1284 1 THIS SUBSECTION (6) SHALL BE APPROPRIATED TO THE DEPARTMENT OF 2 HUMAN SERVICES TO BE USED TO PROVIDE INTEGRATED BEHAVIORAL 3 HEALTH SERVICES FOR JUVENILES AND ADULTS WITH SUBSTANCE USE 4 DISORDERS AND MENTAL HEALTH TREATMENT NEEDS WHO ARE INVOLVED 5 WITH, OR AT RISK OF INVOLVEMENT WITH, THE CRIMINAL J USTICE SYSTEM. 6 THE MONEYS DESCRIBED IN PARAGRAPH (a) OF THIS SUBSECTION (6) 7 SHALL BE APPROPRIATED TO THE DEPARTMENT OF HUMAN SERVICES TO BE 8 USED TO PROVIDE INTEGRATED BEHAVIORAL HEALTH SERVICES FOR 9 JUVENILES AND ADULTS WITH SUBSTANCE USE DISORDERS OR WITH 10 SUBSTANCE USE DISORDERS AND MENTAL HEALTH TREATMENT NEEDS WHO 11 ARE INVOLVED WITH, OR AT RISK OF INVOLVEMENT WITH, THE CRIMINAL 12 JUSTICESYSTEM. THE DEPARTMENT SHALLENSURE THAT APPROPRIATIONS 13 IN THIS LINE ITEM ARE DISTRIBUTED THROUGH THE DEPARTMENT'S 14 DESIGNATED MANAGED SERVICE ORGANIZATIONS AND COMMUNITY 15 MENTAL HEALTH CENTERS. THE APPROPRIATIONS SHALL BE BASED ON, 16 INCLUDING BUT NOT LIMITED TO SUBSTANCE USE AND MENTAL HEALTH 17 PREVALENCE DATA THAT IS DEVELOPED WORKING COLLABORATIVELY 18 WITH THE MANAGED SERVICES ORGANIZATIONS AND COMMUNITY 19 HEALTH CENTERS. 20 (II) ONE HALF OF THE MONEYS DESCRIBED IN PARAGRAPH (a) OF 21 THIS SUBSECTION (6) SHALL BE APPROPRIATED TO THE DEPARTMENT OF 22 HEALTH CARE POLICY AND FINANCING FOR SCREENING, BRIEF 23 INTERVENTION, AND REFERRAL TO TREATMENT FOR INDIVIDUALS AT RISK 24 OF SUBSTANCE ABUSE PURSUANT TO SECTION 25.5 -5 -202 (1) (u), C.R.S. 25 SECTION 10. 39 -26 -123, Colorado Revised Statutes, is amended 26 BY THE ADDITION OF A NEW SUBSECTION to read: 27 39 -26 -123. Receipts - disposition - transfers of general fund -71- 1284 I surplus - sales tax holding fund - creation - definitions - repeal. 2 (6) FOR ANY STATE FISCAL YEAR COMMENCING ON OR AFTER JULY 1, 3 2010, THE GENERAL ASSEMBLY SHALLANNUALLY APPROPRIATE THE FIRST 4 TWO MILLION DOLLARS OF SALES TAXES ATTRIBUTABLE TO SALES TAXES 5 PAID BY PERSONS OR ENTITIES LICENSED BY ARTICLE 43.3 OF TITLE 12 6 CRS OR EQUALLY APPROPRIATE THE SALES TAXES ATTRIBUTABLE TO 7 SALES TAXES PAID BY PERSONS OR ENTITIES LICENSED BY ARTICLE 43.3 OF 8 TITLE 12 C.R.S. IF LESS THANTWO MILLION DOLLARS IS GENERATED, THE 9 MONEYS DESCRIBED IN THIS SUBSECTION (6) SHALL BE APPROPRIATED TO 10 THE DEPARTMENT OF HUMAN SERVICES TO BE USED TO PROVIDE 11 INTEGRATED BEHAVIORALHEALTH SERVICES FOR JUVENILES AND ADULTS 12 WITH SUBSTANCE USE DISORDERS OR WITH SUBSTANCE USE DISORDERS 13 AND MENTAL HEALTH TREATMENT NEEDS WHO ARE INVOLVED WITH, OR 14 AT RISK OF INVOLVEMENT WITH, THE CRIMINAL JUSTICE SYSTEM. THE 15 DEPARTMENT SHALL ENSURE THAT APPROPRIATIONS IN THIS LINE ITEM ARE 16 DISTRIBUTED THROUGH THE DEPARTMENT'S DESIGNATED MANAGED 17 SERVICE ORGANIZATIONS AND COMMUNITY MENTAL HEALTH CENTERS. 18 THE APPROPRIATIONS SHALL BE BASED ON, INCLUDING BUT NOT LIMITED 19 TO SUBSTANCE USE AND MENTAL HEALTH PREVALENCE DATA THAT IS 20 DEVELOPED WORKING COLLABORATIVELY WITH THE MANAGED SERVICES 21 ORGANIZATIONS AND COMMUNITY MENTAL HEALTH CENTERS. 22 SECTION 11. 25 -14 -203 (16), Colorado Revised Statutes, is 23 amended to read: 24 25 -14 -203. Definitions. As used in this part 2, unless the context 25 otherwise requires: 26 (16) "Smoking" means the burning of a lighted cigarette, cigar, 27 pipe, or any other matter or substance that contains tobacco OR MEDICAL _72- 1284 I MARIJUANA AS DEFINED BY SECTION 12- 43.3 -104 (7), C.R.S. 2 SECTION 12 24 -34 -104 (46) Colorado Revised Statutes, is 3 amended BY THE ADDITION OF A NEW PARAGRAPH to read: 4 24 -34 -104. General assembly review of regulatory agencies 5 and functions for termination continuation, or reestablishment. 6 (46) The following agencies functions, or both shall terminate on July 7 1.2015: 8 (m) THE REGULATION OF PERSONS LICENSED PURSUANT TO 9 ARTICLE 43.3 OF TITLE 12, C.R.S. 10 SECTION 13. 24 -72 -202 (6) (b) (XI) and (6) (b) (XII), Colorado 11 Revised Statutes are amended and the said 24 -72 -202 (6) (b) is fu rther 12 amended BY THE ADDITION OF A NEW SUBPARAGRAPH, to read: 13 24-72-202. Definitions As used in this hart 2 unless the context 14 otherwise requires: 15 (6) (b) 'Public records" does not include: 16 (XI) Information security incident reports prepared pursuant to 17 section 24- 37.5 -404 (2) (e) or 24- 37.5 -404.5 (2) (e): or 18 (XIII Information security audit and assessment reports prepared 19 pursuant to section 24- 37.5 -403 (2) (d) or 24- 37.5 -404.5 (2) (d): OR 20 (XIII) STATE AND LOCAL APPLICATIONS AND LICENSES FOR AN 21 OPTIONAL PREMISES CULTIVATION OPERATION AS DESCRIBED IN SECTION 22 12 -43.3 -403 C.R.S. AND THE LOCATION OF THE OPTIONAL PREMISES 23 CULTIVATION OPERATION. 24 SECTION 14 Part 7 of article 26 of title 39, Colorado Revised 25 Statutes is amended BY THE ADDITION OF A NEW SECTION to 26 read: 27 39 -26 -726 Medical marijuana - debilitating conditions and -73- 1284 I ability to purchase ALL SALES OF MEDICAL MARIJUANA TO A PATIENT 2 WHO IS DETERMINED TO BE INDIGENT FOR PURPOSES OF WAIVING THE FEE 3 REQUIRED BY SECTION 25 -1.5 -106, C.R.S. SHALL BE EXEMPT FROM 4 TAXATION UNDER PART 1 OF THIS ARTICLE. IF THE PATIENT IS 5 DETERMINED TO BE INDIGENT THE STATE HEALTH AGENCY SHALL MARK 6 HIS OR HER REGISTRY IDENTIFICATION CARD AS SUCH AND THE PATIENT 7 SHALL PRESENT THE CARD TO THE LICENSED MEDICAL MARIJUANA CENTER 8 TO RECEIVE THE TAX EXEMPTION. 9 SECTION 15. Appropriation. (1) In addition to any other 10 appropriation, there is hereby appropriated, out of any moneys in the 11 general fund not otherwise appropriated, to the department of human 12 services, for allocation to mental health and alcohol and drug abuse 13 services, for the fiscal year beginning July 1, 2010, the sum of three 14 hundred thirty-four thousand two hundred twenty -seven dollars 15 ($334,227), or so much thereof as may be necessary, for the 16 implementation of this act. 17 (2) In addition to any other appropriation, there is hereby 18 appropriated, out of any moneys in the medical marijuana license cash 19 fund _ created in section 12- 43.3 -501 (1), Colorado Revised Statutes, 20 not otherwise appropriated, to the department of revenue, for allocation 21 to the enforcement business group, for the fiscal year beginning Jul 22 2010, the sum of ten million three hundred seventeen thousand five 23 hundred eighty -three dollars ($10,317,583) cash funds and 110.0 FTE, or 24 so much thereof as may be necessary, for the implementation of this act. 25 (3) In addition to any other appropriation, there is hereby 26 appropriated to the department of law, for the fiscal year beginning July 27 1 2010 the sum of two hundred seventy -one thousand three hundred -74- 1284 I sixty -eight dollars ($271,368) and 2.0 FTE, or so much thereof as may be 2 necessary, for the provision of legal services to the department of 3 revenue related to the implementation of this act. Said sum shall be from 4 reappropriated funds received from the department of revenue out of the 5 appropriation made in subsection (2) of this section. 6 (4) In addition to any other appropriation, there is hereby 7 appropriated to the department of public safety, Colorado bureau of 8 investigation, for the fiscal year beginning July 1, 2010, the sum of two 9 hundred sixty thousand seven hundred dollars ($260,700) and 1.2 FTE, 10 or so much thereof as may be necessary, for the provision of background 11 checks to the department of revenue related to the implementation of this 12 act. Said sum shall be from reappropriated funds received from the 13 department of revenue out of the appropriation made in subsection (2) of 14 this section. 15 (5) In addition to any other appropriation, there is hereby 16 appropriated, out of any moneys in the medical marijuana program cash 17 fund created in section 25 -1.5 -106 (12), Colorado Revised Statutes, not 18 otherwise appropriated, to the department of public health and 19 environment, for allocation to the center for health and environmental 20 education, for the fiscal year beginning July 1, 2010, the sum of fi -nine 21 thousand seven hundred forty -seven dollars ($59.747) cash funds 22 and 1.2 FTE, or so much thereof as may be necessary, for the 23 implementation of this act. 24 25 SECTION 16. Appropriation. (1) In addition to any other 26 appropriation, there is hereby appropriated, out of any moneys in the 27 general fund not otherwise appropriated, to the department of human -75- 1284 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 services, for allocation to mental health and alcohol and drug abuse services, for the fiscal year beginning July 1, 2010, the sum of six hundred sixty-eight thousand four hundred fifty-four dollars ($668,454), or so much thereof as may be necessary, for the implementation of this act. (2) In addition to any other appropriation, there is hereby appropriated, out of any moneys in the medical marijuana license cash fund created in section 12- 43.3 -501 (1), Colorado Revised Statutes, not otherwise appropriated, to the department of revenue, for allocation to the enforcement business group, for the fiscal year beginning Jul 2010 the sum of ten million three hundred seventeen thousand five hundred eighty -three dollars( 10 317 583) cash funds and 110.0 FTE, or so much thereof as may be necessary, for the implementation of this act. (3) In addition to any other appropriation, there is hereby appropriated to the department of law, for the fiscal year beginning July 1 2010 the sum of two hundred seventy -one thousand three hundred sixty -eight dollars ($271,368) and 2.0 FTE, or so much thereof as may be necessary, for the provision of legal services to the department of revenue related to the implementation of this act. Said sum shall be from reappropriated funds received from the department of revenue out of the appropriation made in subsection (2) of this section. (4) In addition to any other appropriation, there is hereby appropriated to the department of public safety, Colorado bureau of investigation, for the fiscal year beginning July 1, 2010, the sum of two hundred sixty thousand seven hundred dollars ($260,700) and 1.2 FTE, or so much thereof as may be necessary, for the provision of background checks to the department of revenue related to the implementation of this WE 1284 I act. Said sum shall be from reappropriated funds received from the 2 department of revenue out of the appropriation made in subsection (2) of 3 this section. 4 (5) In addition to any other appropriation, there is hereby 5 appropriated, out of any moneys in the medical marijuana program cash 6 fund created in section 25 -1.5 -106 (12), Colorado Revised Statutes, not 7 otherwise appropriated, to the department of public health and 8 environment, for allocation to the center for health and environmental 9 education, for the fiscal year beginning July 1, 2010, the sum of fif -nine 10 thousand seven hundred forty -seven dollars ($59,7471 cash funds — 11 and 1.2 FTE, or so much thereof as may be necessary, for the 12 implementation of this act. 13 SECTION 17. Severability. If any provision of this act or the 14 application thereof to any person or circumstance is held invalid such 15 invalidity shall not affect other provisions or applications of the act that 16 can be given effect without the invalid provision or application, and to 17 this end the provisions of this act are declared to be severable. 18 19 SECTION 18. Specified effective date. (1) Except as otherwise 20 provided in subsection (2) of this section, this act shall take effect July 1 21 2010. 22 (2) (a) Sections 9 and 15 of this act shall take effect only if House 23 Bill 10 -1033 is enacted and becomes law and shall take effect upon the 24 effective date of House Bill 10 -1033. 25 Sections 10 and 16 of this act shall take effect paly if section 26 9 of this act does not take effect and does not become law. 27 SECTION 19. Safety clause. The general assemblyhereby finds, -77- 1284 determines, and declares that this act is necessary for the immediate 2 preservation of the public peace, health, and safety. _78_ 1284 Pagel of 2 Kenneth Johnstone From: Daniel Brennan Sent: Wednesday, April 21, 2010 9:48 AM To: Gerald Dahl; 'Christopher Price'; Kenneth Johnstone; Patrick Goff; Randy Young Subject: Medical Marijuana Here is the latest information on both Medical Marijuana bills: Medical marijuana HB 1284 - This bill has passed the House on Second reading. You can find a link to the version that passed if your interested. The following amendments were added to the bill: • The bill now allows both local governing bodies and citizens to place the measure on the ballot to ban dispensaries. • In exceptional circumstances allows CDPHE to allow more than the one caregiver to patients ratio. (As it came out of committee it allowed up to 16 when there was no dispensary in the community.) • The bill as it passed disallows any consumption on the premises, even edibles. • Disallows any drug felon no matter when (previously was within 5 years) from being participant in a medical marijuana business, but allows a person with a misdemeanor drug offense to participate. • Removes the state's role in determining size, dimension and acceptable colors of signs for dispensaries and instead allows these to determined locally, days and hours of operation too. • Adds an alcohol or drug treatment facility to the locations that have to be 1000 feet away. • Requires that any non - organic chemicals used in the production of medical marijuana must be labeled. • Requires ID to be shown at the beginning of the transaction not the conclusion. • Includes residential childcare facility in the 1000 ft buffer for a dispensary. • A review of the program's efficacy by the Department of Regulatory agencies by 2015. http: / /www.leg.state.co..us/ cli cs /clics20l Oa/ csl. nsf ,ifs_bilico /OC6B6577E E8872576A80C open &file 1284 e .pdf Medical Marijuana - SB 109 This bill went to a conference committee to reconcile the differences between the House and the Senate versions. The result was that the conference committee added back in a provision requiring anyone 23 and under to get a second medical opinion before getting a marijuana card. Additionally, it changed the fees in the bill for medical oversight and had them being paid by the patient, rather than the doctors. The House did not like these amendments and rejected the conference committee report. There is a compromise being worked out which will have to remove the 23 and under provision, and creating a different funding mechanism. The conference committee meets tomorrow and the conference committee report will likely be heard by the house next Monday. If the conference committee report is rejected by the House a second time, the bill dies, which is not a good thing in this case. 4/21/2010 Page 2 of 2 I will let you know more as 1 learn it. Mrs Daniel G. Brennan Chief of Police 7500 W. 29th Avenue Wheat Ridge, Colorado 80033 Office Phone: 303 - 235 -2913 Gtu of Wh6at ielcre Pot.i r CDUAGTMEN1 CONPI=MAIITY NOTICE: This e -mail contains business - confidential information. It is intended onlyfor the use of the individual or entity named above. If you are not the intended recipient, you are notified that any disclosure, copying, distribution, electronic storage or use of this communication is prohibited. If you received this communication in error, please notify as immediatelyby e -mail, attaching the original message, and delete the original message from your computer, and any network to which your computer is connected. Thank you. 4/21/2010 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER JAY Council Bill No. 03 Ordinance No. 1459 Series 2010 TITLE: AN ORDINANCE EXTENDING THE MORATORIUM ENACTED BY SECTION 2 OF ORDINANCE 1453, SERIES 2009 ON THE SUBMISSION, ACCEPTANCE, PROCESSING, AND APPROVAL OF ANY APPLICATION FOR A CITY OF WHEAT RIDGE PERMIT OR LICENSE RELATED TO THE OPERATION OF A BUSINESS OR COOPERATIVE THAT SELLS OR CULTIVATES MEDICAL MARIJUANA PURSUANT TO THE AUTHORITY GRANTED BY ARTICLE XVIII, SECTION 14 OF THE COLORADO CONSTITUTION WHEREAS, on September 14, 2009 City Council for the City of Wheat Ridge, Colorado ( "City Council') adopted Ordinance 1453, Series 2009, which Ordinance enacted a ninety (90) day moratorium on the submission, acceptance, processing, and approval of all applications for City permits and licenses relating to the operation of businesses or cooperatives that sell or cultivate marijuana in accordance with Article XVIII, Section 14 of the Colorado Constitution ( "Medical Marijuana Dispensaries "); and WHEREAS, on November 23, 2009 City Council adopted Ordinance 1457, Series 2009, which extended that moratorium until March 13, 2010; and WHEREAS, one purpose for extending the moratorium was to allow state officials time to address and possibly regulate or limit the operation of Medical Marijuana Dispensaries on a state -wide basis; and WHEREAS, City Council has been made aware that although state officials have not yet adopted any additional regulations concerning Medical Marijuana Dispensaries they are expected to do so before the General Assembly adjourns on May 12, 2010; and WHEREAS, extending the moratorium enacted by Ordinance 1453 until July 13, 2010 will provide City staff and City Council with additional time to investigate, develop, and if appropriate, adopt and implement regulations with respect to Medical Marijuana Dispensaries consistent with state law; and WHEREAS, proprietors of Medical Marijuana Dispensaries will not be unduly prejudiced by the imposition of such moratorium. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE COLORADO: Section 1. Findings and Intent The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the City Council of the City of Wheat Ridge. Section 2. Upon the adoption of this Ordinance, the moratorium imposed in Section 2 of Ordinance 1453, Series 2009 shall be extended until July 13, 2010. The City staff is directed to continue refusing to accept for filing, and not to process or review, any new applications for Medical Marijuana Dispensaries during the moratorium period. Section 3. Authority. The City Council hereby finds, determines and declares that it has the power to adopt this Ordinance pursuant to: (i) the Local Government Land Use Control Enabling Act, Article 20 of Title 29, C.R.S.; (ii) Part 3 of Article 23 of Title 31, C.R.S. (concerning municipal zoning powers); (iii) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (iv) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (v) Section 31 -15 -501, C.R.S. (concerning municipal power to regulate businesses); (vi) the authority granted to home rule municipalities by Article XX of the Colorado Constitution; and (vii) the powers contained in the City of Wheat Ridge, Colorado Home Rule Charter (the "Charter"). Section 4. Safety Clause The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Wheat Ridge, that it is promulgated for the health, safety, and welfare of the public and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be attained. Section 6. Severability; Conflicting Ordinances Repealed If any section, subsection or clause of this ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances, parts of ordinances or codes adopted thereby in conflict with the provisions of this ordinance or the code or ordinance adopted hereby are hereby repealed. Section 6. Effective Date This Ordinance shall take effect upon adoption, as permitted by Section 5.11 of the Charter. Section 7. INTRODUCED, READ, AND ADOPTED on first reading by a vote of 7 to 1 on this 22 day of February, 2010, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge and Public Hearing and consideration on final passage set for March 8, 2010, at 7:00 o'clock p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of Q to c?, , this 8th day of March, 2010. SIGNED by the Mayor on this 8th day of Map , 2010. Mayor ATTEST: Michael Snow, City Clerk ..J First Publication: Feburary 25, 2010 Second Publication: March 11, 2010 Wheat Ridge Transcript Effective Date: March 8, 2010 upon adoption CITY COUNCIL MINUTES: March 8, 2010 Page -3- 2. Council Bill 03 -2010 —An Ordinance extending the Moratorium enacted by Section 2 of �( Ordinance 1453, Series 2009, on the submission, acceptance, processing, and approval of any application for a City of Wheat Ridge Permit or License related to the operation of a business or cooperative that sells or cultivates Medical Marijuana pursuant to the Authority granted by Article XVIII, Section 14, of the Colorado Constitution. Mayor DiTullio opened the public hearing Council Bill 03 -2010 was introduced on second reading by Mrs. Jay. City Clerk Michael Snow assigned Ordinance No. 1459. City Attorney Jerry Dahl presented the staff report. Scott McKindley supports extending this moratorium. He owns a dispensary in Wheat Ridge and offers his assistance to the City of Wheat Ridge in negotiating future considerations of code changes, educating the public and Council. Mayor DiTullio closed the public hearing. Motion by Mrs. Jay to adopt Council Bill 03 -2010 (Ordinance 1459) on second reading, and that it take effect upon adoption; seconded by Mrs. Sang; carried 6 -2 with Council Members DeMott and Reinhart voting No. DECISIONS, RESOLUTIONS, AND MOTIONS 3. Resolution 14 -2010 —authorizing the renaming of the Wheat Ridge Senior /Community Center to the Wheat Ridge Active Adult Center. Resolution 14 -2010 was introduced by Mr. Stites. Motion by Mr. Stites to approve Resolution 14 -2010; seconded by Mrs. Langworthy; carried 8 -0. 4. Ratification of Mayoral appointment to Wheat Ridge Foundation. Motion by Mr. DeMott to ratify the Mayoral appointment of Floyd Sasa to the Wheat Ridge Foundation; term to expire March 2, 2012; seconded by Mrs. Langworthy and Mrs. Adams; carried 8 -0. 5. Motion by Mr. DeMott to approve a $40,000 contribution to the Wheat Ridge Business District for the purpose of funding the Revitalization Incentive Grant Program; seconded by Mr. Stites; carried 8 -0. 6. Motion by Mr. Reinhart to cancel the Wheat Ridge City Council Meeting of March 22, 2010; seconded by Mrs. Langworthy; carried 7 -1 with Mr. Stites voting No. Fn City of Wheat �gge �4N a � � � ,p p,N ITEM NO: �i t b ) ` V DATE: March 8, 2010 (D`r REQUEST FOR XITY COUNCIL ACTION \ 1� uu; \V TITLE: COUNCIL BILL NO. 03 -2010 — AN ORDINANCE EXTENDING THE MORATORIUM ENACTED BY SECTION 2 OF ORDINANCE 1453, SERIES 2009 ON THE SUBMISSION, ACCEPTANCE, PROCESSING, AND APPROVAL OF ANY APPLICATION FOR A CITY OF WHEAT RIDGE PERMIT OR LICENSE RELATED TO THE OPERATION OF A BUSINESS OR COOPERATIVE THAT SELLS OR CULTIVATES MEDICAL MARIJUANA PURSUANT TO THE AUTHORITY GRANTED BY ARTICLE XVIII, SECTION 14 OF THE COLORADO CONSTITUTION ❑ PUBLIC HEARING ❑ ORDINANCES FOR 1 READING (02/22/2010) ❑ BIDS/MOTIONS ® ORDINANCES FOR 2 READING (03/08/2010) ❑ RESOLUTIONS QUASI - JUDICIAL: ❑ YES City Attorney romme City MaAger ISSUE: On September 14, 2009, Council adopted Ordinance 1453, Series 2009, which enacted a ninety (90) day moratorium on the issuance or consideration of any City license or permit concerning medical marijuana dispensaries. On November 23, 2009, Council adopted Ordinance 1457 which extended the moratorium for an additional 90 days. The moratorium is set to expire on March 13, 2010. One purpose for extending the moratorium was to allow the state's position concerning regulations of medical marijuana dispensaries to develop since such regulations could limit the City's ability to regulate those operations. Council Action Form March 8, 2010 Page 2 The state has not yet adopted any regulation concerning medical marijuana dispensaries though at least one bill is pending before the Colorado General Assembly. The current legislative session is scheduled to end on May 12, 2010. The attached Ordinance will extend the moratorium until July 13, 2010. This will provide sufficient time for the state to finalize its regulatory position and allow Council to consider adopting appropriate regulations for implementation in the City that are consistent with state law. PRIOR ACTION: Council adopted Ordinance 1453, Series 2009, on September 14, 2009 as an emergency ordinance. Ordinance 1453 enacted a 90 day moratorium on the issuance or consideration of any City license or permit concerning medical marijuana dispensaries. Council adopted Ordinance 1457, Series 2009, on second reading on November 23, 2009. Ordinance 1457 extended the moratorium in Ordinance 1453 for an additional 90 days. FINANCIAL IMPACT: The City will not receive permit or license fees for any new applications concerning medical marijuana dispensaries during the moratorium period. BACKGROUND: In November 2000, the people of the State of Colorado adopted Amendment 20 which amended the Colorado Constitution by adding Article XVIII Section 14 thereto. Under Amendment 20 certain persons are protected from criminal prosecution under state law for the acquisition, possession, production, use or transportation of marijuana for medical purposes. Amendment 20 does not protect those persons from criminal prosecution under federal law. In the spring of 2009, United States Attorney General Eric Holder issued a statement that his office would not seek to prosecute individuals who were acquiring marijuana for medical purposes to the extent that such activity was allowed under state law. As a result of that announcement and limited rule making by the Colorado Department of Public Health and Environment in July of 2009, communities along the Front Range have seen a noticeable increase in establishments operating as "medical marijuana dispensaries." Because Amendment 20 does not discuss "medical marijuana dispensaries" and the state has not adopted any regulation or statute concerning those operations, there is confusion statewide as to state and municipal authority to regulate them. Further, there are currently two lawsuits pending in Colorado district courts concerning the ability of Colorado municipalities to regulate or prohibit the operation of medical marijuana dispensaries. Through Ordinance 1453, Council directed staff to begin investigating and drafting regulations for its consideration concerning medical marijuana dispensaries. Staff has drafted regulations for consideration by Council. However, there continues to be significant discussion statewide concerning medical marijuana dispensaries, their legality and the extent to which the state and municipalities should regulate those operations. In January 2010, multiple bills for consideration by the Colorado General Assembly concerning medical marijuana dispensaries were proposed. In addition, the Colorado Department of Public Health and Environment proposed amending its Council Action Form March 8, 2010 Page 3 rules concerning the medical marijuana licensing program. Although the state has not yet adopted any new regulation or law, there is at least one bill pending in the Colorado General Assembly concerning the operation of medical marijuana dispensaries. Because state regulation or law may preempt or otherwise limit the City's ability to regulate those operations, Council should consider extending the moratorium until after the end of the current legislative session. The General Assembly is scheduled to adjourn on May 12, 2010. The attached Ordinance proposes extending the moratorium until July 13, 2010. This will provide Council with sufficient time to consider appropriate regulation that is consistent with state law. RECOMMENDATIONS: City staff recommends adoption of this Ordinance. RECOMMENDED MOTION: "I move to adopt Council Bill No. 03 -2010 on second reading and that it will take effect upon adoption." Or, "I move to table indefinitely Council Bill No. 03 -2010 extending the moratorium for medical marijuana dispensaries for the following reason(s) " REPORT PREPARED BY: Gerald E. Dahl, City Attorney ATTACHMENTS: 1. Council Bill No. 03 -2010 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER JAY Council Bill No. 03 Ordinance No. Series 2010 TITLE: AN ORDINANCE EXTENDING THE MORATORIUM ENACTED BY SECTION 2 OF ORDINANCE 1453, SERIES, 2009 ON THE SUBMISSION, ACCEPTANCE, PROCESSING, AND APPROVAL OF ANY APPLICATION FOR A CITY OF WHEAT RIDGE PERMIT OR LICENSE RELATED TO THE OPERATION OF A BUSINESS OR COOPERATIVE THAT SELLS OR CULTIVATES MEDICAL MARIJUANA PURSUANT TO THE AUTHORITY GRANTED BY ARTICLE XVIII, SECTION 14 OF THE COLORADO CONSTITUTION WHEREAS, on September 14, 2009 City Council for the City of Wheat Ridge, Colorado ( "City Council ") adopted Ordinance 1453, Series 2009, which Ordinance enacted a ninety (90) day moratorium on the submission, acceptance, processing, and approval of all applications for City permits and licenses relating to the operation of businesses or cooperatives that sell or cultivate marijuana in accordance with Article XVIII, Section 14 of the Colorado Constitution ( "Medical Marijuana Dispensaries "); and WHEREAS, on November 23, 2009 City Council adopted Ordinance 1457, Series 2009, which extended that moratorium until March 13, 2010; and WHEREAS, one purpose for extending the moratorium was to allow state officials time to address and possibly regulate or limit the operation of Medical Marijuana Dispensaries on a state -wide basis; and WHEREAS, City Council has been made aware that although state officials have not yet adopted any additional regulations concerning Medical Marijuana Dispensaries they are expected to do so before the General Assembly adjourns on May 12, 2010; and WHEREAS, extending the moratorium enacted by Ordinance 1453 until July 13, 2010 will provide City staff and City Council with additional time to investigate, develop, and if appropriate, adopt and implement regulations with respect to Medical Marijuana Dispensaries consistent with state law; and WHEREAS, proprietors of Medical Marijuana Dispensaries will not be unduly prejudiced by the imposition of such moratorium. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE COLORADO: Section 1. Findings and Intent The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the City Council of the City of Wheat Ridge. Section 2. Extension of Moratorium on Applications For Permits and Licenses Related to Businesses That Cultivate and /or Sell Medical Marijuana Upon the adoption of this Ordinance, the moratorium imposed in Section 2 of Ordinance 1453, Series 2009 shall be extended until July 13, 2010. The City staff is directed to continue refusing to accept for filing, and not to process or review, any new applications for Medical Marijuana Dispensaries during the moratorium period. Section 3. Authority The City Council hereby finds, determines and declares that it has the power to adopt this Ordinance pursuant to: (i) the Local Government Land Use Control Enabling Act, Article 20 of Title 29, C.R.S.; (ii) Part 3 of Article 23 of Title 31, C.R.S. (concerning municipal zoning powers); (iii) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (iv) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (v) Section 31 -15 -501, C.R.S. (concerning municipal power to regulate businesses); (vi) the authority granted to home rule municipalities by Article XX of the Colorado Constitution; and (vii) the powers contained in the City of Wheat Ridge, Colorado Home Rule Charter (the "Charter "). Section 4. Safety Clause The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Wheat Ridge, that it is promulgated for the health, safety, and welfare of the public and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational, relation to the proper legislative object sought to be attained. Section S. Severability: Conflicting Ordinances Repealed If any section, subsection or clause of this ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances, parts of ordinances or codes adopted thereby in conflict with the provisions of this ordinance or the code or ordinance adopted hereby are hereby repealed. Section 6. Effective Date This Ordinance shall take effect upon adoption, as permitted by Section 5.11 of the Charter. Section 7. INTRODUCED, READ, AND ADOPTED on first reading by a vote of 7 to 1 on this 22 day of February, 2010, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge and Public Hearing and consideration on final passage set for March 8, 2010, at 7:00 o'clock p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of to , this day of 1 2010. SIGNED by the Mayor on this day of 2010. Jerry DiTullio, Mayor ATTEST: Michael Snow, City Clerk Approved As To Form Gerald E. Dahl, City Attorney First Publication: Feburary 25, 2010 Second Publication: Wheat Ridge Transcript Effective Date: City of Wheat R,dgc ITEM NO: DATE: February 22, 2010 REQUEST FOR CITY COUNCIL ACTION y \ TY OC �HlneaeA TITLE: COUNCIL BILL NO. 03 -2010 — AN ORDINANCE EXTENDING THE MORATORIUM ENACTED BY SECTION 2 OF ORDINANCE 1453, SERIES 2009 ON THE SUBMISSION, ACCEPTANCE, PROCESSING, AND APPROVAL OF ANY APPLICATION FOR A CITY OF WHEAT RIDGE PERMIT OR LICENSE RELATED TO THE OPERATION OF A BUSINESS OR COOPERATIVE THAT SELLS OR CULTIVATES MEDICAL MARIJUANA PURSUANT TO THE AUTHORITY GRANTED BY ARTICLE XVIII, SECTION 14 OF THE COLORADO CONSTITUTION ❑ PUBLIC HEARING ❑ BIDS/MOTIONS ❑ RESOLUTIONS ® ORDINANCES FOR 1sT READING (02/22/2010) ❑ ORDINANCES FOR 2 READING (03/08/2010) QUASI - JUDICIAL: ❑ YES City Afforney /1 • City Ma er ISSUE: On September 14, 2009, Council adopted Ordinance 1453, Series 2009, which enacted a ninety (90) day moratorium on the issuance or consideration of any City license or permit concerning medical marijuana dispensaries. On November 23, 2009, Council adopted Ordinance 1457 which extended the moratorium for an additional 90 days. The moratorium is set to expire on March 13, 2010. One purpose for extending the moratorium was to allow the state's position concerning regulations of medical marijuana dispensaries to develop since such regulations could limit the City's ability to regulate those operations. Council Action Form February 22, 2010 Page 2 The state has not yet adopted any regulation concerning medical marijuana dispensaries though at least one bill is pending before the Colorado General Assembly. The current legislative session is scheduled to end on May 12, 2010. The attached Ordinance will extend the moratorium until July 13, 2010. This will provide sufficient time for the state to finalize its regulatory position and allow Council to consider adopting appropriate regulations for implementation in the City that are consistent with state law. PRIOR ACTION: Council adopted Ordinance 1453, Series 2009, on September 14, 2009 as an emergency ordinance. Ordinance 1453 enacted a 90 day moratorium on the issuance or consideration of any City license or permit concerning medical marijuana dispensaries. Council adopted Ordinance 1457, Series, 2009, on second reading on November 23, 2009. Ordinance 1457 extended the moratorium in Ordinance 1453 for an additional 90 days. FINANCIAL IMPACT: The City will not receive permit or license fees for any new applications concerning medical marijuana dispensaries during the moratorium period. BACKGROUND: In November 2000, the people of the State of Colorado adopted Amendment 20 which amended the Colorado Constitution by adding Article XVIII Section 14 thereto. Under Amendment 20 certain persons are protected from criminal prosecution under state law for the acquisition, possession, production, use or transportation of marijuana for medical purposes. Amendment 20 does not protect those persons from criminal prosecution under federal law. In the spring of 2009, United States Attorney General Eric Holder issued a statement that his office would not seek to prosecute individuals who were acquiring marijuana for medical purposes to the extent that such activity was allowed under state law. As a result of that announcement and limited rule making by the Colorado Department of Public Health and Environment in July of 2009, communities along the Front Range have seen a noticeable increase in establishments operating as "medical marijuana dispensaries." Because Amendment 20 does not discuss "medical marijuana dispensaries" and the state has not adopted any regulation or statute concerning those operations, there is confusion statewide as to state and municipal authority to regulate them. Further, there are currently two lawsuits pending in Colorado district courts concerning the ability of Colorado municipalities to regulate or prohibit the operation of medical marijuana dispensaries. Through Ordinance 1453, Council directed staff to begin investigating and drafting regulations for its consideration concerning medical marijuana dispensaries. Staff has drafted regulations for consideration by Council. However, there continues to be significant discussion statewide concerning medical marijuana dispensaries, their legality and the extent to which the state and municipalities should regulate those operations. In January 2010, multiple bills for consideration by the Colorado General Assembly concerning medical marijuana dispensaries were proposed. 1, In addition, the Colorado Department of Public Health and Environment proposed amending its Council Action Form February 22, 2010 Page 3 rules concerning the medical marijuana licensing program. Although the state has not yet adopted any new regulation or law, there is at least one bill pending in the Colorado General Assembly concerning the operation of medical marijuana dispensaries. Because state regulation or law may preempt or otherwise limit the City's ability to regulate those operations, Council should consider extending the moratorium until after the end of the current legislative session. The General Assembly is scheduled to adjourn on May 12, 2010. The attached Ordinance proposes extending the moratorium until July 13, 2010. This will provide Council with sufficient time to consider appropriate regulation that is consistent with state law. RECOMMENDATIONS: City staff recommends adoption of this Ordinance. RECOMMENDED MOTION: "I move to adopt Council Bill No. 03 -2010, on first reading, order it published, public hearing set for Monday, March 8, 2010 at 7 p.m. in City Council Chambers, and that it will take effect upon adoption." Or, " I move to table indefinitely Council Bill No. 03 -2010 extending the moratorium for medical marijuana dispensaries for the following reason(s) REPORT PREPARED BY: Gerald E. Dahl, City Attorney ATTACHMENTS: 1. Council Bill No. 03 -2010 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER Council Bill No. 03 Ordinance No. Series 2010 TITLE: AN ORDINANCE EXTENDING THE MORATORIUM ENACTED BY SECTION 2 OF ORDINANCE 1453, SERIES 2009 ON THE SUBMISSION, ACCEPTANCE, PROCESSING, AND APPROVAL OF ANY APPLICATION FOR A CITY OF WHEAT RIDGE PERMIT OR LICENSE RELATED TO THE OPERATION OF A BUSINESS OR COOPERATIVE THAT SELLS OR CULTIVATES MEDICAL MARIJUANA PURSUANT TO THE AUTHORITY GRANTED BY ARTICLE XVIII, SECTION 14 OF THE COLORADO CONSTITUTION WHEREAS, on September 14, 2009 City Council for the City of Wheat Ridge, Colorado ( "City Council') adopted Ordinance 1453, Series 2009, which Ordinance enacted a ninety (90) day moratorium on the submission, acceptance, processing, and approval of all applications for City permits and licenses relating to the operation of businesses or cooperatives that sell or cultivate marijuana in accordance with Article XVIII, Section 14 of the Colorado Constitution ( "Medical Marijuana Dispensaries "); and WHEREAS, on November 23, 2009 City Council adopted Ordinance 1457, Series 2009, which extended that moratorium until March 13, 2010; and WHEREAS, one purpose for extending the moratorium was to allow state officials time to address and possibly regulate or limit the operation of Medical Marijuana Dispensaries on a state -wide basis; and WHEREAS, City Council has been made aware that although state officials have not yet adopted any additional regulations concerning Medical Marijuana Dispensaries they are expected to do so before the General Assembly adjourns on May 12, 2010; and WHEREAS, extending the moratorium enacted by Ordinance 1453 until July 13, 2010 will provide City staff and City Council with additional time to investigate, develop, and if appropriate, adopt and implement regulations with respect to Medical Marijuana Dispensaries consistent with state law; and WHEREAS, proprietors of Medical Marijuana Dispensaries will not be unduly prejudiced by the imposition of such moratorium. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE COLORADO: ATTACHMENT 1 Section 1. Findings and Intent The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the City Council of the City of Wheat Ridge. Section 2. Extension of Moratorium on Applications For Permits and Upon the adoption of this Ordinance, the moratorium imposed in Section 2 of Ordinance 1453, Series 2009 shall be extended until July 13, 2010. The City staff is directed to continue refusing to accept for filing, and not to process or review, any new applications for Medical Marijuana Dispensaries during the moratorium period. Section 3. Authority. The City Council hereby finds, determines and declares that it has the power to adopt this Ordinance pursuant to: (i) the Local Government Land Use Control Enabling Act, Article 20 of Title 29, C.R.S.; (ii) Part 3 of Article 23 of Title 31, C.R.S. (concerning municipal zoning powers); (iii) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (iv) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (v) Section 31 -15 -501, C.R.S. (concerning municipal power to regulate businesses); (vi) the authority granted to home rule municipalities by Article XX of the Colorado Constitution; and (vii) the powers contained in the City of Wheat Ridge, Colorado Home Rule Charter (the "Charter "). Section 4. Safety Clause The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Wheat Ridge, that it is promulgated for the health, safety, and welfare of the public and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational; relation to the proper legislative object sought to be attained. Section 5. Severability: Conflicting Ordinances Repealed If any section, subsection or clause of this ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances, parts of ordinances or codes adopted thereby in conflict with the provisions of this ordinance or the code or ordinance adopted hereby are hereby repealed. Section 6. Effective Date This Ordinance shall take effect upon adoption, as permitted by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of to on this 22 day of February, 2010, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge and Public Hearing and consideration on final passage set for March 8, 2010, at 7:00 o'clock p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of to , this day of 2010. SIGNED by the Mayor on this day of 1 2010. Jerry DiTullio, Mayor ATTEST: Michael Snow, City Clerk Approved As To Form Gerald E. Dahl, City Attorney First Publication: Second Publication: Wheat Ridge Transcript Effective Date: STUDY SESSION NOTES CITY OF WHEAT RIDGE, COLORADO February 01, 2010 Mayor DiTullio called the Study Session to order at 6:40 p.m. Council Members present: Karen Adams, Joseph DeMott, Joyce Jay, Tracy Langworthy, Davis Reinhart, Wanda Sang, and Mike Stites. Also present: City Clerk, Michael Snow; City Treasurer, Larry Schulz; City Manager, Randy Young; Deputy City Manager, Patrick Goff; Director of Community Development, Kenneth Johnstone; Chief of Police, Dan Brennan; Police Sergeant Mark Cooney; Also in attendance were the following members of the Wheat Ridge Urban Renewal Authority (WRURA): Janet Leo, James Bahrenburg, Tom Radigan, Rick Adams, and Walt Pettit. Council Member Berry was absent. APPROVAL OF AGENDA 1. Staff /Council Report(s) Mr. Johnstone updated Council on the progress to develop a new Mixed Use Zone District. Documents were provided describing the project scope and timeline (amended to this packet). The City will host a website, funded by a grant from LiveWell Wheat Ridge, to provide information on the project and a forum for citizen input. The website is expected to go live on February 12, 2010, at which time visitors may provide comments and input on the zoning designs, including height and density limitations. 2. 44 and Wadsworth redevelopment (joint session with Wheat Ridge Urban Renewal Authority) Steve Blarr, John Reinsma, Lindsay Delecki, John Glabach, and Nick Moore of Weston Solutions, Inc. were present to outline for Council the project to develop the southeast corner of 44 & Wadsworth (presentation amended to this packet). A concept plan was presented, along with cost estimates and alternatives for funding the project and a target timeline in two phases. The first phase would entail infrastructure improvements and the construction of one retail building and a larger building to house potential Jefferson County government services. The Urban Renewal Authority announced the Authority's plan to re -image their organization with a change in name to Renewal Wheat Ridge (new logo presented to Council and amended to this packet). a) Allocation of CDBG jurisdictional allocation Staff asked Council for support to devote approx $1.2m of CDBG jurisdictional funds towards funding the Infrastructure Improvements necessary for the 44 & Wadsworth Avenue development site; Council expressed unanimous support. 3. Medical Marijuana U Mr. Young provided an outline of tonight's presentation (amended to this packet). Chris Price provided a short review of the legal framework of Medical Marijuana regulations in the State of Colorado, including the provisions of Amendment 20. Chief Brennan provided a summary of current and proposed State Legislative actions regulating the Medical Marijuana industry and specifically the Patient, Primary Caregiver and Prescribing Medical Doctor relationships. Mr. Dahl discussed the options for Council related to the current Moratorium, the proposed Ordinance and the possible pending legislative actions. The majority of Council, besides Council Members Reinhart and DeMott, expressed the desire to extend the Moratorium in place now until the end of the Colorado Legislative Session in order for the City to consider any new pending legislative regulations in the City's ordinances. Meeting adjourned at 8:21 p.m. Michael Snow City Clerk MEDICAL MARIJUANA Study Session 21112010 1. Introduction to Medical Marijuana presentation — Randy Young 2. Overview of Medical Marijuana discussions in Wheat Ridge — Jerry Dahl a. Licensing, Zoning, and Prohibition 3. Medical Marijuana Basics —Chris Price 4. Current Status of State Legislative Efforts — Chief Brennan 5. Draft Ordinance Overview — Jerry Dahl a. Definitions — Chris Price b. Application, Licensing — Chief Brennan c. Zoning requirements — Ken Johnstone d. Administrative Process — Chris Price 6. Policy Questions a. Zone Districts (C -1, C -2, I — not residential, not Planned Developments) b. Spacing Requirements i. From Schools, Daycare and rehab facilities ii. 500 feet iii. From each other (not currently proposed) c. Should there be a citywide cap on the number of establishments? d. Is the "business" model of allowing dispensaries with multiple caregivers the right approach? e. Is the administrative approval process with tight operation controls and limitations the right approach? f Should we include provisions in the ordinance requiring additional review of the regulations if and when the state adopts additional legislation? g. Should the moratorium be extended? 1- r U C Ct 61 i I VI V` r,,, vA S� �n Ken Johnstone STUDY SESSION AGENDA CITY COUNCIL MEETING CITY OF WHEAT RIDGE, COLORADO City Council Chambers 7500 W. 29 Ave. February 1. 2010 6:30 p.m. Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. Call Heather Geyer, Public Information Officer at 303 - 235 -2826 at least one week in advance of a meeting if you are interested in participating and need inclusion assistance. APPROVAL OF AGENDA 1 Staff /Council Report(s) 2. 44 and Wadsworth redevelopment (joint session with URA) a) Allocation of CDBG jurisdictional allocation 1. Medical Marijuana T�ekn 3. M !y m� a rr .!<;�' K »ECHEnu�acisr�rz RE n�n o LLP ATTORNEYS AT W W MEMORANDUM TO: Mayor Jerry DiTullio and City Council THROUGH: Randy Young, City Manager FROM: Gerald Dahl, City Attorney; Dan Brennan, Chief of Police and Ken Johnstone, Director of Community Development DATE: January 22, 2010 RE: Medical Marijuana Dispensary Ordinance The purpose of this memorandum is to update the Mayor and City Council on the current status of an ordinance concerning the operation of medical marijuana establishments within the City and to request from Council further direction on how to proceed. The following documents are attached for your reference: - A draft ordinance; - A document entitled "Medical Marijuana Basics" - A Staff Report from the Chief of Police; and - Amendment 20 to the Colorado Constitution The moratorium adopted by Council last year expires on March 13, 2010. One of the purposes of the moratorium was to allow the state to adopt provisions so that the City's ordinance would be consistent therewith. As of yet, the General Assembly had not held a single hearing on any regulation that has been proposed. Staff is proposing that Council consider two options: Consider the ordinance as currently drafted. This ordinance could be amended as requested by Council. 2. Extend the moratorium until the end of the General Assembly's current session (approximately June 1), to allow the Council to consider whatever state law is enacted. The remaining portion of this memorandum addresses the current draft of the ordinance. This draft was prepared by City staff based on policy direction received from Council last year. At that time and based on recommendations from the Police Department, City Council requested an ordinance that created a specialty business licensing scheme for medical marijuana establishments. At this point, staff is requesting direction from Council on how to proceed. The draft ordinance does the following: ✓ All medical marijuana establishments operating within the City will be required to obtain a medical marijuana establishment license. In the ordinance, the term "medical marijuana establishment' includes two types of operations: 1) "Medical marijuana clinic "; and 2) "Medical marijuana grower ". As defined, both a clinic and a grower must be operated by a primary care -giver (as that term is defined in Amendment 20). The distinction between the two types of operations is that a grower can grow marijuana on -site whereas a clinic cannot. Those distinctions are important because of the land use impacts associated with an operation that grows marijuana on -site. As a result, under the ordinance, growers are only allowed in industrial districts. Policy Question: In the definition of grower and clinic, the term "primary care - givers" is used. It is plural. This would allow one or more primary care - givers to operate in combination under the umbrella of a single medical marijuana establishment license. If the term is singular than each primary care -giver would have to obtain a separate license. Does Council want to require that each primary care -giver operating out of a single location obtain a separate license? ✓ Each license application must be approved by the Police Department and Community Development prior to the City granting a license. ✓ License applicants must submit to background investigations prior to approval of a license. i Convicted felons will not be permitted to hold a medical marijuana establishment license. ✓ All licensees must comply with State law and regulations concerning medical marijuana. If the General Assembly adopts operating restrictions that are more restrictive then those proposed under this ordinance, a licensee would have to comply with those laws. However, this should not impact the zoning requirements adopted by this ordinance. ✓ Establishments must pay all State and City tax on sales of marijuana. ✓ Establishments must install and maintain minimum security requirements. At each location, an establishment must maintain alarm systems, lighting requirements, surveillance cameras and a safe for storing usable marijuana. This includes a requirement that all medical marijuana being displayed on site must be secured and not be visible to the public through glass, windows or doors. ✓ The on -site use of alcohol or marijuana will be prohibited. ✓ Establishments will only be permitted to operate between the hours of 9:00am and 7:00 pm. 2 ✓ Establishments will have specific signage limitations. If the name of an establishment includes the word "marijuana" or "cannabis" than the word "medical" must immediately precede or follow that word. ✓ Clinics and growers will only be permitted to operate in certain zone districts. Medical marijuana growers will only be permitted to operate in industrial zone districts. Medical marijuana clinics will be permitted to operate in C -1, C -2 and industrial districts. ✓ Clinics and growers will not be permitted to operate within 500 feet of schools, child care facilities or drug treatment and rehabilitation centers. ATTACHMENTS: 1. Medical Marijuana Basics 2. Ordinance 3. Amendment 20 4. Chief Brennan's Staff Memo of January 22, 2010 5. Chief Brennan's Staff Memo of August 7, 2009 6. Senate Bill 10 -109 IY"5 MU S?RAY v � KUECHENMEISTER AWOMEY5 AT LAW MEMORANDUM TO: Mayor Jerry DiTullio and City Council THROUGH: Randy Young, City Manager FROM: Gerald Dahl, City Attorney; Dan Brennan, Chief of Police and Ken Johnstone, Director of Community Development DATE: January 22, 2010 RE: Medical Marijuana Basics How is marijuana legal? In 2000, Colorado voters passed Amendment 20 to the Colorado Constitution, legalizing the medical use of marijuana. Colo. Const. art. XVIII, § 14. Amendment 20 created an exception to the state's criminal laws for any patient or primary care -giver in lawful possession of a registry identification card to engage or assist in the medical use of marijuana.' Colo. Const. art XVIII, § 14(2)(b). If medical marijuana patients or primary care - givers are not in possession of a registry identification card but they have a physician's recommendation that marijuana may help treat a patient's debilitating medical condition, than the patient and their primary care -giver are entitled to an affirmative defense to the state's criminal laws. Colo. Const. art XVIII, § 14(2)(a). Licensed physicians are also entitled to an exception to the state's criminal laws under Amendment 20 for recommending the medical use of marijuana to patients who have been diagnosed with debilitating medical conditions. Colo. Const. art. XVIII, § 14(2)(c). For purposes of Amendment 20, "medical use" means: The acquisition, possession, production, use, or transportation of marijuana or paraphernalia related to the administration of such marijuana to address the symptoms or effects of a patient's debilitating medical condition, which may be authorized only after diagnosis of the patient's debilitating medical condition by a physician or physicians, as provided in this Section. Colo. Const. art. XVIII, § 14(1)(b). Thus, persons diagnosed with a debilitating medical condition may use, acquire, possess, produce or transport marijuana for medicinal purposes. As of June 14, 2004, the Colorado Department of Public Health and Environment instituted a policy of no longer issuing medical marijuana registry cards to primary- caregivers. ATTACHMENT 1 Note, that medical use does not include the term dispensing, selling or purchasing. Those words are only included within Amendment 20 under section 14(2)(e) which states: Notwithstanding the foregoing provisions, no person, including a patient or primary care - giver, shall be entitled to the protection ... for his or her acquisition, possession, manufacture, production, use, ale, distribution, dispensing, or transportation of marijuana for any use other than medical use. However, in a recent decision, a District Court judge determined that the term "acquire" as used within the term "medical use" necessarily included selling or dispensing because of section 14(e). Frasher et al v. City of Centennial, 2009CV1456, Arapahoe County. This was a preliminary decision on a motion for temporary injunctive relief and not a after a full trial. In addition, because this is a decision of a District Court it does not serve as legal precedent and therefore does not necessarily apply to any other municipality besides Centennial. To date, the sale of medical marijuana is not regulated by the state. As a result, medical marijuana dispensaries are being established under the pretense that the individuals operating those businesses do so as a "primary caregiver ". Amendment 20 defines "primary caregiver" as: a person other than the patient and the patient's physician who is eighteen years of age or older and has a significant responsibility for managing the well -being of a patient who has a debilitating medical condition. Colo. Const. art. XVIII, § 14(1)(f). So long as an individual owner of a medical marijuana dispensary is named as a primary giver by patients who have debilitating medical conditions, that individual is entitled to the same protections afforded those patients under Amendment 20. Therefore, a primary care -giver is allowed to acquire, possess, and transport marijuana for use by his or her patients. Combined a patient and his or her primary care -giver may not possess more than two (2) ounces of marijuana in a usable form and not more than six (6) marijuana plants in varying stages of development. Colo. Const. art. XVIII, § 14(4)(a). This limit as applied to a primary care -giver is cumulative as based on the number of patients for whom that primary care -giver is responsible. For example, if a primary care -giver has 10 patients, none of whom grow their own marijuana, than the primary care -giver is entitled to possess up to sixty (60) plants. So why have medical marijuana dispensaries proliferated? In February of last year, the United States Attorney General, Eric Holder, announced that it would no longer be a priority of the Justice Department to enforce the federal prohibition against the sale or use of marijuana. Prior to that announcement, few medical marijuana dispensaries operated within the state and there were a few thousand patients listed on the state's registry. Since that announcement, it has been estimated that there are now 30,000 patients listed on the state's registry and an unknown number of medical marijuana dispensaries. The Attorney General's comments alone do not explain the explosion of medical marijuana dispensaries in the state. The Colorado Department of Public Health (the "CDPHE ") also shares some responsibility. The CDPHE is charged with promulgating rules to implement 2 Amendment 20. In July 2009, the CDPHE proposed an amendment to its regulations to redefine the phrase "significant responsibility for managing the well -being of a patient," as it is used in the definition of "primary caregiver." After a twelve hour hearing, the CDPHE adopted a rule that defines that phrase to mean: assisting a patient with daily activities, including but not limited to transportation or housekeeping or meal preparation or shipping or making any necessary arrangement for access to medical care or services or provision of medical marijuana. Under this definition, a primary care -giver can significantly manage the well -being of a patient solely by providing medical marijuana. However, in October 2009, the Colorado Court of Appeals determined that "supplying marijuana for medical use, by itself, is insufficient to constitute significant management responsibility for a patient's well- being." People v. Clendenin, 08CA0624 (Colo. App. October 29, 2009). Unfortunately the Court did not describe what other types of activities would satisfy the term. In addition, due to timing, the Court did not address the CDPHE's definition. This case is now before the Colorado Supreme Court. What is the current status of legislation? Currently, the state laws concerning medical marijuana do not address or place requirements on the doctor to patient relationship. There are two bills being proposed for consideration by the General Assembly during this year's term. The first bill would address the doctor to patient relationship. This bill places more stringent requirements on the type of review that must be conducted by the physician prior to that physician recommending that a patient use medical marijuana. The second bill would limit the number of patients for whom a primary care -giver may care. If this second bill is adopted as written, a primary care -giver may only have five (5) patients. It also prohibits primary care - givers from combing to grow or provide marijuana to their patients. Economically, this would essentially prohibit medical marijuana dispensaries from continued operation. CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER Council Bill No. Ordinance No.01 Series 2010 TITLE: AN ORDINANCE AMENDING ARTICLE 11 OF THE WHEAT RIDGE CODE OF LAWS BY ADDING A NEW ARTICLE XII CONCERNING MEDICAL MARIJUANA ESTABLISHMENTS WHEREAS, in the November 2000 general election, the voters of the State of Colorado adopted Amendment 20 to the Colorado Constitution ( "Amendment 20 ") which authorizes and limits the sale of medical marijuana for use in the treatment of debilitating medical conditions; and WHEREAS, the City Council has been made aware of a proliferation of businesses wishing to cultivate medical marijuana and /or provide it to those who qualify under state law: and WHEREAS, the City has no current land use or business regulation governing the operation of businesses or cooperatives that cultivate and /or offer medical marijuana for sale and /or distribution ( "Medical Marijuana Establishments "); and WHEREAS, the City imposed a one hundred eighty (180) day moratorium on the submission, acceptance, processing, and approval of all applications for City licenses and licenses relating to the operation of Medical Marijuana Establishments to allow the City staff and the City Council to investigate the City's ability to regulate such establishments, and to develop and implement any appropriate regulations consistent with state law; and WHEREAS, because marijuana is a controlled substance under Colorado and federal law the use as contemplated by Amendment 20 has the potential for abuse that should be closely monitored and regulated by local authorities to the extent possible; and WHEREAS, if not closely monitored and regulated the presence of marijuana, even for the purposes legally permitted by Amendment 20, can potentially cause an increase in illegal activities within the City affecting the health, safety, order, comfort, convenience and general welfare of the residents of the City; and WHEREAS, if Medical Marijuana Establishments operating pursuant to Amendment 20 were allowed to be established and to operate without appropriate local regulation of their location, such establishments might be established in areas that would conflict with the City's comprehensive land use plan; be inconsistent with surrounding uses; or otherwise be detrimental to the public health, safety and welfare. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: ATTACHMENT 2 Section 1 . Moratorium Concluded. The moratorium imposed by Ordinance 1453 on September 14, 2009 shall conclude upon the effective date of this ordinance.. Section 2 . Chapter 11 of the Code is hereby amended by the adoption of a new Article XII to read in its entirety as follows: Article XII. Medical Marijuana Establishments Sec. 11 -270. Authority Sec. 11 -271. Definitions Sec. 11 -272. Medical marijuana establishment license required. Sec. 11 -273. Application for license. Sec. 11 -274. Application fee. Sec. 11 -275. Standards for issuance of license. Sec. 11 -276. Authority to recommend and impose conditions on license. Sec. 11 -277. Contents of license Sec. 11 -278. Denial of license. Sec. 11 -279. Notice of decision. Sec. 11 -280. Appeal of denial or conditional approval of license. Sec. 11 -281. License not transferable. Sec. 11 -282. Duration of license, renewal. Sec. 11 -283. Duties of licensee. Sec. 11 -284. Hearing, suspension, revocation of license Sec. 11 -285. Operation limitations for medical marijuana clinics. Sec. 11 -286. Operation limitations for medical marijuana growers. Sec. 11 -287 Prohibited locations. Sec. 11 -288. Signage. , Sec. 11 -289. Required warnings to be posted. Sec. 11 -290. Paraphernalia. Sec. 11 -291. Taxes. Sec. 11 -292. Penalties, injunctive relief. Sec. 11 -270. Authority. The City Council hereby finds, determines, and declares that it has the power to adopt this article pursuant to: (a) The Local Government Land Use Control Enabling Act, article 20 of title 29, C.R.S.; (b) Part 3 of article 23 of title 31, C.R.S. (concerning municipal zoning powers); (c) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (d) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (e) Section 31 -15 -501, C.R.S. (concerning municipal authority to regulate businesses); 2 (f) The authority granted to home rule municipalities by article XX of the Colorado Constitution; and (g) The powers contained in the Wheat Ridge City Charter. Sec. 11 -271. Definitions. As used in this article the following words shall have the following meanings, unless the context clearly requires otherwise: Administrative hearing officer has the meaning provided in section 2 -87 of this code. Amendment 20 means the voter initiated amendment to the Colorado Constitution adopted November 7, 2000 which added Section 14 of Article XVIII to the Colorado Constitution. Applicant means and includes: (1) If an individual, that person making an application for a license under this article; (2) If a partnership, the partners owning ten (10) percent or more of the partnership, or all partners if there are ten (10) or total partners in the partnership which is making application for a license under this article; (3) If a corporation, the president, vice - president, secretary, treasurer, the directors, manager and eaclj stockholder owning ten (10) percent or more of the outstanding stock of the corporation. Application means an application for license submitted pursuant to this article. City Manager shall have the meaning provided in section 2 -26 of this Code. Good cause means and includes (1) When a licensee violates, does not meet, or fails to comply with any of the terms, conditions, or provisions of this article and any rule and regulation promulgated pursuant to this article; (2) When the licensee has failed to comply with any special terms or conditions that were placed on its license at the time the license was issued, or that were placed on its license in prior disciplinary proceedings or that arose in the context of potential disciplinary proceedings; or (3) When the licensee's medical marijuana clinic has been operated in a manner that adversely affects the pubic health, welfare, or safety of the immediate neighborhood in which the medical marijuana clinic is located. Evidence to support such a finding can include: (i) a pattern of disorderly conduct as defined in section 11- 54(a)(1) of this code within or immediately adjacent to the premises of the licensee; (ii) a pattern of drug - related criminal conduct within the premises of the medical marijuana clinic, or in the immediate area surrounding the medical marijuana clinic; (iii) a pattern of criminal conduct directly related to or arising from the operation of the medical marijuana clinic; (iv) a conviction in any local, state or federal court of any employee of a licensee for the distribution or sale of marijuana. License means a license to operate a medical marijuana establishment issued by the City pursuant to this article. Licensee means the person or entity to whom a license has been issued pursuant to this article. Marijuana means all parts of the plant cannabis sativa L., whether growing or not, the seeds thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or its resin. It does not include fiber produced from the stalks, oil or cake made from the seeds of the plant, or sterilized seed of the plant which is incapable of germination if these items exist apart from any other item defined as "marijuana" herein. "Marijuana" does not mean marijuana concentrate which includes hashish, tetrahydrocannabinols, or any alkaloid, salt, derivative, preparation, compound, or mixture, whether natural or synthesized, of tetrahydrocannabinols. Medical marijuana clinic means the use of any property or structure within the City by primary care - givers to distribute, transmit, give, dispense, or otherwise provide marijuana in any manner to their patients in accordance with Amendment 20 and its implementing state statutes and administrative regulations. Medical marijuana establishment means either a medical marijuana grower or a medical marijuana clinic. Medical marijuana grower means the use of any property or structure within the City by primary care - givers for the purposes of growing medical marijuana for distribution to their patients in accordance with Amendment 20 and its implementing state statutes and administrative regulations. Patient has the meaning provided in Amendment 20, the implementing state statutes and administrative regulations. Primary care -giver has the meaning provided in Amendment 20, the implementing state statutes and administrative regulations. (b) In addition to the definitions provided in subsection A of this section, the other defined terms in Amendment 20 are incorporated into this article by reference. Sec. 11 -272. Medical marijuana establishment license required. No person or entity shall operate a medical marijuana establishment within the City without a valid medical marijuana establishment license issued in accordance with this article. This 4 requirement to obtain a medical marijuana establishment license is in addition to the requirement to obtain a business license pursuant to Article II of this chapter and any other license or permit as so required by the City. Sec. 11 -273. Application for license. (a) A person seeking to obtain a license pursuant to this article shall file an application with the Tax and Licensing Division on a form provided by the Tax and Licensing Division. (b) An application for a license under this article shall contain the following information: 1. The applicant's name, address, telephone number and last four digits of the applicant's social security number; 2. The name, address, telephone number and last four digits of the social security number for each primary care -giver authorized to operate out of the applicant's proposed location; 3. The street address of the proposed medical marijuana establishment; 4. If the applicant is not the owner of the proposed location of the medical marijuana establishment, a notarized statement from the owner of such property authorizing the submission of the application; 5. A completed set of the applicant's fingerprints and the fingerprints of each primary care -giver authorized to operate out of the applicant's proposed location; 6. The number of patients for whom the applicant serves as primary care -giver and the number of patients for whom each primary care- giver authorized to operate out of the applicant's proposed location serve as primary care - giver; 7. A business plan that contains the following items: a. A security plan that includes but is not limited to a description of the security provisions and systems to be utilized; b. Hours of operation; C. Number of employees and /or volunteers expected to be onsite; d. An external lighting plan; and e. A description of any cultivation activities including; i. Where plants will be grown; 6 ii. The expected number of plants that will be grown on site; iii. A description of the internal lighting system; iv. A list of the fertilizers, pesticides and /or other chemicals to that will be utilized; and V. Expected water usage. 8. A statement by the applicant that the applicant and the applicant's employees understand that they may be subject to prosecution under federal law; 9. A statement by the applicant that the applicant is a primary care- giver; 10. A statement by the applicant that the City accepts no legal liability in connection with the approval and subsequent operation of the medical marijuana establishment; and 11. Any additional information that the Tax and Licensing Division reasonably determines to be necessary in connection with the investigation and review of the application. Sec. 11 -274. Application Fee. An applicant shall pay to the City a non - refundable application fee when the application is filed. The purpose of the fee is to cover the administrative costs of processing the application. The amount of the application fee shall be fixed by the City Council by motion. Sec. 11 -275. Standards for issuance of license. The Tax and Licensing Division shall issue a license under this article when: (a) The application (including any required attachments and submissions) is complete and signed by the applicant; (b) The applicant has paid the application fee and any other fees required by the code; (c) The application does not contain a material falsehood or misrepresentation; (d) The application complies with all of the requirements of this article; (e) Written approval from the City of Wheat Ridge Police Department as to: 1. The applicant's business plan; and 2. The applicant's criminal background. No written approval will be issued to an applicant whose criminal history reflects a prior conviction for a felony offense. N (f) Written approval from the Community Development Department that the location and zoning requirements imposed by this article and Section 26 -204 of the Code have been met. Sec. 11 -276. Authority to recommend and impose conditions on license. (a) Any City department shall have the authority to recommend reasonable terms and conditions on a license as may be necessary to protect the public health, safety, and welfare, and to obtain compliance with the requirements of this article and applicable law. (b) The Tax and Licensing Division is authorized to approve a license subject to such reasonable conditions as required by the City. (c) In the event an application is conditionally approved, the Tax and Licensing Division shall clearly set forth in writing the conditions of approval. Sec. 11 -277. Contents of license. A license shall contain the following information: (a) The name of the licensee; (b) The date of the issuance of the license; (c) The address at which the licensee is authorized to operate the medical marijuana establishment; (d) Any special conditions of approval imposed upon the license; and (e) The date of the expiration of the license. Sec. 11 -278. Denial of license. The Tax and Licensing Division shall deny an application for a license under this article when the applicant fails to meet all of the standards set forth in section 11 -275. Sec. 11 -279. Notice of denial or conditional approval of license. The Tax and Licensing Division shall notify the applicant of its decision to deny or conditionally approve the application in writing within three business days of rendering the decision. Notice shall be given by mailing a copy of the decision to the applicant by regular mail, postage prepaid, at the address shown in the application. Notice shall be deemed to have been properly given upon mailing. Sec. 11 -280. Appeal of denial or conditional approval of license. (a) An applicant has the right to appeal the denial of an application or condition imposed thereon to an administrative hearing officer. (b) The applicant must file a written notice of appeal with the Tax and Licensing Division within fifteen days after the date of mailing of the denial or conditional approval of the application. 7 (c) Upon notice from the Tax and Licensing Division that the applicant has satisfied the requirement in subsection (b), the City Manager shall appoint an administrative hearing officer. (d) The applicant shall be provided with not less than ten days' prior written notice of the appeal hearing to be held by the administrative hearing officer. (e) The burden of proof in an appeal filed under this section shall be on the applicant. (f) If the administrative hearing officer finds by a preponderance of the evidence that the decision of the Tax and Licensing Division was correct, the administrative hearing officer shall uphold that decision. If the administrative hearing officer finds by a preponderance of the evidence that the decision of the Tax and Licensing was incorrect, the administrative hearing officer shall set aside the denial and issue the license. The administrative hearing officer may impose additional conditions on the license issued (if it was previously denied) or the conditions of approval stricken or modified. (g) Any decision made by the administrative hearing officer pursuant to this section shall be a final decision and may be appealed to the district court pursuant to Rule 106(a)(4) of the Colorado Rules of Civil Procedure. The applicant's failure to timely appeal the decision is a waiver of the applicant's right to contest the denial or conditional approval of the application. Sec. 11 -281. License not transferable. A license is non - transferable and non - assignable. Any attempt to transfer or assign a license voids the license. Sec. 11 -282. Duration of license, renewal. (a) Each license issued pursuant to this article shall expire on the first day of the month one year from the month of issuance, and may be renewed as provided in this section. (b) An application for the renewal of an existing license shall be made to the Tax and Licensing Division not less than forty-five (45) days prior to the date of expiration. No application for renewal shall be accepted by the Tax and Licensing Division after the date of expiration. The City Manager or his or her designee may waive the forty-five (45) days time requirement set forth in this subsection if the applicant demonstrates adequate justification. (c) If a renewal application has not been filed by a licensee, the City shall send a renewal notice no less than sixty (60) days prior to the expiration of the license. (d) At the time of the filing of an application for the renewal of an existing license the applicant shall pay a renewal fee in an amount fixed by the City Council by motion. Sec. 11 -283. Duties of licensee. Each licensee shall: (a) Post the license in a conspicuous location on the premises of the medical marijuana clinic; (b) Comply with all of the terms and conditions of the license; (b) Comply with all of the requirements of this article; (c) Comply with all other applicable City ordinances; (d) Comply with all state laws and administrative regulations pertaining to the medical use of marijuana, including, but not limited to, Amendment 20; section 18 -18- 406.3, C.R.S.; and the administrative regulations issued by the Colorado Department of Public Health and Environment found at 5 CCR 1006 -2, all as amended from time to time; (e) Comply with all applicable federal laws, rules, or regulations, other than a federal law, rule or regulation concerning the possession, sale or distribution of marijuana that conflicts with Amendment 20; (f) Permit inspection of its records and operation by the Tax and Licensing Division for the purpose of determining the licensee's compliance with the terms and conditions of the license and the City's tax laws; and (g) Permit inspection of the premises by authorized City officials during permitted business hours for the purpose of determining compliance with this Article. Sec. 11 -284. Hearing, suspension, revocation of license. (a) A license issued pursuant to this article may be suspended or revoked by an administrative hearing officer after a hearing for the following reasons: 1. Fraud, misrepresentation, or a false statement of material fact contained in the license application; 2. A violation of any City, state, or federal law or regulation, other than a federal law or regulation concerning the possession, sale or distribution of marijuana that conflicts with Amendment 20; 3. A violation of any of the terms and conditions of the license; 4. A violation of any of the provisions of this article; or 5. Good cause. (b) Request for suspension or revocation, notice of hearing, burden. 1. Any authorized City official may request in writing that a license issued under this article be suspended or revoked. M 2. The City Manager shall appoint an administrative hearing officer to preside over the hearing on the suspension or revocation of a license. 3. The administrative hearing officer shall a. Set a date and time on which to determine whether to revoke or suspend such license; b. Notify the licensee in writing of the date and time of the hearing at least ten (10) days prior to conducting such hearing. Such notice shall be sent by regular mail postage prepaid. Notice is deemed to have been given upon mailing; C. Conduct a hearing based on the allegations provided in the written request. This shall be an informal hearing where no rules of evidence shall apply. The burden shall be on the City to prove by a preponderance of the evidence that the licensee has violated the provisions in subsection 11 -284 (a); and d. Provide a written decision to the licensee within a reasonable time after the conclusion of the hearing. (c) In deciding whether a license should be suspended or revoked, and in deciding what conditions to impose in the event of a suspension, if any, the administrative hearing officer shall consider: 1. The nature and seriousness of the violation; 2. Corrective action, if any, taken by the licensee; 3. Prior violation(s), if any, by the licensee; 4. The likelihood of recurrence; 5. All circumstances surrounding the violation; 6. Whether the violation was willful; 7. The number of previous violations by the licensee; and 8. Previous sanctions, if any, imposed against the licensee. (d) In connection with the suspension of a license, the administrative hearing officer may impose reasonable conditions thereon. 10 (e) Any decision made by the administrative hearing officer pursuant to this section shall be a final decision and may be appealed to the district court pursuant to Rule 106(a)(4) of the Colorado Rules of Civil Procedure. The applicant's failure to timely appeal the decision is a waiver of the applicant's right to contest the decision. (f) No fee previously paid by a licensee in connection with the application shall be refunded if such license is suspended or revoked. Sec. 11 -285. Operation limitations for medical marijuana clinics. Medical marijuana clinics shall be subject to the following additional requirements: (a) No marijuana may be distributed, sold, given away, or transferred at a medical marijuana clinic except to the licensee's patients. (b) All product storage shall be indoors. Products, accessories, and associated paraphernalia shall not be visible from a public sidewalk or right of way. All products shall be in a sealed /locked cabinet except when being accessed for distribution. (c) A medical marijuana clinic may be open seven days per week from the hours of 9:00 am to 7:00 pm. (d) No on -site consumption of marijuana is allowed on the premises. (e) The sale or consumption of alcohol on the premises is prohibited. (f) Cultivation, growing, processing. The growing, cultivation, or processing of marijuana on or within the premises of a medical marijuana clinic is prohibited. (g) All medical marijuana clinics shall provide adequate security on the premises. At a minimum the security shall include: 1. Security surveillance cameras installed to monitor the main entrance along the interior and exterior of the premises and all other entrances or exits only along the interior of the premises. Security video shall be preserved for at least 72 hours by the licensee; 2. Robbery and burglary alarm systems that are professionally monitored and maintained in good working condition; 3. Exterior lighting that illuminates the exterior walls of the business during evening hours and is compliant with the City Code; and 4. A locking safe permanently affixed to the premises that is suitable for storage of the entire inventory of saleable marijuana. 11 (h) No person under the age of eighteen (18) is permitted on the premises when not accompanied by a parent or legal guardian. Sec. 11 -286. Operation limitations for medical marijuana growers. Medical marijuana growers shall be subject to the following additional requirements: (a) A medical marijuana grower may not: 1. Distribute, sell, give away, or transfer a usable form of marijuana or marijuana plants on or from its premises except to its patients. 2. Distribute sell, give away, or transfer other products, accessories, or associated paraphernalia of any kind on or from its growing premises. (b) A medical marijuana grower may be open seven days a week during the hours of 9:00 a.m. to 7:00 p.m. (c) No on -site consumption of marijuana is allowed on the premises. (d) The sale or consumption of alcohol on the premises is prohibited. (e) Cultivation, growing, processing. The growing, cultivation, or processing of marijuana on or within the premises of a medical marijuana grower: 1. Shall be conducted indoors in such a manner that marijuana plants at any stage of development are not visible from a public sidewalk or right -of -way; 2. Shall be prohibited unless the operation is equipped with a proper ventilation system that filters out the odor of marijuana so that the odor is not capable of being detected by a person with a normal sense of smell at the exterior of the clinic or any adjoining business, parcel or tract of real property. (f) All medical marijuana growers shall provide adequate security on the premises. At a minimum the security shall include: 1. Security surveillance cameras installed to monitor all entrances and exits of the premises. Security video shall be preserved for at least 72 hours by the licensee; 2. Robbery and burglary alarm systems that are professionally monitored and maintained in good working condition; 3. Exterior lighting that illuminates all entrances and exits of the business during evening hours and is compliant with the City Code; and 12 4. A locking safe permanently affixed to the premises that is suitable for storage of the entire inventory of usable marijuana. (g) No person under the age of eighteen (18) is permitted on the premises when not accompanied by a parent or legal guardian. Sec. 11 -287. Prohibited locations. (a) Except as provided in subsection a of this section, no medical marijuana establishment shall be located at a location that does not conform to the requirements of this section. (b) No medical marijuana establishment shall be located: Within 500 feet of a licensed child care facility; 2. Within 500 feet of any educational institution or school, college or university, either public or private; and 3. Within 500 feet of any drug rehabilitation or drug treatment center (c) The distances described in subsection (b) shall be computed by direct measurement from the nearest property line of the land used for child care, school, or halfway house purposes to the nearest portion of the building housing the medical marijuana establishment using a straight line. (d) Each medical marijuana establishment shall be operated from a permanent location. No medical marijuana establishment shall be licensee to operate from a moveable, mobile, or transitory location. (e) The suitability of a location for a medical marijuana establishment shall be determined at the time of the issuance of the first license for such establishment. The fact that changes in the neighborhood that occur after the issuance of the first license might render the site unsuitable for a medical marijuana establishment under this section shall not be grounds to suspend, revoke or refuse to renew the license for such establishment so long as the license for the establishment remains in effect. Sec. 11 -288. Signage. (a) All signage for a medical marijuana establishment shall comply with the requirements of chapter 26 of this code. (b) No licensee shall display a sign for the medical marijuana establishment that contains the word "marijuana," "cannabis," or any other word or phrase commonly understood to refer to marijuana unless such word or phrase is immediately preceded or followed by the word "medical." 13 Sec. 11 -289. Required warnings to be posted. There shall be posted in a conspicuous location in each medical marijuana establishment a legible sign containing the following warnings: (a) A warning that the diversion of marijuana for non - medical purposes is a violation of state and federal laws; (b) A warning that the use of medical marijuana may impair a person's ability to drive a motor vehicle or operate machinery, and that it is illegal under state law to drive a motor vehicle or to operate machinery when under the influence of or impaired by marijuana; (c) A warning that loitering in or around the medical marijuana establishment is prohibited by state law; (d) A warning that possession and distribution of marijuana is a violation of federal law: and (e) A warning that no person under the age of eighteen (18) is permitted on site without the presence of his or her parent or legal guardian. Sec. 11 -290. Paraphernalia. Devices, contrivances, instruments, and paraphernalia for inhaling or otherwise consuming marijuana including, but not limited to, rolling papers and related tools, water pipes, and vaporizers may lawfully be sold at a medical marijuana clinic. Such items may be sold or provided only to patients or primary care- givers. Sec. 11 -291. Taxes. Each licensee shall collect and remit sales tax on all medical marijuana, paraphernalia, and other tangible personal property sold by the licensee at the medical marijuana establishment according to the provisions of Code chapter 22 and any regulations issued pursuant to it. Sec. 11 -292. Penalties, injunctive relief. (a) It is a misdemeanor offense for any person to violate any provision of this article. Any person convicted of having violated any provision of this article shall be punished as set forth in section 1 -5 of this code. (b) The operation of a medical marijuana establishment without a valid license issued pursuant to this article may be enjoined by the City in an action brought in a court of competent jurisdiction. Section 3 . Section 26 -123 of the Code, entitled Definitions, is hereby amended by the addition of the following terms: Medical marijuana clinic has the meaning provided in Article XII of Chapter 11 of this code. 14 Medical marijuana grower has the meaning provided in Article XII of Chapter 11 of this code. Section 4 . The Table of Uses for Commercial and Industrial Districts provided for in Section 26 -204 of the Code is hereby amended as follows: Uses Notes NC RC C -9 C -2 I Medical and dental Pharmacies and P P P P P offices, clinics or optical stores laboratories, excluding are accessory substance abuse use clinics MEDICAL P P P MARIJUANA CLINICS MEDICAL P MARIJUANA GROWERS Mini - warehouses for P P inside storage Section 5 . Police Power Finding The City Council hereby finds, determines, and declares that this Ordinance is necessary and proper to provide for the safety, preserve the health, promote the prosperity, and improve the order, comfort and convenience of the City of Wheat Ridge and the inhabitants thereof. Section 6 . Authority. The City Council hereby finds, determines and declares that it has the power to adopt this Ordinance pursuant to: (i) the Local Government Land Use Control Enabling Act, Article 20 of Title 29, C.R.S.; (ii) Part 3 of Article 23 of Title 31, C.R.S. (concerning municipal zoning powers); (iii) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (iv) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (v) Section 31 -15 -501 (concerning municipal power to regulate businesses); (vi) the authority granted to home rule municipalities by Article XX of the Colorado Constitution; and (vii) the powers contained in the City of Wheat Ridge, Colorado Home Rule Charter (the "Charter "). Section 7 Severability, Conflicting Ordinances Repealed If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 8 . Effective Date This Ordinance shall take effect upon adoption as permitted by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of — to on this day of 2010, ordered published in full in a newspaper of 15 general circulation in the City of Wheat Ridge, and Public Hearing and consideration on final passage set for , 2010 at 7:00 p.m., in the Council Chambers, 7500 West 29 Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of _ to _, this day of 2010. SIGNED by the Mayor on this day of 2010. Jerry DiTullio, Mayor ATTEST: Michael Snow, City Clerk Approved as to Form Gerald E. Dahl, City Attorney First Publication: Second Publication: Wheat Ridge Transcript Effective Date: `[: Michie's Legal Resources Page 1 of 6 Section 14. Medical use of marijuana for persons suffering from debilitating medical conditions. (1) As used in this section, these terms are defined as follows: (a) "Debilitating medical condition" means: (1) Cancer, glaucoma, positive status for human immunodeficiency virus, or acquired immune deficiency syndrome, or treatment for such conditions; (II) A chronic or debilitating disease or medical condition, or treatment for such conditions, which produces, for a specific patient, one or more of the following, and for which, in the professional opinion of the patient's physician, such condition or conditions reasonably may be alleviated by the medical use of marijuana: cachexia; severe pain; severe nausea; seizures, including those that are characteristic of epilepsy; or persistent muscle spasms, including those that are characteristic of multiple sclerosis; or (III) Any other medical condition, or treatment for such condition, approved by the state health agency, pursuant to its rule making authority or its approval of any petition submitted by a patient or physician as provided in this section. (b) "Medical use" means the acquisition, possession, production, use, or transportation of marijuana or paraphernalia related to the administration of such marijuana to address the symptoms or effects of a patient's debilitating medical condition, which may be authorized only after a diagnosis of the patient's debilitating medical condition by a physician or physicians, as provided by this section. (c) "Parent" means a custodial mother or father of a patient under the age of eighteen years, any person having custody of a patient under the age of eighteen years, or any person serving as a legal guardian for a patient under the age of eighteen years. (d) "Patient" means a person who has a debilitating medical condition. (e) "Physician" means a doctor of medicine who maintains, in good standing, a license to practice medicine issued by the state of Colorado. (f) "Primary care - giver" means a person, other than the patient and the patient's physician, who is eighteen years of age or older and has significant responsibility for managing the well -being of a patient who has a debilitating medical condition. (g) "Registry identification card" means that document, issued by the state health agency, which identifies a patient authorized to engage in the medical use of marijuana and such patient's primary care- giver, if any has been designated. (It) "State health agency" means that public health related entity of state government designated by the governor to establish and maintain a confidential registry of patients authorized to engage in the medical use of marijuana and enact rules to administer this program. (i) "Usable form of marijuana" means the seeds, leaves, buds, and flowers of the plant (genus) cannabis, and any mixture or preparation thereof, which are appropriate for medical use as provided in this section, but excludes the plant's stalks, stems, and roots. 0) "Written documentation" means a statement signed by a patient's physician or copies of the patient's pertinent medical records. ATTACHMENT 3 Michie's Legal Resources Page 2 of 6 (2) (a) Except as otherwise provided in subsections (5), (6), and (8) of this section, a patient or primary care- giver charged with a violation of the state's criminal laws related to the patient's medical use of marijuana will be deemed to have established an affirmative defense to such allegation where: (I) The patient was previously diagnosed by a physician as having a debilitating medical condition; (II) The patient was advised by his or her physician, in the context of a bona fide physician- patient relationship, that the patient might benefit from the medical use of marijuana in connection with a debilitating medical condition; and (III) The patient and his or her primary care -giver were collectively in possession of amounts.of marijuana only as permitted under . this. section. This affirmative defense shall not exclude the assertion of any other defense where a patient or primary care- giver is charged with a violation of state law related to the patient's medical use of marijuana. (b) Effective June 1, 1999, it shall be an exception from the state's criminal laws for any patient or primary care- giver in lawful possession of a registry identification card to engage or assist in the medical use of marijuana, except as otherwise provided in subsections (5) and (8) of this section. (c) It shall be an exception from the state's criminal laws for any physician to: (I) Advise a patient whom the physician has diagnosed as having a debilitating medical condition, about the risks and benefits of medical use of marijuana or that he or she might benefit from the medical use of marijuana, provided that such advice is based upon the physician's contemporaneous assessment of the patient's medical history and current medical condition and a bona fide physician- patient relationship; or (II) Provide a patient with written documentation, based upon the physician's contemporaneous assessment of the patient's medical history and current medical condition and a bona fide physician- patient relationship, stating that the patient has a debilitating medical condition and might benefit from the medical use of marijuana. i No physician shall be denied any rights or privileges for the acts authorized by this subsection. (d) Notwithstanding the foregoing provisions, no person, including a patient or primary care- giver, shall be entitled to the protection of this section for his or her acquisition, possession, manufacture, production, use, sale, distribution, dispensing, or transportation of marijuana for any use other than medical use. (e) Any property interest that is possessed, owned, or used in connection with the medical use of marijuana or acts incidental to such use, shall not be harmed, neglected, injured, or destroyed while in the possession of state or local law enforcement officials where such property has been seized in connection with the claimed medical use of marijuana. Any such property interest shall not be forfeited under any provision of state law providing for the forfeiture of property other than as a sentence imposed after conviction of a criminal offense or entry of a plea of guilty to such offense. Marijuana and paraphernalia seized by state or local law enforcement officials from a patient or primary care -giver in connection with the claimed medical use of marijuana shall be returned immediately upon the determination of the district attorney or his or her designee that the patient or primary care -giver is entitled to the protection contained in this section as may be evidenced, for example, by a decision not to prosecute, the dismissal of charges, or acquittal. (3) The state health agency shall create and maintain a confidential registry of patients who have applied for and are entitled to receive a registry identification card according to the criteria set forth in this subsection, effective June 1, 1999. (a) No person shall be permitted to gain access to any information about patients in the state health agency's confidential registry, or any information otherwise maintained by the state health agency about physicians and primary care- givers, except for authorized employees of the state health agency in the course of their official duties and authorized employees of state or local law enforcement agencies which have stopped or arrested a Michie's Legal Resources Page 3 of 6 person who claims to be engaged in the medical use of marijuana and in possession of a registry identification card or its functional equivalent, pursuant to paragraph (e) of this subsection (3). Authorized employees of state or local law enforcement agencies shall be granted access to the information contained within the state health agency's confidential registry only for the purpose of verifying that an individual who has presented a registry identification card to a state or local law enforcement official is lawfully in possession of such card. (b) In order to be placed on the state's confidential registry for the medical use of marijuana, a patient must reside in Colorado and submit the completed application form adopted by the state health agency, including the following information, to the state health agency: (1) The original or a copy of written documentation stating that the patient has been diagnosed with a debilitating medical condition and the physician's conclusion that the patient might benefit from the medical use of marijuana; (II) The name, address, date of birth, and social security number of the patient; (III) The name, address, and telephone number of the patient's physician; and (IV) The name and address of the patient's primary care- giver, if one is designated at the time of application. (c) Within thirty days of receiving the information referred to in subparagraphs (3) (b) (I) -(IV), the state health agency shall verify medical information contained in the patient's written documentation. The agency shall notify the applicant that his or her application for a registry identification card has been denied if the agency's review of such documentation discloses that: the information required pursuant to paragraph (3) (b) of this section has not been provided or has been falsified; the documentation fails to state that the patient has a debilitating medical condition specified in this section or by state health agency rule; or the physician does not have a license to practice medicine issued by the state of Colorado. Otherwise, not more than five days after verifying such information, the state health agency shall issue one serially numbered registry identification card to the patient, stating: (1) The patient's name, address, date of birth and social security number; (1I) That the patient's name has been certified to the state health agency as a person who has a debilitating medical condition, whereby the patient may address such condition with the medical use of marijuana; (III) The date of issuance of the registry identification card and the date of expiration of such card, which shall be one year from the date of issuance; and (IV) The name and address of the patient's primary care- giver, if any is designated at the time of application. (d) Except for patients applying pursuant to subsection (6) of this section, where the state health agency, within thirty-five days of receipt of an application, fails to issue a registry identification card or fails to issue verbal or written notice of denial of such application, the patient's application for such card will be deemed to have been approved. Receipt shall be deemed to have occurred upon delivery to the state health agency, or deposit in the United States mails. Notwithstanding the foregoing, no application shall be deemed received prior to June 1, 1999. A patient who is questioned by any state or local law enforcement official about his or her medical use of marijuana shall provide a copy of the application submitted to the state health agency, including the written documentation and proof of the date of mailing or other transmission of the written documentation for delivery to the state health agency, which shall be accorded the same legal effect as a registry identification card, until such time as the patient receives notice that the application has been denied. (e) A patient whose application has been denied by the state health agency may not reapply during the six months following the date of the denial and may not use an application for a registry identification card as provided in paragraph (3) (d) of this section. The denial of a registry identification card shall be considered a final agency action. Only the patient whose application has been denied shall have standing to contest the agency action. ht+... /1........x......1.:.. Michie's Legal Resources Page 4 of 6 (f) When there has been a change in the name, address, physician, or primary care- giver of a patient who has qualified for a registry identification card, that patient must notify the state health agency of any such change within ten days. A patient who has not designated a primary care -giver at the time of application to the state health agency may do so in writing at any time during the effective period of the registry identification card, and the primary care -giver may act in this capacity after such designation. To maintain an effective registry identification card, a patient must annually resubmit, at least thirty days prior to the expiration date stated on the registry identification card, updated written documentation to the state health agency, as well as the name and address of the patient's primary care- giver, if any is designated at such time. (g) Authorized employees of state or local law enforcement agencies shall immediately notify the state health agency when any person in possession of a registry identification card has been determined by a court of law to have willfully violated the provisions of this section or its implementing legislation, or has pled guilty to such offense. (h) A patient who no longer has a debilitating medical condition shall return his or her registry identification card to the state health agency within twenty-four hours of receiving such diagnosis by his or her physician. (i) The state health agency may determine and levy reasonable fees to pay for any direct or indirect administrative costs associated with its role in this program. (4) (a) A patient may engage in the medical use of marijuana, with no more marijuana than is medically necessary to address a debilitating medical condition. A patient's medical use of marijuana, within the following limits, is lawful: (I) No more than two ounces of a usable form of marijuana; and (II) No more than six marijuana plants, with three or fewer being mature, flowering plants that are producing a usable form of marijuana. (b) For quantities of marijuana in excess of these amounts, a patient or his or her primary care -giver may raise as an affirmative defense to charges of violation of state law that such greater amounts were medically necessary to address the patient's debilitating medical condition. (5) (a) No patient shall: (I) Engage in the medical use of marijuana in a way that endangers the health or well -being of any person; or (II) Engage in the medical use of marijuana in plain view of, or in a place open to, the general public. (b) In addition to any other penalties provided by law, the state health agency shall revoke for a period of one year the registry identification card of any patient found to have willfully violated the provisions of this section or the implementing legislation adopted by the general assembly. (6) Notwithstanding paragraphs (2) (a) and (3) (d) of this section, no patient under eighteen years of age shall engage in the medical use of marijuana unless: (a) Two physicians have diagnosed the patient as having a debilitating medical condition; (b) One of the physicians referred to in paragraph (6) (a) has explained the possible risks and benefits of medical use of marijuana to the patient and each of the patient's parents residing in Colorado; (c) The physicians referred to in paragraph (6) (b) has provided the patient with the written documentation, specified in subparagraph (3) (b) (I); (d) Each of the patient's parents residing in Colorado consent in writing to the state health agency to permit the 4 a a_..// .............:.. 1.:.....__.../.... L.... .A..ri�....�All /............NCn N..I�._ /�11L..nA_A— _..�..._a. G....V.. ta— _O_L�___ �nf�Nntn Michie's Legal Resources Page 5 of 6 patient to engage in the medical use of marijuana; (e) A parent residing in Colorado consents in writing to serve as a patient's primary care- giver; (f) A parent serving as a primary care-giver completes and submits an application for a registry identification card as provided in subparagraph (3) (b) of this section and the written consents referred to in paragraph (6) (d) to the state health agency; (g) The state health agency approves the patient's application and transmits the patient's registry identification card to the parent designated as a primary care- giver; (h) The patient and primary care -giver collectively possess amounts of marijuana no greater. than those specified in subparagraph (4) (a) (I) and (1I); and (i) The primary care -giver controls the acquisition of such marijuana and the dosage and frequency of its use by the patient. (7) Not later than March 1, 1999, the governor shall designate, by executive order, the state health agency as defined in paragraph (1) (g) of this section. (8) Not later than April 30, 1999, the General Assembly shall define such terms and enact such legislation as may be necessary for implementation of this section, as well as determine and enact criminal penalties for: (a) Fraudulent representation of a medical condition by a patient to a physician, state health agency, or state or local law enforcement official for the purpose of falsely obtaining a registry identification card or avoiding arrest and prosecution; (b) Fraudulent use or theft of any person's registry identification card to acquire, possess, produce, use, sell, distribute, or transport marijuana, including but not limited to cards that are required to be returned where patients are no longer diagnosed as having a debilitating medical condition; (c) Fraudulent production or counterfeiting af, or tampering with, one or more registry identification cards; or (d) Breach of confidentiality of information provided to or by the state health agency. (9) Not later than June 1, 1999, the state health agency shall develop and make available to residents of Colorado an application form for persons seeking to be listed on the confidential registry of patients. By such date, the state health agency shall also enact rules of administration, including but not limited to rules governing the establishment and confidentiality of the registry, the verification of medical information, the issuance and form of registry identification cards, communications with law enforcement officials about registry identification cards that have been suspended where a patient is no longer diagnosed as having a debilitating medical condition, and the manner in which the agency may consider adding debilitating medical conditions to the list provided in this section. Beginning June 1, 1999, the state health agency shall accept physician or patient initiated petitions to add debilitating medical conditions to the list provided in this section and, after such hearing as the state health agency deems appropriate, shall approve or deny such petitions within one hundred eighty days of submission. The decision to approve or deny a petition shall be considered a final agency action. (10) (a) No governmental, private, or any other health insurance provider shall be required to be liable for any claim for reimbursement for the medical use of marijuana. (b) Nothing in this section shall require any employer to accommodate the medical use of marijuana in any work place. (1I) Unless otherwise provided by this section, all provisions of this section shall become effective upon official declaration of the vote hereon by proclamation of the governor, pursuant to article V, section (1) (4), and shall apply to acts or offenses committed on or after that date. 0.N..- //.,...,...«.:..0.:.. ....... /,.,.i All /_...._._ ...Itn/n I t.____ l --- 11 ._ . . inn 11n1n Michie's Legal Resources Page 6 of 6 Source: Initiated 2000: Entire section added, effective upon proclamation of the Governor, L. 2001, p. 2379, December 28, 2000. Editor's note: (1) This section was added by an initiated measure and numbered as section 14 as it appeared on the ballot, which leaves a gap between sections 12b and 14. (2) In subsection (7), the reference cited to state health agency as defined in paragraph (1)(g) of this section should read (1)(h) of this section. HHn• / /.an.n.rn�:rH:n /,—I All . 111 /........ +1 1ZA iron innin City Of Wheat�dge POLICE DEPARTMENT Memorandum TO: Mayor Jerry DiTullio and City Council THROUGH: Randy Young, City Manager FROM: Daniel Brennan, Chief of Police DATE: January 22, 2010 SUBJECT: Staff Report: Medical Marijuana Dispensaries SUMMARY: On November 7, 2000, the voters of Colorado passed a state constitutional amendment to allow medical use of marijuana for persons suffering from debilitating medical conditions. The amendment set forth a system involving a patient, a physician, and a primary caregiver. A caregiver was defined as a person with a "significant responsibility" for the "well- being" of a patient. The constitutional amendment created an affirmative defense that allows a patient and/or caregiver to possess two ounces of marijuana and six plants per patient. The amendment did not contain provisions for dispensaries or marijuana grow operations. From 2000 through 2007, the caregiver model worked as the amendment was envisioned. There were only 1,600 patient applications as of January 31, 2007, since the registry at the Colorado Department of Public Health and Environment began in 2001. In February 2009, the Federal Administration in Washington, D.C. announced they would no longer enforce marijuana laws in those states that had medicinal marijuana laws. Since that time, the U.S. Attorney General has provided guidelines for federal law enforcement agencies pertaining to those states that have laws or regulations related to medical marijuana. The Colorado Attorney General has ruled that the state can collect taxes on the sales of marijuana. SUMMARY OF ISSUES In 2009, the City of Wheat Ridge began seeing medical marijuana businesses opening in different areas of the City. The Police Department began receiving complaints from surrounding business owners and citizens regarding these medical marijuana businesses. By August 1, 2009, the City had five (5) medical marijuana dispensaries that had submitted business license applications. The City did not have any ordinances in place that addressed the business application, zoning, or safety requirements for these types of establishments. This issue was presented to City Council during a study session on August 17, 2009 (see attached Staff Report). City Council gave direction to staff to bring forward an ordinance to regulate medical marijuana dispensaries. ATTACHMENT 4 Staff Report: Medical Marijuana Dispensaries January 22, 2010 Page 2 On September 14, 2009, City Council adopted Ordinance 1453, Series 2009: an emergency ordinance enacting a ninety (90) day moratorium on the consideration or issuance of any City license or permit concerning medical marijuana dispensaries. At that time, there was considerable discussion concerning potential action by the state to adopt regulations concerning medical marijuana. On November 23, 2009, City Council adopted Council Bill 31 -2009: an ordinance extending the moratorium enacted by Section 2 of Ordinance 1453, Series 2009, which extended the moratorium for an additional ninety (90) days, or until March 13, 2010. Since November 2009, there has been considerable movement, albeit somewhat chaotic, at the state level. The initial "dispensary model' bill proposed by Senator Chris Romer has been pulled and there are now two bills that have been introduced. Senate Bill 10 -109, concerning "Regulation of the Physician- Patient Relationship for Medical Marijuana Patients," will attempt to put in place new rules related to the issuance of registry identifications cards, documentation for physicians who prescribe medical marijuana, and sanctions for physicians who violate the bill. The bill also addresses the issue of physicians receiving compensation from a caregiver, distributor or other provider for the act of certifying a patient. In summary, this bill is designed to create a bona -fide patient/physician relationship. Representative Tom Massey will be introducing a bill shortly regarding medical marijuana which is more closely aligned to the "caregiver model' approved by the voters in 2000. I will provide City Council with a copy of that bill when I receive it. As proposed, this bill would give authority to the Executive Director of toe Colorado Department of Public Health and Environment (CDPHE) to promulgate new rules related to standards for issuing registry identification cards and standards for primary caregivers. The Executive Director may also adopt rules setting procedures for primary caregiver applicants and sanctions for physicians who violate the statute and rules. The proposed bill would limit a primary caregiver to no more than five (5) patients on the registry at one time. The bill clarifies that a physician who certifies that a patient can use medical marijuana may not receive compensation from a primary caregiver related to medical marijuana. Lastly, the proposed bill states that local governments may enact zoning requirements related to medical marijuana, and it clarifies that marijuana is not a food. We will not know for certain how either of these bills evolve until this legislative session is over; however, there does seem to be recognition that additional regulatory restrictions must be put in place to address the abuses of the current system. In Jefferson County, the City of Arvada has put a moratorium in place until the end of this legislative session. The Lakewood City Council will be conducting a first reading on "Medical Marijuana Caregiver Facilities" on January 25, 2010. The City of Edgewater conducted a first reading on their medical marijuana ordinance on January 22, and enacted a 45 -day moratorium before they consider a second reading. The Town of Mountain View will have a second reading on a medical marijuana ordinance on February 9, 2010. Staff Report: Medical Marijuana Dispensaries January 22, 2010 Page 3 Our community currently has three medical marijuana establishments with business licenses operating in the City. They are located at 4045 Wadsworth Boulevard, 9195 W. 44` Avenue, and 10107 W. 37 Place. There are five applications for medical marijuana businesses pending. The 2009 sales tax collections by marijuana businesses, including a fourth dispensary that has since moved out of the City, is $14,127 over a period of five months. To date, the police department has responded to four burglaries, a criminal extortion, harassment, theft, criminal mischief and a suspicious incident at Wheat Ridge medical marijuana businesses. City Attorney Gerald Dahl has outlined potential courses of action for City Council to consider at the study session in his staff report. As the Police Chief, I understand and support the voters' approval of Amendment 20 to provide medical marijuana to those with truly debilitating medical conditions. It is important that legislation be enacted at the state and local level that brings back the initial intent of the "caretaker model" approved by the voters. With a degree of certainty, I am confident that some future action will be needed by City Council to bring this ordinance into compliance with both of the proposed bills in the State Legislature. DB /ck °A , City of �r" Wheatidge POLICE DEPARTMENT Memorandum TO: Mayor Jerry DiTullio and City Council THROUGH: Randy Young, City Manager FROM: Daniel Brennan, Police Chief DATE: August 7, 2009 (for the August 17 City Council Study Session) SUBJECT: Medical Marijuana Dispensaries EXECUTIVE SUMMARY In November 2000, Colorado voters approved Amendment 20 to the State Constitution, Section 14 of Article XVIII, providing an affirmative defense for the possession and use of marijuana to alleviate certain debilitating medical conditions. Colorado is among thirteen states that now have laws that allow seriously ill patients to use medical marijuana if their doctor recommends it. Amendment 20 allows patients and caregivers to grow their own medical marijuana for use by medical patients who submit applications and receive registry identification cards from the Colorado Department of Public Health and Environment ( CDPHE). Section 18 -18- 406.3, C.R.S. lists the restrictions on the medical use of marijuana. CDPHE is in the process of developing regulatory amendments to the Medical Marijuana Registry Program that provide definitions to key terms and clarifications to existing rules. Amendment 20 does not legalize the possession of marijuana under Federal law; however, the U.S. Attorney General has recently stated that the Federal government will not ask for Federal prosecution in states that have legalized the medical use of marijuana. The reaction of counties and municipalities in Colorado to these nascent businesses is decidedly mixed. Some have issued business permits for such enterprises, while other communities have refused to allow these types of businesses within their communities. Some communities have conditioned permitting such operations based on zoning regulations, thus limiting the locations these businesses can operate. The Colorado Municipal League (CML) has fielded numerous requests for information from their membership regarding this issue. CML has referenced a publication by Cannabis Therapeutics entitled, " Medical Education and Dispensary Safety ' as a source document. Cannabis Therapeutics is a medical marijuana resources facility designed to serve patients of the State of Colorado. Several of the proposed recommendations from staff are taken from this publication. To date, six (6) medical marijuana dispensaries have submitted business license applications in the City, and the City has received an additional inquiry regarding requirements for opening a medical marijuana dispensary. Our current ordinances do not address medical marijuana dispensaries, where these businesses can locate, and the safety issues related to the dispensing of medical marijuana. ATTACHMENT 5 Study Session - Medical Marijuana Dispensaries August 7 for August 17, 2009 Page 2 STATEMENT OF ISSUES The recent influx of medical marijuana dispensaries is a new phenomenon throughout the State and appears to be based in part on a California law that is more comprehensive than Amendment 20 in its requirements and definitions. In Colorado, there are 8,918 people registered to use medical marijuana. Concerns regarding enforcement, public safety and community development requirements have arisen throughout Colorado because of this amendment. Federal and State Law Both Federal and State laws prohibit the possession, cultivation, and possession of marijuana. The City Code of Laws prohibits possession one ounce or less of marijuana. Except for very limited and authorized research purposes, Federal law through the Controlled Substances Act prohibits the use of marijuana for any legal purpose, and classifies it as a banned Schedule I drug. A physician cannot legally prescribe marijuana as medicine under Federal law. Federal laws supersede State laws; so under Federal law, Colorado medical marijuana statutes do not provide a legal defense for the cultivation, possession or dispensing of marijuana, even with a physician's recommendation for its medical use. However, the U.S. Attorney General has announced a major change of the Federal government's position in the enforcement of Federal drug laws with respect to marijuana dispensaries. The direction given to Federal law enforcement agencies is only to conduct investigations for prosecution on marijuana dispensaries that are exposed as fronts for drug trafficking. Unfortunately, there are no standards or definitions available to determine what requirements constitute a drug trafficking operation suitable to trigger investigation and enforcement by this Federal administration. Colorado law also prohibits cultivation, possession, sale or distribution of marijuana, except for the provisions of Amendment 20 that provide for a limited affirmative defense to criminal prosecution for those who cultivate, possess or dispense marijuana for medicinal purposes as qualified patients with a physician's recommendation or as a qualified primary caregiver. Colorado law is notably silent on the issue of medical marijuana dispensaries at this time. The Colorado Department of Public Health and Environment is tasked with implementing and administering the Medical Marijuana Registry program. CDPHE is currently working on revising certain rules and regulations pertaining to the administration of the registry program. City Code of Laws, Section 16 -131 provides for the definition of marijuana. The ordinance makes it unlawful to possess one (1) ounce of marijuana and makes it unlawful to openly and publicly display or consume one ounce or less of marijuana. The only exception to this ordinance is if the possession or consumption meets the criteria established by the Dangerous Drugs Therapeutic Research Act. CDPHE Regulations State law and CDPHE regulations define the medicinal use for marijuana for persons suffering from debilitating medical conditions. A debilitating medical condition includes diseases such as cancer, glaucoma, human immunodeficiency virus, a chronic or debilitating disease or medical condition, i.e., seizures, severe pain, severe nausea, persistent muscle spasms, and epilepsy to name a few. A physician, defined as a doctor of medicine, is required by law to advise a patient whom the physician has diagnosed as having a debilitating medical condition about the risks and Study Session - Medical Marijuana Dispensaries August 7 for August 17, 2009 Page 3 benefits of the medical use of marijuana and how the patient might benefit from the medical use of marijuana. Once written documentation of a diagnosis of a debilitating medical condition is given, the patient must register with the CDPHE and obtain a registry identification card that identifies the patient authorized to engage in the medical use of marijuana and include the name of the patient's primary caregiver, if any. A primary caregiver is defined as any person, other than the patient or patient's physician, who is eighteen years of age or older and has significant responsibility for managing the well -being of a patient who has a debilitating medical condition. A primary caregiver can have multiple patients. CDPHE is responsible for verifying the information provided by the patient and physician. By law, a patient's medical use of marijuana is limited to no more than two ounces of a usable form of marijuana; and no more that six marijuana plants, with three or fewer being mature, flowering plants that are producing a usable form of marijuana. It is an affirmative defense, that quantities in excess of this amount are medically necessary to address a patient's debilitating medical condition. On July 20, CDPHE conducted a public hearing to receive public comments on five proposed rules, to include further defining the term "primary caregiver" to ensure that the primary caregiver is providing more assistance than simply providing medical marijuana to the patient and proposing that the number of patients per primary caregiver be limited to five patients. After a day of public testimony, the State Health Board rejected the effort to limit "primary caregivers" to only five patients at a time. Public Safety Concerns J There are several public safety concerns related to these businesses that call for regulations to control the location of medical marijuana dispensary businesses, as well as minimum - security requirements for these dispensaries. Separation requirements that establish distance requirements between medical marijuana dispensaries and schools, churches, daycare facilities, community centers, and alcohol or drug rehabilitation centers should be considered. These requirements minimize the potential negative affects and influences these businesses can have in areas frequented by children. Law enforcement information from California indicates that medical marijuana dispensaries have the potential to become large moneymaking operations. Because dispensaries are a repository for both cash and marijuana, criminals are now targeting them more frequently. An aggravated robbery case of a dispensary in Boulder, Colorado is one recent example. After the suspects were arrested, police learned that these criminals had targeted a dispensary in Denver, Colorado as well. The Police Department has recommended that existing businesses give careful consideration to security protocols that discourage criminal activity. Examples might include security surveillance cameras at key locations and professionally installed and maintained intrusion and panic alarms. Lastly, the legal requirements and controls for medical marijuana dispensaries are distinctly different from medical pharmacies. These concerns include medical marijuana dispensaries being tied to organized criminal gangs, large grow operations, and multi - million - dollar profit centers. Other issues include the potential of illegal sales, sales to minors, loitering, heavy vehicle and foot traffic in retail areas, and increased crime. Study Session - Medical Marijuana Dispensaries August 7 for August 17, 2009 Page 4 ALTERNATIVES CONSIDERED Communities across the State are struggling with developing requirements for these types of businesses, and the response to these types of businesses varies significantly. There appear to be three models used by communities in dealing with medical marijuana dispensaries: 1) The City of Aurora has denied attempts by citizens to open medical marijuana dispensaries based on a code provision that defines a business as being lawful. Since the possession or distribution of marijuana violates Federal law, Aurora has been successful in prohibiting medical marijuana dispensaries because of this code provision and they have not been challenged on their interpretation of this law. Other communities have also taken the approach that medical marijuana dispensaries are not lawful based on Federal law; however, they do not have a specific code provision requiring business compliance with the law like the City of Aurora. These communities have not been challenged on their position to date. The City Attorney's Office has recommended that the City not pursue this position. The City Code of Laws has no provision for businesses to be lawful, and the City has other alternatives for businesses that pose some risk of harm. 2) Commerce City has recently proposed an ordinance provision that amends the land development code to allow for the regulation of medical marijuana dispensaries. Commerce City's revision to their code defines a medical marijuana dispensary, limits the location of the dispensaries, prohibits public display of advertisements and signs, limits all business related to, or the consumption of, medical marijuana to indoor use, and establishes minimum security requirements. The Town of Breckenridge is considering an ordinance similar to the Commerce City model. 3) The third model, currently used by the City of Wheat Ridge, is to require a medical marijuana dispensary to apply for a business license and to collect sales tax on all purchases of medical marijuana. Numerous communities have opted for this model, because there is minimal legal precedence for additional compliance requirements. To date, we have required a physical inspection of the proposed business by the City Sales Tax Auditor and members of the Police Department or West Metro Drug Task Force. FINANCIAL IMPACT The six (6) known dispensaries located in the City have obtained business licenses and are collecting sales tax at this point. Location sales average $12,500 a month, resulting in sales tax of $375 per month ($4,500 per year). RECOMMENDATIONS Staff is seeking direction from City Council on regulating medical marijuana dispensaries beyond the application for a business license and collection of sales tax. While State law allows for medical marijuana dispensaries, the current law and regulations do not address the public safety and community concerns that are inherent with this business model. The Police Department recommends that City Council consider an ordinance that: ❑ Defines medical marijuana dispensaries ❑ Ensures compliance with State law and regulations on medical marijuana ❑ Creates a requirement to pay all State and City tax on sales Study Session - Medical Marijuana Dispensaries August 7 for August 17, 2009 Page 5 ❑ Creates a business license application process that requires a background investigation of the owner or ownership group similar to a liquor license application ❑ Includes a review by the Police Department and Community Development to ensure the business plan is in compliance with State regulations and City ordinances ❑ Establishes requirements for the location of these dispensaries to be enforced through the business license application process ❑ Prohibits the use of alcohol on premise ❑ Prohibits on -site usage and any usage in public ❑ Regulates that medical marijuana being displayed shall be secured and not be visible to the public through glass, windows or doors ❑ On -site cultivation should only be allowed when the premises is equipped with proper ventilation system that eliminates the odor of marijuana to the public or surrounding businesses ❑ Limits the hours of operation to daytime operation ❑ Establishes guidelines for the use of advertisements and signs for these businesses ❑ Establishes minimum requirements for security at these locations. ATTACHMENTS: 1. Dispensary locations 2. CDPHE Registry Program Update 3. CDPHE FAQs 4. CDPHE Article XVIII /db Second Regular Session Sixty- seventh General Assembly STATE OF COLORADO INTRODUCED LLS NO. 10- 0353.03 Michael Dohr SENATE BILL I0-109 SENATE SPONSORSHIP Romer and Spence, Boyd, Bacon, Hodge, Hudak, Johnston, Tapia, Tochtrop HOUSE SPONSORSHIP Massey and McCann, Rice, Frangas, McFadyen Senate Committees House Committees Health and Human Services A BILL FOR AN ACT 101 CONCERNINGREGULATIONOF THE PHYSICLAN- PATIENTRELATIONSRTP 102 FOR MEDICAL MARIJUANA PATIENTS. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http: / /www.leg. state. co. uslbillsummaries) Under the bill, the department of public health and environment (department) will promulgate new rules related to standards for issuing registry identification cards, documentation for physicians who prescribe medical marijuana, and sanctions for physicians who violate the bill. A physician who certifies that a patient can use medical marijuana Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. ATTACHMENT 6 shall certify certain information to the department and maintain a separate record - keeping system for his or her medical marijuana patients. A physician who certifies that a patient can use medical marijuana shall not receive remuneration from or offer it to a primary caregiver, distributor, or any other provider of medical marijuana. The bill creates a medical marijuana review board (board) that will consider requests by nonveteran patients under 21 years of age who want to be registered medical marijuana patients. For a patient who is under 21 years of age to become a registered medical marijuana patient, a majority of the board must determine that the patient has a debilitating medical condition and could benefit from the use of medical marijuana. The bill adds the medical marijuana program to 111e list of statutes that involve medical records. 1 Be it enacted by the General Assembly of the State of Colorado: 2 SECTION 1. 25 -1.5 -106, Colorado Revised Statutes, is amended 3 to read: 4 25 -1.5 -106. Medical marijuana program - powers and duties 5 of department - medical review board - repeal. (1) Definitions. IN 6 ADDITION TO THE DEFINITIONS SET FORTH IN SECTION 14 (1) OF ARTICLE 1 7 XVIII OF THE STATE CONSTITUTION, AS USED IN THIS SECTION, UNLESS THE 8 CONTEXT OTHERWISE REQUIRES: 9 (a) "BONA FIDE PHYSICIAN - PATIENT RELATIONSHIP" MEANS: 10 (I) A PHYSICIAN AND A PATIENT HAVE A TREATMENT OR 11 COUNSELING RELATIONSHIP, IN THE COURSE OFWHICHTHEPHYSICIANHAS 12 COMPLETEDAFULLASSESSMENTOFTHEPATIENT 'SMEDICALHISTORYAND 13 CURRENT MEDICAL CONDITION, INCLUDING A PERSONAL PHYSICAL 14 EXAMINATION; 15 (I1) THE PHYSICIAN HAS CONSULTED WITH THE PATIENT WITH 16 RESPECT TO THE PATIENT'S DEBILITATING MEDICAL CONDITION BEFORE 17 THE PATIENT APPLIES FOR A REGISTRY IDENTIFICATION CARD; AND 18 ( III) THEPHYSICIAN PROVIDES FOLLOW- UPCARE AND TREATMENT -2- SB10 -109 1 TO THEPATIENT, INCLUDING BUTNOT LIMITED TO PATIENT EXAMINATIONS, 2 TO DETERMINE THE EFFICACY OF THE USE OF MEDICAL MARIJUANA AS A 3 TREATMENT OF THE PATIENT'S DEBILITATING MEDICAL CONDITION. 4 (b) "EXECUTIVE DIRECTOR" MEANS THE EXECUTIVE DIRECTOR OF 5 THE DEPARTMENT. 6 (C) "IN GOOD STANDING ", WITH RESPECT TO A PHYSICIAN'S 7 LICENSE, MEANS: 8 (I) THE PHYSICIAN HOLDS A DOCTOR OF MEDICIN4 OR DOCTOR OF 9 OSTEOPATHIC MEDICINE DEGREE FROM AN ACCREDITED MEDICAL SCHOOL; 10 (II) THE PHYSICIAN HOLDS A VALID, UNRESTRICTED LICENSE TO 11 PRACTICE MEDICINE IN COLORADO; AND 12 (III) THE PHYSICIAN HAS NOT HAD HIS OR HER UNITED STATES 13 DEPARTMENT OFJUSTICEFEDERALDRUGENFORCEMENTADMINISTRATION 14 CONTROLLED SUBSTANCES REGISTRATION SUSPENDED OR REVOKED AT 15 ANY TIME. JJ'' 16 (d) "MEDICAL N"JUANA PROGRAM" MEANS THE PROGRAM 17 ESTABLISHED BY SECTION 14 OF ARTICLE XVIII OF THE STATE 18 CONSTITUTION AND THIS SECTION. 19 (e) "REGISTRY IDENTIFICATION CARD" MEANS THE 20 NONTRANSFERABLE CONFIDENTIAL REGISTRY IDENTIFICATION CARD 21 ISSUED BY THE DEPARTMENT TO PATIENTS AND PRIMARY CAREGIVERS 22 PURSUANT TO THIS SECTION. 23 (+) (2) Rulemaking. The department shall, pursuant to section 14 24 of article XVIII of the state constitution, promulgate rules of 25 administration concerning the implementation of the medical marijuana 26 program established by sach section and that specifically govern the 27 following: -3- SB 10 -109 I (a) The establishment and maintenance of a confidential registry 2 of patients who have applied for and are entitled to receive a registry 3 identification card, WHICH CARD SHALL INCLUDE THE IDENTITY OF THE 4 PHYSICIAN MAKING THE CERTIFICATION OF A DEBILITATING MEDICAL 5 CONDITION. THE CONFIDENTIAL REGISTRY OF PATIENTS MAY BE USED TO 6 DETERMINE WHETHER A PHYSICIAN SHOULD BE REFERRED TO THE 7 COLORADO BOARD OF MEDICAL EXAMINERS, AS AUTHORIZED IN 8 PARAGRAPH (h) OF THIS SUBSECTION (2). 9 (b) The development by the department of an application form and 10 THE PROCESS FOR making s=h THE form available to residents of this 11 state seeking to be listed on the confidential registry of patients who are 12 entitled to receive a registry identification card; 13 (c) The verification by the department of medical information 14 concerning patients who have applied for a confidential registry 15 IDENTIFICATION card; 16 (d) THE DEVEL04MENT BY THE DEPARTMENT OF A FORM THAT 17 CONSTITUTES "WRITTEN DOCUMENTATION" AS DEFINED AND USED IN 18 SECTION 14 OF ARTICLE XVIII OF THE STATE CONSTITUTION, WHICH FORM 19 A PHYSICIAN SHALL USE WHEN MAKING A MEDICAL MARIJUANA 20 RECOMMENDATION FOR A PATIENT; 21 (0 (e) The CONDITIONS FOR issuance, and THE form, of 22 confidential THE registry identification cards ISSUED TO PATIENTS, 23 INCLUDING BUT NOT LIMITED TO STANDARDS FOR ENSURING THAT THE 24 DEPARTMENT ISSUES A REGISTRY IDENTIFICATION CARD TO A PATIENT 25 ONLY IF HE OR SHE HAS A BONA FIDE PHYSICIAN - PATIENT RELATIONSHIP 26 WITH A PHYSICIAN IN GOOD STANDING AND LICENSED TO PRACTICE 27 MEDICINE IN THE STATE OF COLORADO; -4- SB10 -109 1 (e) (f) Communications with law enforcement officials about 2 eanfidentiai registry identification cards that have been suspended where 3 WHEN a patient is no longer diagnosed as having a debilitating medical 4 condition; and 5 (f) (g) The manner in which the department may consider adding 6 debilitating medical conditions to the list of debilitating medical 7 conditions contained in section 14 of article XVIII of the state 8 constitution; AND 9 (h) SANCTIONS FOR PHYSICIANS WHO VIOLATE SECTION 14 OF 10 ARTICLE XVIII OF THE STATE CONSTITUTION, THIS SECTION, ORTHERULES 11 PROMULGATEDBYTHEEXECUTIVEDIRECTORPURSUANTTOTHISSECTION, 12 WHICH SANCTIONS SHALL INCLUDE THE REVOCATION OR SUSPENSION OF 13 A PHYSICIAN'S PRIVILEGE TO MAKE MEDICAL MARIJUANA 14 RECOMMENDATIONS; EXCEPT THAT A LICENSURE ACTION MAY NOT BE 15 TAKEN AGAINST A PHYSICIAN FOR LAWFULLY RECOMMENDING MEDICAL 16 MARIJUANA. 17 (3) Physicians. A PHYSICIAN WHO CERTIFIES A DEBILITATING 18 MEDICAL CONDITION FOR AN APPLICANT TO THE MEDICAL MARIJUANA 19 PROGRAM SHALL COMPLY WITH ALL OF THE FOLLOWING REQUIREMENTS: 20 (a) THE PHYSICIAN SHALL CERTIFY TO THE DEPARTMENT THAT A 21 PATIENTHAS ADEBILITATINGMEDICALCONDITIONAND THAT THEPATIENT 22 MAY BENEFIT FROM THE USE OF MEDICAL MARIJUANA ONLY IF THE 23 PHYSICIAN HAS ABONAFIDE PHYSICIAN-PATIENTRELATIONSHIPWITH THE 24 PATIENT APPLYING FOR THE MEDICAL MARIJUANA PROGRAM. 25 (b) THEPHYSICIANSHALLMAINTAINASEPARATERECORD- KEEPING 26 SYSTEMFORALLPATIENTSFORWHOMTHEPHYSICIANHASRECOMMENDED 27 THE MEDICAL USE OF MARIJUANA, AND, PURSUANT TO AN INVESTIGATION -5- SB10 -109 I INITIATED PURSUANT TO SECTION 12 -36 -118, C.R.S., THE PHYSICIAN 2 SHALL PRODUCE SUCH MEDICAL RECORDS TO THE COLORADO STATE 3 BOARD OF MEDICAL EXAMINERS AFTER REDACTING ANY PATIENT OR 4 PRIMARY CAREGIVER IDENTIFYING INFORMATION. 5 (c) A PHYSICIAN SHALL NOT: 6 (I) ACCEPT, SOLICIT, OR OFFER ANY FORM OF PECUNIARY 7 REMUNERATION FROM A PRIMARY CAREGIVER, DISTRIBUTOR, OR ANY 8 OTHER PROVIDER OF MEDICAL MARIJUANA; 9 (II) OFFER A DISCOUNT OR ANY OTHER THING OF VALUE TO A 10 PATIENT WHO USES OR AGREES TO USE A PARTICULAR PRIMARY 11 CAREGIVER, DISTRIBUTOR, OR OTHER PROVIDER OF MEDICAL MARIJUANA 12 TO PROCURE MEDICAL MARIJUANA; 13 (III) EXAMINE A PATIENT FOR PURPOSES OF DIAGNOSING A 14 DEBILITATING MEDICAL CONDITION AT A LOCATION WHERE MEDICAL 15 MARIJUANA IS SOLD OR DISTRIBUTED; OR 16 (IV) HOLD AN FkONOMIC INTEREST IN AN ENTERPRISE THAT 17 PROVIDES OR DISTRIBUTES MEDICAL MARIJUANA IF THE PHYSICIAN 18 CERTIFIES THE DEBILITATING MEDICAL CONDITION OF A PATIENT FOR 19 PARTICIPATION IN THE MEDICAL MARIJUANA PROGRAM. 20 (4) Medical marijuana review board. (a) THERE is HEREBY 21 CREATED IN THE DEPARTMENT THE MEDICAL MARIJUANA REVIEW BOARD 22 REFERRED TO IN THIS SECTION AS THE "BOARD ". 23 (b) THE BOARD SHALL EXERCISE ITS POWERS AND PERFORM ITS 24 DUTIES AND FUNCTIONS UNDER THE DEPARTMENT AS IF THE SAME WERE 25 TRANSFERRED TO THE DEPARTMENT BY A TYPE 2 TRANSFER AS DEFINED 26 IN THE "ADMINISTRATIVE ORGANIZATION ACT OF 1968 ARTICLE 1 OF 27 TITLE 24, C.R.S. 6- SB10 -109 I (c) THE BOARD SHALL CONSIST OF SEVEN MEMBERS, FOUR OF 2 WHOM SHALLBE REGISTERED PRIMARY CAREGIVERS AND THREE OF WHOM 3 SHALL BE PHYSICIANS WHO MAKE MEDICAL MARIJUANA 4 RECOMMENDATIONS FOR PATIENTS. THE GOVERNOR SHALL APPOINT THE 5 MEMBERS OF THE BOARD. 6 (d) EACH MEMBER OF THE BOARD SHALL SERVE AT THE PLEASURE 7 OF THE GOVERNOR. EACH MEMBER OF THE BOARD SHALL SERVE A 8 FOUR -YEAR TERM; EXCEPT THAT THE PRIMARY CAREGIVER MEMBERS 9 INITIALLY APPOINTED SHALL SERVE TWO - YEARTERMS AND THE PHYSICIAN 10 MEMBERS INITIALLY APPOINTED SHALL SERVE ONE -YEAR TERMS. I 1 (e) THE BOARD SHALL REVIEW REQUESTS BY PATIENTS UNDER 12 TWENTY -ONE YEARS OF AGE WHO ARE NOT VETERANS OF MILITARY 13 SERVICE AND WHO ARE SEEKING TO BE PLACED ON THE STATE'S 14 CONFIDENTIAL REGISTRY FOR THE USE OF MEDICAL MARIJUANA. THE 15 BOARD SHALLCONDUCTTHEREVIEWWITHINTHIRTYDAYSAFTERRECEIPT 16 OF THE REQUEST. A MAJORITY OF THE BOARD SHALL AGREE THAT A 17 PATIENT SUFFERS FROM A DEBILITATING MEDICAL CONDITION AND THAT 18 THE PATIENT MIGHT BENEFIT FROM THE MEDICAL USE OF MARIJUANA 19 BEFORE THE PATIENT MAY BE PLACED ON THE STATE'S CONFIDENTIAL 20 REGISTRY FOR THE USE OF MEDICAL MARIJUANA. 21 (f) (1) THIS SUBSECTION (4) IS REPEALED, EFFECTIVE JULY 1, 2020. 22 (II) PRIOR TO SAID REPEAL, THE BOARD SHALL BE REVIEWED AS 23 PROVIDED FOR IN SECTION 2 -3 -1203, C.R.S. 24 (2) (5) Fees. The department may collect fees from patients who, 25 pursuant to section 14 of article XVIII of the state constitution, apply to 26 the medical marijuana program established by smeh seetio for a 27 marijuana registry identification CARD for the purpose of offsetting the -7- SB10 -109 I department's direct and indirect costs of administering the program. The 2 amount of smell THE fees shall be set by rule of the state board of health 3 EXECUTIVE DIRECTOR. All fees collected by the department through the 4 medical marijuana program shall be transferred to the state treasurer who 5 shall credit the same to the medical marijuana program cash fund, which 6 fund is hereby created. 7 (3) (6) Cash fund. (a) The medical marijuana program cash fund 8 shall be subject to annual appropriation by the general assembly to the 9 department for the purpose of establishing, operating, and maintaining the 10 medical marijuana program. established by section 14 of article �effif o 11 the st ate constitat All moneys credited to the medical marijuana 12 program cash fund and all interest derived from the deposit of such 13 moneys that are not expended during the fiscal year shall be retained in 14 the fund for future use and shall not be credited or transferred to the 15 general fund or any other fund. 16 (b) Notwithstanding any provision of paragraph (a) of this 17 subsection (3) (6) to the contrary, on April 20, 2009, the state treasurer 18 shall deduct two hundred fifty-eight thousand seven hundred thirty-five 19 dollars from the medical marijuana program cash fund and transfer such 20 sum to the general fund. 21 SECTION 2. 2 -3 -1203 (3), Colorado Revised Statutes, is 22 amended BY THE ADDITION OF A NEW PARAGRAPH to read: 23 2 -3 -1203. Sunset review of advisory committees. (3) The 24 following dates are the dates for which the statutory authorization for the 25 designated advisory committees is scheduled for repeal: 26 (gg) J ULY 1, 2020: THE MEDICAL MARIJUANA REVIEW BOARD 27 CREATED IN SECTION 25 -1.5 -106 (4), C.R.S. -8- SB10 -109 I SECTION 3. 24 -1 -119, Colorado Revised Statutes, is amended 2 BY THE ADDITION OF A NEW SUBSECTION to read: 3 24 -1 -119. Department of public health and environment - 4 creation. (12) THE POWERS, DUTIES, AND FUNCTIONS OF THE MEDICAL 5 MARIJUANA REVIEW BOARD, CREATED IN SECTION 25 -1.5 -106 (4), C.R.S., 6 ARE TRANSFERRED BY A TYPE 2 TRANSFER TO THE DEPARTMENT OF PUBLIC 7 HEALTH AND ENVIRONMENT. 8 SECTION 4. 25 -1 -1202 (1), Colorado Reyi$ed Statutes, is 9 amended BY THE ADDITION OF A NEW PARAGRAPH to read: 10 25 -1 -1202. Index of statutory sections regarding medical 11 record confidentiality and health information. (1) Statutory 12 provisions concerning policies, procedures, and references to the release, 13 sharing, and use of medical records and health information include the 14 following: 15 (VV.5) SECTION 25 -1.5 -106, CONCERNING THE MEDICAL 16 MARIJUANA PROGRAM; j 17 SECTION 5. Safety clause. The general assembly hereby finds, 18 determines, and declares that this act is necessary for the immediate 19 preservation of the public peace, health, and safety. -9- SB10 -109 �p A l� I J . Uv v A n ICI CY III F YI' s _ rij S 15 IA City of Wheatdge COMMUNITY DEVELOPMENT Memorandum TO: Ken Johnstone FROM: Adam Tietz DATE: January 26, 2010 SUBJECT: Medical marijuana maps Attached is a series of four maps (two sets of two) for each buffer distance of 500 feet and 1,000 feet that was identified by the attorney's office as possible buffer distances from schools, daycares, and drug and alcohol centers. Each map conveys the same information that the areas lying outside the rings are the areas that are eligible to accept business licenses for medical marijuana dispensaries. One set of maps for each buffer distance indicates the land use they are related while the other set of maps indicates no specific land use but rather shows the buffers from all the land uses as one large buffer. 3rwwo >>oswo 3uw6 3rr66 3ix60 3i >sw0 8 -- Streets PRb in Drugs and Alcohol Center Buffer 52ND k Pp PID 'PID PID - R-3 _ A tI 9S o i r' 6 ¢ PID/ O� Drug and Alcohol Centers -- Buffer Schools u r 491H _50TH m — -- DPRD 78 z XL ¢I — A 1 �I� PID ,�Iflt - �� 2 A M," . 0 RBI Schools 1 � 4 /. _ �� ptD PCD 1 W P16 =' w �. PID IL - 170 EBr � L � �` R 3 ir: i 48TH ,_ \ � � 1. ___- .. \� �:i�� = -= —' ^-' 9 - . 170 FRONTAGE ' Q'48TH _ „_�I /,_. _ _. I. 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The user of this information shall indemnify and from - E� I a 1 ¢ L -� , 1 l 26TH ¢ 26TH wl 26TH _ II 1 J i _.� °S o y t Ridge any and all hld free the Cit of Whea liabilities, damages l and causes action that 8 - __ s i result as a consequence nce of of his reliance on information result a - - provided herein. Medical Marijuana Zone Districts L 500 Foot Buffer 310SWO 311ww 31166 3+x60 31863 DATE: 1/27/2010 310]'AO J1050Ja 311 WUJ 311 `A:V 31]30.33 312`A $ 8 rypp\\ f 1\b JI 52ND C=7 R \DG6 R -2 R3 Streets P THO ,PID PID ' 11 50TH 5oi -^ Ee al 0 r �C RD ps xI P ID � - od Complete Buffer _ A -1��qg �I '� �� Q� R 2 z a ai �,i PCD PI Drug and Alcohol Centers $ o PID = 17o E � !�D �, 48TH MIS / _ I 48TH -t _ _I70FRONTAGE `�i -' I{��__ 1 1 1 iI47TH � — .�, ,- t _J �_ ('47 1�i 1 47TH =--2 Y47TH JI I �i I Hip - F, — _ I. 46TH h .� \ ��. ��) II m� m of 3 i ¢f I I�RD r 2 I� �� /�0. / -� 2 7TH �r i� -_ F� 46TH 'IQ ,� rn = '�� R�u J P�ZD,I _ SChOOIS Daycares _ - �I IRa2 I li 1 46TH �� =T .�! 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This information a available to assist in identifying general areas of concern only. information should only be __ 29TH �' -� Y GN J 11 �' 1 i w �� \\-\ 5O� Z I - 28TH li w i , f U Z f k � - - 27_T w The com uteriled provided P P Y re lied upon with corroboration of the methods, assumptions, and results by a qualified independent The this information shall indemnify and Y I J ?O 27TH 2 it i gil-� 'I_ WI YY '= - L' a source. user of hold free the City of Wheat Ridge from any and all ° g ( — p 1 a O .�l 26TH 1 �� I( A T __ 28TH__ =II 26TH C) 26TH_ 6 liabilities, damages, lawsuits, and causes of action that g _ - $ result as a consequence of his reliance on information provided herein. Me Marijuana Zone Districts 1,000 Foot buffer 3100000 31l 3110000 31150°0 3120000 3125030 DATE: 127/2010 H O N n i O 3 tt 0 n m m H H m 0 m Y O H n a r x r b F z 0 r v m H bl m m O m R H M J � 0 m o 0 m y n o v r 1 n n 0 a b 01 X m 5 m " o n m o � n � o m a i a m n � n n n 3 i £ £ 0 0 a m m w � o a b o b u�i b arym £ n 0 0 o E M M T m w a - m o r o m o n 7 m C O N H r m m 0 Z2 n q 0 A Z Z N b n H m rt v a c z n n r b n X X O M m O � O r ZZZ M X F K K b m O m a m N � I/ O W N tT N � O O 0 O N Z N 0 A m n C �G N m O n 3 0 N a m N W -° 030 d o N 0 � . N N m 0 o N O N N m N NM d 0 4 O CL o m „ m m A o N o � O r N N d 1 v d m^ o N O NW m� A� ; o gJ N D Z r Z H 0 a F O m O F p H m n O N E x v H N z v O O M O H O rt m <� o O H m 0 � N O O (u N O 9 I N N A a a 0 m o d 0 Z N p q O X � b N 0 O p O n n o r . n •^< O 3 A 0 N M m Q X W N 9 � w p N K � z o z � 7 t rt o_ w ry m W c N N N y C � M m O � 3 0 a � m y u W O W 0 o D o n o N T m o m m ° O a � 6 y N m m O � S O O y N a R O N A O N z n � o m n n O o m N ic m N T M AN D Z r z City of Wheat Ridge 01/22110 09:16 Page 1 of 2 st428_pg /Job No: 12105 Area/Tax/Business Type Summary USER: KFRANKLIN MMJ - 6 year Tax Paid Totals by Transaction Date from: 2004 to 2010 - Only Business Type Codes: 5700,5701,5702 month 1 2004 12005 12006 12007 1 12009 12010 January 0.00 0.00 0.00 0.00 0.00 0.00 792.51 February 0.00 0.00 0.00 0.00 0.00 0.00 0.00 March 0.00 0.00 0.00 0.00 0.00 0.00 0.00 April 0.00 0.00 0.00 0.00 0.00 0.00 0.00 May 0.00 0.00 0.00 0.00 0.00 0.00 0.00 June 0.00 0.00 0.00 0.00 0.00 0.00 0.00 July 0.00 0.00 0.00 0.00 0.00 0.00 0.00 August 0.00 0.00 0.00 0.00 0.00 0.00 0.00 September 0.00 0.00 0.00 0.00 0.00 0.00 0.00 October 0.00 0.00 0.00 0.00 0.00 1,166.35 0.00 November 0.00 0.00 0.00 0.00 0.00 3,598.32 0.00 December 0.00 0.00 0.00 0.00 0.00 3, 0.00 Total 0.00 0.00 0.00 0.00 0.00 8,249.40 792.51 1 --7 -16 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER Council Bill No. Ordinance No. Series 2009 TITLE: AN ORDINANCE AMENDING ARTICLE 11 OF THE WHEAT RIDGE CODE OF LAWS BY ADDING A NEW ARTICLE XII CONCERNING MEDICAL MARIJUANA ESTABLISHMENTS WHEREAS, in the November 2000 general election, the voters of the State of Colorado adopted Amendment 20 to the Colorado Constitution ( "Amendment 20 ") which authorizes and limits the sale of medical marijuana for use in the treatment of debilitating medical conditions; and WHEREAS, the City Council has been made aware of a proliferation of businesses wishing to cultivate medical marijuana and /or provide it to those who qualify under state law; and WHEREAS, the City has no current land use or business regulation governing the operation of businesses or cooperati s that cultivate and /or offer medical marijuana for sale and /or distribution ("MedicAl Establishments "); and WHEREAS, the City imposed a nin ty (90) d y moratorium on the submission, acceptance, processing, and approval of II applica ' ns for City licenses and licenses relating to the operation of Medical Marijua a Est ishments to allow the City staff and the City Council to investigate the City's abi o regulate such establishments, and to develop and implement any appropriate regulations; and WHEREAS, because marijuana is a controlled substance under Colorado and federal law the use as contemplated by Amendment 20 has the potential for abuse that should be closely monitored and regulated by local authorities to the extent possible; and WHEREAS, if not closely monitored and regulated the presence of marijuana, even for the purposes legally permitted by Amendment 20, can potentially cause an increase in illegal activities within the City affecting the health, safety, order, comfort, convenience and general welfare of the residents of the City; and WHEREAS, if Medical Marijuana Establishments operating pursuant to Amendment 20 were allowed to be established and to operate without appropriate local regulation of their location, such establishments might be established in areas that would conflict with the City's comprehensive land use plan; be inconsistent with surrounding uses; or otherwise be detrimental to the public health, safety and welfare. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1 . Mor or�t C cluded. The moratorium imposed by Ordinance No. ,on September 14, 2008 sh II end fifteen days after adoption of this Ordinance on second reading. 11 is amended to by the adoption of a new Article XI to read in its entirety as Article XII. Medical Marijuana Establishments Sec. 11 -270. Authority Sec. 11 -271. Definitions Sec. 11 -272. Medical marijuana establishment license required. Sec. 11 -273. Application for license. Sec. 11 -274. Application fee. Sec. 11 -275. Standards for issuance of license. Sec. 11 -276. Authority to recommend and impose conditions on license. Sec. 11 -277. Contents of license`` Sec. 11 -278. Denial of license. Sec. 11 -279. Notice of decision. Sec. 11 -280. Appeal of denial or conditional approval of license. Sec. 11 -281. License not transferable. Sec. 11 -282. Duration of license, renewal. Sec. 11 -283. Duties of licensee. Sec. 11 -284. Hearing, suspension, revocation of license Sec. 11 -285. Operation limitations for medical marijuana clinics. Sec. 11 -286. Operation limitations for medical marijuana growers. Sec. 11 -287 Prohibited locations. Sec. 11 -288. Signage. Sec. 11 -289. Required warnings to be posted. Sec. 11 -290. Paraphernalia. Sec. 11 -291. Taxes. Sec. 11 -292. Penalties, injunctive relief. Sec. 11 -270. Authority. The City Council hereby finds, determines, and declares that it has the power to adopt this article pursuant to: (a) The Local Government Land Use Control Enabling Act, article 20 of title 29, C.R.S.; (b) Part 3 of article 23 of title 31, C.R.S. (concerning municipal zoning powers); (c) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (d) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (e) Section 31 -15 -501, C.R.S. (concerning municipal authority to regulate businesses); (f) The authority granted to home rule municipalities by article XX of the Colorado Constitution; and (g) The powers contained in the Wheat Ridge City Charter. Sec. 11 -271. Definitions. As used in this article the following words shall have the following meanings, unless the context clearly requires otherwise: Administrative hearing officer has the meaning provided in section 2 -87 of this code. Amendment 20 means the voter initiated amendment to the Colorado Constitution adopted November 7, 2000 which added Section 14 of Article 18 to the Colorado Constitution. Applicant means and includes: (1) If an individual, that person making an application for a license under this article; (2) If a partnership, the partners owning ten (10) percent or more of the partnership, or all partners if there are ten (10) or total partners in the partnership which is making application for a license under this article; (3) If a corporation, the president, vice - president, secretary, treasurer, the directors, manager and each stockholder owning ten (10) percent or more of the outstanding stock of the corporation. Application means an application for license submitted pursuant to this article. City Manager shall have the meaning provided in section 2 -26 of this Code. Good cause means and includes (1) When a licensee violates, does not meet, or fails to comply with any of the terms, conditions, or provisions of this article and any rule and regulation promulgated pursuant to this article; 3 (2) When the licensee has failed to comply with any special terms or conditions that were placed on its license at the time the license was issued, or that were placed on its license in prior disciplinary proceedings or that arose in the context of potential disciplinary proceedings; or (3) When the licensee's medical marijuana clinic has been operated in a manner that adversely affects the pubic health, welfare, or safety of the immediate neighborhood in which the medical marijuana clinic is located. Evidence to support such a finding can include: (i) a pattern of disorderly conduct as defined in section 11- 54(a)(1) of this code within or immediately adjacent to the premises of the licensee; (ii) a pattern of drug - related criminal conduct within the premises of the medical marijuana clinic, or in the immediate area surrounding the medical marijuana clinic; (iii) a pattern of criminal conduct directly related to or arising from the operation of the medical marijuana clinic; (iv) a conviction in any local, state or federal court of any employee of a licensee for the distribution or sale of marijuana. Marijuana means all parts of the plant cannabis sativa L., whether growing or not, the seeds thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or its resin. It does not include fiber produced from the stalks, oil or cake made from the seeds of the plant, or sterilized seed of the plant which is incapable of germination if these items exist apart from any other item defined as "marijuana" herein. "Marijuana" does not mean marijuana concentrate which includes hashish, tetrahydrocannabinols, or any alkaloid, salt, derivative, preparation, compound, or mixture, whether natural or synthesized, of tetrahydrocannabinols. Medical marijua chic means the use of any property or structure within the City by a primary care -gi er t cultivate, distribute, transmit, give, dispense, or otherwise provide marijuana in an anner in accordance with Amendment 20, and the implementing state statutes and administrative regulations. Medical marijuana establishment means either a medical marijuana grower or a medical marijuana clinic. s I Medical marijuana er means the use of any property or structure within the City by a primary care -gi er rimarily for the purposes of growing medical marijuana for dis ri u ion in accor ce with Amendment 20 and the implementing state statutes and administrative regulations. Patient has the meaning provided in Amendment 20, the implementing state statutes and administrative regulations. License means a license to operate a medical marijuana establishment issued by the City pursuant to this article. R1 Licensee means the person or entity to whom a license has been issued pursuant to this article. Primary care -giver has the meaning provided in Am ndment 20, the implementing state statutes and administrative regu lations. (b) In addition to the definitions provided in subsectA A of this section, the other defined terms in Amendment 20 are incorporated into this article by reference. Sec. 11 -272. Medical marijuana establishment license required. No person or entity shall operate a medical marijuana establishment within the City without a valid medical marijuana establishment license issued in accordance with this article. This requirement to obtain a medical marijuana establishment license is in addition to the requirement to obtain a business license pursuant to Article II of this chapter and any other license or permit as so required by the City. Sec. 11 -273 . Application for license. (a) A person seeking to obtain a license pursuant to this article shall file an application with the Tax and Licensing Division on a form provided by the Tax and Licensing Division. (b) An application for a license under this article shall contain the following information: 1. The applicant's name, address, telephone number and last four digits of the applicant's social security number; 2. The name, address, telephone number and last four digits of the social security number for each primary care -giver authorized to operate out of the applicant's proposed location; 3. The street address of the proposed medical marijuana establishment; 4. If the applicant is not the owner of the proposed location of the medical marijuana establishment, a notarized statement from the owner of such property authorizing the submission of the application; 5. A completed set of the applicant's fingerprints and the fingerprints of each primary care -giver authorized to operate out of the applicant's proposed location; 6. The number of patients for whom the applicant serves as primary care -giver and the number of patients for whom each primary care- 6 giver authorized to operate out of the applicant's proposed location serve as primary care - giver; 7. A business plan that contains the following items: a. A security plan that includes but is not limited to a description of the security provisions and systems to be utilized; b. Hours of operation; C. Number of employees and /or volunteers expected to be onsite; d. An external lighting plan; and e. A description of any cultivation activities including; i. Where plants will be grown; ii. The expected number of plants that will be grown on site; iii. A description of the internal lighting system; iv. A list of the fertilizers, pesticides and /or other chemicals to that will be utilized; and V. Expected water usage. 8. A statement by the applicant that the applicant and the applicant's employees understand that they may be subject to prosecution under federal law; 9. A'statement by e a that the applicant is a p mary are - giver � �1 ( C P .. (1 10. A statement by the applicant that the City accepts no legal liability in connection with the approval and subsequent operation of the medical marijuana establishment; and 11. Any additional information that the Tax and Licensing Division reasonably determines to be necessary in connection with the investigation and review of the application. Sec. 11 -274. Application Fee. An applicant shall pay to the City a non - refundable application fee when the application is filed. The purpose of the fee is to cover the administrative costs of processing the application. The amount of the application fee shall be fixed by the City Council by motion. Sec. 11 -275. Standards for issuance of license. The Tax and Licensing Division shall issue a license under this article when: (a) The application (including any required attachments and submissions) is complete and signed by the applicant; n (b) The applicant has paid the application fee and any other fees required by the code; (c) The application does not contain a material falsehood or misrepresentation; (d) The application complies with all of the requirements of this article; (e) Written approval from the City of Wheat Ridge Police Department as to: 1. The applicant's business plan; and 2. The applicant's criminal background. No written approval will be issued to an applicant whose criminal history reflects a prior conviction for a felony offense. (f) Written approval from the Community Development Department that the location requirements imposed by this article have been met. Sec. 11 -276. Authority to recommend and impose conditions on license. (a) Any City department shall have the authority to recommend reasonable terms and conditions on a license as may be necessary to protect the public health, safety, and welfare, and to obtain compliance with the requirements of this article and applicable law. (b) The Tax and Licensing Division is authorized to approve a license subject to such reasonable conditions as required by the City. (c) In the event an application is conditionally approved, the Tax and Licensing Division shall clearly set forth in writing the conditions of approval. Sec. 11 -277. Contents of license. A license shall contain the following information: (a) The name of the licensee; (b) The date of the issuance of the license; (c) The address at which the licensee is authorized to operate the medical marijuana establishment; (d) Any special conditions of approval imposed upon the license; and (e) The date of the expiration of the license. Sec. 11 -278. Denial of license. The Tax and Licensing Division shall deny an application for a license under this article when the applicant fails to meet all of the standards set forth in section 11 -275. 7 Sec. 11 -279. Notice of denial or conditional approval of license. The Tax and Licensing Division shall notify the applicant of its decision to deny or conditionally approve the application in writing within three business days of rendering the decision. Notice shall be given by mailing a copy of the decision to the applicant by regular mail, postage prepaid, at the address shown in the application. Notice shall be deemed to have been properly given upon mailing. Sec. 11 -280. Appeal of denial or conditional approval of license. (a) An applicant has the right to appeal the denial of an application or condition imposed thereon to an administrative hearing officer. (b) The applicant must file a written notice of appeal with the Tax and Licensing Division within fifteen days after the date of mailing of the denial or conditional approval of the application. (c) Upon notice from the Tax and Licensing Division that the applicant has satisfied the requirement in subsection (b), the City Manager shall appoint an administrative hearing officer. (d) The applicant shall be provided with not less than ten days' prior written notice of the appeal hearing to be held by the administrative hearing officer. (e) The burden of proof in an appeal filed under this section shall be on the applicant. (f) If the administrative hearing officer finds by a preponderance of the evidence that the decision of the Tax and Licensing Division was correct, the administrative hearing officer shall uphold that decision. If the administrative hearing officer finds by a preponderance of the evidence that the decision of the Tax and Licensing was incorrect, the administrative hearing officer shall set aside the denial and issue the license. The administrative hearing officer may impose additional conditions on the license issued (if it was previously denied) or the conditions of approval stricken or modified. (g) Any decision made by the administrative hearing officer pursuant to this section shall be a final decision and may be appealed to the district court pursuant to Rule 106(a)(4) of the Colorado Rules of Civil Procedure. The applicant's failure to timely appeal the decision is a waiver of the applicant's right to contest the denial or conditional approval of the application. Sec. 11 -281. License not transferable. A license is non - transferable and non - assignable. Any attempt to transfer or assign a license voids the license. Sec. 11 -282. Duration of license, renewal. 0 (a) Each license issued pursuant to this article shall expire on the first day of the month one year from the month of issuance, and may be renewed as provided in this section. (b) An application for the renewal of an existing license shall be made to the Tax and Licensing Division not less than forty -five days prior to the date of expiration. No application for renewal shall be accepted by the Tax and Licensing Division after the date of expiration. An administrative hearing officer may waive the forty -five days time requirement set forth' in is su se ionf n iif the applicant demonstrates adequate justification. C (c) If a renewal application has not been fileryby a licensee, the City shall send a renewal notice no less than thirty (30) days prior to the expiration of the license. (d) At the time of the filing of an application for the renewal of an existing license the applicant shall pay a renewal fee in an amount fixed by the City Council by motion. Sec. 11 -283. Duties of licensee. Each licensee shalt: (a) Post the license in a conspicuous location on the premises of the medical marijuana clinic; (b) Comply with all of the terms and conditions of the license; (b) Comply with all of the requirements of this article; (c) Comply with all other applicable City ordinances; (d) Comply with all state laws and administrative regulations pertaining to the medical use of marijuana, including, but not limited to, Amendment 20; section 18 -18- 406.3, C.R.S.; and the administrative regulations issued by the Colorado Department of Public Health and Environment found at 5 CCR 1006 -2, all as amended from time to time. (e) Comply with all applicable federal laws, rules, or regulations, other than a federal law, rule or regulation concerning the possession, sale or distribution of marijuana that conflicts with Amendment 20; and (f) Permit inspection of its records and operation by the Tax and Licensing Division for the purpose of determining the licensee's compliance with the terms and conditions of the license and the City's tax laws. Sec. 11 -284. Hearing, suspension, revocation of license. (a) A license issued pursuant to this article may be suspended or revoked by an administrative hearing officer after a hearing for the following reasons: 0 1. Fraud, misrepresentation, or a false statement of material fact contained in the license application; 2. A violation of any City, state, or federal law or regulation, other than a federal law or regulation concerning the possession, sale or distribution of marijuana that conflicts with Amendment 20; 3. A violation of any of the terms and conditions of the license; or 4. A violation of any of the provisions of this article. 5. Good cause. (b) Request for suspension or revocation, notice of hearing, burden. 1. The Wheat Ridge Police Department shall request in writing that a license issued under this article be suspended or revoked. 2. The City Manager shall appoint an administrative hearing officer to preside over the hearing on the suspension or revocation of a license. 3. The administrative hearing officer shall a. Set a date and time on which to determine whether to revoke or suspend such license. b. Notify the licensee in writing of the date and time of the hearing at least ten (10) days prior to conducting such hearing. Such notice shall be sent by regular mail postage prepaid. Notice is deemed to have been given upon mailing. C. Conduct a hearing based on the allegations provided by the Wheat Ridge Police Department. This shall be an informal hearing where no rules of evidence shall apply. The burden shall be on the Wheat Ridge Police Department to prove by a preponderance of the evidence that the licensee has violated the provisions in subsection (a) of the section. d. Provide a written decision to the licensee within a reasonable time after the conclusion of the hearing. (c) In deciding whether a license should be suspended or revoked, and in deciding what conditions to impose in the event of a suspension, if any, the administrative hearing officer shall consider: 10 I . The nature and seriousness of the violation; 2. Corrective action, if any, taken by the licensee; 3. Prior violation(s), if any, by the licensee; 4. The likelihood of recurrence; 5. All circumstances surrounding the violation; 6. Whether the violation was willful; 7. The number of previous violations by the licensee; and 8. Previous sanctions, if any, imposed against the licensee. (d) In connection with the suspension of a license, the administrative hearing officer may impose reasonable conditions thereon. (e) Any decision made by the administrative hearing officer pursuant to this section shall be a final decision and may be appealed to the district court pursuant to Rule 106(a)(4) of the Colorado Rules of Civil Procedure. The applicant's failure to timely appeal the decision is a waiver of the applicant's right to contest the decision. (f) No fee previously paid by a licensee in connection with the application shall be refunded if such license is suspended or revoked. Sec. 11 -285. Operation limitations for medical marijuana clinics. Medical marijuana clinics shall be subject to the following additional requirements: (a) No marijuana may be distributed, sold, given away, or transferred at a medical marijuana clinic except to the licensee's patients. (b) All product storage shall be indoors. Products, accessories, and associated paraphernalia shall not be visible from a public sidewalk or right of way. All products shall be in a sealed /locked cabinet except when being accessed for distribution. (c) A medi al marijuan clinic may be open Mondays through Saturdays from the hours of 8:00 am 0 8:00 pm. (d) No on -site ption of marijuana is allowed on the premises. (e) The sale or consumption of alcohol on the premises is prohibited. (f) Cultivation, growing, processing. The growing, cultivation, or processing of marijuana on or within the premises of a medical marijuana clinic: 11 I . Shall be conducted indoors in such a manner that marijuana plants at any stage of development are not visible from a public sidewalk or right -of -way; 2. Shall be prohibited unless the clinic is equipped with a proper ventilation system that filters out the odor of marijuana so that the odor is not capable of being detected by a person with a normal sense of smell at the exterior of the clinic or any adjoining business, parcel or tract of real property. (g) All medical marijuana clinics shall provide adequate security on the premises. At a minimum the security shall include: 1. Security surveillance cameras installed to monitor the main entrance along the interior and exterior of the premises and all other entrances or exits only along the interior of the premises. Security video shall be preserved for at least 72 hours by the licensee; 2. Robbery and burglary alarm systems that are professionally monitored and maintained in good working condition; 3. Exterior lighting that illuminates the exterior walls of the business during evening hours and is compliant with the City Code; and 4. A locking safe permanently affixed to the premises that is suitable for storage of the entire inventory of saleable marijuana. Sec. 11 -286. Operation limitations for medical marijuana growers. Medical marijuana growers shall be subject to the following additional requirements: (a) A medical marijuana grower may not: 1. Distribute, sell, give away, or transfer a usable form of marijuana or marijuana plants on or from its premises except to its patients. 2. Distribute sell, give away, or transfer other products, accessories, or associated paraphernalia of any kind on or from its growing premises. (b) A medical marijuana grower may be open seven days a week during the hours of 9:00 a.m. to 7:00 p.m. (c) No on -site consumption of marijuana is allowed on the premises. (d) The sale or consumption of alcohol on the premises is prohibited. 12 (e) A medical marijuana grower shall be equipped with a safe that is utilized for the purposes of storing marijuana not then being actively cultivated when the business is not open. (f) Cultivation, growing, processing. The growing, cultivation, or processing of marijuana on or within the premises of a medical marijuana grower: 1. Shall be conducted indoors in such a manner that marijuana plants at any stage of development are not visible from a public sidewalk or right -of -way; 2. Shall be prohibited unless the operation is equipped with a proper ventilation system that filters out the odor of marijuana so that the odor is not capable of being detected by a person with a normal sense of smell at the exterior of the clinic or any adjoining business, parcel or tract of real property. (g) All medical marijuana growers shall provide adequate security on the premises. At a minimum the security shall include: 1. Security surveillance cameras installed to monitor all entrances and exits of the premises. Security video shall be preserved for at least 72 hours by the licensee; 2. Robbery and burglary alarm systems that are professionally monitored and maintained in good working condition; 3. Exterior lighting that illuminates all entrances and exits of the business during evening hours and is compliant with the City Code; and 4. A locking safe permanently affixed to the premises that is suitable for storage of the entire inventory of saleable marijuana. Sec. 11 -287. Prohibited locations. (a) Except as provided in subsection e of this section, no medical marijuana establishment shall be located at a location that does not conform to the requirements of this section. (b) No medical marijuana establishment shall be located: 1. Within 500 feet of a licensed child care facility; 2. Within 500 feet of any educational institution or school, college or university, either public or private; and 13 3. Within 500 feet of any drug rehabilitation or drug treatment center. (c) The distances described in subsection (b) shall be computed by direct measurement from the nearest property line of the land used for child care, school, or halfway house purposes to the nearest portion of the building housing the medical marijuana establishment using a straight line. (d) Each medical marijuana establishment shall be operated from a permanent location. No medical marijuana establishment shall be licensee to operate from a moveable, mobile, or transitory location. (e) The suitability of a location for a medical marijuana establishment shall be determined at the time of the issuance of the first license for such establishment. The fact that changes in the neighborhood that occur after the issuance of the first license might render the site unsuitable for a medical marijuana establishment under this section shall not be grounds to suspend, revoke or refuse to renew the license for such establishment so long as the license for the establishment remains in effect. Sec. 11 -288. Signage. (a) All signage for a medical marijuana establishment shall comply with the requirements of chapter 26 of this code. (b) No licensee shall display a sign for the medical marijuana establishment that contains the word "marijuana," "cannabis," or any other word or phrase commonly understood to refer to marijuana unless such word or phrase is immediately preceded or followed by the word "medical." Sec. 11 -289. Required warnings to be posted. There shall be posted in a conspicuous location in each medical marijuana establishment a legible sign containing the following warnings: (a) A warning that the diversion of marijuana for non - medical purposes is a violation of state and federal laws; (b) A warning that the use of medical marijuana may impair a person's ability to drive a motor vehicle or operate machinery, and that it is illegal under state law to drive a motor vehicle or to operate machinery when under the influence of or impaired by marijuana; and (c) A warning that loitering in or around the medical marijuana establishment is prohibited by state law. (d) A warning that possession and distribution of marijuana is a violation of federal law. Sec. 11 -290. Paraphernalia. Devices, contrivances, instruments, and paraphernalia for inhaling or otherwise consuming marijuana including, but not limited to, rolling 14 papers and related tools, water pipes, and vaporizers may lawfully be sold at a medical marijuana clinic. Such items may be sold or provided only to patients or primary care- givers. Sec. 11 -291. Taxes. Each licensee shall collect and remit sales tax on all medical marijuana, paraphernalia, and other tangible personal property sold by the licensee at the medical marijuana establishment according to the provisions of Code chapter 22 and any regulations issued pursuant to it. Sec. 11 -292. Penalties, injunctive relief. (a) It is a misdemeanor offense for any person to violate any provision of this article. Any person convicted of having violated any provision of this article shall be punished as set forth in section 1 -5 of this code. (b) The operation of a medical marijuana establishment without a valid license issued pursuant to this article may be enjoined by the City in an action brought in a court of competent jurisdiction. Section 3 . Section 26 -123 of the Code, entitled Definitions, is hereby amended by the addition of the following terms: Medical marijuana clinic has the meaning provided in Article XI of Chapter 11 of this code. Medical marijuana grower has the meaning provided in Article XI of Chapter 11 of this code. Section 4 . The Table of Uses for Commercial and Industrial Districts provided for in Section 26 -204 of the Code is hereby amended as follows: Uses Notes NC RC C -1 C -2 1 Medical and dental Pharmacies and P P P P P offices, clinics or optical stores laboratories, excluding are accessory substance abuse use clinics MEDICAL P P P MARIJUANA CLINICS MEDICAL P MARIJUANA GROWERS Mini - warehouses for P P inside storage 15 Section 5 . P olice Power Finding The City Council hereby finds, determines, and declares that this Ordinance is necessary and proper to provide for the safety, preserve the health, promote the prosperity, and improve the order, comfort and convenience of the City of Wheat Ridge and the inhabitants thereof. Section 6 . Authority The City Council hereby finds, determines and declares that it has the power to adopt this Ordinance pursuant to: (i) the Local Government Land Use Control Enabling Act, Article 20 of Title 29, C.R.S.; (ii) Part 3 of Article 23 of Title 31, C.R.S. (concerning municipal zoning powers); (iii) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (iv) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (v) Section 31 -15 -501 (concerning municipal power to regulate businesses); (vi) the authority granted to home rule municipalities by Article XX of the Colorado Constitution; and (vii) the powers contained in the City of Wheat Ridge, Colorado Home Rule Charter (the "Charter "). Section 7 Severability, Conflicting Ordinances Repealed If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 8 . Effective Date This Ordinance shall take effect fifteen (15) days after final publication, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of _ to on this day of 2009, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge, and Public Hearing and consideration on final passage set for , 2009 at 7:00 p.m., in the Council Chambers, 71000 West 29 Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of to , this day of 1 2009. SIGNED by the Mayor on this day of 2009. Jerry DiTullio, Mayor ATTEST: Michael Snow, City Clerk 16 First Publication: Second Publication: Wheat Ridge Transcript Effective Date: Approved as to Form Gerald E. Dahl, City Attorney 17 Wheat Ridge, CO - Official Website - Special Licensing of Page 1 of 1 s a 15 1', f i. Aroans mani 1.4pnne elrss ±.�'. search our site you are here. iV T, ue:anm�m nnn m,traz vxservce :>rax e.ic_i nq rce,z ng>svecal Licensing t Business Licensor " Spe Licensing 9 t �r 5 News Rack Licensing • Massage Therapy Licensing Non -Profit Licensing • As of July 1, 2008, the State of Colorado regulates massage licensing as a profession. Under the provisions of Colorado Revised Statutes 1?_35,5, the City Is responsible for enforcement of State Special Licensing • requirements, but may not impose additional regulations. CturenIT en Emergry a _ -•,� A City business lice is still required for any massage therapist who Is not a massage employee of '4 someone else at the location of practice. The cost is $5 to apply and $20 annually. Contact . us with any questions. Medicinal Marijuana Dispensaries MORATORIUM EXTENDED TO MARCH 13, 2010 On November 23rd, the City Council amended Ordinance 1453 to extend the moratorium on the acceptance of applications for all medicinal marijuana businesses to 180 days. NO APPLICATIONS WILL BE ACCEPTED DURING THIS TIME AND ALL APPLICATIONS IN PROCESS WILL BE HELD THROUGH THE MORATORIUM. See the City . Clerk's. page for a link to the ordinance and minutes of the meeting The City Cosine lipage provides councilmembers' contact information. Please note: as medicinal marijuana is not on the Federal schedule two formulary of controlled pharmacological substances, it is not subject to the exemption for prescription medications; therefore all sales of products are subject to the sales tax even if not licensed. Operating any business without a license may be subject to fines as described in Chapters 11 and 22. Please see the Business Lic__ n a sing main page or call (303) 235 -2825 for more Information. Temporary Sales License Anyone wishing to make sales on a temporary basis must obtain a Temporary Business License. If you plan to sell on private property from a tent, stand, table, or other location, the nature of the temporary license is classified as a peddler's license. This will require written property owner permission, a Land Use Permit from Zoning, and deposits for both tax and site clean -up. %HELP CE N T E R, �. � If you plan to make door -to -door or street-to-street sales, the nature of the temporary license will be a r ' SERVICE REQUEST solicitor's license and only a tax deposit is required. The Apphcanon_P_aska9e contains . more information and forms. CAREER cPPORTUNITIES This licensing package is also needed by non - profit organizations wishing to conduct a non - recurring x s - fundraising event. BIDS a& PROPOSALS j Contact o NOTIFY' ME i For more information, call us at (303) 235-2820 , City of Wheat Ridge City Hall • 9500 W. 29th Ave. • Wheat Ridge, CO 80033 • (303) 234 -5900 1 municipal accessibility site map • disclaimer powered by CivicPlus copyright http:// www. ei. wheatridge.co.us /index.aspx ?NID =163 12/4/2009 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER LANGWORTHY Council Bill No. 31 Ordinance No. 1457 Series 2009 TITLE: AN ORDINANCE EXTENDING THE MORATORIUM ENACTED BY SECTION 2 OF ORDINANCE 1453, SERIES 2009 ON THE SUBMISSION, ACCEPTANCE, PROCESSING, AND APPROVAL OF ANY APPLICATION FOR A CITY OF WHEAT RIDGE PERMIT OR LICENSE RELATED TO THE OPERATION OF A BUSINESS OR COOPERATIVE THAT SELLS OR CULTIVATES MEDICAL MARIJUANA PURSUANT TO THE AUTHORITY GRANTED BY ARTICLE XVIII, SECTION 14 OF THE COLORADO CONSTITUTION WHEREAS, on September 14, 2009 City Council for the City of Wheat Ridge, Colorado ( "the Council') adopted Ordinance 1453, Series 2009, which Ordinance enacted a ninety (90) day moratorium on the submission, acceptance, processing, and approval of all applications for City permits and licenses relating to the operation of businesses or cooperatives that sell or cultivate marijuana in accordance with Article XVIII, Section 14 of the Colorado Constitution ( "Medical Marijuana Dispensaries "); and WHEREAS, the moratorium will expire on December 13, 2009; and WHEREAS, one purpose of the moratorium was to provide the City staff and City Council with sufficient time to investigate, develop, and if appropriate, adopt and implement regulations with respect to Medical Marijuana Dispensaries; and WHEREAS, City Council has been made aware that state officials are considering how to appropriately regulate or limit the operation of Medical Marijuana Dispensaries on a state -wide basis; and WHEREAS, such regulation will likely impact any regulations adopted by the City concerning Medical Marijuana Dispensaries; and WHEREAS, extending the moratorium enacted by Ordinance 1453 for an additional ninety (90) days from its original expiration will allow City staff and City Council additional time to investigate the City's ability to regulate Medical Marijuana Dispensaries, and to develop and implement any appropriate regulations consistent with state law; and WHEREAS, proprietors of Medical Marijuana Dispensaries will not be unduly prejudiced by the imposition of such moratorium. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE COLORADO: Section 1. Findings and Intent The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the City Council of the City of Wheat Ridge. Section 2. Upon the adoption of this Ordinance, the moratorium imposed in Section 2 of Ordinance 1453, Series 2009 shall be extended ninety (90) days from its original expiration, to expire on March 13, 2010 The City staff is directed to continue refusing to accept for filing, and not to process or review, any new applications for Medical Marijuana Dispensaries during the moratorium period. Section 3. Authority. The City Council hereby finds, determines and declares that it has the power to adopt this Ordinance pursuant to: (i) the Local Government Land Use Control Enabling Act, Article 20 of Title 29, C.R.S.; (ii) Part 3 of Article 23 of Title 31, C.R.S. (concerning municipal zoning powers); (iii) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (iv) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (v) Section 31 -15 -501, C.R.S. (concerning municipal power to regulate businesses); (vi) the authority granted to home rule municipalities by Article XX of the Colorado Constitution; and (vii) the powers contained in the City of Wheat Ridge, Colorado Home Rule Charter (the "Charter "). Section 4. Safety Clause The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Wheat Ridge, that it is promulgated for the health, safety, and welfare of the public and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be attained. Section 5. Severability: Conflicting Ordinances Repealed If any section, subsection or clause of this ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances, parts of ordinances or codes adopted thereby in conflict with the provisions of this ordinance or the code or ordinance adopted hereby are hereby repealed. Section 6. Effective Date This Ordinance shall take effect fifteen (15) days after final publication, as provided in Section 5.11 of the Charter. Section 7. INTRODUCED, READ, AND ADOPTED on first reading by a vote of 7 -1 on this 26 day of October, 2009, ordered published in a newspaper of general circulation in the City of Wheat Ridge and Public Hearing and consideration on final passage set for Monday, November 23, 2009, at 7:00 o'clock p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of 7 to 1 , this 23` day of November, 2009. SIGNED by the Mayor on this 24th day of Nov ember 2009. Jerry iT' Ilio, Mayor ATT ST: Michael Snow, City Clerk First Publication: October 29, 2009 Second Publication: November 26, 2009 The Denver Post www.ci.wheatridge.co.us Effective Date: December 11, 2009 CITY COUNCIL MINUTES: November 23, 2009 Page -2- PUBLIC HEARINGS AND ORDINANCES ON SECOND READING 1. Council Bill 31 -2009 — extending the Moratorium enacted by Section 2 of Ordinance 1453, Series 2009, on the submission, acceptance, processing, and approval of any application for a City of Wheat Ridge Permit or License related to the operation of a business or cooperative that sells or cultivates Medical Marijuana pursuant to the authority granted by Article XVIII, Section 14 of the Colorado Constitution. Mayor DiTullio opened the public hearing. Council Bill 31 -2009 was introduced by Council Member Langworthy. City Clerk Michael Snow assigned Ordinance No. 1457. Joseph Jorbin runs a Medical Marijuana dispensary in the City of Wheat Ridge and has plans to open more. He urged the Council not to pass this Ordinance extending the moratorium. It merely prevents him and others from opening another legitimate tax revenue generating business in the City of Wheat Ridge. Mayor DiTullio closed the public hearing. Motion by Mrs. Langworthy to approve Council Bill 31 -2009 (Ordinance No. 1457) on second reading, and that it take effect 15 days after final publication; seconded by Mr. Reinhart and Mrs. Sang; carried 7 -1 with Mr. DeMott voting No. DECISIONS, RESOLUTIONS, AND MOTIONS 2. Resolution 57 -2009 — approving the extension of the Metropolitan DUI Task Force Intergovernmental Agreement through the remainder of 2009 and delegating the Authority to execute such amendments and extensions of term to the City Manager. Resolution 57 -2009 was introduced by Mrs. Langworthy. Motion by Mrs. Langworthy to approve Resolution 57 -2009; seconded by Mr. Reinhart and Mrs. Sang; carried 8 -0. 3. Election of Mayor pro tem. City Clerk Michael Snow announced the nomination by paper ballot of the following Council Members as candidates for Mayor Pro Tem: Davis Reinhart, Wanda Sang and Mike Stites. Motion by Mr. Stites to elect Council Member Wanda Sang as Mayor Pro Tem, effective immediately, term to expire upon election of her successor; seconded by Mr. DeMott; failed 5 -3 with Council Members Stites, DeMott and Sang voting Yes. Motion by Ms. Berry to elect Council Member Davis Reinhart as Mayor Pro Tem, effective immediately, term to expire upon election of his successor; seconded by Mrs. Adams; carried 6 -2 with Council Members Stites and Sang voting No. City of ITEM NO: —L DATE: 1 hrt:ei - 3fr 2009 NdYl+n btr �3 REQUEST FOR CITY COUNCIL ACTION EK4AG SKV pa y 14 V r ' YY a ° tC� °`"' ��in�r ryO FVmeri�� !NeatP.i � ° /,vresa TITLE: COUNCIL SILL NO. 31 -2009 - AN ORDINANCE EXTENDING THE MORATORIUM ENACTED BY SECTION 2 OF ORDINANCE 1453, SERIES 2009 ON THE SUBMISSION ACCEPTANCE, PROCESSING, AND APPROVAL OF ANY APPLICATION FOR A CITY OF WHEAT RIDGE PERMIT OR LICENSE RELATED TO THE OPERA'ITION OF A BUSINESS OR COOPERATIVE THAT SELLS OR CULTIVATES MEDICAL MARIJUANA PURSUANT TO THE AUTHORITY GRANTED BY ARTICLE XVIII, SECTION 14 OF THE COLORADO CONSTITUTION ❑ PUBLIC IIEARTNG ❑ BIDS/MOTIONS ❑ RESOLUTIONS r U SI_RIT)IClnt„ ❑ ORDINANCES FOR I't READING 10!26!2009 ORDINANCES FOR 2 READING l /2312009 ❑ VFC City Manama ' ISSUE: On September 14, 2009, Council adopted Ordinance 1453, Series 2009, an emergency ordinance which enacted a ninety (90) day moratorium on the issuance or consideration of any City license or permit concerning medical marijuana dispensaries. That moratorium will expire on December 13, 2009. Since Council enacted the moratorium, there has been significant discussion concerning whether the state will adopt regulations concerning medical marijuana dispensaries. Such state provisions may lit the City's ability to regulate those operations_ The attached Ordinance will extend the moratorium for an additional ninety (90) days until March 13, 2010. This will allow the necessary additional time to consider the states position and prepare appropriate regulation for consideration by Council consistent with state law. Council Action Form November 23, 2009 Page 2 PRIOR ACTION: Council adopted Ordinance 1453, Series 2009, on September 14, 2009 as an emergency ordinance. Ordinance 1453 enacted a ninety (90) day moratorium on the issuance or consideration of any City license or permit concerning medical marijuana dispensaries. An extension of Ordinance 1453 has not previously been considered. FINANCIAL IMPACT: The City will not receive permit or license fees for any new applications concerning medical marijuana dispensaries during the moratorium period. IIACKGROIJNB: In November 2000, the people of the State of Colorado adopted Amendment 20 which amended the Colorado Constitution by adding Article XVIII Section 14 thereto. Amendment 20 exempts certain persons from criminal prosecution for activities involving, but not limited to, the possession, cultivation and acquisition of marijuana for medical purposes. Although protected from criminal prosecution under state law, Amendment 20 does not protect individuals from criminal prosecution under federal law. In the spring of 2009, United States Attorney General Brie Holder issued a statement at a press conference that his office would not seek to prosecute individuals who were acquiring marijuana for medical purposes if exempted under state law. Since Mr. holder made that statement, the State of Colorado has seen a dramatic rise in the member of establishments operating as "medical marijuana dispensaries ". Because Amendment 20 does not discuss "medical marijuana dispensaries" and the state has not adopted any regulation or statute concerning those operations, there is confusion statewide as to state and municipal authority to regulate them. As part of Ordinance 1453, Council directed staff to begin investigating and drafting appropriate regulations for its consideration concerning medical marijuana dispensaries. Since Council adopted the moratorium, there has been significant discussion statewide concerning medical marijuana dispensaries and their legality. The Colorado Attorney General, the Governor's office, other public officials at the state and local level and other political organizations have begun discussing and possibly drafting state regulation or statutory amendments concerning medical marijuana dispensaries. Because such regulation or law may preempt or otherwise limit the City's ability to regulate those operations, City staff request that Council extend the moratorium an additional ninety (90) days. This will allow the necessary additional time to consider and prepare appropriate regulation for consideration by Council consistent with state taw. If extended, the moratorium will expire on March 13, 2010. RECOMMENDATIONS: City staff recommends adoption of this ordinance. RFCOMMENDFD MOTION. I move to approve Council Bill No. 3 -2009 on second reading, and that it take effect 15 days after final publication." Council Action Form November 23, 2009 Page 3 Or, "I move to postpone indefinitely Council Bill No_ 30 -2009 extending the moratorium for medical marijuana establishments for the following reason(s) " REPORT PREPARED BY: Gerald E. Dahl, City Attorney ATTACHMENTS: t. Council Bill No, 31 -2009 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER LANGWORTHY Council Bill No. 31 Ordinance No. Series 2009 TITLE: AN ORDINANCE EXTENDING THE MORATORIUM ENACTED BY SECTION 2 OF ORDINANCE 1453, SERIES 2009 ON THE SUBMISSION, ACCEPTANCE, PROCESSING, AND APPROVAL OF ANY APPLICATION FOR A CITY OF WHEAT RIDGE PERMIT OR LICENSE RELATED TO THE OPERATION OF A BUSINESS OR COOPERATIVE THAT SELLS OR CULTIVATES MEDICAL MARIJUANA PURSUANT TO THE AUTHORITY GRANTED BY ARTICLE XVIII, SECTION 14 OF THE COLORADO CONSTITUTION WHEREAS, on September 14, 2009 City Council for the City of Wheat Ridge, Colorado ( "the Council ") adopted Ordinance 1453, Series 2009, which Ordinance enacted a ninety (90) day moratorium on the submission, acceptance, processing, and approval of all applications for City permits and licenses relating to the operation of businesses or cooperatives that sell or cultivate marijuana in accordance with Article XVIII, Section 14 of the Colorado Constitution ( "Medical Marijuana Dispensaries "); and WHEREAS, the moratorium will expire on December 13, 2009; and WHEREAS, one purpose of,the moratorium was to provide the City staff and City Council with sufficient time to investigate, develop, and if appropriate, adopt and implement regulations with respect to Medical Marijuana Dispensaries; and WHEREAS, City Council has been made aware that state officials are considering how to appropriately regulate or limit the operation of Medical Marijuana Dispensaries on a state -wide basis; and WHEREAS, such regulation will likely impact any regulations adopted by the City concerning Medical Marijuana Dispensaries; and WHEREAS, extending the moratorium enacted by Ordinance 1453 for an additional ninety (90) days from its original expiration will allow City staff and City Council additional time to investigate the City's ability to regulate Medical Marijuana Dispensaries, and to develop and implement any appropriate regulations consistent with state law: and WHEREAS, proprietors of Medical Marijuana Dispensaries will not be unduly prejudiced by the imposition of such moratorium. ,ATTACHMENT Z NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE COLORADO: Section 1. Findings and Intent The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the City Council of the City of Wheat Ridge. Section 2. Extension of Moratorium on Applications For Permits and Licenses Related to Businesses That Cultivate and/or Sell Medical Mariluana Upon the adoption of this Ordinance, the moratorium imposed in Section 2 of Ordinance 1453, Series 2009 shall be extended ninety (90) days from its original expiration, to expire on March 13, 2010 The City staff is directed to continue refusing to accept for filing, and not to process or review, any new applications for Medical Marijuana Dispensaries during the moratorium period. Section 3. Authority The City Council hereby finds, determines and declares that it has the power to adopt this Ordinance pursuant to: (i) the Local Government Land Use Control Enabling Act, Article 20 of Title 29, C.R.S.; (ii) Part 3 of Article 23 of Title 31, C.R.S. (concerning municipal zoning powers); (iii) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (iv) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (v) Section 31 -15 -501, C.R.S. (concerning municipal power to regulate businesses); (vi) the authority granted to home rule municipalities by Article XX of the Colorado Constitution; and (vii) the powers contained in the City of Wheat Ridge, Colorado Home Rule Charter (the "Charter "). Section 4. Safety Clause The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Wheat Ridge, that it is promulgated for the health, safety, and welfare of the public and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be attained. Section 5. Severability: Conflicting Ordinances Repealed If any section, subsection or clause of this ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances, parts of ordinances or codes adopted thereby in conflict with the provisions of this ordinance or the code or ordinance adopted hereby are hereby repealed. Section 6. Effective Date This Ordinance shall take effect fifteen (15) days after final publication, as provided in Section 5.11 of the Charter. Section 7. INTRODUCED, READ, AND ADOPTED on first reading by a vote of 7 -1 on this 26` day of October, 2009, ordered published in a newspaper of general circulation in the City of Wheat Ridge and Public Hearing and consideration on final passage set for Monday, November 23, 2009, at 7:00 o'clock p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of to , this 23 day of November, 2009. SIGNED by the Mayor on this day of , 2009. Jerry DiTullio, Mayor ATTEST: Michael Snow, City Clerk Approved As To Form Gerald E. Dahl, City Attorney First Publication: October 29, 2009 Second Publication: Wheat Ridge Transcript www.ci,wheatridge.co.us Effective Date_ City of Wheatdge ITEM NO: DATE: October 26, 2009 REQUEST FOR CITY COUNCIL ACTION L (.,NGAC f S i SERV� C M \C VI /,,TY� ` \,BIE C. j i t �,. O� Nfn'tPy¢ /Wl�eatP 6y /Whefiw � Ryo�P�JO TITLE: COUNCIL BILL NO. 31 -2009 — AN ORDINANCE EXTENDING THE MORATORIUM ENACTED BY SECTION 2 OF ORDINANCE 1453, SERIES 2009 ON THE SUBMISSION ACCEPTANCE, PROCESSING, AND APPROVAL OF ANY APPLICATION FOR A CITY OF WHEAT RIDGE PERMIT OR LICENSE RELATED TO THE OPERATION OF A BUSINESS OR COOPERATIVE THAT SELLS OR CULTIVATES MEDICAL MARIJUANA PURSUANT TO THE AUTHORITY GRANTED BY ARTICLE XVIII, SECTION 14 OF THE COLORADO CONSTITUTION ❑ PUBLIC HEARING ❑ BIDS /MOTIONS ❑ RESOLUTIONS QUASI - JUDICIAL: ® ORDINANCES FOR 1 READING 10/26/2009 ❑ ORDINANCES FOR 2 READING 11/23/2009 ❑ YES City Att /4 &--'� e7 City Mdilager ISSUE: On September 14, 2009, Council adopted Ordinance 1453, Series 2009, an emergency ordinance which enacted a ninety (90) day moratorium on the issuance or consideration of any City license or permit concerning medical marijuana dispensaries. That moratorium will expire on December 13, 2009. Since Council enacted the moratorium, there has been significant discussion concerning whether the state will adopt regulations concerning medical marijuana dispensaries. Such state provisions may limit the City's ability to regulate those operations. The attached Ordinance will extend the moratorium for an additional ninety (90) days until March 13, 2010. This will allow the necessary additional time to consider the state's position and prepare appropriate regulation for consideration by Council consistent with state law. Council Action Form October 26, 2009 Page 2 PRIOR ACTION: Council adopted Ordinance 1453, Series 2009, on September 14, 2009 as an emergency ordinance. Ordinance 1453 enacted a ninety (90) day moratorium on the issuance or consideration of any City license or permit concerning medical marijuana dispensaries. An extension of Ordinance 1453 has not previously been considered. FINANCIAL IMPACT: The City will not receive permit or license fees for any new applications concerning medical marijuana dispensaries during the moratorium period. BACKGROUND: In November 2000, the people of the State of Colorado adopted Amendment 20 which amended the Colorado Constitution by adding Article XVIII Section 14 thereto. Amendment 20 exempts certain persons from criminal prosecution for activities involving, but not limited to, the possession, cultivation and acquisition of marijuana for medical purposes. Although protected from criminal prosecution under state law, Amendment 20 does not protect individuals from criminal prosecution under federal law. In the spring of 2009, United States Attorney General Eric Holder issued a statement at a press conference that his office would not seek to prosecute individuals who were acquiring marijuana for medical purposes if exempted under state law. Since Mr. IIolder made that statement, the State of Colorado has seen a dramatic rise in the number of establishments operating as "medical marijuana dispensaries ". Because Amendment 20 does not discuss "medical marijuana dispensaries" and the state has not adopted any regulation or statute concerning those operations, there is confusion statewide as to state and municipal authority to regulate them. As part of Ordinance 1453, Council directed staff to begin investigating and drafting appropriate regulations for its consideration concerning medical marijuana dispensaries. Since Council adopted the moratorium, there has been significant discussion statewide concerning medical marijuana dispensaries and their legality. The Colorado Attorney General, the Governor's office, other public officials at the state and local level and other political organizations have begun discussing and possibly drafting state regulation or statutory amendments concerning medical marijuana dispensaries. Because such regulation or law may preempt or otherwise limit the City's ability to regulate those operations, City staff request that Council extend the moratorium an additional ninety (90) days. This will allow the necessary additional time to consider and prepare appropriate regulation for consideration by Council consistent with state law. If extended, the moratorium will expire on March 13, 2010. RECOMMENDATIONS: City staff recommends adoption of this ordinance. RECOMMENDED MOTION: I move to approve Council Bill No. 31 -2009 on first reading, order it published, public hearing set for Monday, November 23, 2009 at 7 p.m. in City Council Chambers, and that it will take effect 15 days after final publication." Council Action Form October 26, 2009 Page 3 Or, "I move to table indefinitely Council Bill No. 30 -2009 extending the moratorium for medical marijuana establishments for the following reason(s) " REPORT PREPARED BY: Gerald E. Dahl, City Attorney ATTACHMENTS: 1. Council Bill No. 31 -2009 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER Council Bill No. 31 Ordinance No. Series 2009 TITLE: AN ORDINANCE EXTENDING THE MORATORIUM ENACTED BY SECTION 2 OF ORDINANCE 1453, SERIES 2009 ON THE SUBMISSION, ACCEPTANCE, PROCESSING, AND APPROVAL OF ANY APPLICATION FOR A CITY OF WHEAT RIDGE PERMIT OR LICENSE RELATED TO THE OPERATION OF A BUSINESS OR COOPERATIVE THAT SELLS OR CULTIVATES MEDICAL MARIJUANA PURSUANT TO THE AUTHORITY GRANTED BY ARTICLE XVIII, SECTION 14 OF THE COLORADO CONSTITUTION WHEREAS, on September 14, 2009 City Council for the City of Wheat Ridge, Colorado ( "the Council ") adopted Ordinance 1453, Series 2009, which Ordinance enacted a ninety (90) day moratorium on the submission, acceptance, processing, and approval of all applications for City permits and licenses relating to the operation of businesses or cooperatives that sell or cultivate marijuana in accordance with Article XVIII, Section 14 of the Colorado Constitution ( "Medical Marijuana Dispensaries "); and WHEREAS, the moratorium will expire on December 13, 2009; and WHEREAS, one purpose of the moratorium was to provide the City staff and City Council with sufficient time to investigate, develop, and if appropriate, adopt and implement regulations with respect to Medical Marijuana Dispensaries; and WHEREAS, City Council has been made aware that state officials are considering how to appropriately regulate or limit the operation of Medical Marijuana Dispensaries on a state -wide basis; and WHEREAS, such regulation will likely impact any regulations adopted by the City concerning Medical Marijuana Dispensaries; and WHEREAS, extending the moratorium enacted by Ordinance 1453 for an additional ninety (90) days from its original expiration will allow City staff and City Council additional time to investigate the City's ability to regulate Medical Marijuana Dispensaries, and to develop and implement any appropriate regulations consistent with state law; and WHEREAS, proprietors of Medical Marijuana Dispensaries will not be unduly prejudiced by the imposition of such moratorium. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE COLORADO: Section 1. Findings and Intent The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the City Council of the City of Wheat Ridge. Section 2. Upon the adoption of this Ordinance, the moratorium imposed in Section 2 of Ordinance 1453, Series 2009 shall be extended ninety (90) days from its original expiration, to expire on March 13, 2010 The City staff is directed to continue refusing to accept for filing, and not to process or review, any new applications for Medical Marijuana Dispensaries during the moratorium period. Section 3. Authority. The City Council hereby finds, determines and declares that it has the power to adopt this Ordinance pursuant to: (i) the Local Government Land Use Control Enabling Act, Article 20 of Title 29, C.R.S.; (ii) Part 3 of Article 23 of Title 31, C.R.S. (concerning municipal zoning powers); (iii) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (iv) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (v) Section 31 -15 -501, C.R.S. (concerning municipal power to regulate businesses); (vi) the authority granted to home rule municipalities by Article XX of the Colorado Constitution; and (vii) the powers contained in the City of Wheat Ridge, Colorado Home Rule Charter (the "Charter "). Section 4. Safety Clause The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Wheat Ridge, that it is promulgated for the health, safety, and welfare of the public and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be attained. Section 5. Severability, Conflicting Ordinances Repealed If any section, subsection or clause of this ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances, parts of ordinances or codes adopted thereby in conflict with the provisions of this ordinance or the code or ordinance adopted hereby are hereby repealed. Section 6. Effective Date This Ordinance shall take effect fifteen (15) days after final publication, as provided in Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of to on this 26` day of October, 2009, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge and Public Hearing and consideration on final passage set for November 23, 2009, at 7:00 o'clock p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of to this 23 day of November, 2009. SIGNED by the Mayor on this day of 2009. Jerry DiTullio, Mayor ATTEST: Michael Snow, City Clerk Approved As To Form Gerald E. Dahl, City Attorney First Publication: Second Publication: Wheat Ridge Transcript Effective Date: U.S;. Department of Justice Office of the Deputy Attorney General the Georg AMOiacy Gcaccd Wcslnngrat, O,C. 205_ ?G October 19, 2009 MEMORANDUM SELE TED UNITED STATES AT'T'ORNEYS FROM: David W. Og e�) Deputy Attorney General SUBJECT: Investigations and Prosecutions in States Authorizing the Medical Use of Marijuana This memorandum provides clarification and guidance to federal prosecutors in States that have enacted laws authorizing the medical use of rarijuana. 'These laws vary in their substantive provisions and in the extent of state regulatory oversight, both among the enacting States and among local jurisdictions within those States. Rather than developing different guidelines for every possible variant of state and local law, this memorandtun provides uniform guidance to focus federal investigations and prosecutions in these States on core federal enforcement priorities. The Department of Justice is committed to the enforcement of the Controlled Substances Act in all States. Congress has determined that marijuana is a dangerous drug, and the illegal distribution and sale of marijuana is a serious crime and provides a significant source of revenue to Large -scale criminal enterprises, gangs. and cartels. One timely example underscores the importance of our efforts to prosecute significant marijuana traffickers: marijuana distribution in the United States remains the single largest source of revenue for the Mexican cartels. The Department is also committed to making efficient and rational use of its limited investigative and prosecutorial resources. In general, United States Attorneys are vested with `plenary authority with regard to federal criminal matters" within their districts. USAM 9 -2.001 In exercising this authority, United States ,Attorneys are "invested by statute and delegation from the Attorney General with the broadest discretion in the exercise ofsuch authority." Id. This authority should, of course, be exercised consistent with Department priorities and guidance. The prosecution of signifirmt traffickers ofillcgal drugs, including marijuana, and the disruption of illegal drug manufacturing and trafficking networks continues to be a core priority in the Department's efforts against narcotics and dangerous drugs, and the DepartmenPs investigative and prosecutorial resources should be directed towards these objectives. As a general matter, pursuit of these priorities should not focus federal resources in your States on Memorandum for Selected United States Attorneys Page 2 Subject: Investigations and Prosecutions in States Authorizing the Medical Use of Marijuana individuals whose actions are in clear and unambiguous compliance with existing state laws providing for the medical use of marijuana. For example, prosecution of individuals with cancer or other serious illnesses who use marijuana as part of a recommended treatment regimen consistent with applicable state law, or those caregivers in clear and unambiguous compliance with existing state law who provide such individuals with marijuana, is unlikely to be an efficient use of limited federal resources. On the other hand, prosecution of commercial enterprises that unlawfully market and sell marijuana for profit continues to be an enforcement priority of the Department. To be sure, claims of compliance with state or local law may mask operations inconsistent with the terms, conditions, or purposes of those laws, and federal law enforcement should not be deterred by such assertions when otherwise pursuing the Department's core enforcement priorities. Typically when any of the following characteristics is present, the conduct will not be in clear and unambiguous compliance with applicable state law and may indicate illegal dntg trafficking activity of potential federal interest: • unlawful possession or unlawful use of 'firearms; • violence; • sales to minors; • financial and marketing activities inconsistent with the terms, conditions, or purposes of state law, including evidence of money laundering activity and/or financial gains or excessive amounts of cash inconsistent with purported compliance with state or local law; • amounts of marijuana inconsistent with purported compliance with state or local law; • illegal possession or sale of other controlled substances; or • ties to other criminal enterprises, Of course, no State can authorize violations of federal law, and the list of factors above is not intended to describe exhaustively when a federal prosecution may be warranted. Accordingly, in prosecutions under the Controlled Substances Act, federal prosecutors are not expected to charge, prove, or otherwise establish any state law violations. Indeed, this memorandum does not alter in any way the Department's authority to enforce federal law, including laws prohibiting the manufacture, production, distribution, possession, or use of marijuana on federal property. This guidance regarding resource allocation does not "legalize" marijuana or provide a legal defense to a violation of federal law, nor is it intended to create any privileges, benefits, or rights, substantive or procedural, enforceable by any individual, party or witness in any administrative, civil, or criminal matter. Nor does clear and unambiguous compliance with state law or the absence of one or all of the above factors create a legal defense to a violation of the Controlled Substances Act. Rather, this memorandum is intended solely as a guide to the exercise of investigative and prosecutorial discretion. Memorandum for Selected United States Attorneys Page 3 Subject: Investigations and Prosecutions in States Authorizing the Medical Use of Marijuana Finally, nothing herein precludes investigation or prosecution where there is a reasonable basis to believe that compliance with state law is being invoked as a pretext for the production or distribution of marijuana for purposes not authorized by state law. Nor does this guidance preclude investigation or prosecution, even when there is clear and unambiguous compliance with existing state law, in particular circumstances where investigation or prosecution otherwise serves important federal interests. Your offices should continue to review marijuana cases for prosecution on a case -by -case basis, consistent with the guidance on resource allocation and federal priorities set forth herein, the consideration of requests for federal assistance from state and local law enforcement authorities, and the Principles of Federal Prosecution. cc: All United States Attorneys Lanny A. Breuer Assistant Attorney General Criminal Division B. Todd Jones United States Attorney District of Minnesota Chair, Attorney General's Advisory Committee Michele M. Leonhart Acting Administrator Drug Enforcement Administration H. Marshall Jarrett Director Executive Office for United States Attorneys Kevin L. Perkins Assistant Director Criminal Investigative Division Federal Bureau of Investigation Full Text of Colorado Amendment 20 - Medical Use of Marijuana 2000. Page 1 of 9 National Families in Action A Guide to Drug - Related State Ballot Initiatives Home Initiatives Organiza People State_Rankincis Back to MFIA Full Text back to summary Colorado Amendment 20 Me dical Use of Marijuana 2000 Ballot Title: An amendment to the Colorado Constitution authorizing the medical use of marijuana for persons suffering from debilitating medical conditions, and, in connection therewith, establishing an affirmative defense to Colorado criminal laws for patients and their primary care - givers relating to the medical use of marijuana; establishing exceptions to Colorado criminal laws for patients and primary care - givers in lawful possession of a registry identification card for medical marijuana use and for physicians who advise patients or provide them with written documentation as to such medical marijuana use; defining "debilitating medical condition" and authorizing the state health agency to approve other medical conditions or treatments as debilitating medical conditions; requiring preservation of seized property interests that had been possessed, owned, or used in connection with a claimed medical use of marijuana and limiting forfeiture of such interests; establishing and maintaining a confidential state registry of patients receiving an identification card for the medical use of marijuana and defining eligibility for receipt of such a card and placement on the registry; restricting access to information in the registry; establishing procedures for issuance of an identification card; authorizing fees to cover administrative costs associated with the registry; specifying the form and amount of marijuana a patient may possess and restrictions on its use; setting forth additional requirements for the medical use of marijuana by patients less than eighteen years old; directing enactment of implementing legislation and criminal penalties for certain offenses; requiring the state health agency designated by the governor to make application forms available to residents of Colorado for inclusion on the registry; limiting a health insurer's liability on claims relating to the medical use of marijuana; and providing that no employer must accommodate medical use of marijuana in the workplace. Text of Proposed Constitutional Amendment: Be it Enacted by the People of the State of Colorado: AN AMENDMENT TO THE CONSTITUTION OF THE STATE OF COLORADO, AMENDING ARTICLE XVIII, ADDING A NEW SECTION TO READ: Section 14. Medical use of marijuana for persons suffering from debilitating medical conditions. (1) As used in this section, these terms are defined as follows. http: / /www.nationalfamilies.org /guide /colorado2O- full.html 10/16/2009 Full Text of Colorado Amendment 20 - Medical Use of Marijuana 2000. Page 2 of 9 (a) "Debilitating medical condition" means: (I) Cancer, glaucoma, positive status for human immunodeficiency virus, or acquired immune deficiency syndrome, or treatment for such conditions; (II) A chronic or debilitating disease or medical condition, or treatment for such conditions, which produces, for a specific patient, one or more of the following, and for which, in the professional opinion of the patient's physician, such condition or conditions reasonably may be alleviated by the medical use of marijuana: cachexia; severe pain; severe nausea; seizures, including those that are characteristic of epilepsy; or persistent muscle spasms, including those that are characteristic of multiple sclerosis; or (III) Any other medical condition, or treatment for such condition, approved by the state health agency, pursuant to its rule making authority or its approval of any petition submitted by a patient or physician as provided in this section. (b) "Medical use" means the acquisition, possession, production, use, or transportation of marijuana or paraphernalia related to the administration of such marijuana to address the symptoms or effects of a patient's debilitating medical condition, which may be authorized only after a diagnosis of the patient's debilitating medical condition by a physician or physicians, as provided by this section. (c) "Parent" means a custodial mother or father of a patient under the age of eighteen years, any person having custody of a patient under the age of eighteen years, or any person serving as a legal guardian for a patient under the age of eighteen years. (d) "Patient" means a person who has a debilitating medical condition. (e) "Physician" means a doctor of medicine who maintains, in good standing, a license to practice medicine issued by the state of Colorado. (f) "Primary care - giver" means a person, other than the patient and the patient's physician, who is eighteen years of age or older and has significant responsibility for managing the well -being of a patient who has a debilitating medical condition. (g) "Registry identification card" means that document, issued by the state health agency, which identifies a patient authorized to engage in the medical use of marijuana and such patient's primary care - giver, if any has been designated. (h) "State health agency" means that public health related entity of state government designated by the governor to establish and maintain a confidential registry of patients authorized to engage in the medical use of marijuana and enact rules to administer this program. http: / /www.nationalfamilies.org /guide /colorado20- full.html 10/16/2009 Full Text of Colorado Amendment 20 - Medical Use of Marijuana 2000. Page 3 of 9 (i) "Usable form of marijuana" means the seeds, leaves, buds, and flowers of the plant (genus) cannabis, and any mixture or preparation thereof, which are appropriate for medical use as provided in this section, but excludes the plant's stalks, stems, and roots. (j) "Written documentation" means a statement signed by a patient's physician or copies of the patient's pertinent medical records. (2) (a) Except as otherwise provided in subsections (5), (6), and (8) of this section, a patient or primary care -giver charged with a violation of the state's criminal laws related to the patient's medical use of marijuana will be deemed to have established an affirmative defense to such allegation where: (I) The patient was previously diagnosed by a physician as having a debilitating medical condition; (II) The patient was advised by his or her physician, in the context of a bona fide physician - patient relationship, that the patient might benefit from the medical use of marijuana in connection with a debilitating medical condition; and (III) The patient and his or her primary care -giver were collectively in possession of amounts of marijuana only as permitted under this section. This affirmative defense shall not exclude the assertion of any other defense where a patient or primary care -giver is charged with a violation of state law related to the patient's medical use of marijuana. (b) Effective June 1, 1999, it shall be an exception from the state's criminal laws for any patient or primary care -giver in lawful possession of a registry identification card to engage or assist in the medical use of marijuana, except as otherwise provided in subsections (5) and (8) of this section. (c) It shall be an exception from the state's criminal laws for any physician to: (I) Advise a patient whom the physician has diagnosed as having a debilitating medical condition, about the risks and benefits of medical use of marijuana or that he or she might benefit from the medical use of marijuana, provided that such advice is based upon the physician's contemporaneous assessment of the patient's medical history and current medical condition and a bona fide physician - patient relationship; or (II) Provide a patient with written documentation, based upon the physician's contemporaneous assessment of the patient's medical history and current medical condition and a bona fide physician - patient relationship, stating that the patient has a debilitating medical condition and might benefit from the medical use of marijuana. No physician shall be denied any rights or privileges for the acts authorized by this subsection. http: / /www.nationalfamilies.org /guide /colorado2O- full.html 10/16/2009 Full Text of Colorado Amendment 20 - Medical Use of Marijuana 2000. Page 4 of 9 (d) Notwithstanding the foregoing provisions, no person, including a patient or primary care - giver, shall be entitled to the protection of this section for his or her acquisition, possession, manufacture, production, use, sale, distribution, dispensing, or transportation of marijuana for any use other than medical use. (e) Any property interest that is possessed, owned, or used in connection with the medical use of marijuana or acts incidental to such use, shall not be harmed, neglected, injured, or destroyed while in the possession of state or local law enforcement officials where such property has been seized in connection with the claimed medical use of marijuana. Any such property interest shall not be forfeited under any provision of state law providing for the forfeiture of property other than as a sentence imposed after conviction of a criminal offense or entry of a plea of guilty to such offense. Marijuana and paraphernalia seized by state or local law enforcement officials from a patient or primary care -giver in connection with the claimed medical use of marijuana shall be returned immediately upon the determination of the district attorney or his or her designee that the patient or primary care -giver is entitled to the protection contained in this section as may be evidenced, for example, by a decision not to prosecute, the dismissal of charges, or acquittal. (3) The state health agency shall create and maintain a confidential registry of patients who have applied for and are entitled to receive a registry identification card according to the criteria set forth in this subsection, effective June 1, 1999. (a) No person shall be permitted to gain access to any information about patients in the state health agency's confidential registry, or any information otherwise maintained by the state health agency about physicians and primary care - givers, except for authorized employees of the state health agency in the course of their official duties and authorized employees of state or local law enforcement agencies which have stopped or arrested a person who claims to be engaged in the medical use of marijuana and in possession of a registry identification card or its functional equivalent, pursuant to paragraph (e) of this subsection (3). Authorized employees of state or local law enforcement agencies shall be granted access to the information contained within the state health agency's confidential registry only for the purpose of verifying that an individual who has presented a registry identification card to a state or local law enforcement official is lawfully in possession of such card. (b) In order to be placed on the state's confidential registry for the medical use of marijuana, a patient must reside in Colorado and submit the completed application form adopted by the state health agency, including the following information, to the state health agency: (I) The original or a copy of written documentation stating that the patient has been diagnosed with a debilitating medical condition and the physician's conclusion that the patient might benefit from the medical use of marijuana; ht4): / /www.nationalfamilies.org /guide /colorado20- full.html 10/16/2009 Full Text of Colorado Amendment 20 - Medical Use of Marijuana 2000. Page 5 of 9 (II) The name, address, date of birth, and social security number of the patient; (III) The name, address, and telephone number of the patient's physician; and (IV) The name and address of the patient's primary care - giver, if one is designated at the time of application. (c) Within thirty days of receiving the information referred to in subparagraphs (3)(b)(I) -(IV), the state health agency shall verify medical information contained in the patient's written documentation. The agency shall notify the applicant that his or her application for a registry identification card has been denied if the agency's review of such documentation discloses that: the information required pursuant to paragraph (3)(b) of this section has not been provided or has been falsified; the documentation fails to state that the patient has a debilitating medical condition specified in this section or by state health agency rule; or the physician does not have a license to practice medicine issued by the state of Colorado. Otherwise, not more than five days after verifying such information, the state health agency shall issue one serially numbered registry identification card to the patient, stating: (I) The patient's name, address, date of birth, and social security number; (II) That the patient's name has been certified to the state health agency as a person who has a debilitating medical condition, whereby the patient may address such condition with the medical use of marijuana; (III) The date of issuance of the registry identification card and the date of expiration of such card, which shall be one year from the date of issuance; and (IV) The name and address of the patient's primary care - giver, if any is designated at the time of application. (d) Except for patients applying pursuant to subsection (6) of this section, where the state health agency, within thirty-five days of receipt of an application, fails to issue a registry identification card or fails to issue verbal or written notice of denial of such application, the patient's application for such card will be deemed to have been approved. Receipt shall be deemed to have occurred upon delivery to the state health agency, or deposit in the United States mails. Notwithstanding the foregoing, no application shall be deemed received prior to June 1, 1999. A patient who is questioned by any state or local law enforcement official about his or her medical use of marijuana shall provide a copy of the application submitted to the state health agency, including the written documentation and proof of the date of mailing or other transmission of the written documentation for delivery to the state health agency, which shall be accorded the same legal effect as a registry identification card, until such time as the patient receives notice that the application has been http: / /www.nationalfamilies .org/guide /colorado20- full.html 10/16/2009 Full Text of Colorado Amendment 20 - Medical Use of Marijuana 2000. Page 6 of 9 denied. (e) A patient whose application has been denied by the state health agency may not reapply during the six months following the date of the denial and may not use an application for a registry identification card as provided in paragraph (3)(d) of this section. The denial of a registry identification card shall be considered a final agency action. Only the patient whose application has been denied shall have standing to contest the agency action. (f) When there has been a change in the name, address, physician, or primary care -giver of patient who has qualified for a registry identification card, that patient must notify the state health agency of any such change within ten days. A patient who has not designated a primary care -giver at the time of application to the state health agency may do so in writing at any time during the effective period of the registry identification card, and the primary care -giver may act in this capacity after such designation. To maintain an effective registry identification card, a patient must annually resubmit, at least thirty days prior to the expiration date stated on the registry identification card, updated written documentation to the state health agency, as well as the name and address of the patient's primary care - giver, if any is designated at such time. (g) Authorized employees of state or local law enforcement agencies shall immediately notify the state health agency when any person in possession of a registry identification card has been determined by a court of law to have willfully violated the provisions of this section or its implementing legislation, or has pled guilty to such offense. (h) A patient who no longer has a debilitating medical condition shall return his or her registry identification card to the state health agency within twenty -four hours of receiving such diagnosis by his or her physician. (i) The state health agency may determine and levy reasonable fees to pay for any direct or indirect administrative costs associated with its role in this program. (4) (a) A patient may engage in the medical use of marijuana, with no more marijuana than is medically necessary to address a debilitating medical condition. A patient's medical use of marijuana, within the following limits, is lawful: (I) No more than two ounces of a usable form of marijuana; and (II) No more than six marijuana plants, with three or fewer being mature, flowering plants that are producing a usable form of marijuana. (b) For quantities of marijuana in excess of these amounts, a patient or his or her primary care -giver may raise as an affirmative defense to charges of violation of state law that such greater amounts were http: / /www.nationalfamilies.org /guide /colorado20- full.html 10/16/2009 Full Text of Colorado Amendment 20 - Medical Use of Marijuana 2000. Page 7 of 9 medically necessary to address the patient's debilitating medical condition. (5) (a) No patient shall: (I) Engage in the medical use of marijuana in a way that endangers the health or well -being of any person; or (II) Engage in the medical use of marijuana in plain view of, or in a place open to, the general public. (b) In addition to any other penalties provided by law, the state health agency shall revoke for a period of one year the registry identification card of any patient found to have willfully violated the provisions of this section or the implementing legislation adopted by the general assembly. (6) Notwithstanding paragraphs (2)(a) and (3)(d) of this section, no patient under eighteen years of age shall engage in the medical use of marijuana unless: (a) Two physicians have diagnosed the patient as having a debilitating medical condition; (b) One of the physicians referred to in paragraph (6)(a) has explained the possible risks and benefits of medical use of marijuana to the patient and each of the patient's parents residing in Colorado; (c) The physicians referred to in paragraph (6)(b) has provided the patient with the written documentation, specified in subparagraph (3) (b)(I); (d) Each of the patient's parents residing in Colorado consent in writing to the state health agency to permit the patient to engage in the medical use of marijuana; (e) A parent residing in Colorado consents in writing to serve as a patient's primary care - giver; (f) A parent serving as a primary care -giver completes and submits an application for a registry identification card as provided in subparagraph (3)(b) of this section and the written consents referred to in paragraph (6)(d) to the state health agency; (g) The state health agency approves the patient's application and transmits the patient's registry identification card to the parent designated as a primary care - giver; (h) The patient and primary care -giver collectively possess amounts of marijuana no greater than those specified in subparagraph (4)(a) (I) and (II); and (i) The primary care -giver controls the acquisition of such marijuana and the dosage and frequency of its use by http: / /www.nationalfamilies.org /guide /colorado20- full.html 10/16/2009 Full Text of Colorado Amendment 20 - Medical Use of Marijuana 2000. Page 8 of 9 the patient. (7) Not later than March 1, 1999, the governor shall designate, by executive order, the state health agency as defined in paragraph (1) (g) of this section. (8) Not later than April 30, 1999, the General Assembly shall define such terms and enact such legislation as may be necessary for implementation of this section, as well as determine and enact (a) Fraudulent representation of a medical condition by a patient to a physician, state health agency, or state or local law enforcement official for the purpose of falsely obtaining a registry identification card or avoiding arrest and prosecution; (b) Fraudulent use or theft of any person's registry identification card to acquire, possess, produce, use, sell, distribute, or transport marijuana, including but not limited to cards that are required to be returned where patients are no longer diagnosed as having a debilitating medical condition; (c) Fraudulent production or counterfeiting of, or tampering with, one or more registry identification cards; or (d) Breach of confidentiality of information provided to or by the state health agency. (9) Not later than June 1, 1999, the state health agency shall develop and make available to residents of Colorado an application form for persons seeking to be listed on the confidential registry of patients. By such date, the state health agency shall also enact rules of administration, including but not limited to rules governing the establishment and confidentiality of the registry, the verification of medical information, the issuance and form of registry identification cards, communications with law enforcement officials about registry identification cards that have been suspended where a patient is no longer diagnosed as having a debilitating medical condition, and the manner in which the agency may consider adding debilitating medical conditions to the list provided in this section. Beginning June 1, 1999, the state health agency shall accept physician or patient initiated petitions to add debilitating medical conditions to the list provided in this section and, after such hearing as the state health agency deems appropriate, shall approve or deny such petitions within one hundred eighty days of submission. The decision to approve or deny a petition shall be considered a final agency action. (10) (a) No governmental, private, or any other health insurance provider shall be required to be liable for any claim for reimbursement for the medical use of marijuana. (b) Nothing in this section shall require any employer to accommodate the medical use of marijuana in any work place. http: / /www.nationalfamilies.org /guide /colorado20- full.html 10/16/2009 Full Text of Colorado Amendment 20 - Medical Use of Marijuana 2000. Page 9 of 9 (11) Unless otherwise provided by this section, all provisions of this section shall become effective upon official declaration of the vote hereon by proclamation of the governor, pursuant to article V, section (1)(4), and shall apply to acts or offenses committed on or after that date. Ab s Site Map s Pri © Copyright 2001 National Families in Action. All rights reserved. Questions? Write to nfiaOnationalfamilies.org Last updated: 08/01/2008 10:03:22 http: / /www.nationalfamilies .org/guide /colorado20- full.html 10/16/2009 t L? - tap �' _ � � ��- _ -SSA: - - b(4 l4 1W CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER Council Bill No. Ordinance No. Series 2009 TITLE: AN ORDINANCE AMENDING ARTICLE 11 OF THE WHEAT RIDGE CODE OF LAWS BY ADDING A NEW ARTICLE XII CONCERNING MEDICAL MARIJUANA ESTABLISHMENTS WHEREAS, in the November 2000 general election the voters of the State of Colorado adopted Amendment 20 to the Colorado Constitution ('Amendment 20 ") which authorizes and limits the sale of medical mprikfana for use in the treatment of debilitating medical conditions; and WHEREAS, the City Council businesses wishing to cultivate medical under state law, and of a proliferation of it to those who qualify WHEREAS, the City has no current land use:or.,business regulation governing the operation of businesses or cooperatives that` - cultivate and /or offer medical marijuana for sale and /or distribution ( "Medical Marijuana Establishments "), and WHEREAS, the Crty °irpposed a ninety (90) day moratorium on the submission, acceptance, processjttg, and approval of all applications for City licenses and licenses relating to the operation of Medical Marijuana Establishments to allow the City staff and the City Council to investigate the City's ability to regulate such establishments, and to develop and implement any °appropriate regulations; and WHEREAS because,_marijuana is a controlled substance under Colorado and federal'' law the use as conteriiplated by Amendment 20 has the potential for abuse that shouldsbe closely monitored afid regulated by local authorities to the extent possible, and WHEREAS, if not closely monitored and regulated the presence of marijuana, even for the purposes legally permitted by Amendment 20, can potentially cause an increase in illegal activities within the City affecting the health, safety, order, comfort, convenience and general welfare of the residents of the City; and WHEREAS, if Medical Marijuana Establishments operating pursuant to Amendment 20 were allowed to be established and to operate without appropriate local regulation of their location, such establishments might be established in areas that would conflict with the City's comprehensive land use plan; be inconsistent with surrounding uses; or otherwise be detrimental to the public health, safety and welfare. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1 . Moratorium Concluded. The moratorium imposed by Ordinance No. on September 14, 2008 shall end fifteen days after adoption of this Ordinance on second reading. Section 2 . Chapter 11 is amended to by the adoption of a new Article XII to read in its entirety as follows: Article XII. Medical Marijuana Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec- Sec- Sec. Sec. Sec. Sec. Sec. 11 -270. 11 -271. 11 -272. 11 -273. 11 -274. 11 -275. 11 -276. 11 -277. 11 -278. 11 -279. 11 -280. 11 -281. 11 -282. 11 -283. 11 -284. 11- 285,. 1 `IM8. Sec. I Sec.1 Sec.1 Sec. 1 Authority Definitions Medical marijuana establishment license required Application for license. Application fee. Standards for issuance of license. Authority to recommend and impose conditions on license. Contents of licensee Denial of license,'< Notice of decision.: Appeal of denial or conditwnal apprc tfaI of license. License not transferable, -'' Duration of license, renewal. Duties of licensee. Hearing, suspension revocation of license Operation limitations for medical marijuana dispensaries. Operation limitations for medical marijuana cultivators. Prohibited locations. warnings to be posted. injunctive relief. Sec. 11 -270. Authority. The City Council hereby finds, determines, and declares that it has the power to adopt this article pursuant to: (a) The Local Government Land Use Control Enabling Act, article 20 of title 29, C.R.S.; (b) Part 3 of article 23 of title 31, C.R.S. (concerning municipal zoning powers); (c) Section 31 -15 -103, C.R.S. (concerning municipal police powers), (d) Section 31- 15401, C.R.S. (concerning municipal police powers); (e) Section 31 -15 -501, C.R.S. (concerning municipal authority to regulate businesses); (f) The authority granted to home rule municipalities by article XX of the Colorado Constitution; and (g) The powers contained in the Wheat Ridge City,Charter. Sec. 11 -271. Definitions. As used in this article the following words shall have the following meanings, unless the context clearly requires otherwise: Administrative hearing officer has the meaning,§Tovided In section 2 -87 of this code. Amendment 20 means the voter initiated amendmentito the Colorado Constitution adopted November 7, 2000 which added Section 14 oWicle 18 to the Colorado Constitution. Applicant means and includes: (1) If an individual, that person making an application for a license under this article; (2) If a partnership =;the partnefs�wning five (5) percent or more of the partnership or all-0 ers if there a6e twenty (20) or total partners in the partnership which is making application for a license under this article, (3) If a corporation, the president, vice - president, secretary, treasurer, the directors, manager and each stockholder owning five (5) percent or more of the outstanding stock of the corporation. Application means an application for license submitted pursuant to this article. City Manager shall have the meaning provided in section 2 -26 of this Code. Good cause means and includes (1) When a licensee violates, does not meet, or fails to comply with any of the terms, conditions, or provisions of this article and any rule and regulation promulgated pursuant to this article; 3 (2) When the licensee has failed to comply with any special terms or conditions that were placed on its license at the time the license was issued, or that were placed on its license in prior disciplinary proceedings or that arose in the context of potential disciplinary proceedings; or (3) When the licensee's medical marijuana dispensary has been operated in a manner that adversely affects the pubic health, welfare, or safety of the immediate neighborhood in which the medical marijuana dispensary is located. Evidence to support such a finding can include: (i) a pattern of disorderly conduct as defined in section 11- 54(a)(1) of this code within or immediately adjacent to the premises of the licensee; (ii) a pattern of drug - related criminal conductrwithin the premises of the medical marijuana dispensary, or in the immediate area surrounding the medical marijuana dispensary; (iii) a pattern of criminal conduct directly related to or arising from the operation of the medical marijuana dispensary; (iv) a conviction in any local, state or federal court of any employee of- a`tjcensee for the distribution or sale of marijuana. Formatted: Font: Not Italic Formatted: Font: Not Italic Formatted: Font: Not Italic Medical marjuana drspensarytneans the use of any property or structure within the City by a primary care giver t4 ^cultivate, ,distribute, transmit, give, dispense, or otherwise provide marijuana in any = manner jn accordance with Amendment 20, and the Deletedaopafiensor o pma� implementing state statutes:ar�d administrative regulations. caregivers Medical marijuana establishment, -means either a medical marijuana cultivator or a medical marijuana dispensary. Medical marijuana cultivator means the use of any property or structure within the City by a primary care giver primarily for the purposes of growing medical marijuana for distributionjn accordance with Amendment 20 and the implementing state statutes and -{ Deleted: topafientsorotherpnma� _. ...._....._ __.._ _ ... ___.... administrative regulations. b are givers Patient has the meaning provided in Amendment 20, the implementing state statutes and administrative regulations. License means a license to operate a medical marijuana establishment issued by the City pursuant to this article. Licensee means the person or entity to whom a license has been issued pursuant to this article. Primary care -giver has the meaning provided in Amendment 20, the implementing state statutes and administrative regulations. (b) In addition to the definitions provided in subsection A of this section, the other defined terms in Amendment 20 are incorporated into this article by reference. Sec. 11 -272. Medical marijuana establishment licen�k2quired. No person or entity shall operate a medical marijuana establish ment con the City without a valid medical marijuana establishment license issued in accord''arjee with this article. This requirement to obtain a medical marijuana establishaaent license is in addition to the requirement to obtain a business license pursuant to Article II of his chapter and any other license or permit as so required by the City. Sec. 11 -273 . Application for license. (a) A person seeking to application with the Tax and LicE Licensing Division. a license pursuant to this article shall file an Division on a form provided by the Tax and (b) An application for a information: shall contain the following 1. The applicant's name,, address, telephone number and last four digits of the applicant's social security number; 2w;1_1 name, address, telephone number and last four digits of the _,social security number for each primary care -giver authorized to `operate out of the applicant's proposed location; 3. The`:_ street address of the proposed medical marijuana If the= applicant is not the owner of the proposed location of the r4acal marijuana establishment, a notarized statement from the owner of such property authorizing the submission of the application; 5. A completed set of the applicant's fingerprints and the fingerprints of each primary care -giver authorized to operate out of the applicant's proposed location; 6. The number of patients for whom the applicant serves as primary care -giver and the number of patients for whom each primary care- s giver authorized to operate out of the applicant's proposed location serve as primary care - giver; 7. A business plan that contains the following items: a. A security plan that includes but is not limited to a description of the security provisions and systems to be utilized; b. Hours of operation; C. Number of employees and /or volunteers expected to be onsite; d. An external lighting plan; and e. A description of any cultivation activities including; I. Where plants v ilt:be grown; ii. The expected uMber of plants that will be grown on site; iii. A description bf the ventilation system for the premises iv. A description �rnal lighting system; and V. Expected water')d e. 8. A statement by the applicant that the aapplicant and the applicant's employees understand that they may be subject to prosecution underfederallaw; 9. Asfatement by the applicant that the applicant is a primary care- - ,,giver. 1o. A statement'by the applicant that the City accepts no legal liability in connection w6 the approval and subsequent operation of the medicalmarijuana establishment; and 11. Any addittoral information that the Tax and Licensing Division reasonably `determines to be necessary in connection with the investigation and review of the application. Sec. 11 -274. Application Fee. An applicant shall pay to the City a non - refundable application fee when the application is filed. The purpose of the fee is to cover the administrative costs of processing the application. The amount of the application fee shall be fixed by the City Council by motion. Sec. 11 -275. Standards for issuance of license. The Tax and Licensing Division shall issue a license under this article when: (a) The application (including any required attachments and submissions) is complete and signed by the applicant; (b) The applicant has paid the application fee and any other fees required by the code; (c) The application does not contain a material falsehood or misrepresentation; (d) The application complies with all of the requirements of this article; (e) Written approval from the City of Wheat Ridge Police Department as to: 1. The applicant's business plan; and 2. The applicant's criminal background. No written approval will be issued to an applicant whose criminal``' history reflects a prior conviction for a felony offense (f) Written approval from the location requirements imposed by this a Sec. 11 -276. Authority to recommend and imps (a) Any City department shall have the terms and conditions on a license as may be ne safety, and welfare, and to obtain compliance wit] Department that the on license. to recommend reasonable protect the public health, irements of this article and applicable law. (b) The, and Lic6sing Division is authorized to approve a license subject to such reasonablessonditions ai iequired by the City_ (c) Ln the event; an appNcation conditionally approved, the Tax and Licensinq DNision shall dearly set forth in w`r'iting the conditions of approval. A license shall contain the following information: The name (b) The date oftF'e issuance of the license; (c) TFieeadcTFes S at which the licensee is authorized to operate the medical marijuana establishment; (d) Any special conditions of approval imposed upon the license; and (e) The date of the expiration of the license. Sec. 11 -278. Denial of license. The Tax and Licensing Division shall deny an application for a license under this article when the applicant fails to meet all of the standards set forth in section 11 -275. Sec. 11 -279. Notice of denial or conditional approval of license. The Tax and Licensing Division shall notify the applicant of its decision to deny or conditionally approve the application in writing within three business days of rendering the decision. Notice shall be given by mailing a copy of the decision to the applicant by regular mail, postage prepaid, at the address shown in the application. Notice shall be deemed to have been properly given upon mailing. Sec. 11 -280. Appeal of denial or conditional approval of license. (a) An applicant has the right to appeal the .denial of an application or condition imposed thereon to an administrative hearing offlc T (b) The applicant must file a written notide'of appeal with the Tax and Licensing Division within fifteen days after the date of mailing of th- denial or conditional approval of the application. (c) Upon notice from the Tax and Licensing Division that the applicant has satisfied the requirement in subsection (b), the City Manager shali` "appoint an administrative hearing officer. (d) The applicant shall 62 ptovided with not less than ten days' prior written notice of the appeal hearing to be treld,by theadministrative hearing officer. (e) The burden of proof in a}),appeal_fled under this section shall be on the applicant. (f) If the administrative hearmg _officer finds by a preponderance of the evidence that the decision of the Tax 'and Licensing Division was correct, the administrative hearing, officer shall uphold that decision. If the administrative hearing officer finds by a preponderance of the evidence that the decision of the Tax and Licensing was incorrect, the administrative hearing officer shall set aside the denial and issue th# license.' The. administrative hearing officer may impose additional conditions on thelicense issued (if was previously denied) or the conditions of approval stricken or modified. (g) Any decisionmade by the administrative hearing officer pursuant to this section shall be a final decision and may be appealed to the district court pursuant to Rule 106(a)(4) of fiie.r, rado Rules of Civil Procedure. The applicant's failure to timely appeal the decision` -i's a waiver of the applicant's right to contest the denial or conditional approval of the application. Sec. 11 -281. License not transferable. A license is non - transferable and non - assignable. Any attempt to transfer or assign a license voids the license. Sec. 11 -282. Duration of license, renewal. (a) Each license issued pursuant to this article shall expire on the first day of the month one year from the month of issuance, and may be renewed as provided in this section. (b) An application for the renewal of an existing license shall be made to the Tax and Licensing Division not less than forty -five days prior to the date of expiration. No application for renewal shall be accepted by the Tax and Licensing Division after the date of expiration. An administrative hearing officer may waive the forty -five days time requirement set forth in this subsection if the applicant demonstrates adequate justification. (c) If a renewal application has not been filed by :a licensee, the City shall send a renewal notice no less than thirty (30) days prior to the expiration of the license. (d) At the time of the filing of an application for the renewal of an existing license the applicant shall pay a renewal fee in::an amount fixed by the City Council by motion. Sec. 11 -283. Duties of licensee. Each (a) Post the license in a conspicuous marijuana dispensary (b) Comply (b) Comply; (c) Conpiy of the terms and conditions requirements of this article; with all other applicable City ordinances; license; (d) Comply veth state laws and_ administrative regulations pertaining to the medical use of marijuana including, but not limited to, Amendment 20, section 18-18 - 406.3, C.R.S.; and the administrative regulations issued by the Colorado Department of Public Health and Environment, found at 5 CCR 1006 -2, all as amended from time to time. (e)' ' Comply with all applicable federal laws, rules, or regulations, other than a federal law,` -Yule or regulation concerning the possession, sale or distribution of marijuana that conflicts with Amendment 20; and (f) Permit inspection of its records and operation by the Tax and Licensing Division for the purpose of determining the licensee's compliance with the terms and conditions of the license and the City's tax laws. Sec. 11 -284. Hearing, suspension, revocation of license. the premises of the medical (a) A license issued pursuant to this article may be suspended or revoked by an administrative hearing officer after a hearing for the following reasons: I . Fraud, misrepresentation, or a false statement of material fact contained in the license application; 2. A violation of any City, state, or federal law or regulation, other than a federal law or regulation concerning the possession, sale or distribution of marijuana that conflicts with Amendment 20, 3. A violation of any of the terms and conditions of the license; or 4. A violation of any of the provisions of this article. 5. Good Cause. (b) Request for suspension or The Wheat Ridge P( license issued under of hearing. burden. :ment shall request in writing that a be suspended or revoked. 2. The City Manager shall appoint an administrative hearing officer to preside over the hearing on�tfie'suspension or revocation of a license. 3. The administrative hearing officers a. Set a date and time on which to determine whether to revoke or suspend such license. a 91 Notify the licensee in writing of the date and time of the hearing at least ten (10) days prior to conducting such hearing. Such notice shall be sent by regular mail postage prepaid. Notice is deemed to have been given upon mailing. Conduct a hearing based on the allegations provided by the Wheat Ridge Police Department. This shall be an informal hearing where no rules of evidence shall apply. The burden shall be on the Wheat Ridge Police Department to prove by a preponderance of the evidence that the licensee has violated the provisions in subsection (a) of the section. Provide a written decision to the licensee within a reasonable time after the conclusion of the hearing. (c) In deciding whether a license should be suspended or revoked, and in deciding what conditions to impose in the event of a suspension, if any, the administrative hearing officer shall consider. 10 1. The nature and seriousness of the violation; 2. Corrective action, If any, taken by the licensee, 3. Prior violation(s), if any, by the licensee; 4. The likelihood of recurrence; 5. All circumstances surrounding the violation; 6. Whether the violation was willful; ' 7. The number of previous violatiorl'th'eNcensee; and 8. Previous sanctions, if any, imposed against the- licensee (d) In connection with the suspension of a license, the administrative hearing officer may impose reasonable conditions thereon. (e) Any decision made by the administrative hearing officer pursuant to this section shall be a final decision and may be appealed to the district court pursuant to Rule 106(a)(4) of the Colorado Rules}of Civil Procedure. The applicant's failure to timely appeal the decision is a waiver of thevapplrcant's -right to contest the decision. (f) No fee previot shall be refunded if such lice Sec. 11 -285. Operation lir marijuana dispensaries shall r may be distributed sold given away, or transferred at a ary except to the licensee's patients, Deleted: and other primarycare- givers paid 10 a Ilcerisee16n, connection with the application or fii'edical marijuana dispensaries. Medical to the following additional requirements: (b) All product_, storage shall be indoors. Products, accessories, and associated, paraphernall81shall not be visible from a public sidewalk or right of way. All products shall be In a.sealed /locked cabinet except when being accessed for distribution (c) A medical marijuana dispensary may be open seven days a week from the hours of 9:00 am 1:61--00 pm. (d) No on -site consumption of marijuana is allowed on the premises. (e) The sale or consumption of alcohol on the premises is prohibited. (f) Cultivation, growing, processing. The growing, cultivation, or processing of marijuana on or within the premises of a medical marijuana dispensary: 11 Shall be conducted indoors in such a manner that marijuana plants at any stage of development are not visible from a public sidewalk or right -of -way; 2. Shall be prohibited unless the dispensary is equipped with a proper ventilation system that filters out the odor of marijuana so that the odor is not capable of being detected by a person with a normal sense of smell at the exterior of the dispensary or any adjoining business, parcel or tract of real property. .; (g) All medical marijuana dispensaries shall provide adequate security on the premises. At a minimum the security shall include: 1. Security surveillance cameras installed to monitor the main entrance along the interior; and exterior of the premises and all other entrances or exits only along the interior of the premises. Security video shall be preserved Jor at least 72 -hours by the licensee; 2. Robbery and burglary alarm systems that are professionally monitored and maintained in good working condition, 3. Exterior lighting that illuminates the exterior walls of the business during evening hours and is compliant with the City Code; and 4. A='Iocking safe permanently affixed to the premises that is suitable r for storage tthe entire inventory of saleable marijuana. Sec. 11 -286. Operation limitations ifor medical marijuana cultivators. Medical marijuana cultivators shalj be subject to the following additional requirements: (a) A medical marijuana cultivator may not: 1. Distribute sell, give away, or transfer a usable form of marijuana or marijuana plants on or from its premises except to it patients Deleted: patients or other primary 1 caregivers J 2. <r: Distribute sell, give away, or transfer other products, accessories, or associated paraphernalia of any kind on or from its growing premises. (b) A medical marijuana cultivator may be open seven days a week during the hours of 9:00 a.m. to 7:00 p.m. (c) No on -site consumption of marijuana is allowed on the premises. (d) The sale or consumption of alcohol on the premises is prohibited. 12 (e) A medical marijuana cultivator shall be equipped with a safe that is utilized for the purposes of storing marijuana not then being actively cultivated when the business is not open. (f) Cultivation, growing, processing. The growing, cultivation, or processing of marijuana on or within the premises of a medical marijuana cultivator: 1. Shall be conducted indoors in such a manner that marijuana plants at any stage of development are not visible from a public sidewalk or right -of -way; 2. Shall be prohibited unless the - operation is equipped with a proper ventilation system that filters -alit the odor of marijuana so that the odor is not capable of bpj i detected by a person with a normal sense of smell at the exterior of the dispensary or any adjoining business, parcel or tract of -real prop eity. (g) All medical marijuana cultivators shall provide adequate security on the premises. At a minimum the securityshall include 1. Security surveillance cameras installed to monitor all entrances and exits of the premises. Security video shat) be preserved for at least 72 hours by the licensee; 2. Robbery and burglary_ systems that are professionally monitored and maintained in good working condition; Exterior lighting that illuminates the exterior walls of the business during evening hours and is compliant with the City Code; and 4. A €Jocking safe permanently affixed to the premises that is suitable for storage of the entire inventory of saleable marijuana. Sec. 11 (a) Except as provided in subsection a of this section, no medical marijuana establishment shall be` located at a location that does not conform to the requirements of this section. (b) No medical marijuana establishment shall be located: Within 500 feet of a licensed child care facility, 2. Within 500 feet of any educational institution or school, college or university, either public or private; 13 3. Within 500 feet of any halfway house or correctional facility; and 4. Within 500 feet of any drug rehabilitation or drug treatment center. (c) The distances described in subsection (b) shall be computed by direct measurement from the nearest property line of the land used for child care, school, or halfway house purposes to the nearest portion of the building housing the medical marijuana establishment using a straight line. (d) Each medical marijuana establishments permanent location. No medical marijuana establishmeatt from a moveable, mobile, or transitory location. 9-00 (e) The suitability of a location for a medical'inari determined at the time of the issuance of the first license fact that changes in the neighborhood that occur after the might render the site unsuitable for a medical marijuar section shall not be grounds to suspend, revoke or refuse establishment so long as the license for the establishment r Sec. 11 -288. Signage. (a) All signage for a medical man}uana._esta6l requirements of chapter 26 of this cods; be operated from a be licensee to operate juanEW.establishment shall be for su,Rostablishment. The issuanc"f-the first license a establishrent under this o renew the license for such amains in effect. shall comply with the (b) No licensee shall display a sign for the medical marijuana establishment that contains the word "marijuana," "canna lips," or any other word or phrase commonly understood to refer to marijuana unless such word or phrase is immediately preceded or followed by the word "medical." Sec. 11289. Required warnings to be posted. There shall be posted in a conspicuous location in each medical marijuana establishment a legible sign containing the "following warnings: (a) a A warning ttrat the diversion of marijuana for non - medical purposes is a violation of state and federal laws; (b) A warn mg that the use of medical marijuana may impair a person's ability to drive a motor vehicle or operate machinery, and that it is illegal under state law to drive a motor vehicle or to operate machinery when under the influence of or impaired by marijuana, and (c) A warning that loitering in or around the medical marijuana establishment is prohibited by state law. (d) A warning that possession and distribution of marijuana is a violation of federal law. 14 Sec. 11 -290. Paraphernalia. Devices, contrivances, instruments, and paraphernalia for inhaling or otherwise consuming marijuana including, but not limited to, rolling papers and related tools, water pipes, and vaporizers may lawfully be sold at a medical marijuana dispensary. Such items may be sold or provided only to patients or primary caregivers. Sec. 11 -291. Taxes. Each licensee shall collect and remit sales tax on all medical marijuana, paraphernalia, and other tangible personal property sold by the licensee at the medical marijuana establishment according to the provisions of Code chapter 22 and any regulations issued pursuant to it. Sec. 11 -292. Penalties, injunctive relief. (a) It is a misdemeanor offense for anyotson to violate any provision of this article. Any person convicted of having violated'any provision of this article shall be punished as set forth in section 1 -5 of this code: " (b) The operation of a medical marijuana establishment without a valid license issued pursuant to this article may be enjoined =_by the City in an action brought in a court of competent jurisdiction. Section 3 . Section 26 -123 of the Code, entitled Definitions, is hereby amended by the addition of the following terms. Medical marjuana dis . An - § 5 has the meaning provided in Article XII of Chapter 11 of this code. Medical marijuana cultivator has the d meaning provided in Article XII of Chapter 11 of this code. Section 4 . The Table of Uses for Commercial and Industrial Districts provided for in Section 26 -204 of the'COde is hereby amended as follows: uses Notes NC RC C -1 C -2 1 Medical and dental Pharmacies and P P P P P offices, clinics or optical stores laboratories, excluding s are accessory substance abuse use clinics MEDICAL P P P MARIJUANA DISPENSARIES MEDICAL P MARIJUANA CULTIVATORS Mini - warehouses for P P W inside storage Section S . P olice Power Finding The City Council hereby finds, determines, and declares that this Ordinance is necessary and proper to provide for the safety, preserve the health, promote the prosperity, and improve the order, comfort and convenience of the City of Wheat Ridge and the inhabitants thereof. Section 6 . Authority The City Council hereby finds, _determines and declares that it has the power to adopt this Ordinance pursuant to: (i)' the `Local Government Land Use Control Enabling Act, Article 20 of Title 29, C.R.S.;'(ii)Part 3 of Article 23 of Title 31, C.R.S. (concerning municipal zoning powers); (iii) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (iv) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (v) Section 31 -15 -501 (concerning municipal power to regulate businesses); (vi) the authority granted to home rule municipalities by Article XX of the Colorado Constitution, and (vii) the powers contained in the City of Wheat Ridge, Colorado Home Rule Charter (the "Charter"). Section 7 Severability, Conflicting Ordinances Repealed If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 8 . Effective Date This Ordinance shall take effect fifteen (15) days after final publication, as provided by Section, 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED:on first reading by a vote of _ to on this � = day of , 2009, ordered published in full in a newspaper of generabdirculation-in the City of Wheat Ridge, and Public Hearing and consideration on final j5a'ssage set for_ 2009 at 7:00 p.m., in the Council Chambers, 71000 West29 Avenue, Wheat Ridge, Colorado. RE 9D, ADOPTEDAND ORDERED PUBLISHED on second and final reading by a vote of - o _ this,".' day of 2009. SIGN ED`by the Mayor on this day of 2009. Jerry DiTullio, Mayor ATTEST: 16 Michael Snow, City Clerk First Publication: Second Publication: Wheat Ridge Transcript Effective Date: Approved as to Form 17 Page 1 of 3 Kenneth Johnstone From: Scott McKindley [mckindley @msn.com] Sent: Thursday, October 15, 2009 2:33 PM To: Kenneth Johnstone Subject: FVV: Medical Cannabis Business Report Released Attachments: cti. medical. can nabis.business. report. pdf :Cali' It was good to talk with you today concerning the cities plans for dispensaries and growing operations. Below is a copy of an email I received concerning economic developement of dispensories, a kind of an agreeement for our industry to operate by with the local AHYs. I have also attached a PDF copy of the report. If we can be of any help to the city in this process, please do not hesitate to contact us. Scott McKindley NatuRx • To: mckindley @msn.com • Subject: Medical Cannabis Business Report Released • Date: Tue, 6 Oct 2009 17:59:30 -0400 • From: info @cannabistherapyinstitute.com > For immediate release: Oct. 6, 2009 > Medical Cannabis Business Report and Draft Ordinance Released > Contact: Cannabis Therapy Institute > (641) 715 -3900 ext. 70966# > { Boulder, CO} -- The Cannabis Therapy Institute has released a report > titled, "Encouraging the Economic Development of Medical Cannabis > Businesses in Colorado." http:// www .cannabistherapyinstitute.com /news /policygroup /cti. medical.cannabis.business. report. pdf • The report was written for policymakers that are considering regulations • regarding medical cannabis businesses in their areas. The report includes a • draft ordinance that communities can use as a framework for developing • their own regulations and policies. The Institute released its report today • to the city councils of Durango, Lafayette, Longmont, Louisville and • Thornton, who will all be discussing regulating medical cannabis businesses • at their city council meetings tonight. • The report was written by the Medical Cannabis Policy Group of the Cannabis • Therapy Institute with feedback from the medical cannabis community. The • goal of the report is to encourage policymakers to adopt regulations that 10/15/2009 Page 2 of 3 > protect patients and to allow the communities to take advantage of the > significant economic boom being caused by the medical cannabis industry. > The report contains a draft ordinance that defines three different types of > medical cannabis businesses and what activities they are allowed to engage > in. Recognizing that there are smaller caregivers that do not need to be > subject to additional regulations, it exempts primary caregivers if they > only serve the needs of 6 or fewer patients. The draft ordinance gives > limited guidelines into zoning and security issues. It also discusses > patient rights and the need for proper police training. > "I'm proud of the Cannabis Therapy Institute's efforts to educate and > inform our local and state governments about the legal medical cannabis > business," says Jeff Gard, a Boulder attorney who advised the group. "I > hope that the draft guidelines will help create a safe and welcome > environment for patients and their caregivers." > "Members of our group have been working on medical cannabis in Colorado > since 1992. We felt it was important to share our experience to help > policymakers clarify the issues surrounding medical cannabis businesses, > since this is such a new issue to them," says Laura Kriho, public relations > coordinator of the Cannabis Therapy Institute. "We are encouraging local > cannabis advocates and businesses to build off these guidelines to form > sensible regulations for their communities through city council or the > ballot initiative process." > Dan Rogers, of the High Valley Healing Center in Crestone, is also a member > of the Policy Group. "The draft regulations are only guidelines, so they > can be changed to suit the needs of the different communities. Ultimately, > we would like to see something similar adopted by the state legislature to > bring clarity and consistency to the law statewide," says Rogers. > "Lawmakers are charting in unknown territory and this document will help > achieve a consistent understanding of the Constitutional rights of patients > in Colorado," says Timothy Tipton, a Policy Group member who works with > Rocky Mountain Caregivers' Cooperative, a medical cannabis collective of > patients and caregivers. > The CTI report is a living document, and the Cannabis Therapy Institute is > actively pursuing feedback from cannabis businesses about the draft > ordinance and the report. Please send all comments and suggestions to: > policygroup @cannabistherapyinstitute.com > *Upcoming Cannabis Business Regulation City Meetings* > The below communities will be discussing cannabis business regulation or > moratoriums at their upcoming meetings: > Durango City Council Meeting > When: Oct. 6, 2009 > Time: 6:30 pm > Where: 949 E 2nd Ave, Durango, CO > Website: > http: / /www.durangogov.org /council /index.cfm > Contact: council @ci.durango.co.us > Lafayette City Council Meeting 10/15/2009 Page 1 of 4 Kenneth Johnstone From: Daniel Brennan Sent: Tuesday, October 13, 2009 3:23 PM To: Christopher Price; Kenneth Johnstone Cc: Gerald Dahl; Mark Cooney Subject: RE: medical marijuana Chris, Thanks for your work on this ordinance, Amendment 20 is very vague and as a result, it is difficult to create language around this. I believe you are aware that the State Attorney General, John Suthers, has brought together law enforcement officers, City Attorneys, District Attorneys, drug abuse and education coalitions and members of his staff in an effort to bring either legislative or regulatory refinement to the issues presented by Amendment 20. This will obviously take some time to accomplish. Wheat Ridge PD is represented on several committees involved in this process. Here are some thoughts for the group to consider prior to Friday's meeting: Under the definition of applicant on page 3, we discuss individuals, partnerships and corporations. Should there be a requirement in this definition that requires the applicant, partnership or corporation demonstrates compliance as a primary care - giver; i.e. "...significant responsibility for managing the well -being of a patient who has a debilitating medical condition ?" Amendment 20 defines "useable form of marijuana" as "...seeds, leaves, buds, and flowers of the plant (genus) cannabis, and any mixture or preparation thereof, which are appropriate for medical use as provided in this section, but excludes the plant's stalks, stems, and roots." Some primary caregivers have taken this to mean concentrates including hashish fall under this definition. Should we assume the term "any mixture or preparation thereof' means an edible form vs. a concentrate or hashish or define medical marijuana more specifically? On page four, the definition for medical marijuana dispensary and cultivator mention providing marijuana to other primary care - givers. Amendment 20 does not speak to providing or wholesaling marijuana to other primary caregivers; this would be distribution and is illegal. I would recommend changing the definitions to require provide marijuana to a patient in accordance with Amendment 20 and the implementing state statutes and administrative regulations. Section 11 -272. Medical marijuana establishment license required. Instead or in conjunction with the word establishment, should we insert primary care - giver? Section 11 -285 and 286 - (a) There is not provision in Amendment 20 that allows for the distribution, selling, give away or transfer of a usable form of marijuana to other primary caregivers. I would limit them to patients with verification cards. Should we require primary caregivers to comply with appropriate agriculture and food regulations if they are selling an edible form of marijuana? 10/13/2009 Page 2 of 4 Section 11- 286(f) (2) Can we require a cultivator to meet appropriate agricultural and building code requirements for large grows, i.e. electrical, water, etc. ? I hope this makes sense, call before Friday if you see this differently or have other questions. Daniel G. Brennan Chief of Police 7500 W. 29th Avenue Wheat Ridge, Colorado 80033 Office Phone: 303- 235 -2913 City of Whoa c , ,cT Dr PARTatf,:NT CONFIDENTIALITY NOTICE: This e -mail contains business- confidential information. It is untended onlyfor the use of the individual or entity named above. If you are not the intended recipient, you are notified that any disclosure, copying, distribution, electronic storage or use of this communication is prohibited. If you received this communication in error, please notify us immediately by e -mail, attaching the original message, and delete the original message from your computer, and any network to which your computer is connected. Thank you. From: Christopher Price [mailto:cprice @mdkrlaw.com] Sent: Monday, September 21, 2009 4:09 PM To: Kenneth Johnstone Cc: Gerald Dahl; Daniel Brennan; Mark Cooney Subject: RE: medical marijuana Attached is the latest version of the ordinance for your review. There is a redline version and clean version. If directly editing the ordinance, please work from the clean version. Please note the following: This version includes the edits that I received from Jerry. I added the term "medical marijuana grow operation" to separate grow operations from store front dispensaries. Please review and comment on those new or changed provisions. I added the term "medical marijuana establishment' to include both dispensaries and grow operations. The name of the permit and Article section has been changed accordingly. I favored the term "establishment' over the term "business" to allow for the ordinance to include cooperatives if those types of establishments appear in the City. Ke n: Mark: - I have amended the separation requirements pursuant to your email direction below. - I removed the reference to residential locations. - I added changes to the zoning code as you requested except for the changes to the PCD and PID districts. Do we want to or need to add specific references to those districts? I remember an original goal for these regulations was to avoid additional public hearings to the extent possible. - Please let me know what Adam determines from his GIS review. - Have you determined the size of locked cabinets and /or wall mounted safes? Should those requirements remain in the ordinance? - I added the 60 plant limitation as you requested. However, I am uncomfortable with the limitation as is. Have you found any additional support for that limitation or any limitation 10/13/2009 Page 3 of 4 based solely on a specific number of plants? Without any justification, the 60 plant limitation seems arbitrary. - Please let me know what other specific requirements you would like to see concerning the grow operations. I will revise the ordinance as new recommendations and comments come in. Christopher Price c price @mdkrlaw.c Murray Dahl Kuechenmeister and Renaud LLP 303.493.6688 This electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. If you are not the intended recipient of this e -mail, you are hereby notified that any dissemination, distribution or copying of this e -mail, and any attachments thereto, is strictly prohibited. If you have received this e -mail in error, please notify me immediately by telephone or e -mail and destroy the original message without making a copy. Thank you. From: Kenneth Johnstone [ mailto: kjohnstone @ci.wheatridge.co.us] Sent: Friday, September 18, 2009 3:36 PM To: Christopher Price Cc: Gerald Dahl; Daniel Brennan; Mark Cooney; Adam Tietz Subject: medical marijuana Some additional comments on MM ordinance as currently drafted. Page 12 — the 1000 foot separation requirement may make it overly difficult to identify locations. I would suggest 500 feet which I believe mirrors state law on liquor licenses. Our SOB uses 750 and 1000 feet. Do we also want to define MMD in Chapter 26 and list it as a permitted use in a limited range of commercial / industrial districts? I would recommend C -1, C -2, PCD, PID and L PID and PCD would then potentially require an ODP amendment to list it as a pennitted use, which would require public hearings, for better or worse. I believe the Police Dept. will be recommending that cultivation operations be completely distinguished from dispensaries in the ordinance. If we did that, we could also make a zoning distinction and allow indoor cultivation only in I and PID districts. Page 13 — Sec 11 -290 — Our adopted building codes have certain requirements regarding ventilation requirements for noxious and dangerous fumes or vapors, but I am not clear that the cultivation is documented to produce such "airborne contaminants" as they are referenced in the Code. In terms of odors, the Building Code does not deal with those and we are not necessarily qualified to make a determination whether a given ventilation system could achieve the standard that is being proposed. As I've stated previously, we will want to do a GIS search to determine how big of a range of eligible properties the City would have if this ordinance were passed. Adam will be able to do that next week, but we will need to get lists of halfway houses and child care facilities from the State. We will use 500 feet and the zoning districts described above as a starting point for that GIS research. I will let you know as we have a better sense of the timing on that research when we hear back from the state. Adam, Based on the above, please proceed with the necessary steps for the GIS analysis. Thanks. 10/13/2009 Page 4 of 4 Ken Johnstone, MCP Community Det elopmett Director ?500 W. 24th AN emle Nttheat Ridgy *e -_ Colorado b6033 Office Phone: 303 -23^ -2941 T=ax: 303- 234 -2924 w%vw i. whea tridee.co.us City of h6ait I d F e C`t� „i'.iRryt lY [,71 YI1t76xn1Y3 °-- CONFIDENTIALITY NOTICE: this e-mail contains business - confidential information. It is intended only for the use of the individual or entity named above. If you are not the intended recipient, you are notified that any disclosure, copying, distribution, electronic storage or use of this communication is prohibited. If you received this communication in error, please notify us immediately by e -mail, attaching the original message, and delete the original message from your computer, and any network to which you' computer is connected. Thank you. 10/13/2009 0C+ � 4 A CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER Council Bill No. Ordinance No. Series 2009 TITLE: AN ORDINANCE AMENDING ARTICLE 11 OF THE WHEAT RIDGE CODE OF LAWS BY ADDING A NEW ARTICLE XII CONCERNING MEDICAL MARIJUANA ESTABLISHMENTS WHEREAS, in the November 2000 general election, the voters of the State of Colorado adopted Amendment 20 to the Colorado Constitution ("Amendment 20 ") which authorizes and limits the sale of medical marijuana for use in the treatment of debilitating medical conditions; and WHEREAS, the City Council has been made aware of a proliferation of businesses wishing to cultivate medical marijuana and /or provide it to those who qualify under state law; and WHEREAS, the City has no current land use or business regulation governing the operation of businesses or cooperatives that cultivate and /or offer medical marijuana for sale and /or distribution ( "Medical Marijuana Establishments "); and WHEREAS, the City imposed a ninety (90) day moratorium on the submission, acceptance, processing, and approval of all applications for City licenses and licenses relating to the operation of Medical Marijuana Establishments to allow the City staff and the City Council to investigate the City's ability to regulate such establishments, and to develop and implement any appropriate regulations; and WHEREAS, because marijuana is a controlled substance under Colorado and federal law the use as contemplated by Amendment 20 has the potential for abuse that should be closely monitored and regulated by local authorities to the extent possible; and WHEREAS, if not closely monitored and regulated the presence of marijuana, even for the purposes legally permitted by Amendment 20, can potentially cause an increase in illegal activities within the City affecting the health, safety, order, comfort, convenience and general welfare of the residents of the City; and WHEREAS, if Medical Marijuana Establishments operating pursuant to Amendment 20 were allowed to be established and to operate without appropriate local regulation of their location, such establishments might be established in areas that would conflict with the City's comprehensive land use plan; be inconsistent with surrounding uses; or otherwise be detrimental to the public health, safety and welfare. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE. COLORADO: Section 1 . Moratorium Concluded. The moratorium imposed by Ordinance No. on September 14, 2008 shall end fifteen days after adoption of this Ordinance on second reading. Section 2 . Chapter 11 is amended to by the adoption of a new Article XI to read in its entirety as follows: Article XII. Medical Marijuana Establishments Sec. 11 -270. Authority Sec. 11 -271. Definitions Sec. 11 -272. Medical marijuana establishment license required. Sec. 11 -273. Application for license. Sec. 11 -274. Application fee. Sec. 11 -275. Standards for issuance of license. Sec. 11 -276. Authority to recommend and impose conditions on license. Sec. 11 -277. Contents of license Sec. 11 -278. Denial of license. Sec. 11 -279. Notice of decision. Sec. 11 -280. Appeal of denial or conditional approval of license. Sec. 11 -281. License not transferable. Sec. 11 -282. Duration of license, renewal. Sec. 11 -283. Duties of licensee. Sec. 11 -284. Hearing, suspension, revocation of license Sec. 11 -285. Operation limitations for medical marijuana dispensaries. Sec. 11 -286. Operation limitations for medical marijuana cultivators. Sec. 11 -287 Prohibited locations. Sec. 11 -288. Signage. Sec. 11 -289. Required warnings to be posted. Sec. 11 -290. Paraphernalia. Sec. 11 -291. Taxes. Sec. 11 -292. Penalties, injunctive relief. Sec. 11 -270. Authority. The City Council hereby finds, determines, and declares that it has the power to adopt this article pursuant to: (a) The Local Government Land Use Control Enabling Act, article 20 of title 29, C.R.S.; (b) Part 3 of article 23 of title 31, C.R.S. (concerning municipal zoning powers); FA (c) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (d) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (e) Section 31 -15 -501, C.R.S. (concerning municipal authority to regulate businesses); (f) The authority granted to home rule municipalities by article XX of the Colorado Constitution; and (g) The powers contained in the Wheat Ridge City Charter. Sec. 11 -271. Definitions. As used in this article the following words shall have the following meanings, unless the context clearly requires otherwise: Administrative hearing officer has the meaning provided in section 2 -87 of this code. Amendment 20 means the voter initiated amendment to the Colorado Constitution adopted November 7, 2000 which added Section 14 of Article 18 to the Colorado Constitution. Applicant means and includes: (1) If an individual, that person making an application for a license under this article; (2) If a partnership, the partners owning five (5) percent or more of the partnership, or all partners if there are twenty (20) or total partners in the partnership which is making application for a license under this article; (3) If a corporation, the president, vice - president, secretary, treasurer, the directors, manager and each stockholder owning five (5) percent or more of the outstanding stock of the corporation. Application means an application for license submitted pursuant to this article. City Manager shall have the meaning provided in section 2 -26 of this Code. Good cause means and includes (1) When a licensee violates, does not meet, or fails to comply with any of the terms, conditions, or provisions of this article and any rule and regulation promulgated pursuant to this article; 3 (2) When the licensee has failed to comply with any special terms or conditions that were placed on its license at the time the license was issued, or that were placed on its license in prior disciplinary proceedings or that arose in the context of potential disciplinary proceedings; or (3) When the licensee's medical marijuana dispensary has been operated in a manner that adversely affects the pubic health, welfare, or safety of the immediate neighborhood in which the medical marijuana dispensary is located. Evidence to support such a finding can include: (i) a pattern of disorderly conduct as defined in section 11- 54(a)(1) of this code within or immediately adjacent to the premises of the licensee; (ii) a pattern of drug - related criminal conduct within the premises of the medical marijuana dispensary, or in the immediate area surrounding the medical marijuana dispensary; (iii) a pattern of criminal conduct directly related to or arising from the operation of the medical marijuana dispensary; (iv) a conviction in any local, state or federal court of any employee of a licensee for the distribution or sale of marijuana. Medical marijuana dispensary means the use of any property or structure within the City by a primary care -giver to cultivate, distribute, transmit, give, dispense, or otherwise provide marijuana in any manner to patients or other primary care - givers in accordance with Amendment 20, and the implementing state statutes and administrative regulations. Medical marijuana establishment means either a medical marijuana cultivator or a medical marijuana dispensary. Medical marijuana cultivator means the use of any property or structure within the City by a primary care -giver primarily for the purposes of growing medical marijuana for distribution to patients or other primary-care givers in accordance with Amendment 20 and the implementing state statutes and administrative regulations. Patient has the meaning provided in Amendment 20, the implementing state statutes and administrative regulations. License means a license to operate a medical marijuana establishment issued by the City pursuant to this article. Licensee means the person or entity to whom a license has been issued pursuant to this article. Primary care -giver has the meaning provided in Amendment 20, the implementing state statutes and administrative regulations. (b) In addition to the definitions provided in subsection A of this section, the other defined terms in Amendment 20 are incorporated into this article by reference. 4 Sec. 11 -272. Medical marijuana establishment license required. No person or entity shall operate a medical marijuana establishment within the City without a valid medical marijuana establishment license issued in accordance with this article. This requirement to obtain a medical marijuana establishment license is in addition to the requirement to obtain a business license pursuant to Article II of this chapter and any other license or permit as so required by the City. Sec. 11 -273 . Application for license. (a) A person seeking to obtain a license pursuant to this article shall file an application with the Tax and Licensing Division on a form provided by the Tax and Licensing Division. (b) An application for a license under this article shall contain the following information: 1. The applicant's name, address, telephone number and last four digits of the applicant's social security number; 2. The name, address, telephone number and last four digits of the social security number for each primary care -giver authorized to operate out of the applicant's proposed location; 3. The street address of the proposed medical marijuana establishment; 4. If the applicant is not the owner of the proposed location of the medical marijuana establishment, a notarized statement from the owner of such property authorizing the submission of the application; 5. A completed set of the applicant's fingerprints and the fingerprints of each primary care -giver authorized to operate out of the applicant's proposed location; 6_ The number of patients for whom the applicant serves as primary care -giver and the number of patients for whom each primary care - giver authorized to operate out of the applicant's proposed location serve as primary care - giver; 7. A business plan that contains the following items: a. A security plan that includes but is not limited to a description of the security provisions and systems to be utilized; b. Hours of operation; R C. Number of employees and /or volunteers expected to be onsite; d. An external lighting plan; and e. A description of any cultivation activities including; i. Where plants will be grown; ii. The expected number of plants that will be grown on site; iii. A description of the ventilation system for the premises; iv. A description of the internal lighting system; and V. Expected water usage. 8. A statement by the applicant that the applicant and the applicant's employees understand that they may be subject to prosecution under federal law; 9. A statement by the applicant that the applicant is a primary care- giver. 10. A statement by the applicant that the City accepts no legal liability in connection with the approval and subsequent operation of the medical marijuana establishment; and 11. Any additional information that the Tax and Licensing Division reasonably determines to be necessary in connection with the investigation and review of the application. Sec. 11 -274. Application Fee. An applicant shall pay to the City a non - refundable application fee when the application is filed. The purpose of the fee is to cover the administrative costs of processing the application. The amount of the application fee shall be fixed by the City Council by motion. Seca 11 -275. Standards for issuance of license. The Tax and Licensing Division shall issue a license under this article when: (a) The application (including any required attachments and submissions) is complete and signed by the applicant; (b) The applicant has paid the application fee and any other fees required by the code; (c) The application does not contain a material falsehood or misrepresentation; (d) The application complies with all of the requirements of this article; (e) Written approval from the City of Wheat Ridge Police Department as to: 0 1. The applicant's business plan; and 2. The applicant's criminal background. No written approval will be issued to an applicant whose criminal history reflects a prior conviction for a felony offense. (f) Written approval from the Community Development Department that the location requirements imposed by this article have been met. Sec. 11 -276. Authority to recommend and impose conditions on license. (a) Any City department shall have the authority to recommend reasonable terms and conditions on a license as may be necessary to protect the public health, safety, and welfare, and to obtain compliance with the requirements of this article and applicable law. (b) The Tax and Licensing Division is authorized to approve a license subject to such reasonable conditions as required by the City. (c) In the event an application is conditionally approved, the Tax and Licensing Division shall clearly set forth in writing the conditions of approval. Sec. 11 -277. Contents of license. A license shall contain the following information: (a) The name of the licensee; (b) The date of the issuance of the license; (c) The address at which the licensee is authorized to operate the medical marijuana establishment; (d) Any special conditions of approval imposed upon the license; and (e) The date of the expiration of the license. Sec. 11 -278. Denial of license. The Tax and Licensing Division shall deny an application for a license under this article when the applicant fails to meet all of the standards set forth in section 11 -275. Sec. 11 -279. Notice of denial or conditional approval of license. The Tax and Licensing Division shall notify the applicant of its decision to deny or conditionally approve the application in writing within three business days of rendering the decision. Notice shall be given by mailing a copy of the decision to the applicant by regular mail, postage prepaid, at the address shown in the application. Notice shall be deemed to have been properly given upon mailing. Sec. 11 -280. Appeal of denial or conditional approval of license. (a) An applicant has the right to appeal the denial of an application or condition imposed thereon to an administrative hearing officer. (b) The applicant must file a written notice of appeal with the Tax and Licensing Division within fifteen days after the date of mailing of the denial or conditional approval of the application. (c) Upon notice from the Tax and Licensing Division that the applicant has satisfied the requirement in subsection (b), the City Manager shall appoint an administrative hearing officer. (d) The applicant shall be provided with not less than ten days' prior written notice of the appeal hearing to be held by the administrative hearing officer. (e) The burden of proof in an appeal filed under this section shall be on the applicant. (f) If the administrative hearing officer finds by a preponderance of the evidence that the decision of the Tax and Licensing Division was correct, the administrative hearing officer shall uphold that decision. If the administrative hearing officer finds by a preponderance of the evidence that the decision of the Tax and Licensing was incorrect, the administrative hearing officer shall set aside the denial and issue the license. The administrative hearing officer may impose additional conditions on the license issued (if it was previously denied) or the conditions of approval stricken or modified. (g) Any decision made by the administrative hearing officer pursuant to this section shall be a final decision and may be appealed to the district court pursuant to Rule 106(a)(4) of the Colorado Rules of Civil Procedure. The applicant's failure to timely appeal the decision is a waiver of the applicant's right to contest the denial or conditional approval of the application. Sec. 11 -281. License not transferable. A license is non - transferable and non - assignable. Any attempt to transfer or assign a license voids the license. Sec. 11 -282, Duration of license, renewal. (a) Each license issued pursuant to this article shall expire on the first day of the month one year from the month of issuance, and may be renewed as provided in this section. (b) An application for the renewal of an existing license shall be made to the Tax and Licensing Division not less than forty -five days prior to the date of expiration. No application for renewal shall be accepted by the Tax and Licensing Division after the date of expiration. An administrative hearing officer may waive the forty -five days time requirement set forth in this subsection if the applicant demonstrates adequate justification. E1 Jy 2 (c) If a renewal application has not been filed by a licensee, the City shall send a renewal notice no less than thirty (30) days prior to the expiration of the license. (d) At the time of the filing of an application for the renewal of an existing license the applicant shall pay a renewal fee in an amount fixed by the City Council by motion. Sec. 11 -283. Duties of licensee. Each licensee shall: (a) Post the license in a conspicuous location on the premises of the medical marijuana dispensary (b) Comply with all of the terms and conditions of the license; (b) Comply with all of the requirements of this article; (c) Comply with all other applicable City ordinances; (d) Comply with all state laws and administrative regulations pertaining to the medical use of marijuana, including, but not limited to, Amendment 20; section 18 -18- 406.3, C.R.S.; and the administrative regulations issued by the Colorado Department of Public Health and Environment found at 5 CCR 1006 -2, all as amended from time to time. (e) Comply with all applicable federal laws, rules, or regulations, other than a federal law, rule or regulation concerning the possession, sale or distribution of marijuana that conflicts with Amendment 20; and (f) Permit inspection of its records and operation by the Tax and Licensing Division for the purpose of determining the licensee's compliance with the terms and conditions of the license and the City's tax laws. Sec. 11 -284. Hearing, suspension, revocation of license. (a) A license issued pursuant to this article may be suspended or revoked by an administrative hearing officer after a hearing for the following reasons: 1. Fraud, misrepresentation, or a false statement of material fact contained in the license application; 2. A violation of any City, state, or federal law or regulation, other than a federal law or regulation concerning the possession, sale or distribution of marijuana that conflicts with Amendment 20; 3. A violation of any of the terms and conditions of the license; or 4. A violation of any of the provisions of this article. V 5. Good Cause. (b) Request for suspension or revocation, notice of hearing, burden. 1. The Wheat Ridge Police Department shall request in writing that a license issued under this article be suspended or revoked. 2. The City Manager shall appoint an administrative hearing officer to preside over the hearing on the suspension or revocation of a license. 3. The administrative hearing officer shall a. Set a date and time on which to determine whether to revoke or suspend such license. b. Notify the licensee in writing of the date and time of the hearing at least ten (10) days prior to conducting such hearing. Such - notice shall be sent by regular mail postage prepaid. Notice is deemed to have been given upon mailing. C. Conduct a hearing based on the allegations provided by the Wheat Ridge Police Department. This shall be an informal hearing where no rules of evidence shall apply. The burden shall be on the Wheat Ridge Police Department to prove by a preponderance of the evidence that the licensee has violated the provisions in subsection (a) of the section. d. Provide a written decision to the licensee within a reasonable time after the conclusion of the hearing. (c) In deciding whether a license should be suspended or revoked, and in deciding what conditions to impose in the event of a suspension, if any, the administrative hearing officer shall consider: 1. The nature and seriousness of the violation; 2. Corrective action, if any, taken by the licensee; 3. Prior violation(s), if any, by the licensee; 4. The likelihood of recurrence; 5. All circumstances surrounding the violation; 10 6. Whether the violation was willful; 7. The number of previous violations by the licensee; and 8. Previous sanctions, if any, imposed against the licensee. (d) In connection with the suspension of a license, the administrative hearing officer may impose reasonable conditions thereon. (e) Any decision made by the administrative hearing officer pursuant to this section shall be a final decision and may be appealed to the district court pursuant to Rule 106(a)(4) of the Colorado Rules of Civil Procedure. The applicant's failure to timely appeal the decision is a waiver of the applicant's right to contest the decision. (f) No fee previously paid by a licensee in connection with the application shall be refunded if such license is suspended or revoked. Sec. 11 -285. Operation limitations for medical marijuana dispensaries. Medical marijuana dispensaries shall be subject to the following additional requirements: (a) No marijuana may be distributed, sold, given away, or transferred at a medical marijuana dispensary except to the licensee's patients and other primary care- givers. (b) All product storage shall be indoors. Products, accessories, and associated paraphernalia shall not be visible from a public sidewalk or right of way. All products shall be in a sealed /locked cabinet except when being accessed for distribution. (c) A medical marijuana dispensary may be open seven days a week from the hours of 9:00 am to 7:00 pm. (d) No on -site consumption of marijuana is allowed on the premises. (e) The sale or consumption of alcohol on the premises is prohibited. (f) Cultivation, growing, processing. The growing, cultivation, or processing of marijuana on or within the premises of a medical marijuana dispensary: 1. Shall be conducted indoors in such a manner that marijuana plants at any stage of development are not visible from a public sidewalk or right -of -way; 2. Shall be prohibited unless the dispensary is equipped with a proper ventilation system that filters out the odor of marijuana so that the odor is not capable of being detected by a person with a normal 11 sense of smell at the exterior of the dispensary or any adjoining business, parcel or tract of real property. (g) All medical marijuana dispensaries shall provide adequate security on the premises. At a minimum the security shall include: 1. Security surveillance cameras installed to monitor the main entrance along the interior and exterior of the premises and all other entrances or exits only along the interior of the premises. Security video shall be preserved for at least 72 hours by the licensee; 2. Robbery and burglary alarm systems that are professionally monitored and maintained in good working condition; � \ � 3. Exterior lighting that illuminates the exterior walls of the business during evening hours and is compliant with the City Code; and Q `��` • 4. A locking safe permanently affixed to the premises that is suitable \ v y for storage of the entire inventory of saleable marijuana. Sec. 11 -286. Operation limitations for medical marijuana cultivators. Medical marijuana cultivators shall be subject to the following additional requirements: (a) A medical marijuana cultivator may not: 1. Distribute, sell, give away, or transfer a usable form of marijuana or marijuana plants on or from its premises except to its patients or other primary care - givers. 2. Distribute sell, give away, or transfer other products, accessories, or associated paraphernalia of any kind on or from its growing premises. (b) A medical marijuana cultivator may be open seven days a week during the hours of 9:00 a.m. to 7:00 p.m. (c) No on -site consumption of marijuana is allowed on the premises. (d) The sale or consumption of alcohol on the premises is prohibited. (e) A medical marijuana cultivator shall be equipped with a safe that is utilized for the purposes of storing marijuana not then being actively cultivated when the business is not open. 12 (f) Cultivation, growing, processing. The growing, cultivation, or processing of marijuana on or within the premises of a medical marijuana cultivator: 1. Shall be conducted indoors in such a manner that marijuana plants at any stage of development are not visible from a.public sidewalk or right -of -way; 2. Shall be prohibited unless the operation is equipped with a proper ventilation system that filters out the odor of marijuana so that the odor is not capable of being detected by a person with a normal sense of smell at the exterior of the dispensary or any adjoining business, parcel or tract of real property. (g) All medical marijuana cultivators shall provide adequate security on the premises. At a minimum the security shall include: 1. Security surveillance cameras installed to monitor all entrances and exits of the premises. Security video shall be preserved for at least 72 hours by the licensee; 2. Robbery and burglary alarm systems that are professionally monitored and maintained in good working condition; 3. Exterior lighting that illuminates the exterior walls of the business during evening hours and is compliant with the City Code; and 4. A locking safe permanently affixed to the premises that is suitable for storage of the entire inventory of saleable marijuana. Sec. 11 -287. Prohibited locations. (a) Except as provided in subsection e of this section, no medical marijuana establishment shall be located at a location that does not conform to the requirements of this section. (b) No medical marijuana establishment shall be located: 1. Within 500 feet of a licensed child care facility; 2. Within 500 feet of any educational institution or school, college or university, either public or private; 3. Within 500 feet of any halfway house or correctional facility; and 4. Within 500 feet of any drug rehabilitation or drug treatment center. 13 (c) The distances described in subsection (b) shall be computed by direct measurement from the nearest property line of the land used for child care, school, or halfway house purposes to the nearest portion of the building housing the medical marijuana establishment using a straight line. (d) Each medical marijuana establishment shall be operated from a permanent location. No medical marijuana establishment shall be licensee to operate from a moveable, mobile, or transitory location. (e) The suitability of a location for a medical marijuana establishment shall be determined at the time of the issuance of the first license for such establishment. The fact that changes in the neighborhood that occur after the issuance of the first license might render the site unsuitable for a medical marijuana establishment under this section shall not be grounds to suspend, revoke or refuse to renew the license for such establishment so long as the license for the establishment remains in effect. Sec. 11 -288. Signage. (a) All signage for a medical marijuana establishment shall comply with the requirements of chapter 26 of this code. (b) No licensee shall display a sign for the medical marijuana establishment that contains the word "marijuana," "cannabis," or any other word or phrase commonly understood to refer to marijuana unless such word or phrase is immediately preceded or followed by the word "medical." Sec. 11 -289. Required warnings to be posted. There shall be posted in a conspicuous location in each medical marijuana establishment a legible sign containing the following warnings: (a) A warning that the diversion of marijuana for non - medical purposes is a violation of state and federal laws; (b); , A warning that the use of medical marijuana may impair a person's ability to drive a:motor vehicle or operate machinery, and that it is illegal under state law to drive a motor vehicle or to operate machinery when under the influence of or impaired by marijuana; and (c) A warning that loitering in or around the medical marijuana establishment is prohibited by state law. (d) A warning that possession and distribution of marijuana is a violation of federal law. Sec. 11 -290. Paraphernalia. Devices, contrivances, instruments, and paraphernalia for inhaling or otherwise consuming marijuana including, but not limited to, rolling papers and related tools, water pipes, and vaporizers may lawfully be sold at a medical 14 marijuana dispensary. Such items may be sold or provided only to patients or primary care - givers. Sec. 11 -291. Taxes. Each licensee shall collect and remit sales tax on all medical marijuana, paraphernalia, and other tangible personal property sold by the licensee at the medical marijuana establishment according to the provisions of Code chapter 22 and any regulations issued pursuant to it. Sec. 11 -292. Penalties, injunctive relief. (a) It is a misdemeanor offense for any person to violate any provision of this article. Any person convicted of having violated any provision of this article shall be punished as set forth in section 1 -5 of this code. (b) The operation of a medical marijuana establishment without a valid license issued pursuant to this article may be enjoined by the City in an action brought in a court of competent jurisdiction. Section 3 . Section 26 -123 of the Code, entitled Definitions, is hereby amended bythe addition of the following terms: Medical marijuana dispensary has the meaning provided in Article XI of Chapter 11 of this code. Medical marijuana cultivator has the meaning provided in Article XI of Chapter 11 of this code. Section 4 . The Table of Uses for Commercial and Industrial Districts provided for in Section 26 -204 of the Code is hereby amended as follows: Uses Notes NC RC C -1 C -2 I Medical and dental Pharmacies and P P P P P offices, clinics or optical stores laboratories, excluding are accessory substance abuse use clinics MEDICAL P P P MARIJUANA DISPENSARIES MEDICAL P MARIJUANA CULTIVATORS Mini - warehouses for P P inside storage 15 Section 5 . P olice Power Finding The City Council hereby finds, determines, and declares that this Ordinance is necessary and proper to provide for the safety, preserve the health, promote the prosperity, and improve the order, comfort and convenience of the City of Wheat Ridge and the inhabitants thereof. Section 6 . Authority The City Council hereby finds, determines and declares that it has the power to adopt this Ordinance pursuant to: (i) the Local Government Land Use Control Enabling Act, Article 20 of Title 29, C.R.S.; (ii) Part 3 of Article 23 of Title 31, C.R.S. (concerning municipal zoning powers); (iii) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (iv) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (v) Section 31 -15 -501 (concerning municipal power to regulate businesses); (vi) the authority granted to home rule municipalities by Article XX of the Colorado Constitution; and (vii) the powers contained in the City of Wheat Ridge, Colorado Home Rule Charter (the "Charter "). Section 7 Severability, Conflicting Ordinances Repealed If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 8 . Effective Date This Ordinance shall take effect fifteen (15) days after final publication, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of to on this day of 2009, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge, and Public Hearing and consideration on final passage set for , 2009 at 7:00 p.m., in the Council Chambers, 71000 West 29 Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of to _, this day of , 2009. SIGNED by the Mayor on this day of 2009. Jerry DiTullio, Mayor ATTEST: Michael Snow, City Clerk 10 First Publication: Second Publication: Wheat Ridge Transcript Effective Date: Approved as to Form Gerald E. Dahl, City Attorney 17 cannabis TllerepY asudne Cannabis Therapy Institute Medical Cannabis Policy Group Phone: (641) 715 -3900 ext. 70966 Web: www .cannabistherapyinstitute.com Email: policygroup @cannabistherapyinstitute.com Cannabis Oct. 6, 2009 Therapy Institute Medica /Cannabis Dear Policy Maker: Po /icy Group Laura Kriho As you know, the number and type of medical cannabis businesses are rapidly increasing in Cannabis Therapy Colorado in response to a strong demand from medical cannabis patients to have safe, reliable Institute access to their medicine. Many communities are starting to develop regulations regarding 3ason Lauve medical cannabis businesses. The attached report, Encouraging the Economic Development of Cannabis Health Medical Cannabis Businesses in Colorado, was written to give background and clarity to the News issue and provides draft regulations that can be used to regulate and foster cannabis business Dan Rogers development in your community. High Valley Healing Center Cannabis medicine is an entirely new industry in the state and represents a unique opportunity for local officials to improve their economies by welcoming these businesses to their Timothy Tipton Rocky Mountain communities and encouraging their efforts to provide safe, reasonable access to legal patients. Caregivers Just as Colorado is at the forefront of developing other "green" technologies, we would like to Cooperative see the state embrace this new green economy for the benefit of all its citizens. Medical Cannabis When designing new policies and regulations, it is critical to remember that this is a health care Advisory Board issue, affecting the lives of thousands of sick people who have all been qualified by their physicians and the State of Colorado to use cannabis as medicine. A proactive public health model can effectively address problems before they arise, and communities can design methods for safe, legal access to medical cannabis while keeping the patients' needs foremost. The Cannabis Therapy Institute is composed of patients, caregivers and advocates in Colorado's medical cannabis community who want to ensure that any regulation keeps the patients' best interests in mind. Our model regulations will encourage cannabis businesses in your community by clarifying existing regulations and thereby providing legal protection from federal law. There are several different organizational models that caregivers are currently using to provide medicine to their patients, and none of them are currently defined in Colorado law. Our goal is to develop continuity across the state by coming up with a consistent model to implement Article XVIII, Section 14 of the Colorado Constitution and ensure patients have safe, consistent access to quality, affordable medicine. This report is a living document. Please email all your feedback on it to: policygroup @cannabisthreapyinstitute.com Sincerely, Medical Cannabis Policy Group Cannabis Therapy Institute Cannabis Therapy Institute Cannabis Education, Research & .Advocacy Encouraging the Economic Development of Medical Cannabis Businesses in Colorado A Report by the Cannabis Therapy Institute Revised October 6, 2009 Table of Contents 1) Introductory Cover Letter 2) Report Sections I. History of Cannabis Medicine II. Terminology: Cannabis vs. Marijuana III. Legal Background IV. Medical Cannabis Economic Development V. Draft Ordinance: Medical Cannabis Business Regulation Cannabis Therapy Institute P.O. Box 19084, Boulder, CO 80308 Phone: (641) 715 -3900 ext. 70966 Web: www .cannabistherapyinstitute.com Email: info @cannabistherapyinstitute.com cannabis fiBraY WNW Cannabis Therapy Institute Medical Cannabis Policy Group Phone: (641) 715 -3900 ext. 70966 Web: www .cannabistherapyinstitute.com Email: policygroup @cannabistherapyinstitute.com Cannabis Oct. 6, 2009 Therapy Institute Medical Cannabis Dear Policymaker: Po /icy Group As you know, the number and type of medical cannabis businesses are rapidly increasing in Laura Kriho Colorado in response to a strong demand from medical cannabis patients to have safe, reliable Cannabis Therapy access to their medicine. Many communities are starting to develop regulations regarding Institute medical cannabis businesses. The attached report, Encouraging the Economic Development of Jason Lauve Medical Cannabis Businesses in Colorado, was written to give background and clarity to the Cannabis Health issue and to provide a framework that can be used to regulate and foster cannabis business News development in your community. Dan Rogers High valley Healing Cannabis medicine is an entirely new industry in the state and represents a unique opportunity Center for local officials to improve their economies by welcoming these businesses to their communities and encouraging their efforts to provide safe, reasonable access to legal patients. Timothy Tipton Rocky Mountain Just as Colorado is at the forefront of developing other "green" technologies, we would like to Caregivers see the state embrace this new green economy for the benefit of all its citizens. Cooperative When designing new policies and regulations, it is critical to remember that this is a health care Medical Cannabis issue, affecting the lives of thousands of sick people who have all been qualified by their Po /icy Group physicians and the State of Colorado to use cannabis as medicine. A proactive public health Advisory Board model can effectively address problems before they arise, and communities can design methods for safe, legal access to medical cannabis while keeping the patients' needs foremost. Jeffrey S. Gard Attorney The Cannabis Therapy Institute is composed of patients, caregivers and advocates in Colorado's John Inness -Brown medical cannabis community who want to ensure that any regulation keeps the patients' best Attorney interests in mind. Our regulatory framework will encourage cannabis businesses in your community by clarifying existing regulations and thereby helping provide legal protection from federal law. There are several different organizational models that caregivers are currently using to provide medicine to their patients, and none of them are currently defined in Colorado law. Our goal is to develop continuity across the state by coming up with a consistent model to implement Article XVIII, Section 14 of the Colorado Constitution and ensure patients have safe, consistent access to quality, affordable medicine. This report is a living document. Please email all your feedback on it to: policygroup @cannabisthreapyinstitute.com Sincerely, Medical Cannabis Policy Group Cannabis Therapy Institute Encouraging the Economic Development of Medical Cannabis Businesses in Colorado Page I Cannabis 4 Therapy Institute Encouraging the Economic Development of Medical Cannabis Businesses in Colorado A report by the Cannabis Therapy Institute I. History of Cannabis Medicine Cannabis has been used as medicine by humans safely for over 10,000 years with not one death from an overdose. It was one of the most widely - prescribed medicines in the late 1800's and early 1900's until it was made illegal in 1937. It is an effective treatment for nausea, muscle spasms, glaucoma, seizures, severe chronic pain and many more conditions. There is no other medicine that treats so many conditions as effectively with so few negative side effects. Cannabis was outlawed in 1937 due to interests in the pharmaceutical, petrochemical and timber companies who saw cannabis and hemp as competition. Cannabis was a medicine that people could grow in their backyards and that couldn't be patented, so pharmaceutical companies couldn't profit from it. In addition, non - psychoactive cannabis (industrial hemp) was seen as a threat to petrochemical and timber industries because it has so many commercial uses including, plastics, fuel, and paper. In the 1920's, hemp was becoming the basis for a new farm -based green economy. Henry Ford even built one of his first cars out of hemp. II. Terminology: Cannabis vs. Marijuana The term "marijuana" is a racist term invented in the 1920's "Reefer Madness" propaganda campaign to outlaw cannabis and hemp. The campaign was designed to make the public believe that cannabis was a "new drug" being used by Mexicans who were coming across the border to rape white women. Cannabis is the name of the genus of the plant, which includes Cannabis sativa, Cannabis indica and other species and strains. Cannabis is the proper term for the medicine and is how the medicine was listed in the U.S. pharmacopeia from 1870 to 1941. Since most laws regarding cannabis were written after 1937, they use the word "marijuana" or "marihuana ". We encourage everyone to use the proper term "cannabis" whenever possible to show sensitivity to the use of racist, offensive words. Encouraging the Economic Development of Medical Cannabis Businesses in Colorado Page 2 III. Legal Background Article XVIII, Section 14 of the Colorado Constitution (Colorado's Medical Marijuana Amendment) was adopted by voters in 2000 to allow patients with certain debilitating medical conditions to use cannabis as medicine. The Medical Marijuana Amendment provides an exemption from state law for patients if they cultivate up to 6 plants or possess up to 2 ounces of cannabis medicine. For amounts greater than this, the Amendment allows a patient to present an affirmative defense in court that these amounts were medically necessary. If a patient cannot obtain the medicine for themselves, the Amendment allows patients to appoint a "primary caregiver" to obtain or cultivate the medicine for them. Most patients cannot provide their own medicine. Often, their illnesses make even the most common daily tasks very difficult. Cannabis cultivation is expensive, time - consuming, and requires expert knowledge that most patients don't have. So patients must rely on caregivers to provide them with medicine. In July, the Colorado Board of Health and Environment clarified the issue by adopting rules which state that a caregiver's "significant responsibility" could mean simply providing a patient with medical marijuana. Since that decision, many businesses and collectives have started to serve the needs of the growing number of legal patients in Colorado. The issue for communities should not be how to curtail this activity, but rather how to capitalize on this new economic boom to benefit their patients as well as their community. In adopting policies and regulations concerning medical cannabis businesses, it is important to remember that medical cannabis is a Constitutional right for Colorado citizens, the same as freedom of speech, freedom of religion and freedom of elections. Policymakers have a duty to uphold the Constitution and ensure that citizens can exercise their Constitutional right in a safe manner. Federal Law Medical cannabis is not protected under federal law. However, the Obama administration's new policy on medical cannabis says that the federal government will not enforce federal law in states with medical marijuana laws, as long as medical cannabis businesses are complying with all state and local laws. That is one reason why it is urgent to clarify state and local laws: so that cannabis - related businesses can be assured that they will not be targeted by federal law enforcement. IV. Medical Cannabis Economic Development Medical cannabis caregiver businesses benefit local businesses A 2006 Report by Americans for Safe Access (ASA) in California showed that medical cannabis businesses are typically positive additions to the neighborhoods in which they locate, bringing additional customers to neighboring businesses and reducing crime in the immediate area. Like any new business that serves a different customer base than the existing businesses in the area, medical cannabis businesses increase the revenue of other businesses in the surrounding area simply because new people are coming to access services, increasing foot traffic past other establishments. In many communities, the opening of a medical cannabis business has helped revitalize an area. 'Medical Cannabis Dispensing Collectives and Local Regulation, Americans for Safe Access, Sept. 2006 http: / /www.americansforsafeaccess .org/downloads /dispensaries.pdf Encouraging the Economic Development of Medical Cannabis Businesses in Colorado Page 3 Medical cannabis caregiver businesses decrease crime The ASA Report also showed that medical cannabis businesses in the neighborhood actually tend to decrease crime, not increase it. Without medical cannabis businesses, patients must obtain their medicine on the black market, which leads to an increase in criminal activity and endangers the safety of the patient. With regulated medical cannabis businesses, patients obtain their medicine from a known caregiver and can have safe access to their medicine. Street sales and associated crime decrease. Medical cannabis businesses also decrease crime in the areas in which they are located because of the security and surveillance measures employed by the businesses and because patients and operators are vigilant and report any criminal activity to the police. Medical cannabis is good for the economy Cannabis is the basis of the original "green" economy. Medical cannabis businesses can revitalize local economies by providing green jobs, bringing more customers to local businesses, and increasing sales tax revenue. The best way for a community to benefit from legal medical cannabis is to encourage medical cannabis businesses to develop and expand in the areas. There is a large demand in all Colorado communities for cannabis as a safe alternative to dangerous and addictive artificial drugs. Local governments should find a way to capitalize on the demand to improve their local economies. Special medical cannabis districts or research parks are one way to encourage "cannabusinesses" to develop in your area. V. Draft Ordinance: Medical Cannabis Business Regulation Article XVIII § 14 of the Colorado Constitution (Colorado's Medical Marijuana Amendment) needs to be clarified to answer community concerns and to help ensure that medical cannabis businesses will be protected from federal law enforcement. The below draft ordinance is intended to provide a framework around which communities can regulate medical cannabis businesses while at the same time fostering the economic development of the medical cannabis industry and protecting patients' safe access to medicine. Section 1. Short title. This ordinance shall be known as the Medical Cannabis Business Regulation Ordinance. Section 2. Purposes (1) The purpose of this ordinance is to implement Article XVIII, Section 14 of the Colorado Constitution, known as the Colorado's Medical Marijuana Amendment, and to regulate and encourage the operation of facilities lawfully used for the acquisition, cultivation, possession, manufacture, production, sale, distribution, dispensing, storage or transportation of medical cannabis and medical cannabis herbal remedies. This ordinance is intended: (a) To help ensure that legal patients who are residents of the City of can obtain and use legal cannabis therapies and services for medical purposes. (b) To help ensure that legal patients and their primary caregivers who engage in the legal acquisition, cultivation, possession, manufacture, production, sale, distribution, dispensing, storage or transportation of medical cannabis solely for the legal patient's medical treatment are not subject to criminal prosecution or sanction. (c) To adopt regulations that treat cannabis as a legal herbal medicine. (d) To permit the safe and affordable distribution of medical cannabis to legal patients. (e) To protect citizens from the adverse impacts of irresponsible medical cannabis distribution, storage and use practices. Encouraging the Economic Development of Medical Cannabis Businesses in Colorado Page 4 Section 3. Definitions (1) "Cannabis" shall have the same meaning as the definition of "marihuana" or "marijuana" provided by Colorado Revised Statute 18 -18 -102 (18), but if that definition is amended by state law in the future, as amended. Currently, the definition is: "Marihuana" or "marijuana" means all parts of the plant cannabis sativa L., whether growing or not, the seeds thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or its resin. It does not include fiber produced from the stalks, oil or cake made from the seeds of the plant, or sterilized seed of the plant which is incapable of germination if these items exist apart from any other item defined as "marihuana" in this subsection (18). "Marihuana" does not include marihuana concentrate as defined in subsection (19) of this section. (2) "Medical cannabis caregiver service business" means any business entity that is owned and operated by one or more primary caregivers, including employees, with the purpose of providing medical cannabis services to legal patients. (3) "Medical cannabis dispensary" means any business entity engaged in retail sales of medical cannabis herbal products that is owned and operated by one or more primary caregivers, including employees, with the purpose of providing medical cannabis products to legal patients. (4) "Medical cannabis collective" means any collection of 2 or more persons comprised exclusively and entirely of legal patients and the primary caregivers of those patients, including employees, the purpose of which is to provide education, referral, or networking services to patients, and to facilitate or assist patients in acquiring their medicine, including, but not limited to, the cultivation, manufacture, production, sale, distribution, dispensing, storage or transportation of medical cannabis herbal products for medical use by legal patients. (5) "Medical cannabis herbal product' means cannabis and every compound, manufacture, salt, derivative, mixture, or preparation of cannabis, its seeds, or its resin manufactured solely for the medical use of legal Colorado patients. It does not include the stalks or oil or cake made from the seeds of the plant, or sterilized seed of the plant which is incapable of germination. (6) 'Patient' shall have the same meaning as the definition provided in Article XVIII § 14 of the Colorado Constitution or by any rules promulgated by the Colorado Board of Health and Environment. (7) 'Primary caregiver" shall have the same meaning as the definition provided in Article XVIII § 14 of the Colorado Constitution or by any rules promulgated by the Colorado Board of Health and Environment. Section 4. Exemptions from ordinance (1) Any patient who cultivates or manufactures cannabis for his or her own personal medical use is exempt from the requirements of this ordinance. (2) Recognizing that there are smaller caregivers that do not need to be subject to additional regulations, primary caregivers who are serving the needs of 6 or fewer patients are exempt from the requirements of this ordinance. Encouraging the Economic Development of Medical Cannabis Businesses in Colorado Page 5 Section 5. Allowed practices All patients, primary caregivers, medical cannabis caregiver service businesses, medical cannabis collectives and medical cannabis dispensaries may engage in the acquisition, cultivation, possession, manufacture, production, sale, distribution, dispensing, storage or transportation of medical cannabis herbal products for medical use by legal Colorado patients as provided in Article XVIII § 14 of the Colorado Constitution. Section 6. Medical cannabis caregiver service business — description (1) Medical cannabis caregiver service businesses provide services to patients, primary caregivers, medical cannabis collectives or medical cannabis dispensaries. These services include, but are not limited to, consultation and medicated food preparation. (2) Medical cannabis caregiver services may not be subject to sales tax, but all income must be reported properly on state and federal income tax returns. (3) Medical cannabis caregiver service businesses must obtain a State of Colorado business license. Section 7. Medical cannabis dispensary — description (1) A medical cannabis dispensary must obtain a State of Colorado business license and obtain all applicable sales tax permits. (2) A medical cannabis dispensary must pay all required state and local taxes on all transactions, unless the business is a tax - exempt non - profit organization. Section 8. Medical cannabis collective — description (1) The City of recognizes that some legal patients may not be able to undertake all the physical activities necessary to cultivate cannabis for personal medical use. Accordingly, this section recognizes that legal patients and their primary caregivers may join together to form medical cannabis collectives for the purpose of cultivating and manufacturing medical cannabis and pooling their resources solely for the personal medical use of the members. (2) Membership in a medical cannabis collective must be restricted to legal patients and their primary caregivers. However, the medical cannabis collective may hire employees who are non - patients to facilitate the business of the collective. (3) Medical cannabis collectives and each member thereof, shall not sell, barter, give away, or otherwise distribute cannabis to non - members of the medical cannabis collective. Section 9. Permitted zoning districts (1) Medical cannabis dispensaries shall be allowed in any retail, commercial, industrial, or agricultural zoning district. (2) Medical cannabis primary caregivers, medical cannabis caregiver service businesses, and medical cannabis collectives that do not sell retail products shall be allowed in any zoning district. Section 11. Special requirements Medical cannabis primary caregivers, medical cannabis caregiver service businesses, medical cannabis collectives and medical cannabis dispensaries shall: (1) Be subject to the same sign codes as other businesses in the same zoning district. (2) Provide adequate security on the premises, including lighting and alarms if necessary. (3) Provide handicapped access as required by federal law. Encouraging the Economic Development of Medical Cannabis Businesses in Colorado Page 6 Section 12. Patient rights No person shall discriminate against a patient in any way for their medical use of cannabis. This includes, but is not limited to, discrimination in areas of employment and drug testing, health insurance, social services, probation, financial aid, veteran's benefits, or housing programs. Section 13. Police procedures and training (1) Within six months of the date that this chapter becomes effective, the training materials handbooks, and printed procedures of the Police Department shall be updated to reflect its provisions. These updated materials shall be made available to police officers in the regular course of their training and service. (2) Medical cannabis - related activities shall be the lowest possible priority of the Police Department. (3) Patients, primary caregivers, and medical cannabis collectives, dispensaries, or service businesses that come into contact with law enforcement will not be cited or arrested and medical cannabis herbal products in their possession will not be seized if they are in compliance with the provisions of this ordinance. (4) Patients, primary caregivers, and medical cannabis collectives, dispensaries, and service businesses who come into contact with law enforcement and cannot establish or demonstrate their legal status, but are otherwise in compliance with the provisions of this ordinance, will not be cited or arrested and medical cannabis herbal products in their possession will not be seized if: (a) based on the activity and circumstances, the officer determines that there is no evidence of criminal activity; (b) the claim to be a legal patient, primary caregiver, medical cannabis collective, medical cannabis dispensary, or medical cannabis service businesses is credible; or (c) proof of status as a legal patient, primary caregiver, medical cannabis collective, medical cannabis dispensary, or medical cannabis service businesses can be provided to the Police Department within three business days of the date of contact with law enforcement. (5) A legal patient, primary caregiver, medical cannabis collective, medical cannabis dispensary, or medical cannabis service business may transport medical cannabis within the City of A patient or primary caregiver may not be charged with DUI based solely on the presence of medical cannabis in the motor vehicle, if the patient or primary caregiver did not also present sufficient evidence of impairment at the time of arrest. (6) A legal patient, primary caregiver, medical cannabis collective, medical cannabis dispensary, or medical cannabis service businesses may possess medical equipment or paraphernalia used to smoke, vaporize or otherwise consume cannabis for medical use only by legal patients. Encouraging the Economic Development of Medical Cannabis Businesses in Colorado Page 7 ens %ble , , , working for an effective drug policy Dear Legislator or City Official, If you have not already, you may soon be approached by a group looking to establish a medical marijuana dispensary in your community. The following document explores the need for such facilities and highlights various benefits and potential pitfalls specific to this developing area. This document was prepared by Sensible Colorado, the state's leading non - profit working on behalf of medical marijuana patients. As an introduction, we have arranged the following questions and answers for your consideration. What is a Dispensary? A dispensary is a storefront facility which provides marijuana to ill, state - licensed medical marijuana patients. Who may access a Dispensary? Dispensaries may provide medical marijuana to state - licensed medical marijuana patients or patients who have been recommended marijuana by their doctor. All qualifying patients have serious, debilitating medical conditions. Who may operate a Dispensary? Dispensaries are operated by state- licensed medical marijuana caregivers. As defined under Colorado law, a caregiver is an individual who has significant responsibility for managing the well -being of a person with a debilitating medical condition. Are Dispensaries legal? Under Colorado law, seriously ill Coloradans have the right to acquire and use marijuana for medical purposes to treat an assortment of debilitating medical conditions. Colorado law specifically authorizes and licenses caregivers to provide patients with this medicine. (See: Colorado Const. 0 -4 -287 - ARTICLE XVIII Sec. 14.) Please review this document which provides further information on dispensaries including recommendations on regulation. Please keep in mind that dispensaries are utilized by the sickest members of your community, so please act to preserve these facilities. For more information about dispensaries or Colorado's medical marijuana law, please contact Sensible Colorado at 720 890 4247, info&sensiblecolorado.org or see www.sensiblecolorado.org This report was adapted in part from work by the non - profit, Americans for Safe Access (www.americansforsafeaccess. org). phone 720.890.4247 • /ox 720.890.5891 • P.O. Box 18768 • Denver, CO 8 0218 -0 76 8 • www.sensiblecolorado.org Sensible 0 NY M o working for an effective drug policy Medical Marijuana Dispensaries: Benefits and Regulation Prepared by Sensible Colorado Working for an effective drug policy phone 720.890.4247 • { 720.890.5891 • P.O.Box18768 • Denver,CO 80218-0768 • www.sensiblecolorado.org Medical Marijuana Dispensaries: Benefits and Regulation Table of Contents IMPACTS OF DISPENSARIES ON COMMUNITIES Benefits to the Sick and Suffering ........................................... ..............................I Education and Expertise .................................................... ............................... 1 Reducing Crime and Improving Public Safety ........................... ..............................2 Dispensaries as Good Business Neighbors ................................ ..............................2 Illegal Resale Generally Not a Problem .................................... ............................2 -3 DISPENSARY RECOMMENDATIONS FOR REGULATION Regulations Best Handled by Health and Planning Departments ...... ..............................3 Arbitrary Caps are Counterproductive .................................... ..............................3 Location Restrictions can Create Barriers ................................. ..............................4 Onsite Consumption and Ventilation ...................................... ............................4 -5 Edibles and Consumption Devices .......................................... ..............................5 CommunityOversight ........................................................ ..............................5 Impact of Dispensaries on Communities Dispensaries Provide Many Benefits to the Sick and Suffering For a variety of reasons, many licensed patients find medical marijuana difficult to obtain. Patients in urban areas often have no space to cultivate plants; rural patients may not know anyone to procure marijuana seeds from; and patients in both areas often lack the requisite gardening skills to grow their own medicine. Dispensaries have developed as compassionate, community -based solutions to fill this need. Dispensaries serve as a centralized location which provides safe and legal access to this doctor - recommended medicine and function as a positive alternative to the illicit market. While dispensaries provide an important way for patients to obtain marijuana, they often offer other important services to this sick population. Recognizing the isolation and unique medical issues that seriously ill people often experience, many dispensaries provide a wide array of social services including massage, meals, community meetings, and more. Dispensaries Provide Vital Expertise and Educational Information for Patients Information about marijuana as medicine can be difficult to obtain. Dispensaries fill this void by providing a unique level of expertise to patients. Dispensary operators possess unique knowledge about the effects of various strains of marijuana and are able to convey this information to patients, thus catering to the individual's needs. Dispensaries often offer classes on marijuana growing and legal matters, trainings for healthcare advocacy, and other seminars. Dispensaries Reduce Crime and Improve Public Safety The presence of a dispensary in the neighborhood can improve public safety and reduce crime. Most dispensaries take security for their members and staff very seriously and take many precautions to safeguard their businesses. Security cameras are generally used both inside and outside the premises, and security guards are often employed to ensure safety. Visible security measures, such as cameras and security guards, serve as a general deterrent to criminal activity in the neighborhood. Those likely to engage in criminal activities will tend to move to a less- monitored area, thereby ensuring a safe environment not only for dispensary members and staff, but also for neighbors and businesses in the surrounding area. Dispensaries are Good Business Neighbors Medical marijuana dispensaries are generally positive additions to the neighborhoods in which they locate, bringing additional customers to neighboring businesses and reducing crime in the immediate area. In many communities, the opening of a dispensary has helped revitalize an area due to increased business interest and foot traffic. Dispensaries also pay taxes on their business and sales, which benefits the community as a whole. Why Illegal Resale of Medical Marijuana is Typically Not a Problem One concern of public officials regarding medical marijuana dispensaries is that dispensaries make possible the resale of marijuana on the streets. This has not been the experience of communities with dispensaries in Colorado or in other states. Universally, dispensaries have strict rules prohibiting resale or otherwise illegal behavior, and members violating these rules will be expelled. Dispensaries tend to be open to law enforcement monitoring and many offer "good neighbor" trainings for their members that emphasize sensitivity to the concerns of neighbors, law enforcement, and the community. Dispensary Regulations: Recommendations Regulations are best handled by Health and Planning Departments, not law enforcement To ensure that qualified patients, caregivers, and dispensaries are protected, general regulatory oversight duties -- including permitting, record maintenance and related protocols- - should be the responsibility of the local health or planning departments. Given the mission and responsibilities of these departments, they are the best - suited option to address the regulation of medical marijuana dispensaries. Law enforcement agencies, having little expertise in health and medical affairs, are ill- suited for handling such matters. Arbitrary caps on the number of dispensaries can be counterproductive Policymakers do not need to set arbitrary limitations on the number of dispensaries allowed to operate within a community because, as with other services, competitive market forces will be decisive. Dispensaries which provide quality care and patient services to their memberships will flourish, while those that do not will fail. Capping the number of dispensaries limits consumer choice, which can result in both decreased quality of care and less affordable medicine. Limiting the number of dispensaries allowed to operate may also force patients with limited mobility to travel farther distances to obtain the medicine they need. Finally, arbitrarily limiting the number of dispensaries can result in an inability to meet demand, which in turn may lead to such undesirable effects as lines outside of dispensaries, increased prices, and lower quality medicine. Restrictions on the locations of dispensaries are often unnecessary and can create barriers to access As described in this report, regulated dispensaries do not generally increase crime or bring other harm to their neighborhoods, regardless of where they are located. Since for many patients travel is difficult, cities and counties should take care to avoid unnecessary restrictions on where dispensaries can locate. Patients benefit from dispensaries being convenient and accessible, especially if the patients are disabled or have conditions that limit their mobility. It is unnecessary and burdensome to restrict dispensaries to industrial corners, far away from public transit and,other services. Depending on a city's population density, it can also be extremely detrimental to set excessive proximity restrictions (to schools or other facilities) that can make it impossible for dispensaries to locate anywhere within the city limits. It is important to balance patient needs with neighborhood concerns in this process. Patients benefit from onsite consumption and proper ventilation systems Dispensaries that allow members to consume medicine onsite allow for greater social interaction, which can have positive psychosocial health benefits for this chronically ill population. On -site consumption also encourages dispensary members to take advantage of the support services at the dispensary which improve patients' quality of life and, in some cases, prolong it. Onsite consumption is also important for patients who face restrictions to off -site consumption -- such as those in subsidized or other housing arrangements that prohibit smoking. In addition, onsite consumption provides an opportunity for patients to share information about effective use of marijuana and to take advantage of specialized delivery methods, such as vaporizers, which do not require smoking. Patients benefit from access to edibles and medical marijuana consumption devices Not all patients smoke marijuana. Many find tinctures or edibles to be more effective for their conditions. Allowing dispensaries to carry these items is important to ensuring that patients getting the best level of care possible. For patients who have existing respiration problems or who otherwise have an aversion to smoking, edibles are essential. Conversely, for patients who do choose to smoke or vaporize, they need to procure the tools to do so. Prohibiting dispensaries from carrying medical marijuana consumption devices forces patients to procure these items elsewhere. Additionally, when dispensaries do carry these devices, informed dispensary staff can explain their usage to new patients. Community Oversight In order to appropriately resolve conflict in the community and establish a process by which complaints and concerns can be reviewed, it can often be helpful to create a community oversight committee. Such committees, if fair and balanced, can provide a means for the voices of all affected parties to be heard and allow for common sense resolution of problems. -end- For more information, or to contact Sensible Colorado staff, see www.SensibleColorado.org West Metro Drug Task Force TO: M. Cooney, Lieutenant Investigations Division FROM: S. Bellomy, Detective Investigations Bureau DATE: September 23, 2009 SUBJECT: Safety Hazards at Indoor Marijuana Growing Operations I researched the hazards associated with indoor marijuana growing operations. Experienced investigators are aware of the hazards such as mold, chemicals, fertilizers, electricity, exposure to the plants, fire, etcetera; however, I was not able to locate any published documents specifically addressing the hazards of indoor marijuana growing operations. I spoke with DEA SA Nick Gesi, who is an authority in marijuana growing operations. Nick expressed the known hazards, many listed above, but said the DEA has not completed any studies on the hazards of marijuana growing operations or published any guidelines for addressing the hazards associated with the marijuana grows. I spoke with Bernard Brown from Network Environmental Systems (NES.) NES is an environmental firm that conducts all clandestine training and clandestine lab related studies for the DEA including marijuana growing operations. NES is known worldwide for their clandestine laboratory training. I have attended two of NES's training classes. (For additional information on the company refer to their website www.nesglobal.net I explained the city's position to Mr. Brown. I learned the following information: • There are currently no publications specifically addressing the hazards of indoor marijuana growing operations. • Many of the chemicals, pesticides, and fertilizers used in indoor grows are intended for outdoor use only. The city must determine if a license is required to possess the chemicals, pesticides, and fertilizers for commercial marijuana cultivation? • The fertilizers, pesticides, and chemicals create hazardous waste. Therefore, these growing operations are technically classified by the EPA as hazardous waste generators. The city needs to determine how they will address the hazardous waste issue. • The ballasts used to power the grow lights are not rated for commercial use and the electrical systems in most businesses and residences are not designed to accommodate the ballasts creating an electrical fire hazard. • There are always molds in marijuana grows. Unhealthy plants contain more mold than healthy plants. Molds are not currently regulated. The city must determine if and how they wish to regulate the molds associated with marijuana grows. • The structures containing the marijuana grows are always altered. IE: Holes in the sheetrock, modification of the HVAC system, the addition of fans, lights, and items suspended from the ceilings, modifications to electrical boxes and electrical systems, modification of framing to alter room sizes, etc. The city needs to determine if these structures need to be inspected by the building inspector to ensure they are up to proper code. • To obtain desirable THC concentrations (15% to 25 %) fertilizers, pesticides, chemicals, and the addition of ozone or CO2 generators must be used. With the addition of these generators the oxygen levels in the structure may drop below the 19.5 % oxygen threshold limit. Anything below the 19.5% limit is classified as an oxygen deficient environment. How will the city address the ozone and CO2 generators. According to federal law growing marijuana is illegal. If the city issues a permit to grow marijuana and a fire or catastrophe occurs, the city can be held civilly liable under federal law. Mr. Brown advised he was available for a conference call if necessary. Mr. Brown stated he would gladly testify as an expert on the subject but there would be fees involved. Based on my training and experience with indoor marijuana growing operations and with medical marijuana issues, I would recommend addressing the situation from the environmental and building code perspective. The current medical marijuana article limits enforcement and prosecution of marijuana grows where the growers are patients and/or caregivers. When confronted with these situations, law enforcement often has to photograph the scene and leave the marijuana grow intact with out filing charges or pursuing any prosecution. When addressing the issue of medical marijuana it is important to view marijuana as a "medicine" and not an illegal drug. The voters of Colorado passed Amendment 20 legalizing marijuana for medical use. Patients possessing marijuana licenses have a debilitating medical condition certified by a physician. Their medical records are protected by HIPPA. Restricting marijuana from a marijuana patient can be comparable to restricting the average person from obtaining aspirin, Tylenol, or other pain medication. Page 1 of 3 Kenneth Johnstone From: Christopher Price [cprice @mdkrlaw.com] Sent: Monday, September 21, 2009 4:09 PM To: Kenneth Johnstone Cc: Gerald Dahl; Daniel Brennan; Mark Cooney Subject: RE: medical marijuana Follow Up Flag: Follow up Due By: Tuesday, September 22, 2009 12:00 AM Flag Status: Red Attachments: WHEAT RIDGE Med Marijuana Ordinance.redline.doc; WHEAT RIDGE Med Marijuana Ordinance.clean.doc Attached is the latest version of the ordinance for your review. There is a redline version and clean version. If directly editing the ordinance, please work from the clean version. Please note the following: This version includes the edits that I received from Jerry. I added the term "medical marijuana grow operation" to separate grow operations from store front dispensaries. Please review and comment on those new or changed provisions. I added the term "medical marijuana establishment' to include both dispensaries and grow operations. The name of the permit and Article section has been changed accordingly. I favored the term "establishment' over the term "business" to allow for the ordinance to include cooperatives if those types of establishments appear in the City. Ken: Mark: - I have amended the separation requirements pursuant to your email direction below. - I removed the reference to residential locations. - I added changes to the zoning code as you requested except for the changes to the PCD and PID districts. Do we want to or need to add specific references to those districts? I remember an original goal for these regulations was to avoid additional public hearings to the extent possible. - Please let me know what Adam determines from his GIS review. - Have you determined the size of locked cabinets and /or wall mounted safes? Should those requirements remain in the ordinance? - I added the 60 plant limitation as you requested. However, I am uncomfortable with the limitation as is. Have you found any additional support for that limitation or any limitation based solely on a specific number of plants? Without any justification, the 60 plant limitation seems arbitrary. - Please let me know what other specific requirements you would like to see concerning the grow operations. I will revise the ordinance as new recommendations and comments come in. Christopher Price cphcena mdkrlaw.com Murray Dahl Kuechenmeister and Renaud LLP 303.493.6688 This electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. If you are not the intended recipient of 9/22/2009 Page 2 of 3 this e -mail, you are hereby notified that any dissemination, distribution or copying of this e -mail, and any attachments thereto, is strictly prohibited. If you have received this e -mail in error, please notify me immediately by telephone or e -mail and destroy the original message without making a copy. Thank you. From: Kenneth Johnstone [ mailto: kjohnstone @ci.wheatridge.co.us] Sent: Friday, September 18, 2009 3:36 PM To: Christopher Price Cc: Gerald Dahl; Daniel Brennan; Mark Cooney; Adam Tietz Subject: medical marijuana Some additional comments on MM ordinance as currently drafted. • Page 12 — the 1000 foot separation requirement may make it overly difficult to identify locations. I would suggest 500 feet which I believe mirrors state law on liquor licenses. Our SOB uses 750 and 1000 feet. • Do we also want to define MMD in Chapter 26 and list it as a pennitted use in a limited range of commercial / industrial districts? I would recommend C -1, C -2, PCD, PID and I. PID and PCD would then potentially require an ODP amendment to list it as a permitted use, which would require public hearings, for better or worse. I believe the Police Dept. will be recommending that cultivation operations be completely distinguished from dispensaries in the ordinance. If we did that, we could also make a zoning distinction and allow indoor cultivation only in I and PID districts. • Page 13 — Sec 11 -290 — Our adopted building codes have certain requirements regarding ventilation requirements for noxious and dangerous fumes or vapors, but I am not clear that the cultivation is documented to produce such "airborne contaminants" as they are referenced in the Code. In teens of odors, the Building Code does not deal with those and we are not necessarily qualified to make a determination whether a given ventilation system could achieve the standard that is being proposed. • As I've stated previously, we will want to do a GIS search to determine how big of a range of eligible properties the City would have if this ordinance were passed. Adam will be able to do that next week, but we will need to get lists of halfway houses and child care facilities from the State. We will use 500 feet and the zoning districts described above as a starting point for that GIS research. I will let you know as we have a better sense of the timing on that research when we hear back from the state. Adam, Based on the above, please proceed with the necessary steps for the GIS analysis. Thanks. Ken Johnstone. AIC P Community Development Director 7500W. 29th Avenue Wheat Ridge, Colorado 80033 Office. Phone: 303- 235 -2844 Enx: 303- 234 -2824 Nxi•e4icatndge o..Ls C #y cat 7V at, t f`a a:�sxatuatl'r E3tv�ttOrM LN r CONFIDENTIALITY NOTICE: This e-mail contains business - confidential information. It is intended only for the use of the individual or entity named above. If you are not the intended recipient, you are notified that any disclosure, copying, distribution, electronic storage or use of this communication is 9/22/2009 Page 3 of 3 prohibited. If you received this communication in error, please notify us immediately by e -mail, attaching the original message, and delete the original message from your computer, and any network to which your computer is connected. Thank you. 9/22/2009 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER SANG Ordinance No. 1453 Series 2009 TITLE: AN ORDINANCE IMPOSING A TEMPORARY MORATORIUM ON THE SUBMISSION ACCEPTANCE, PROCESSING, AND APPROVAL OF ANY APPLICATION FOR A CITY OF WHEAT RIDGE PERMIT OR LICENSE RELATED TO THE OPERATION OF A BUSINESS THAT SELLS OR CULTIVATES MEDICAL MARIJUANA PURSUANT TO THE AUTHORITY GRANTED BY ARTICLE 18, SECTION 14 OF THE COLORADO CONSTITUTION; DIRECTING THE PROMPT INVESTIGATION OF THE CITY'S REGULATORY AUTHORITY OVER SUCH BUSINESSES; DECLARING THE INTENTION OF THE CITY COUNCIL TO CONSIDER THE ADOPTION OF APPROPRIATE CITY REGULATIONS WITH RESPECT TO SUCH BUSINESSES IF PERMITTED BY LAW; AND DECLARING AN EMERGENCY WHEREAS, in the November 2000 general election, the voters of the State of Colorado adopted Amendment 20 to the Colorado Constitution ( "Article XVIII Section 14 ") which authorizes and limits the sale of medical marijuana for use in the treatment of debilitating medical conditions; and WHEREAS, the City Council has been made aware that there appears to be a proliferation of businesses wishing to cultivate medical marijuana and /or provide it to those who qualify under state law; and WHEREAS, the City has no current land use or business regulation governing the operation of businesses or cooperatives that cultivate and /or offer medical marijuana for sale and /or distribution ( "Medical Marijuana Dispensaries "); and WHEREAS, the imposition of a ninety (90) day moratorium on the submission, acceptance, processing, and approval of all applications for City permits and licenses relating to the operation of Medical Marijuana Dispensaries will allow the City staff and the City Council to investigate the City's ability to regulate such businesses, and to develop and implement any appropriate regulations; and WHEREAS, a ninety day (90) moratorium is a reasonable length of time and no longer than necessary for the City to properly investigate, develop, and, if appropriate, adopt and implement any regulations with respect to Medical Marijuana Dispensaries; and WHEREAS, proprietors of Medical Marijuana Dispensaries will not be unduly prejudiced by the imposition of such moratorium. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE COLORADO: Section 1. Findings and Intent The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the City Council of the City of Wheat Ridge. . Mariivana Upon the adoption. of this Ordinance a moratorium is imposed upon the submission, acceptance, processing, and approval of all applications for permits and licenses by the City of Wheat Ridge related to a Medical Marijuana Dispensary. The City staff is directed to refuse to accept for filing, and not to process or review, any new applications for such businesses during the moratorium period. Section 3. Staff To Investigate and Prepare Proposed Regulations Before the expiration of the moratorium imposed by this Ordinance the City staff, working with the City Attorney, shall prepare appropriate regulations for Medical Marijuana Dispensaries for consideration by the City Council Section 4. Police Power Finding The City Council hereby finds, determines, and declares that this Ordinance is necessary and proper to provide for the safety, preserve the health, promote the prosperity, and improve the order, comfort and convenience of the City of Wheat Ridge and the inhabitants thereof. Section 5. Authority. The City Council hereby finds, determines and declares that it has the power to adopt this Ordinance pursuant to: (i) the Local Government Land Use Control Enabling Act, Article 20 of Title 29, C.R.S.; (ii) Part 3 of Article 23 of Title 31, C.R.S. (concerning municipal zoning powers); (iii) Section 31 -15 -103, C.R.S. (concerning municipal police powers); (iv) Section 31 -15 -401, C.R.S. (concerning municipal police powers); (v) Section 31 -15 -501 (concerning municipal power to regulate businesses); (vi) the authority granted to home rule municipalities by Article XX of the Colorado Constitution; and (vii) the powers contained in the City of Wheat Ridge, Colorado Home Rule Charter (the "Charter"). Section 6. Emergency Declared: Effective Date: Expiration Pursuant to Section 5.13 of the Charter, the Council finds, determines and declares that passage of this Ordinance is necessary for the immediate preservation of the public peace, health and safety in order to prevent a person from filing an application for a City permit or license relating to the operation of a Medical Marijuana Dispensary until the City has had a reasonable opportunity to determine: (i) the extent of the City's regulatory authority over such businesses; and (ii) what regulations, if any, should be imposed by the City upon such businesses. Failure to immediately impose the moratorium provided for in this Ordinance will potentially allow acquisition of certain rights with respect to Medical Marijuana Dispensaries before the City has had the reasonable opportunity to consider appropriate regulations thereof. The City Council further determines that the adoption of this Ordinance as an emergency ordinance is in the best interest of the citizens of the City of Wheat Ridge. This Ordinance shall be effective upon adoption. The moratorium imposed by this Ordinance shall commence as of the date of the adoption of this Ordinance, and shall expire ninety (90) days thereafter, unless repealed prior to that date. INTRODUCED, READ, ADOPTED and ORDERED PUBLISHED by a vote of 8 to 0 on this 14th day of September, 2009. SIGNED by the Mayor on this 14th day of September, 2009. 4 J ' Jer i Ilio, Khayor ATTEST: Michael Snow, City Clerk Approved on single reading as an emergency ordinance pursuant to Section 5.13 of the Charter on September 14, 2009. Published in full on September 24, 2009 Wheat Ridge Transcript CITY COUNCIL MINUTES: September 14, 2009 Page -4- DECISIONS. RESOLUTIONS, AND MOTIONS 5. Motion by Mr. Stites directing the City Attorney to prepare an Ordinance amending Ordinance 1446, Series of 2009, concerning the July 20, 2009 Storm Building Permit Fee Rebate Program, to delete the condition that the program is subject to an appropriation; seconded by Mr. Womble; carried 7 -1 with Council Member Berry voting No. 6. An Emergency Ordinance imposing a temporary moratorium on the v F' submission, acceptance, processing, and approval of any application for a City of Wheat Ridge permit or license related to the operation of a business that sells or cultivates medical marijuana pursuant to the authority granted by Article 18, Section 14 of the Colorado Constitution; Directing the prompt investigation of the City's regulatory authority over such businesses; Declaring the intention of the City Council to consider the adoption of appropriate City regulations with respect to such businesses if permitted by law; and declaring an emergency City Clerk Michael Snow assigned Ordinance No. 1453. Motion by Mrs. Sang to approve Ordinance 1453 and that it take affect immediately upon adoption; seconded by Mr. Womble; carried 8 -0. CITY ATTORNEY'S MATTERS Mr. Dahl briefed the Council on a letter of response (amended to this packet) from Wheat Ridge 2020 to Council's request for a Quit Claim Deed on the property at 7150 W. 38` Avenue. The letter indicated an encumbrance currently exists on the property and that they had been approached by a potential buyer for which they would like the City to grant an additional 60 days in order to determine if a contract is likely. Based on the encumbrance indicated on the property, a Special Warrantee Deed would be required instead in order to release the property from such encumbrance. ELECTED OFFICIALS' MATTERS Clerk Michael Snow provided Wheat Ridge voter information on the upcoming election and Charter Change Ballot Questions: • Ballot Question information may be found on the City's website, www.ci.wheatridoe.co.us by clicking the Quick Link to the Elections page. • This is an all -mail ballot Election. • Ballots will be mailed to "Active" voters in mid - October; registered voters that did not vote in last year's General Election are no longer Active and must request of the Clerk their ballots be sent. • Last day to register to Vote is October 5, 2009; contact the City Clerk's Office for information. STUDY SESSION NOTES CITY COUNCIL MEETING CITY OF WHEAT RIDGE, COLORADO City Council Chambers 7500 W. 29 Ave. August 17, 2009 Mayor DiTullio called the Study Session to order at 6:30 p.m. Council Members present: Karen Adams, Karen Berry; Dean Gokey, Tracy Langworthy, Lena Rotola, Wanda Sang, Mike Stites and Terry Womble. Also present: Deputy City Clerk, Christa Jones; City Treasurer, Larry Schulz; City Manager, Randy Young; Deputy City Manager, Patrick Goff; Chief of Police, Dan Brennan; City Attorney, Jerry Dahl; Community Development Director, Kenneth Johnstone; Chief Building Official, John Schumacher; staff; interested citizens. APPROVAL OF AGENDA 1. Staff Reports Building Division Assessment Staff Implementation Plan Ken Johnstone referred to the spread sheet attached to the Agenda Packet. • 2009 Budget Update Patrick Goff distributed budget update (attached to packet) and gave brief overview. Resolution will come to Council to adopt changes. 2. WR2020 Update from Interim Executive Director, Britta Fisher. Britta Fisher and Denise Wodell, Board President, presented their quarterly update (attached to packet). Consensus to allow City Manager to go ahead with requested population waiver was 8 in favor. STUDY SESSION NOTES: August 17, 2009 Page -2- Item 5 was moved before Item 3. 5. 2006 International Building Code Adoption. Ken Johnstone and John Schumacher gave staff presentation and answered questions. Council could not reach a consensus on the staff suggested option 2. There will be more information on first reading and the motion maker can suggest the option. 3 . Medical Marijuana Dispensaries. Chief Brennan and Jerry Dahl presented the staff report. Consensus that an Ordinance be written as outlined in the staff recommendations was 7 in favor. 4. Hotel/Motel and MF Property Maintenance Code Inspection Program. Ken Johnstone presented the staff report and Kristy Shutto gave power point presentation (attached to this packet). Consensus was 7 in favor to address health, safety, welfare, first in Motels and 10 unit buildings; additional staff time can be used for smaller units. Meeting adjourned at 9:30 p.m. Q� Christa Jones, Deputy Ot Clerk City of Wheat �dge POLICE DEPARTMENT Memorandum TO: Mayor Jerry DiTullio and City Council THROUGH: Randy Young, City Manag� FROM: Daniel Brennan, Police Chief t7t DATE: August 7, 2009 (for the August 17 City Council Study Session) SUBJECT: Medical Marijuana Dispensaries EXECUTIVE SUMMARY In November 2000, Colorado voters approved Amendment 20 to the State Constitution, Section 14 of Article XVIII, providing an affirmative defense for the possession and use of marijuana to alleviate certain debilitating medical conditions. Colorado is among thirteen states that now have laws that allow seriously ill patients to use medical marijuana if their doctor recommends it. Amendment 20 allows patients and caregivers to grow their own medical marijuana for use by medical patients who submit applications and receive registry identification cards from the Colorado Department of Public Health and Environment ( CDPHE). Section 18 -18- 406.3, C.R.S. lists the restrictions on the medical use of marijuana. CDPHE is in the process of developing regulatory amendments to the Medical Marijuana Registry Program that provide definitions to key terms and clarifications to existing rules. Amendment 20 does not legalize the possession of marijuana under Federal law; however, the U.S. Attorney General has recently stated that the Federal government will not ask for Federal prosecution in states that have legalized the medical use of marijuana. The reaction of counties and municipalities in Colorado to these nascent businesses is decidedly mixed. Some have issued business permits for such enterprises, while other communities have refused to allow these types of businesses within their communities. Some communities have conditioned permitting such operations based on zoning regulations, thus limiting the locations these businesses can operate. The Colorado Municipal League (CML) has fielded numerous requests for information from their membership regarding this issue. CML has referenced a publication by Cannabis Therapeutics entitled, " Medical Education and Dispensar Safety as a source document. Cannabis Therapeutics is a medical marijuana resources facility designed to serve patients of the State of Colorado. Several of the proposed recommendations from staff are taken from this publication. To date, six (6) medical marijuana dispensaries have submitted business license applications in the City, and the City has received an additional inquiry regarding requirements for opening a medical marijuana dispensary. Our current ordinances do not address medical marijuana dispensaries, where these businesses can locate, and the safety issues related to the dispensing of medical marijuana. Study Session - Medical Marijuana Dispensaries August 7 for August 17, 2009 Page 2 STATEMENT OF ISSUES The recent influx of medical marijuana dispensaries is a new phenomenon throughout the State and appears to be based in part on a California law that is more comprehensive than Amendment 20 in its requirements and definitions. In Colorado, there are 8,918 people registered to use medical marijuana. Concerns regarding enforcement, public safety and community development requirements have arisen throughout Colorado because of this amendment. Federal and State Law Both Federal and State laws prohibit the possession, cultivation, and possession of marijuana. The City Code of Laws prohibits possession one ounce or less of marijuana. Except for very limited and authorized research purposes, Federal law through the Controlled Substances Act prohibits the use of marijuana for any legal purpose, and classifies it as a banned Schedule I drug. A physician cannot legally prescribe marijuana as medicine under Federal law. Federal laws supersede State laws; so under Federal law, Colorado medical marijuana statutes do not provide a legal defense for the cultivation, possession or dispensing of marijuana, even with a physician's recommendation for its medical use. However, the U.S. Attorney General has announced a major change of the Federal government's position in the enforcement of Federal drug laws with respect to marijuana dispensaries. The direction given to Federal law enforcement agencies is only to conduct investigations for prosecution on marijuana dispensaries that are exposed as fronts for drug trafficking. Unfortunately, there are no standards or definitions available to determine what requirements constitute a drug trafficking operation suitable to trigger investigation and enforcement by this Federal administration. Colorado law also prohibits cultivation, possession, sale or distribution of marijuana, except for the provisions of Amendment 20 that provide for a limited affirmative defense to criminal prosecution for those who cultivate, possess or dispense marijuana for medicinal purposes as qualified patients with a physician's recommendation or as a qualified primary caregiver. Colorado law is notably silent on the issue of medical marijuana dispensaries at this time. The Colorado Department of Public Health and Environment is tasked with implementing and administering the Medical Marijuana Registry program. CDPHE is currently working on revising certain rules and regulations pertaining to the administration of the registry program. City Code of Laws, Section 16 -131 provides for the definition of marijuana. The ordinance makes it unlawful to possess one (1) ounce of marijuana and makes it unlawful to openly and publicly display or consume one ounce or less of marijuana. The only exception to this ordinance is if the possession or consumption meets the criteria established by the Dangerous Drugs Therapeutic Research Act. CDPHE Regulations State law and CDPHE regulations define the medicinal use for marijuana for persons suffering from debilitating medical conditions. A debilitating medical condition includes diseases such as cancer, glaucoma, human immunodeficiency virus, a chronic or debilitating disease or medical condition, i.e., seizures, severe pain, severe nausea, persistent muscle spasms, and epilepsy to name a few. A physician, defined as a doctor of medicine, is required by law to advise a patient whom the physician has diagnosed as having a debilitating medical condition about the risks and Study Session - Medical Marijuana Dispensaries August 7 for August 17, 2009 Page 3 benefits of the medical use of marijuana and how the patient might benefit from the medical use of marijuana. Once written documentation of a diagnosis of a debilitating medical condition is given, the patient must register with the CDPHE and obtain a registry identification card that identifies the patient authorized to engage in the medical use of marijuana and include the name of the patient's primary caregiver, if any. A primary caregiver is defined as any person, other than the patient or patient's physician, who is eighteen years of age or older and has significant responsibility for managing the well -being of a patient who has a debilitating medical condition. A primary caregiver can have multiple patients. CDPHE is responsible for verifying the information provided by the patient and physician. By law, a patient's medical use of marijuana is limited to no more than two ounces of a usable form of marijuana; and no more that six marijuana plants, with three or fewer being mature, flowering plants that are producing a usable form of marijuana. It is an affirmative defense, that quantities in excess of this amount are medically necessary to address a patient's debilitating medical condition. On July 20, CDPHE conducted a public hearing to receive public comments on five proposed rules, to include further defining the term "primary caregiver" to ensure that the primary caregiver is providing more assistance than simply providing medical marijuana to the patient and proposing that the number of patients per primary caregiver be limited to five patients. After a day of public testimony, the State Health Board rejected the effort to limit "primary caregivers" to only five patients at a time. Public Safety Concerns There are several public safety concerns related to these businesses that call for regulations to control the location of medical marijuana dispensary businesses, as well as minimum - security requirements for these dispensaries. Separation requirements that establish distance requirements between medical marijuana dispensaries and schools, churches, daycare facilities, community centers, and alcohol or drug rehabilitation centers should be considered. These requirements minimize the potential negative affects and influences these businesses can have in areas frequented by children. Law enforcement information from California indicates that medical marijuana dispensaries have the potential to become large moneymaking operations. Because dispensaries are a repository for both cash and marijuana, criminals are now targeting them more frequently. An aggravated robbery case of a dispensary in Boulder, Colorado is one recent example. After the suspects were arrested, police learned that these criminals had targeted a dispensary in Denver, Colorado as well. The Police Department has recommended that existing businesses give careful consideration to security protocols that discourage criminal activity. Examples might include security surveillance cameras at key locations and professionally installed and maintained intrusion and panic alarms. Lastly, the legal requirements and controls for medical marijuana dispensaries are distinctly different from medical pharmacies. These concerns include medical marijuana dispensaries being tied to organized criminal gangs, large grow operations, and multi - million - dollar profit centers. Other issues include the potential of illegal sales, sales to minors, loitering, heavy vehicle and foot traffic in retail areas, and increased crime. Study Session - Medical Marijuana Dispensaries August 7 for August 17, 2009 Page 4 ALTERNATIVES CONSIDERED Communities across the State are struggling with developing requirements for these types of businesses, and the response to these types of businesses varies significantly. There appear to be three models used by communities in dealing with medical marijuana dispensaries: 1) The City of Aurora has denied attempts by citizens to open medical marijuana dispensaries based on a code provision that defines a business as being lawful. Since the possession or distribution of marijuana violates Federal law, Aurora has been successful in prohibiting medical marijuana dispensaries because of this code provision and they have not been challenged on their interpretation of this law. Other communities have also taken the approach that medical marijuana dispensaries are not lawful based on Federal law; however, they do not have a specific code provision requiring business compliance with the law like the City of Aurora. These communities have not been challenged on their position to date. The City Attorney's Office has recommended that the City not pursue this position. The City Code of Laws has no provision for businesses to be lawful, and the City has other alternatives for businesses that pose some risk of harm. 2) Commerce City has recently proposed an ordinance provision that amends the land development code to allow for the regulation of medical marijuana dispensaries. Commerce City's revision to their code defines a medical marijuana dispensary, limits the location of the dispensaries, prohibits public display of advertisements and signs, limits all business related to, or the consumption of, medical marijuana to indoor use, and establishes minimum security requirements. The Town of Breckenridge is considering an ordinance similar to the Commerce City model. 3) The third model, currently used by the City of Wheat Ridge, is to require a medical marijuana dispensary to apply for a business license and to collect sales tax on all purchases of medical marijuana. Numerous communities have opted for this model, because there is minimal legal precedence for additional compliance requirements. To date, we have required a physical inspection of the proposed business by the City Sales Tax Auditor and members of the Police Department or West Metro Drug Task Force. FINANCIAL IMPACT The six (6) known dispensaries located in the City have obtained business licenses and are collecting sales tax at this point. Location sales average $12,500 a month, resulting in sales tax of $375 per month ($4,500 per year). Staff is seeking direction from City Council on regulating medical marijuana dispensaries beyond the application for a business license and collection of sales tax. While State law allows for medical marijuana dispensaries, the current law and regulations do not address the public safety and community concerns that are inherent with this business model. The Police Department recommends that City Council consider an ordinance that: • Defines medical marijuana dispensaries • Ensures compliance with State law and regulations on medical marijuana • Creates a requirement to pay all State and City tax on sales Study Session - Medical Marijuana Dispensaries August 7 for August 17, 2009 Page 5 ❑ Creates a business license application process that requires a background investigation of the owner or ownership group similar to a liquor license application ❑ Includes a review by the Police Department and Community Development to ensure the business plan is in compliance with State regulations and City ordinances ❑ Establishes requirements for the location of these dispensaries to be enforced through the business license application process ❑ Prohibits the use of alcohol on premise ❑ Prohibits on -site usage and any usage in public ❑ Regulates that medical marijuana being displayed shall be secured and not be visible to the public through glass, windows or doors ❑ On -site cultivation should only be allowed when the premises is equipped with proper ventilation system that eliminates the odor of marijuana to the public or surrounding businesses ❑ Limits the hours of operation to daytime operation ❑ Establishes guidelines for the use of advertisements and signs for these businesses ❑ Establishes minimum requirements for security at these locations. ATTACHMENTS: 1. Dispensary locations 2. CDPHE Registry Program Update 3. CDPHE FAQs 4. CDPHE Article XVIII /db � � A ¢ � M �y a - \ \ � ) \ C CD \ / / $ \ ) / \ \ \ c ƒ \ \ \ \ � ] ] ( \ / / \ ) \ � \ $ � \ ) \ \ Ili » =o x» / O 'o\ // E \ CD e' » / CD c \/ {\ 9 K$ / \ R ID \ / \}{ \\ \� -_j \ \/ \\ Q R « \ \ o'ke x>DCDCD < <cn r i4 §q / §F §3.$g @+\| /)3 a >``oE! - CD ;; `) 6 % {)kEl ) §/{ - waR> ®»~ (§.)g9 E \ g«q /@ , \ � = ( \ k ? § / Medical Marijuana in Colorado Colorado welcometo... Colorado Department of public Health and Environment sy Live Medical Marijuana Registry Program Update (as of June 30, 2009) Page 1 of 3 • SEfl RCH In the November 2000 general election, Coloradoans passed Amendment 20, and the Colorado Department of Public Health and Environment (CDPHE) was tasked with implementing and administering the Medical Marijuana Registry program. In March of 2001, the State of Colorado Board of Health approved the Rules and Regulations pertaining to the administration of the program, and on June 1st, 2001, the Registry began accepting and processing applications for Registry Identification cards. Statistics of the registry include: • 10,795 new patient applications have been received to date since the registry began operating in June 2001. Twenty-nine (29) applications have been denied, 18 cards have been revoked, 199 patients have died, and 1,631 cards have expired, bringing the total number of patients who currently possess valid Registry ID cards to 8,918. • Seventy-two percent of approved applicants are male. • The average age of all patients is 41. Currently 5 patients are minors (under the age of 18). • Fifty-one percent of patients reside in the Denver -metro and Boulder area, with the remainder of patients found in counties throughout Colorado. • Patients on the Registry represent all the debilitating conditions covered under Amendment 20. Severe pain is a reported condition for 89% of all registrants; muscle spasms are the second -most reported condition at 26 %. • Sixty-five percent of patients have designated a primary care -giver (someone who has significant responsibility for managing the patient's care). • Over 800 different physicians have signed for patients in Colorado. Please see the tables below for a complete listing of all statistical information. As of June 14, 2004 care- givers are no longer issued cards. As of January 25, 2008 only a portion of the patients social security number appears on their registration card As of October 27, 2008 all applications, renewal and changes to the Registry must be submitted via mail and include a legible photo copy of the patient's Colorado Identification. Faxes and smalls will no longer be accepted. As of December 1, 2008 all changes to the Registry must be signed by the patient making the change in blue ink. The Amendment requires that an application be approved or denied within 35 days of receipt by CDPHE. Currently, the Registry is Issuing ID cards within three weeks of receipt of a complete application. In addition to administering the Registry, CDPHE has been charged with accepting and reviewing petitions to add conditions to the current list of debilitating medical conditions/symptoms. To date, four petitions have been received, one for Parkinson's disease, one for Asthma, one for Anxiety and another for BI-Polar Disorder. All petitions were subsequently denied due to lack of scientific evidence that treatment with marijuana might have a beneficial effect. There have been three marijuana - related convictions of patients on the Registry, and no physicians have experienced federal reprisals. However, reluctance to participate due to the inconsistencies between state and federal marijuana laws has been expressed by doctors and patients alike. No general funds have been designated for this program, and the Amendment allows CDPHE to collect fees to cover the administrative costs of administering the program. Currently the fee is $90, and is evaluated annually by CDPHE. The fee was lowered from $110 on June 1, 2007. Numerous questions have arisen regarding interpretation of statutory language. The law does not clearly state where marijuana plants may be grown or if two or more patients and /or care- givers may share one growing space. Statutory language also places certain burdens upon local and state law enforcement officers, such as the requirement of keeping alive plants that are confiscated until a ATTACHMENT 2 http: / /www.edphe. state. co. us/ hs/ Medicalmarijuana /marijuanaupdate,httnl 08/07/2009 Medical Marijuana in Colorado resolution is reached (i.e. a decision not to prosecute, the dismissal of charges, an acquittal, etc.). Table I: County Information County Number of Patients Percent of Patients Adams 593 7% Alamosa 13 <1% Arapahoe 748 8% Archuleta 22 <1% Baca 6 <1% Bent 5 <1% Boulder 879 10% Broomfield 79 <1% Chaffee 39 <1% Cheyenne 3 <1% Clear Creek 27 <1% Conejos Costilla 4 <1% Crowley 12 <1% Custer 10 <1% Delta 70 1% Denver 1,187 13% Dolores 7 <1% Douglas 256 3% Eagle 69 <1% El Paso 978 11% Elbert 34 <1% Fremont 79 <1% Garfield 81 <1% Gilpin 45 <1% Grand 40 <1% Gunnison 47 <1% Hinsdale 3 <1% Huerfano 44 <1% Jackson 3 <1% Jefferson 1,023 11% Kiowa Kit Carson La Plata 110 1% Lake 28 <1% Larimer 864 - - 10% Las Animas 21 <1% Lincoln 5 <1% Logan 15 <1% Mesa 299 3% Mineral Moffat 12 <1% Montezuma 31 <1% Montrose 74 <1% Morgan 12 <1% Page 2 of 3 http: / /www.cdphe. state. co. us /hs/Medicalmarijuana /marijuanaupdate.html 08/07/2009 Medical Marijuana in Colorado Otero 44 <1% Ouray 11 <1 %, Park 82 <1% Phillips 8 <1% Pitkin 42 <t% Prowers 4 <1% Pueblo 159 2% Rio Blanco 7 <1 %, Rio Grande 7 <1% Routt 34 <1% Saguache 22 <1 %, San Juan San Miguel 17 <1% Sedgwick 3 <1 % Summit 111 1% Teller 109 1% Washington 3 <1 % Weld 369 4 %, Yuma 4 <1% * Indicates fewer than three patients in each category Table II: Conditions Reported Condition Number of Patients Reporting Condition Percent of Patients Reporting Condition " Cachexia 212 2.4 %, Cancer 308 3.5% Glaucoma 130 1.5% HIV /AIDS 138 1.5% Muscle Spasms 2,357 26.4% Seizures 295 3.3% Severe Pain 7,967 89.4% Severe Nausea 2,055 23.1% * *Does not add to 100% as some patients report using medical marijuana for more than one debilitating medical condition. Table III: User Characteristics Sex Percent on Registry Average Age " Male 72% 40 Female 28% - 43 ** The overall average age of all patients is 41 years old. Page 3 of 3 http: / /www.edphe. state. co. us/ hs/ Medicalmarijuana /marijuanaupdate.html 08/07/2009 Medical Marijuana in Colorado Colorado Welcoftreto... Colorado Department of Public Health and Environment Frequently asked questions about Medical Marijuana Page 1 of 1 Colorado aov Can you refer me to a doctor? No. It is the responsibility of the patient to work with a physician with whom he /she has a bona fide doctor- patient relationship. Where do I get the seeds or plants to start growing medical marijuana? Are there clubs or organizations that help patients to grow or acquire their medicine? The Medical Marijuana Registry is not affiliated with any privately operated club, organization or dispensary and is not authorized to provide information on acquisition of marijuana. Where can I legally use my medicine? No patient shall: Engage in the medical use of marijuana in away that endangers the health or well -being of any person; or engage in the medical use of marijuana in plain view of, or in a place open to, the general public. Law enforcement has informed the Medical Marijuana Registry of the following: Any place outside of the patient's home is considered public. "In plain view" also includes the patient's yard or garage if that patient can be seen using their medicine by neighbors. Why can't I go to a pharmacy to fill a prescription for medical marijuana? Pharmacies can only dispense medications that are prescribed. Marijuana is currently classified by the federal government as a Schedule I drug, which means it cannot be prescribed by any health care professional. Amendment 20 allows doctors to recommend marijuana, and it allows patients to grow their own medical marijuana for their private use. How is my confidentiality protected? Your confidentiality is protected by law and by the procedures used by the registry. No lists of doctors, patients of caregivers are given out to anyone. Local law enforcement may only contact the registry to verify the information on a specific identification card. The registry database resides on a stand -alone computer and is password protected and encrypted. The office and all of its contents are locked at night when the registry administrator is out of the office. How does my card protect me? A patient may engage in the medical use of marijuana, with no more marijuana than is medically necessary to address a debilitating medical condition. A patient's medical use of marijuana, within the following limits, is lawful: No more than two ounces of a usable forth of marijuana; and no more than six marijuana plants, with three or fewer being mature, Flowering plants that are producing a usable form of marijuana. I do not have the money for the fee. Is it a one-time payment? Can it be waived? Can 1 make Installment payments? Will my insurance pay? Full payment must be made at the time of application. The fee must be paid with the renewal application each year. The fee cannot be waived, and the registry cannot accept installment payments. Insurance companies are not required to pay the fee. What if I move or my caregiver moves? What if I want to change my caregiver? When there has been a change in the name, address, physician, or primary caregiver of a patient who has qualified for a registry identification card, that patient must notify the registry of any such change within ten days. A patient who has not designated a primary caregiver at the time of application may do so in writing at any time during the effective period of the registry identification card, and the primary caregiver may act in this capacity after such designation. Can I use my Colorado Medical Marijuana Registry identification card in another state? At this time, there are no "reciprocity" agreements with other states to recognize the Colorado law except in Montana and Rhode Island. I am a registered patient in another state, do I have any legal right to use my medicine while visiting Colorado? No, Colorado's law does not recognize patients registered in other states. Does the Medical Marijuana Registry give free legal advice? No, patients are on their own to seek out legal advice or hire an attorney. ATTACHMENT http: / /www.cdphe. state .co.us /hs /marijuanafags.html 08/07/2009 Statute 0 -4 -287 Colorado Welcoftleto... Colorado Department of Publio Health and Environment 0-4 -287 - ARTICLE XVIII - Miscellaneous Art. XVIII - Miscellaneous 0-4 -287 - ARTICLE XVIII - Miscellaneous Art. XVIII - Miscellaneous Section 14. Medical use of marijuana for persons suffering from debilitating medical conditions. (1) As used in this section, these terms are defined as follows: (a) "Debilitating medical condition" means: (1) Cancer, glaucoma, positive status for human immunodeficiency virus, or acquired immune deficiency syndrome, or treatment for such conditions; (II) A chronic or debilitating disease or medical condition, or treatment for such conditions, which produces, for a specific patient, one or more of the following, and for which, in the professional opinion of the patients physician, such condition or conditions reasonably may be alleviated by the medical use of marijuana: cachexia; severe pain; severe nausea; seizures, including those that are characteristic of epilepsy; or persistent muscle spasms, including those that are characteristic of multiple sclerosis; or (III) Any other medical condition, or treatment for such condition, approved by the state health agency, pursuant to its rule making authority or its approval of any petition submitted by a patient or physician as provided in this section. (b) "Medical use" means the acquisition, possession, production, use, or transportation of marijuana or paraphernalia related to the administration of such marijuana to address the symptoms or effects of a patient's debilitating medical condition, which may be authorized only after a diagnosis of the patients debilitating medical condition by a physician or physicians, as provided by this section. (c) "Parent" means a custodial mother or father of a patient under the age of eighteen years, any person having custody of a patient under the age of eighteen years, or any person serving as a legal guardian for a patient under the age of eighteen years. (d) "Patient" means a person who has a debilitating medical condition (e) "Physician" means a doctor of medicine who maintains, in good standing, a license to practice medicine issued by the state of Colorado. (f) "Primary care- giver" means a person, other than the patient and the patient's physician, who is eighteen years of age or older and has significant responsibility for managing the well -being of a patient who has a debilitating medical condition. (g) "Registry identification card" means that document, issued by the state health agency, which identifies a patient authorized to engage in the medical use of marijuana and such patients primary care- giver, if any has been designated. (h) "State health agency" means that public health related entity of state government designated by the governor to establish and maintain a confidential registry of patients authorized to engage in the medical use of marijuana and enact rules to administer this program. (1) "Usable form of marijuana" means the seeds, leaves, buds, and flowers of the plant (genus) cannabis, and any mixture or preparation thereof, which are appropriate for medical use as provided in this section, but excludes the plant's stalks, stems, and roots. 0) "Written documentation" means a statement signed by a patient's physician or copies of the patient's pertinent medical records. (2) (a) Except as otherwise provided in subsections (5), (6), and (8) of this section, a patient or primary care- giver charged with a violation of the state's criminal laws related to the patient's medical use of marijuana will Page 1 of 5 Colorado .go ATTACHMENT 4 http: / /www.cdphe. state. co. us/ hs/ medicalmarijuana/mjamendment.htrnl 08/07/2009 Statute 0 -4 -287 be deemed to have established an affirmative defense to such allegation where: (1) The patient was previously diagnosed by a physician as having a debilitating medical condition (II) The patient was advised by his or her physician, in the context of a bona fide physician- patient relationship, that the patient might benefit from the medical use of marijuana in connection with a debilitating medical condition; and (III) The patient and his or her primary care -giver were collectively in possession of amounts of marijuana only as permitted under this section. This affirmative defense shall not exclude the assertion of any other defense where a patient or primary care- giver is charged with a violation of state law related to the patient's medical use of marijuana. (b) Effective June 1, 2001, it shall be an exception from the state's criminal laws for any patient or primary care -giver in lawful possession of a registry identification card to engage or assist in the medical use of marijuana, except as otherwise provided in subsections (5) and (8) of this section. (c) It shall be an exception from the state's criminal laws for any physician to (1) Advise a patient whom the physician has diagnosed as having a debilitating medical condition, about the Oaks and benefits of medical use of marijuana or that he or she might benefit from the medical use of marijuana, provided that such advice is based upon the physician's contemporaneous assessment of the patient's medical history and current medical condition and a bona fide physician - patient relationship; or (II) Provide a patient with written documentation, based upon the physician's contemporaneous assessment of the patient's medical history and current medical condition and a bona fide physician - patient relationship, stating that the patient has a debilitating medical condition and might benefit from the medical use of marijuana. No physician shall be denied any rights or privileges for the acts authorized by this subsection. (d) Notwithstanding the foregoing provisions, no person, including a patient or primary care- giver, shall be entitled to the protection of this section for his or her acquisition, possession, manufacture, production, use, sale, distribution, dispensing, or transportation of marijuana for any use other than medical use. (e) Any property interest that is possessed, owned, or used in connecton with the medical use of marijuana or acts incidental to such use, shall not be harmed, neglected, injured, or destroyed while in the possession of state or local law enforcement officials where such property has been seized in connection with the claimed medical use of marijuana. Any such property interest shall not be forfeited under any provision of state law providing for the forfeiture of property other than as a sentence imposed after conviction of a criminal offense or entry of a plea of guilty to such offense. Marijuana and paraphernalia seized by state or local law enforcement officials from a patient or primary care -giver in connection with the claimed medical use of marijuana shall be returned immediately upon the determination of the district attorney or his or her designee that the patient or primary care -giver is entitled to the protection contained in this section as may be evidenced, for example, by a decision not to prosecute, the dismissal of charges, or acquittal. (3) The state health agency shall create and maintain a confidential registry of patients who have applied for and are entitled to receive a registry identification card according to the criteria set forth in this subsection, effective June 1, 2001. (a) No person shall be permitted to gain access to any information about patients in the state health agency's confidential registry, or any information otherwise maintained by the state health agency about physicians and primary care- givers, except for authorized employees of the state health agency in the course of their official duties and authorized employees of state or local law enforcement agencies which have stopped or arrested a person who claims to be engaged in the medical use of marijuana and in possession of a registry identification card or its functional equivalent, pursuant to paragraph (e) of this subsection (3). Authorized employees of state or local law enforcement agencies shall be granted access to the information contained within the state health agency's confidential registry only for the purpose of verifying that an individual who has presented a registry identification card to a state or local law enforcement official is lawfully in possession of such card. (b) In order to be placed on the state's confidential registry for the medical use of marijuana, a patient must reside in Colorado and submit the completed application form adopted by the state health agency, including the following information, to the state health agency: (1) The original or a copy of written documentation stating that the patient has been diagnosed with a Page 2 of 5 http: / /www.cdphe. state. co. us/ hs/ medicahnarijuana /mjatnendment.html 08/07/2009 Statute 0 -4 -287 debilitating medical condition and the physician's conclusion that the patient might benefit from the medical use of marijuana; (II) The name, address, date of birth, and social security number of the patient; (III) The name, address, and telephone number of the patient's physician; and (IV) The name and address of the patient's primary caregiver, if one is designated at the time of application. (c) Within thirty days of receiving the information referred to in subparagraphs (3) (b) (I) -(IV), the state health agency shall verify medical information contained in the patient's written documentation. The agency shall notify the applicant that his or her application for a registry identification card has been denied if the agency's review of such documentation discloses that: the information required pursuant to paragraph (3) (b) of this section has not been provided or has been falsified; the documentation fails to state that the patient has a debilitating medical condition specified in this section or by state health agency rule; or the physician does not have a license to practice medicine issued by the state of Colorado. Otherwise, not more than five days after verifying such information, the state health agency shall issue one serially numbered registry identification card to the patient, stating: (1) The patient's name, address, date of birth, and social security number; (II) That the patient's name has been certified to the state health agency as a person who has a debilitating medical condition, whereby the patient may address such condition with the medical use of madjuana; (III) The date of issuance of the registry identification card and the date of expiration of such card, which shall be one year from the date of issuance; and (IV) The name and address of the patient's primary care- giver, if any is designated at the time of application. (d) Except for patients applying pursuant to subsection (6) of this section, where the state health agency, within thirty -five days of receipt of an application, fails to issue a registry Identification card or fails to issue verbal or written notice of denial of such application, the patient's application for such card will be deemed to have been approved. Receipt shall be deemed to have occurred upon delivery to the state health agency, or deposit in the United States mails. Notwithstanding the foregoing, no application shall be deemed received prior to June 1, 2001. A patient who is questioned by any state or local law enforcement official about his or her medical use of marijuana shall provide a copy of the application submitted to the state health agency, including the written documentation and proof of the date of mailing or other transmission of the written documentation for delivery to the state health agency, which shall be accorded the same legal effect as a registry identification card, until such time as the patient receives notice that the application has been denied. (e) A patient whose application has been denied by the state health agency may not reapply during the six months following the date of the denial and may not use an application for a registry identification card as provided in paragraph (3) (d) of this section. The denial of a registry identification card shall be considered a final agency action. Only the patient whose application has been denied shall have standing to contest the agency action. (f) When there has been a change in the name, address, physician, or primary care- giver of a patient who has qualified for a registry identification card, that patient must notify the state health agency of any such change within ten days. A patient who has not designated a primary care -giver at the time of application to the state health agency may do so in writing at any time during the effective period of the registry identification card, and the primary care -giver may act in this capacity after such designation. To maintain an effective registry identification card, a patient must annually resubmit, at least thirty days prior to the expiration date stated on the registry identification card, updated written documentation to the state health agency, as well as the name and address of the patient's primary care- giver, if any is designated at such time. (g) Authorized employees of state or local law enforcement agencies shall immediately notify the state health agency when any person in possession of a registry identification card has been determined by a court of law to have willfully violated the provisions of this section or its implementing legislation, or has pled guilty to such offense. (h) A patient who no longer has a debilitating medical condition shall return his or her registry identification card to the state health agency within twenty -four hours of receiving such diagnosis by his or her physician. (i) The state health agency may determine and levy reasonable fees to pay for any direct or indirect administrative costs associated with its role in this program. (4) (a) A patient may engage in the medical use of marijuana, with no more marijuana than is medically Page 3 of 5 http: / /www.cdphe. state. co. us/ hs/ medicalmarijuana/mjamendment.html 08/07/2009 Statute 0 -4 -287 necessary to address a debilitating medical condition. A patient's medical use of marijuana, within the following limits, is lawful: (1) No more than two ounces of a usable form of marijuana; and (11) No more than six marijuana plants, with three or fewer being mature, flowering plants that are producing a usable form of marijuana. (b) For quantities of marijuana in excess of these amounts, a patient or his or her primary caregiver may raise as an affirmative defense to charges of violation of state law that such greater amounts were medically necessary to address the patient's debilitating medical condition. (5) (a) No patient shall: (1) Engage in the medical use of marijuana in a way that endangers the health or well -being of any person; or (II) Engage in the medical use of marijuana in plain view of, or in a place open to, the general public. (b) In addition to any other penalties provided by law, the state health agency shall revoke for a period of one year the registry identificaflon card of any patient found to have willfully violated the provisions of this section or the implementing legislation adopted by the general assembly. (6) Notwithstanding paragraphs (2) (a) and (3) (d) of this section, no patient under eighteen years of age shall engage in the medical use of marijuana unless: (a) Two physicians have diagnosed the patient as having a debilitating medical condition; (b) One of the physicians referred to in paragraph (6) (a) has explained the possible risks and benefits of medical use of marijuana to the patient and each of the patients parents residing in Colorado; (c) The physicians referred to in paragraph (6) (b) has provided the patient with the written documentation, specified in subparagraph (3) (b) (1); (d) Each of the patient's parents residing in Colorado consent in writing to the state health agency to permit the patient to engage in the medical use of marijuana; (e) A parent residing in Colorado consents in writing to serve as a patient's primary rare- giver; (f) A parent serving as a primary care -giver completes and submits an application for a registry identification card as provided in subparagraph (3) (b) of this section and the written consents referred to in paragraph (6) (d) to the state health agency; (g) The state health agency approves the patient's application and transmits the patients registry identification card to the parent designated as a primary care- giver; (h) The patient and primary care -giver collectively possess amounts of marijuana no greater than those specified in subparagraph (4) (a) (I) and (11); and (1) The primary care -giver controls the acquisition of such marijuana and the dosage and frequency of its use by the patient. (7) Not later than March 1, 2001, the governor shall designate, by executive order, the state health agency as defined in paragraph (1) (g) of this section. (8) Not later than April 30, 2001, the General Assembly shall define such terms and enact such legislation as may be necessary for implementation of this section, as well as determine and enact criminal penalties for: (a) Fraudulent representation of a medical condition by a patient to a physician, state health agency, or state or local law enforcement official for the purpose of falsely obtaining a registry idenfificaflon card or avoiding arrest and prosecution; (b) Fraudulent use or theft of any person's registry identification card to acquire, possess, produce, use, sell, distribute, or transport marijuana, including but not limited to cards that are required to be returned where patients are no longer diagnosed as having a debilitating medical condition; Page 4 of 5 http: / /www.cdphe. state. co. us/ hs/ medicalmarijuana /mjamendment.html 08/07/2009 Statute 0 -4 -287 (c) Fraudulent production or counterfeiting of, or tampering with, one or more registry identification cards; or (d) Breach of confidentiality of information provided to or by the state health agency. (9) Not later than June 1, 2001, the state health agency shall develop and make available to residents of Colorado an application form for persons seeking to be listed on the confidential registry of patients. By such date, the state health agency shall also enact rules of administration, including but not limited to rules governing the establishment and confidentiality of the registry, the verification of medical information, the issuance and form of registry identification cards, communications with law enforcement officials about registry identification cards that have been suspended where a patient is no longer diagnosed as having a debilitating medical condition, and the manner in which the agency may consider adding debilitating medical conditions to the list provided in this section. Beginning June 1, 2001, the state health agency shall accept physician or patient initiated petitions to add debilitating medical conditions to the list provided in this section and, after such hearing as the state health agency deems appropriate, shall approve or deny such petitions within one hundred eighty days of submission. The decision to approve or deny a petition shall be considered a final agency action. (10) (a) No governmental, private, or any other health insurance provider shall be required to be liable for any claim for reimbursement for the medical use of marijuana. (b) Nothing in this section shall require any employer to accommodate the medical use of marijuana in any work place. (11) Unless otherwise provided by this section, all provisions of this section shall become effective upon official declaration of the vote hereon by proclamation of the governor, pursuant to article V, section (1) (4), and shall apply to acts or offenses committed on or after that date. Enacted by the People November 7, 2000 — Effective upon proclamation of the Governor. Page 5 of 5 http: / /www.cdphe. state. co. us /hs /medicalmarijuana /mjamendment.html 08/07/2009 Page 1 of 2 Kenneth Johnstone From: Daniel Brennan Sent: Friday, July 31, 2009 9:14 AM To: Daniel Brennan; Patrick Goff; Kenneth Johnstone; 'Gerald Dahl'; 'Christopher Price'; Meredith Reckert Cc: Ryan Stachelski; Kathy Franklin Subject: FW: Staff Report Medical Marijuana Dispensaries Attachments: Staff Report Medical Marijuana Dispensories Revised 072809.doc; Staff Report Attachment Marijuana Dispensaries in WR 0709.doc; Staff Report Medical Marijuana Breckenridge.doc Meredith, Thanks for your comments; I believe we are all on the same page on this concerning Special Use. M1 I have attached the Breckenridge Council staff report on their issue. Here is what I would like to see or discuss as a recommendation: ❑ Business license application with a requirement of a criminal background and no felony conviction; similar to liquor license application. Review of business license by the Police Department and Community Development. Payment of sales tax for all sales by the business. ❑ Inspections by law enforcement annually ❑ Define medical marijuana dispensaries ❑ Limit the locations where a dispensary can be located (consideration for a distance from schools, daycare, churches, recreation facility or park, church, halfway house, residential house, etc.) ❑ Prohibit advertisements or signs ❑ No on premise use or consumption, requirements for ventilation if product is grown on -site or the odor is noticeable, marijuana should not be visible to the public, etc. ❑ Minimum requirements for security at a dispensary (alarms, video cameras, secure storage, etc.) The staff report is due August 7 and I will be in Federal District Court the week of August 10. Let me know your thoughts as soon as possible so I can incorporate them into this report. Ken, Let me know a time to meet when you get back. ON Daniel G. Brennan Chief of Police 7500 W. 29th Avenue Wheat Ridge, Colorado 80033 8/4/2009 Page 2 of 2 Office Phone: 303 - 235 -2913 City of Wh€ at icl E' icE Dzrnara+rx CONFIDENT ALITY NOTICE: This e -mail contains business - confidential information. It is intended only for the use of the individual or entity named above. If you are not the intended recipient, you are notified that any disclosure, copying, distribution, electronic storage or use of this communication is prohibited. If you received this communication in error, please notify us immediatelyby e -mail, attaching the original message, and delete the original message from your computer, and any network to which your computer is connected. Thank you. From: Daniel Brennan Sent: Tuesday, July 28, 2009 12:58 PM To: Patrick Goff; Kenneth Johnstone; 'Gerald Dahl'; Christopher Price; Meredith Reckert Subject: Staff Report Medical Marijuana Dispensaries El Here is a draft of the staff report for City Council regarding medical marijuana dispensaries. I took the liberty of making an initial recommendation; however, I recognize that Ken might want to discuss this further or reword the recommendation. Any additional information from a Community Development perspective would be helpful as it pertains to zoning or special use concerns. The alternatives listed in the memorandum fit the three models that were discussed in our meetings but do not preclude another idea or thought. I thought it important to frame the legal perspectives from a federal, state and local view, as well as the local impact. This topic is scheduled for a Council please submit them to me by July 29 the August 5 due date for this report. Thanks, Daniel G. Brennan Chief of Police 7500 W. 29th Avenue Wheat Ridge, Colorado 80033 Office Phone: 303 - 235 -2913 s•. City of Wheage P ctti CF Df PAP €41EXT Study Session on August 17. If you have revisions , 2009. This will give us time if we need to meet prior to CONFIDENIIALITY NOTICE: This e -mail contains business- confidential information. It is intended only for the use of the individual or entity named above. If you are not the intended recipient, you are notified that any disclosure, copying, distribution, electronic storage or use of this communication is prohibited. If you received this communication in error, please notify us immediately bye -mail, attaching the original message, and delete the original message from your computer, and any network to which your computer is connected. Thank you. 8/4/2009 City of Le Wheatpidge POLICE DEPARTMENT Memorandum TO: Mayor Jerry DiTullio and City Council THROUGH: Randy Young, City Manager FROM: Daniel Brennan, Police Chief Ken eth Johnstone, Community Development Director DATE: July 28, 2009 SUBJECT: Medical Marijuana Dispensaries EXECUTIVE SUMMARY In November 2000, Colorado voters approved Amendment 20 to the State Constitution, Section 14 of Article XVIII, providing an affirmative defense for the possession and use of marijuana to alleviate certain debilitating medical conditions. Colorado is among thirteen states that now have laws that allow seriously ill patients to use medical marijuana if their doctor recommends it. Amendment 20 allows patients and caregivers to grow their own medical marijuana for use by medical patients who submit applications and receive registry identification cards from the Colorado Department of Public Health and Environment ( CDPHE). Section 18 -18- 406.3, C.R.S. lists the restrictions on the medical use of marijuana. CDPHE is in the process of developing regulatory amendments to the Medical Marijuana Registry Program that provide definitions to key terms and clarifications to existing rules. Amendment 20 does not legalize the possession of marijuana under Federal law; however, the U.S. Attorney General has recently stated that the Federal government will not ask for Federal prosecution in states that have legalized the medical use of marijuana. The reaction of counties and municipalities in Colorado to these nascent businesses has been decidedly mixed. Some have issued business permits for such enterprises, while other communities have refused to allow these types of businesses within their communities. Some communities have conditioned permitting such operations based on zoning regulations, thus limiting the locations these businesses can operate in. To date, five (5) medical marijuana dispensaries have submitted business license applications in the City. Our current ordinances do not address medical marijuana dispensaries, where these businesses can locate, and the safety issues related to the dispensing of medical marijuana. STATEMENT OF ISSUES The recent influx of medical marijuana dispensaries is a new phenomenon throughout the State and appears to be based in part with a California law that is more comprehensive than Amendment 20 in its requirements and definitions. In Colorado, there are 9,112 people registered to use medical marijuana, up 2,000 just in the last month. Concerns regarding enforcement, public safety and community development requirements have arisen throughout Colorado because of this amendment. Federal and State Law Both Federal and State laws prohibit the possession, cultivation, and possession of marijuana. The City Code of Laws prohibits possession of less that one ounce of marijuana. Except for very limited and authorized research purposes, Federal law through the Controlled Substances Act prohibits the use of marijuana for any legal purpose, and classifies it as a banned Schedule I drug. A physician cannot legally prescribe marijuana as medicine under Federal law. Federal nC� laws supersede State law s; so under Federal law, Colorado medical marijuana statutes do not SUS provide a legal defense for the cultivation, possession or dispensing of marijuana, even with a physician's recommendation for its medical use. However, the U.S. Attorney General has announced a major change of the Federal government's position in the enforcement of Federal drug laws with respect to marijuana dispensaries. The direction given to Federal law enforcement agencies is only to conduct investigations on marijuana dispensaries that are exposed as fronts for drug trafficking for prosecution. Unfortunately, there are no standards or definitions available to determine what requirements constitute a drug trafficking operation suitable to trigger investigation and enforcement by this Federal administration. Colorado law also prohibits cultivation, possession, sale or distribution of marijuana, except for the provisions of Amendment 20 that provide for a limited affinnative defense to criminal prosecution for those who cultivate, possess or dispense marijuana for medicinal purposes as qualified patients with a physician's recommendation or as a qualified primary caregiver. Colorado law is notably silent on the issue of medical marijuana dispensaries at this time. The Colorado Department of Public Health and Environment is tasked with implementing and administering the Medical Marijuana Registry program. CDPHE is currently working on revising certain rules and regulations pertaining to the administiatio oTTEe registry program. City Code of Laws, Section 16 -131 provide for the definition of marijuana. The ordinance makes it unlawful to possess one (1) ounce of marijuana and makes it unlawful to openly and publicly display or consume one ounce or less of marijuana. The only exception to this ordinance is if the possession or consumption meets the criteria established by the Dangerous Dings Therapeutic Research Act. CDPHE Regulations State law and CDPHE regulations define the medicinal use for marijuana for persons suffering from debilitating medical conditions. A debilitating medical condition includes diseases such as cancer, glaucoma, human immunodeficiency virus, a chronic or debilitating disease or medical condition, i.e., seizures, severe pain, severe nausea, persistent muscle spasms, and epilepsy to name a few. A physician, defined as a doctor of medicine, is required by law to advise a patient whom the physician has diagnosed as having a debilitating medical condition about the risks and benefits of the medical use of marijuana and how the patient might benefit from the medical use of marijuana. Once written documentation of a diagnosis of a debilitating medical condition is given, the patient must register with the CDPHE and obtain a registry identification card that identifies the patient authorized to engage in the medical use of marijuana and include the name of the patient's primary caregiver, if any. A primary caregiver is defined as any person, other than the patient or patient's physician, who is eighteen years of age or older and has significant responsibility for managing the well -being of a patient who has a debilitating medical condition. A primary caregiver can have multiple patients. CDPHE is responsible for verifying the information provided by the patient and physician. By law, a patient's medical use of marijuana is limited to no more than two ounces of a usable form of marijuana; and no more that six marijuana plants, with three or fewer being mature, flowering plants that are producing a usable form of marijuana. It is an affirmative defense, that quantities in exces of this a mount were medically necessary to dress a patient's debihta iug al c ondition. On July 20, CDPHE conducted a public hearing to receive public comments on five proposed rules,,Q including further defining the term "primary caregiver" to ensure that the primary caregiver is providing more assistance than simply providing medical marijuana to the patient and proposing that the number of patients per primary caregiver be limited to five patients. After a day of public testimony, the State Health Board rejected the effort to limit "primary caregivers" to only five patients at a time. Public Safety Concerns There are public safety concerns related to these businesses that call for requirements to limit the location of medical marijuana dispensary businesses and minimum - security requirements. Medical marijuana dispensaries have the potential to become large moneymaking operations based on information from California. Because dispensaries are a repository for both cash and marijuana, criminals are now targeting them more frequently. An aggravated robbery case of a dispensary in Boulder, Colorado is one recent example. After the suspects were arrested, police learned that these criminals had targeted a dispensary in Denver, Colorado as well. The Police Department has recommended to these businesses that careful consideration be given to security protocols, which include security surveillance cameras at key locations to discourage criminal activity such as robberies or burglaries, and professionally installed and maintained intrusion and panic alarms. w Another concern of staff is the proximity of medical marijuana dispensaries to schools, churches, daycare facilities, community centers, and alcohol or drug rehabilitation centers. City staff recognizes care should be taken to minimize the potential negative affects and influences these businesses can have in these areas. 2 Marijuana dispensaries appear to be large moneymaking enterprises that will sell marijuana to most anyone who produces a physician's written recommendation for its medical use. There are legitimate concerns that recommendations can be obtained by paying unscrupulous physicians a fee and claiming to have a debilitating condition. In California, medical marijuana dispensaries have been tied to organized criminal gangs, large grow operations, and are often multi- million- dollar profit centers. Other issues include the potential sales to minors, loitering, heavy vehicle and foot traffic in retail areas, and increased crime. ALTERNATIVES CONSIDERED Communities across the State are struggling with developing requirements for these types of businesses, and the response to these types of businesses varies significantly. There appear to be three models used by communities in dealing with medical marijuana dispensaries: k� 1) The City of Aurora has denied attempts by citizens to open medical marijuana dispensaries based on a code provision that defines a business as being lawful. Since the possession or distribution of marijuana violates Federal law, they have been successful to -date in prohibiting medical marijuana dispensaries in their community because of this code provision. The City of Aurora has not been challenged on their interpretation to date. There are some communities that have taken the approach that medical marijuana dispensaries are not lawful based on Federal law; however, they do not have a specific code provision requiring business compliance with the law like the City of Aurora. These communities have not been challenged on their position to date. The City Attorney's Office has recommended that the City not pursue this position. The City Code of Laws has no provision for businesses to be lawful, and the City has other alternatives for businesses that pose some risk of harm by utilizing the Special Use process. G 2) The City of Commerce City has recently propose an ordinance provision that amends the land development code to allow for the regal ion of medical marijuana dispensaries. Commerce City's revision to their code defines medical marijuana dispensary, limits the location of where a medical marijuana dispensary can be located, prohibits the use of advertisements and signs for these businesses from public view, limits all business related to or the consumption of medical marijuana to indoor use, and establishes minimum requirements for security at these locations. 3) The third model, currently used by the City of Wheat Ridge, is to require a medical marijuana dispensary to apply for a business license and mandate that sales tax be required on all purchases of medical marijuana. Numerous communities have opted for this model, because there is minimal legal precedence for additional compliance requirements. We have required a physical inspection of the proposed business by the City Sales Tax Auditor and members of the Police Department or West Metro Drug Task Force. FINANCIAL IMPACT The five (5) known dispensaries located in the City have obtained business licenses and are collecting sales tax at this point. Location sales average $12,500 a month, or sales tax of $375 per month ($4,500 per year). Staff recornrnends that City Council consider an ordinance similar to Commerce City that defines medical marijuana dispensaries, limits the location of these dispensaries, prohibits the use of advertisements and signs for these businesses from public view, limits all business related to or the consumption of medical marijuana to indoor use, and establishes minimum requirements for security at these locations. Attachments DB:KJ I City of WheatFidge POLICE DEPARTMENT Memorandum TO: Mayor Jerry DiTullio and City Council THROUGH: Randy Young, City Manager FROM: Daniel Brennan, Police Chief DATE: July 28, 2009 SUBJECT: Medical Marijuana Dispensaries EXECUTIVE SUMMARY In November 2000, Colorado voters approved Amendment 20 to the State Constitution, Section 14 of Article XVIII, providing an affirmative defense for the possession and use of marijuana to alleviate certain debilitating medical conditions. Colorado is among thirteen states that now have laws that allow seriously ill patients to use medical marijuana if their doctor recommends it. Amendment 20 allows patients and caregivers to grow their own medical marijuana for use by medical patients who submit applications and receive registry identification cards from the Colorado Department of Public Health and Environment ( CDPHE). Section 18 -18- 406.3, C.R.S. lists the restrictions on the medical use of marijuana. CDPHE is in the process of developing regulatory amendments to the Medical Marijuana Registry Program that provide definitions to key terms and clarifications to existing rules. Amendment 20 does not legalize the possession of marijuana under Federal law; however, the U.S. Attorney General has recently stated that the Federal government will not ask for Federal prosecution in states that have legalized the medical use of marijuana. The reaction of counties and municipalities in Colorado to these nascent businesses is decidedly mixed. Some have issued business permits for such enterprises, while other communities have refused to allow these types of businesses within their communities. Some communities have conditioned permitting such operations based on zoning regulations, thus limiting the locations these businesses can operate. The Colorado Municipal League (CML) has fielded numerous requests for information from their membership regarding this issue. CML has referenced a publication by Cannabis Therapeutics entitled, " Medical Education and Dispensary Safety as a source document. Cannabis Therapeutics is a medical marijuana resources facility designed to serve patients of the State of Colorado. Several of the proposed recommendations from staff are taken from this publication. To date, five (5) medical marijuana dispensaries have submitted business license applications in the City. Our current ordinances do not address medical marijuana dispensaries, where these businesses can locate, and the safety issues related to the dispensing of medical marijuana. Medical Marijuana Dispensaries July 28, 2009 Pa.-e2 STATEMENT OF ISSUES The recent influx of medical marijuana dispensaries is a new phenomenon throughout the State and appears to be based in part with a California law that is more comprehensive than Amendment 20 in its requirements and definitions. In Colorado, there are 9,112 people registered to use medical marijuana, up 2,000 just in the last month. Concerns regarding enforcement, public safety and community development requirements have arisen throughout Colorado because of this amendment. Federal and State Law Both Federal and State laws prohibit the possession, cultivation, and possession of marijuana. The City Code of Laws prohibits possession of less that one ounce of marijuana. Except for very limited and authorized research purposes, Federal law through the Controlled Substances Act prohibits the use of marijuana for any legal purpose, and classifies it as a banned Schedule I drug. A physician cannot legally prescribe marijuana as medicine under Federal law. Federal laws supersede State laws; so under Federal law, Colorado medical marijuana statutes do not provide a legal defense for the cultivation, possession or dispensing of marijuana, even with a physician's recommendation for its medical use. However, the U.S. Attorney General has announced a major change of the Federal government's position in the enforcement of Federal drug laws with respect to marijuana dispensaries. The direction given to Federal law enforcement agencies is only to conduct investigations on marijuana dispensaries that are exposed as fronts for drug trafficking for prosecution. Unfortunately, there are no standards or definitions available to determine what requirements constitute a drug trafficking operation suitable to trigger investigation and enforcement by this Federal administration. Colorado law also prohibits cultivation, possession, sale or distribution of marijuana, except for the provisions of Amendment 20 that provide for a limited affirmative defense to criminal prosecution for those who cultivate, possess or dispense marijuana for medicinal purposes as qualified patients with a physician's recommendation or as a qualified primary caregiver. Colorado law is notably silent on the issue of medical marijuana dispensaries at this time. The Colorado Department of Public Health and Environment is tasked with implementing and administering the Medical Marijuana Registry program. CDPHE is currently working on revising certain rules and regulations pertaining to the administration of the registry program. City Code of Laws, Section 16 -131 provide for the definition of marijuana. The ordinance makes it unlawful to possess one (1) ounce of marijuana and makes it unlawful to openly and publicly display or consume one ounce or less of marijuana. The only exception to this ordinance is if the possession or consumption meets the criteria established by the Dangerous Drugs Therapeutic Research Act. CDPHE Regulations State law and CDPHE regulations define the medicinal use for marijuana for persons suffering from debilitating medical conditions. A debilitating medical condition includes diseases such as cancer, glaucoma, human immunodeficiency virus, a chronic or debilitating disease or medical condition, i.e., seizures, severe pain, severe nausea, persistent muscle spasms, and epilepsy to name a few. A physician, defined as a doctor of medicine, is required by law to advise a patient whom the physician has diagnosed as having a debilitating medical condition about the risks and benefits of the medical use of marijuana and how the patient might benefit from the medical use Medical Marijuana Dispensaries July 28, 2009 Page3 of marijuana. Once written documentation of a diagnosis of a debilitating medical condition is given, the patient must register with the CDPHE and obtain a registry identification card that identifies the patient authorized to engage in the medical use of marijuana and include the name of the patient's primary caregiver, if any. A primary caregiver is defined as any person, other than the patient or patient's physician, who is eighteen years of age or older and has significant responsibility for managing the well -being of a patient who has a debilitating medical condition. A primary caregiver can have multiple patients. CDPHE is responsible for verifying the information provided by the patient and physician. By law, a patient's medical use of marijuana is limited to no more than two ounces of a usable form of marijuana; and no more that six marijuana plants, with three or fewer being mature, flowering plants that are producing a usable form of marijuana. It is an affirmative defense, that quantities in excess of this amount were medically necessary to address a patient's debilitating medical condition. On July 20, CDPHE conducted a public hearing to receive public comments on five proposed rules, to including further defining the term "primary caregiver" to ensure that the primary caregiver is providing more assistance than simply providing medical marijuana to the patient and proposing that the number of patients per primary caregiver be limited to five patients. After a day of public testimony, the State Health Board rejected the effort to limit "primary caregivers" to only five patients at a time. Public Safety Concerns There are several public safety concerns related to these businesses that call for regulations to control the location of medical marijuana dispensary businesses, as well as minimum - security requirements for these dispensaries. Separation requirements establishing distance requirements between medical marijuana dispensaries and schools, churches, daycare facilities, community centers, and alcohol or drug rehabilitation centers should be considered. These requirements minimize the potential negative affects and influences these businesses can have in areas frequented by children. Law enforcement information from California indicates that medical marijuana dispensaries have the potential to become large moneymaking operations. Because dispensaries are a repository for both cash and marijuana, criminals are now targeting them more frequently. An aggravated robbery case of a dispensary in Boulder, Colorado is one recent example. After the suspects were arrested, police learned that these criminals had targeted a dispensary in Denver, Colorado as well. The Police Department has recommended to existing businesses that careful consideration be given to security protocols that discourage criminal activity, which include security surveillance cameras at key locations and professionally installed and maintained intrusion and panic alarms. Lastly, the legal requirements and controls for medical marijuana dispensaries are distinctly different from medical pharmacies. These concerns include medical marijuana dispensaries being tied to organized criminal gangs, large grow operations, and multi - million - dollar profit centers. Other issues include the potential of illegal sales, sales to minors, loitering, heavy vehicle and foot traffic in retail areas, and increased crime. Medical Marijuana Dispensaries July 28, 2009 Pa,-e4 ALTERNATIVES CONSIDERED Communities across the State are struggling with developing requirements for these types of businesses, and the response to these types of businesses varies significantly. There appear to be three models used by communities in dealing with medical marijuana dispensaries: 1) The City of Aurora has denied attempts by citizens to open medical marijuana dispensaries based on a code provision that defines a business as being lawful. Since the possession or distribution of marijuana violates Federal law, they have been successful to -date in prohibiting medical marijuana dispensaries in their community because of this code provision. The City of Aurora has not been challenged on their interpretation to date. There are some communities that have taken the approach that medical marijuana dispensaries are not lawful based on Federal law; however, they do not have a specific code provision requiring business compliance with the law like the City of Aurora. These communities have not been challenged on their position to date. The City Attorney's Office has recommended that the City not pursue this position. The City Code of Laws has no provision for businesses to be lawful, and the City has other alternatives for businesses that pose some risk of harm by utilizing the Special Use process. 2) The City of Commerce City has recently proposed an ordinance provision that amends the land development code to allow for the regulation of medical marijuana dispensaries. Commerce City's revision to their code defines medical marijuana dispensary, limits the location of where a medical marijuana dispensary can be located, prohibits the use of advertisements and signs for these businesses from public view, limits all business related to or the consumption of medical marijuana to indoor use, and establishes minimum requirements for security at these locations. The Town of Breckenridge is considering an ordinance similar to the Commerce City model. 3) The third model, currently used by the City of Wheat Ridge, is to require a medical marijuana dispensary to apply for a business license and that sales tax is required on all purchases of medical marijuana. Numerous communities have opted for this model, because there is minimal legal precedence for additional compliance requirements. To date, we have required a physical inspection of the proposed business by the City Sales Tax Auditor and members of the Police Department or West Metro Drug Task Force. FINANCIAL IMPACT The five (5) known dispensaries located in the City have obtained business licenses and are collecting sales tax at this point. Location sales average $12,500 a month, or sales tax of $375 per month ($4,500 per year). Staff is seeking direction from City Council on regulating medical marijuana dispensaries beyond the application for a business license and collection of sales tax. While State law allows for medical marijuana dispensaries, the law and regulations do not address the public safety and community concerns that are inherent with this business model. The Police Department recommends that City Council consider an ordinance that: ❑ Defines medical marijuana dispensaries Medical Marijuana Dispensaries July 28, 2009 Pages ❑ Ensures compliance with State law and regulations on medical marijuana ❑ Creates a requirement to pay all State and City tax on sales ❑ Creates a business license application process that requires a background investigation of the owner or ownership group similar to a liquor license application ❑ Includes a review by the Police Department and Community Development to ensure the business plan is in compliance with State regulations and City ordinances ❑ Establishes requirements for the location of these dispensaries through the business license application process ❑ Prohibits the use of alcohol on premise ❑ Prohibits on -site usage and any usage in public ❑ Regulates that marijuana being display should be secured and shall not be visible to the public through glass, windows or doors ❑ On -site cultivation should only be allowed when the premises is equipped with proper ventilation system that eliminates the odor of marijuana to the public or surrounding businesses ❑ Limit the hours of operation to daytime operation ❑ Establish guidelines for the use of advertisements and signs for these businesses ❑ Prohibit the use of alcohol ❑ Establish minimum requirements for security at these locations. Attachments Mon \ / u \ Q ( § \ \ E \ \ \ S ( \ � \ \ \ ( } \ \ \ \ & \ .2 » \ 3 a « \ } � \ 2 j \ 0 » \ = = l lc2 .) z¥& \: \ 9 \ ƒ u / \ \\ \ ! &\ ± \ \\ \ ) \% } /} \ �\ z 2 /§ a ® 03 G 0 \ e w j / ) 2 � ~ \ \ \ 4 1 fz = \ / u \ Q ( § \ \ E \ \ \ S ( \ � \ \ \ ( } \ \ \ \ & \ .2 » \ 3 a « \ } � \ 2 j MEMORANDUM To: Mayor and Town Council From: Rick Holman, Chief of Police Date: July 28, 2009 Subject: Regulations Governing Medical Marijuana Dispensaries On June 23, 2009 the Town Council passed an emergency ordinance enacting a 90 -day moratorium on the issuance of any permit for a business that sells medical marijuana. The Council asked staff to research what other communities are doing with regards to regulations governing these types of businesses. Attached to this memorandum is a list of proposed regulations governing a Medical Marijuana Dispensary in the Town of Breckenridge. These recommendations are being made by staff based on our best judgment of public health and safety for the Town. What we have learned is that little has been done in the State regarding how communities regulate this type of business. There appears to be a heightened concern based on what appears to be a recent trend to increase the arnount of dispensaries in the State. This trend is apparently fueled by the President stating he has no desire to utilize federal resources to go after those people selling medical marijuana in the 12 states that it is allowed. Obviously that philosophy could change with a new administration as it is still a federal violation to distribute marijuana. Some cities in California have chosen not to allow dispensaries in their community and have enacted ordinances that state "no business will be allowed that violates local, state, or federal law ". Colorado Municipal League has been fielding some questions from their membership and referenced a publication that was compiled by Cannabis Therapeutics, who described themselves as "the largest medical marijuana resources facility to serve patients of the State of Colorado ". Many of the proposed regulations developed by staff were taken from this publication. Commerce City, Colorado introduced an ordinance this month that regulated medical marijuana dispensaries. Their ordinance only allows a dispensary in an industrial zone and dealt with advertisements, indoor use, and security. At the present time, we have one local family who desires to open a dispensary in the Town. This family is represented by an attorney who expressed to the Council on June 23, 2009 that his client is trying to be responsible and wants to work with the Town to make this work. The regulations being proposed may seem strict to some. While the one interested party may be responsible, the next one may not, nor the one after that. In the short time dispensaries have been operating, there is evidence to show, abuse can easily occur. Many communities have also seen an increase in criminal activity occurring in and around dispensaries. It is for those reasons we have proposed strict regulations. The Town of Frisco has been working with our staff and they will be proposing similar regulations. During the work session staff would like to go over these proposed regulations with the Council and get your feedback and direction. Page 21 of 120 Regulations Governing Medical Marijuana Dispensaries Town of Breckenridge Medical Marijuana Dispensary (defined) The term "medical marijuana dispensary" will mean and include the use of any property or structure to distribute, transmit, give, dispense, or otherwise provide marijuana in any manner, in accordance with Section 14 of Article XVIII of the Colorado Constitution. Application Procedure: Application procedures will be established via Town Code that requires any Medical Marijuana Business application that is submitted be reviewed by the Planning Department and the Police Department to ensure business plan is in compliance with established guidelines. Rationale: The unique nature of this type of business requires adherence to strict regulations to ensure public health and safety. Compliance with State Regulations on Medical Marijuana Any Medical Marijuana Dispensary (MMD) will be required to comply with the regulations established by the State as well as the Town of Breckenridge. Rationale: Medical Marijuana regulations established by the State Department of Public Health may change from time to time. Taxation A MMD will be required to pay all local and state taxes. Rationale: This provides the MMD with the distinction between a regulated medical service provider and a street level drug dealer. Location of Medical Marijuana Dispensaries A MMD will not be located in the core business district of the Town of Breckenridge, this includes the area of 300 Block of North Main Street to the 600 Block of South Main Street (including alleyways) and 100 Block of North Ridge Street to the 500 Block of South Ridge Street (including alleyways). No MMD shall be located within 500 feet of the following: 1. Any licensed child care facility 2. Any educational institution or school, either public or private 3. Any public community center, park, recreational pathway, recreation center, or any publically owned or maintained building open for use to the general public Page 22 of 120 4. Any other MMD 5. Any church 6. Any halfway house or correctional facility 7. The exterior boundary of any lot on which there is located a single family or multifamily residence, whether located within or outside of the Town (see attached map illustrating 500 foot buffer) Rationale: It is highly recommended that MMD not be located in those areas that children are likely to congregate. The core business district in Breckenridge promotes and markets a family atmosphere with over 2 million guests annually who visit our shops and restaurants located in the core of Town. A MMD (primary caregiver) can only do business with those patients who possess a state registry card and not the general public. Therefore, the business should not be open to the general public and there is no reason, for the MMD to be located in an area that promotes high tourist volumes. Cannabis Therapeutics, LLC recommends a dispensary should not allow "walk -in" traffic and they should do business by appointment only. Hours of Operation A MMD shall only be open for business during the daytime hours of one -half hour before sunrise and one -half hour after sunset. Rationale: A MMD by the very nature of its inventory provides an opportunity for increased loitering, theft, robbery, and other criminal activity. The threat to public safety is lessened during the daylight hours and criminals often feel less prone to apprehension tinder the cover of darkness. Signage, Advertising All signage will meet the standards established in the Town Code. No MMD shall display or utilize any signage or advertisement for their company that suggests marijuana may be in the store. Rationale: Because of the nature of inventory in the business, it becomes a target for criminal activity. On -site Usage, Cultivation, and Display of Marijuana No on -site consumption of marijuana is allowed on the licensed premises with the exception of small edible samples. Cultivation is only allowed when premises are equipped with a proper ventilation system that filters out the odor of marijuana so it is not detected from the exterior of the business or to any adjoining business. Marijuana should not be displayed in the open without being secured in some type of display cabinet. No marijuana shall be visible to anyone standing at the outside perimeter of the business through glass, windows, or doors. Page 23 of 120 Rationale: A MMD should ultimately be designed similar fashion to a pharmacy. Pharmacies are not designed for on -site consumption of controlled substances. In addition, it becomes a public safety issue if a patient is allowed to consume marijuana and then drive a motor vehicle as they leave the premises. It is not reasonable to assume the primary caregiver will take responsibility,for the transportation ofpatients who enter the business. As stated before, the marijuana inventory is highly abused and sought after by criminals. All precaution should be exercised to limit exposure to theft and robberies by not having marijuana visible to the outside and kept secured inside the business. Security MMD shall provide adequate security on the premises. At a minimum, such security shall include: 1. Security surveillance cameras installed to monitor the main entrance along with the interior and exterior of the premises to discourage and to facilitate the reporting of criminal acts as well as nuisance activities. Security video shall be preserved for at least 72 hours by the business. 2. Robbery and burglary alarm systems which are professionally monitored and maintained in good working conditions. 3. Exterior lighting that illuminates the exterior walls of the business and is compliant with existing Town Code relevant to outdoor lighting. Rationale: During this research it was learned that a MMD tends to attract a criminal element that may not otherwise be present. For this reason, it is important there are adequate security measures taken to deter this potential criminal activity and aid in the apprehension of the criminal should an illegal act occur. Alcohol Prohibited The sale or consumption of alcohol on the premises of a MMD is prohibited. Rationale: Again, it is recommended that MMD are fashioned after pharmacies who distribute medicine to patients. There is no reason to allow for the sale or consumption of alcohol. Liability Recommend a liability clause that states the sale of marijuana is a violation of federal law and the license holder assumes all risk and responsibility for those actions. Removes any liability from the Town of Breckenridge or its employees. Rationale: The current President has stated he is not interested in prosecuting those individuals using medical marijuana in the 12 states who currently have medical marijuana provisions. That philosophy could change under a new administration. Page 24 of 120 Colorado Department of Public Health and Environment DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT Health and Environmental Information and Statistics Division MEDICAL USE OF MARIJUANA 5 CCR 1006 -2 (Promulgated by the State Board of Health) Last amended 05/16/07 (Regulation 7), effective 07130/07 DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT Health and Environmental Information and Statistics Division MEDICAL USE OF MARIJUANA 5 CCR 1006 -2 Regulation 1: Establishment and confidentiality of the registry for the medical use of marijuana A. The Colorado Department of Public Health and Environment ( "the department" ) shall create and maintain a confidential registry ( "the registry' ) of patients who have applied for and are entitled to receive a registry identification card. All personal medical records and personal identifying information held by the department in compliance with these regulations shall be confidential information. No person shall be permitted to gain access to any information about patients in this registry, or any information otherwise maintained in the registry by the department about physicians and primary care - givers of patients in the registry, except for authorized employees of the department in the course of their official duties and authorized employees of state and local law enforcement agencies which have stopped or arrested a person who claims to be engaged in the medical use of marijuana and in possession of a registry identification card issued pursuant to regulations two and three. The department may release information concerning a specific patient to that patient with the written authorization of such patient. B. Any officer or employee or agent of the department who violates this regulation by releasing or making public confidential information in the registry shall be subject to any existing statutory penalties for a breach of confidentiality of the registry. Regulation 2: Application for a registry identification card A. An "adult applicant" is defined as a patient eighteen years of age or older. A "minor applicant" is defined as a patient less than eighteen years of age. B. In order to be placed in the registry and to receive a registry identification card, an adult applicant must reside in Colorado and submit an application form supplied by the department. The adult applicant must provide the following information with the application: i) The applicant's name, address, date of birth, and social security number; ii) The name and address of the applicant's primary care - giver, if one is designated at the time of application; iii) Written documentation from the applicant's physician that the applicant has been diagnosed with a debilitating medical condition as defined in regulation six and the physician's conclusion that the applicant might benefit from the medical use of marijuana; and iv) The name, address, and telephone number of the physician who has concluded the applicant might benefit from the medical use of marijuana. C. In order for a minor applicant to be placed in the registry and to receive a registry identification card, the minor applicant must reside in Colorado and a parent residing in Colorado must consent in writing to serve as the minor applicant's primary care - giver. Such parent must submit an application form supplied by the department. The parent of the minor applicant must provide the following information with the application: The applicant's name, address, date of birth, and social security number, ii) Written documentation from two of the applicant's physicians that the applicant has been diagnosed with a debilitating medical condition as defined in regulation six and each physician's conclusion that the applicant might benefit from the medical use of marijuana; iii) The name, address, and telephone number of the two physicians who have concluded the applicant might benefit from the medical use of marijuana, iv) Consent from each of the applicant's parents residing in Colorado that the applicant may engage in the medical use of marijuana; and V) Documentation that one of the physicians referred to in (iii) has explained the possible risks and benefits of medical use of marijuana to the applicant and each of the applicant's parents residing in Colorado. D. To maintain an effective registry identification card, a patient must annually resubmit to the department, at least thirty days prior to the expiration date, updated written documentation of the information required in paragraphs B and C of this regulation. In addition, the patient must provide the name and address of the primary care - giver, if any is designated at such time. Regulation 3: Verification of medical information; issuance, denial, revocation, and form of registry identification cards A. The department shall verify medical information contained in the patient's application within thirty days of receiving the application. Verification of medical information shall consist of determining that there is documentation stating the applicant has a current diagnosis with a debilitating medical condition as defined in regulation six by a physician who has a current license to practice medicine issued by the State of Colorado. B. No more than five days after verifying medical information of the applicant, the department shall issue a serially numbered registry identification care to the patient. The card shall state the following: The patient's name, address, date of birth, and social security number; ii) That the patient's name has been certified to the department as a person with a debilitating medical condition, whereby the person may address such condition with the medical use of marijuana; iii) The date of issuance of such card and the date of expiration, which shall be one year from the date of issuance; iv) The name and address of the patient's primary care - giver, if any is designated at the time of application; V) How to notify the department of any change in name, address, medical status, physician, or primary care - giver. C. Except for minor applicants, where the department fails within thirty -five days of receipt of application to issue a registry identification card or fails to issue verbal or written notice of denial of such application, the patient's application for such card will be deemed to have been approved. "Receipt" shall be deemed to have occurred upon delivery to the department or deposit in the united states mails. No application shall be deemed received prior to June 1, 2001. D. The department shall deny the application if it determines that information has been falsified or it cannot verify the medical information as provided in paragraph A of this regulation. A patient whose application has been denied by the department may not reapply during the six months following the date of denial. The denial of a registry identification card shall be considered a final agency action. E. In addition to any other penalties provided by law, the department shall revoke for a period of one year the registry identification card of any patient found to have willfully violated the provisions of Section 14 of Amendment 20 of the Colorado Constitution or the implementing legislation of Section 14. Regulation 4: Change in applicant information A. When there has been a change in the name, address, physician or primary care -giver of a patient who has been issued a registry identification card, that patient must notify the department within ten days. A patient who has not designated a primary care -giver at the time of application to the department may do so in writing at any time during the effective period of the registry identification card, and the primary care -giver may act in this capacity after such designation. B. A patient who no longer has a debilitating medical condition as defined in regulation six shall return his registry identification card to the department within twenty -four hours of receiving such information by his or her physician. Regulation 5: Communications with law enforcement officials about patients in the registry A. Authorized employees of state or local law enforcement agencies shall be granted access to the information contained within the department's registry only for the purpose of verifying that an individual who has presented a registry identification card to a state or local law enforcement official is lawfully in possession of such card. The department shall report to authorized state or local law enforcement officials whether a patient's registry identification card has been suspended because the patient no longer has a debilitating medical condition. B. Authorized employees of state or local law enforcement agencies shall immediately notify the department when any person in possession of a registry identification card has been determined by a court of law to have willfully violated the provisions of this section 14 of the Colorado constitution or its implementing legislation, or has pled guilty to such offense. Regulation 6: Debilitating medical conditions and the process for adding new debilitating medical conditions A. Debilitating medical conditions are defined as cancer, glaucoma, and infection with or positive status for human immunodeficiency virus. Patients undergoing treatment for such conditions are defined as having a debilitating medical condition. B. Debilitating medical condition also includes a chronic or debilitating disease or medical condition other than HIV infection, cancer or glaucoma; or treatment for such conditions, which produces for a specific patient one or more of the following, and for which, in the professional opinion of the patient's physician, such condition or conditions may reasonably be alleviated by the medical use of marijuana: cachexia; severe pain; severe nausea; seizures, including those that are characteristic of epilepsy; or persistent muscle spasms, including those that are characteristic of multiple sclerosis. C. Patients who have had a diagnosis of a debilitating medical condition in the past but do not have active disease and are not undergoing treatment for such condition are not suffering from a debilitating medical condition for which the medical use of marijuana is authorized. D. Beginning June 1, 2001, the department shall accept physician or patient petitions to add debilitating medical conditions to the list provided in paragraphs A and B of this regulation. The department shall determine if a public rulemaking hearing to modify this regulation is appropriate, and if so, shall petition the Board of Health to set a date for such hearing within one hundred twenty days of receipt of the patient or physician petition. If the department determines that a public rulemaking hearing is not appropriate, it shall notify the petitioner of its action within one hundred eighty days of receipt of submission of the petition. In making its determination, the department will consider whether there is information that the proposed condition is chronic, debilitating, and may be specifically diagnosed, and whether there is scientific evidence that treatment with marijuana may have a beneficial effect. Regulation 7: Determination of fees to pay for administrative costs of the medical use of marijuana program The department shall provide each applicant with information concerning the medical use of marijuana program. The department shall collect ninety dollars from each applicant at the time of application to pay for the direct and indirect costs to administer the medical use of marijuana program. Such fee shall not be refundable to the applicant if the application is denied or revoked or if the patient no longer has a debilitating medical condition. The amount of the fee shall be evaluated annually by the department, and the department shall propose modifications to the board, as appropriate. If the patient provides updated information at any time during the effective period of the registry identification card, the department shall not charge a fee to modify the registry information concerning the patient. Eff 0713012007 Page 1 of 3 Kenneth Johnstone From: Christopher Price [cprice @mdkrlaw.com] Sent: Thursday, June 25, 2009 5:49 PM To: Patrick Goff Cc: Daniel Brennan; Kenneth Johnstone; Jim Lorentz Subject: RE: Medical Marijuana Patrick, You asked whether the City could place a moratorium on the issuance of business licenses for medical marijuana dispensaries until after the July 20 CDPHE rule making session. ANSWER: Possibly. The main issue is whether the City has sufficient justification to adopt the moratorium. If the City decides to adopt a moratorium on business licenses, it must do so through ordinance and not by resolution. ANALYSIS: In order to adopt a moratorium concerning an existing ordinance, a municipality must act by ordinance. Deighton v. City Council of Colorado Springs, 902 P.2d 426 (Colo. App. 1995). Here, business licenses are issued pursuant to Chapter 11 of the City Code, all of the provisions of which were adopted by ordinance. Because these provisions were adopted by ordinance, the City Council must adopt the moratorium by ordinance. The more troubling question is what justification the city has for adopting the moratorium. You expressed the City's interest as based on the rule making session planned by CDPHE. Although the CDPHE rule making session maybe important to how medical marijuana dispensaries currently operate, how does that impact the City and its licensing regimen? In addition, what action would the City take, if any, during the moratorium period? How long would the moratorium last? The answers to these questions are important because the City legally acts only within its authority. It is questionable whether the City is authorized to regulate medical marijuana dispensaries through business licensing requirements. Section 14 of Article XVIII of the Colorado Constitution provides that the CDPHE is designated as the authority to "enact rules to administer the program." Because this designation of authority occurs through a constitutional amendment, it may preempt the City's ability to regulate the medical marijuana dispensaries through licensing requirements. A better justification for the moratorium would be for the City to study the effects of these businesses in an effort to develop a zoning code revision. In using its land use controls as justification, the City stands on stronger grounds for adopting the moratorium. Williams v. City of Central, 907 P.2d 701 (Colo. App. 1995). However, the City must proceed toward studying the effects and planning how to amend the zoning code to accommodate those businesses within a reasonable time. Once the study is completed and the City amends its zoning code, Council would adopt an ordinance ending the moratorium. Ultimately, the City can place a moratorium on the issuance of business licenses for medical marijuana dispensaries so long as it is done by ordinance with sufficient justification. 6/29/2009 Page 2 of 3 Please let me know if you have additional questions Christopher Price c " rice m dkrlaw.com Murray Dahl Kuechenmeister and Renaud LLP 303.493.6688 This electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. If you are not the intended recipient of this e -mail, you are hereby notified that any dissemination, distribution or copying of this e -mail, and any attachments thereto, is strictly prohibited. If you have received this e -mail in error, please notify me immediately by telephone or e -mail and destroy the original message without making a copy. Thank you. From: Patrick Goff [ mailto :pgoff @ci.wheatridge.co.us] Sent: Friday, June 19, 2009 11:28 AM To: Christopher Price Cc: Daniel Brennan; Kenneth Johnstone; Jim Lorentz Subject: RE: Medical Marijuana Mr. Price, Would you please look into this further and determine if we should and can suspend issuing business licenses until the Colorado Department of Health makes further determinations at their meeting on July 20th? Thanks Patrick Goff Deputy City Manager Office Phone: 303 - 235 -2805 c,ty 01 1'Whe iC� C. Y MANA<1I dl F1Wa III CONFIDENTIALITY NOTICE: This e -mail contains business - confidential information. It is intended only for the use of the individual or entity named above. If you are not the intended recipient, you are notified that any disclosure, copying, distribution, electronic storage or use of this communication is prohibited. If you received this communication in error, please notify us immediately by e -mail, attaching the original message, and delete the original message from your computer, and any network to which your computer is connected. Thank you. From: Daniel Brennan Sent: Friday, June 19, 2009 11:15 AM To: Patrick Goff; Kenneth Johnstone; Jim Lorentz; Christopher Price Subject: Medical Marijuana Here is an update on medical marijuana: Aurora does not allow medical marijuana dispensaries for the following reasons: Their City Code (Section 86 -86) defines a business as being lawful. Since growing, possessing, selling or dispensing marijuana is a federal crime, they have effectively kept these businesses out of their community. There is no provision in the amendment for dispensaries in Amendment 20: nor is the term 6/29/2009 Page 3 of 3 "caregiver" described. The language for this term and others will be determined by the Colorado Department of Health at or after the July 20 meeting. It appears that existing dispensaries are operating under the guise of the California law that defines what a dispensary is and no such definition exists in Colorado, this making an agreement that they are illegal. Based on this information I would suggest the City Attorney provide a legal review on this. There is a tremendous amount of confusion across the State on this. I would also suggest we stop issuing business licenses for medical marijuana dispensaries until this review is completed. Daniel G. Brennan Chief of Police 7500 W. 29th Avenue Wheat Ridge, Colorado 80033 Office Phone: 303 - 235 -2913 Cityaf Wheat Mdge lOLICT DTPART1,,M.NT CONFIDENTIALITY NOTICY: This e -mail contains business - confidential information. It is intended only for the use of the individual or entity named above. If you are not the intended recipient, you are notified that any disclosure, copying, distribution, electronic storage or use of this communication is prohibited. If you received this communication in error, please notify us immediately bye -mail, attaching the original message, and delete the original message from your computer, and any network to which your computer is connected. 11ank you. 6/29/2009 Pagel of 3 Kenneth Johnstone From: Christopher Price [cprice @mdkrlaw.com] Sent: Thursday, June 25, 2009 4:58 PM To: Daniel Brennan Cc: Kenneth Johnstone; Jim Lorentz; Patrick Goff; Gerald Dahl Subject: RE: [MGRLIST] Medical Marijuana Dan, Without spending additional time on this issue, I am unable to provide a complete opinion. On first review and based on the decision in County of San Diego v. Norml; unreported (Cal. App. 2008)(cert. denied by United States Supreme Court May 18, 2009), I do not think that the City is authorized to deny a business license on federal law grounds. I am unsure how Greenwood Village came to this conclusion but Aurora has a specific code provision stating that no business may operate in violation of federal law. To my knowledge, no other Colorado municipality has a similar provision. At this time, I cannot offer opinion on whether Aurora's provision is lawful and, therefore, cannot recommend that the City adopt such a provision. In general, municipalities are not authorized to enforce federal law. While Aurora's code provision does not specifically enforce federal law, it does require compliance therewith. In some respects it seems intuitive that a business must operate within the confines of local, state and federal law. However, in this instance, there are more complex preemption and political issues in play. Specifically: Does federal law preempt a state constitutional amendment? Does the state constitution preempt local regulation? Do health concerns provide someone with a substantive constitutional right to obtain certain medicine? These issues are made more complex by the fact that there will be little case law directly on point. Based on all of the issues presented and their limitations, our analysis of this issue will be lengthy and time consuming yet provide little clear direction. In addition, if the City does decide to act, it may be subject to costly litigation for either adopting a code provision similar to Aurora's or for enforcing a federal law ban without authorization. Due to the complexity of this issue, we will need direction from City on the amount resources that we should expend before continuing our research and analysis. Please let me know how you would like us to proceed. Christopher Price cpriceflandkrlaw. Murray Dahl Kuechenmeister and Renaud LLP 303.493.6688 This electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. If you are not the intended recipient of this e -mail, you are hereby notified that any dissemination, distribution or copying of this e -mail, and any attachments thereto, is strictly prohibited. If you have received this e -mail in error, please notify me immediately by telephone or e -mail and destroy the original message without making a copy. 6/29/2009 Page 2 of 3 Thank you From: Daniel Brennan [ mailto :dbrennan @ci.wheatridge.co.us] Sent: Wednesday, June 17, 2009 11:48 AM To: Christopher Price Cc: Kenneth Johnstone; Jim Lorentz Subject: FW: [MGRLIST] Medical Marijuana Chris, An interesting perspective if it is accurate; can we hold our hat on this response? Daniel G. Brennan Chief of Police 7500 W. 29th Avenue Wheat Ridge, Colorado 80033 Office Phone: 303 - 235 -2913 ❑x CONFIDENTIALITY NOTICE: This e -mail contains business - confidential information. It is intended only for the use of the individual or entity named above. If you are not the intended recipient, you are notified that any disclosure, copying, distribution, electronic storage or use of this conununication is prohibited. If you received this communication in error, please notify us immediately bye -mail, attaching the original message, and delete the original message from your computer, and any network to which your computer is connected. Thank you. From: Patrick Goff Sent: Wednesday, June 17, 2009 10:10 AM To: Kenneth Johnstone; Daniel Brennan Subject: FW: [MGRLIST] Medical Marijuana Patrick Goff Deputy City Manager Office Phone: 303 - 235 -2805 ONFIDENTIALITY NOTICE: This e-mail contains business- confidential information. It is intended only for the use of the individual or entity named above. If you are not the intended recipient, you are notified that any disclosure, copying, distribution, electronic storage or use of this communication is prohibited. If you received this communication in error, please notify us immediately by e -mail, attaching the original message, and delete the original message from your computer, and any network to which your computer is connected. Thank you. From: Ryan Gregory [ mailto :RGregory@greenwoodvillage.com] Sent: Wednesday, June 17, 2009 9:49 AM To: Patrick Goff Subject: FW: [MGRLIST] Medical Marijuana Patrick, we recently received (about 2 -3 weeks ago) an application for a business license for a distributor of medical marijuana. According to the applicant, they had already secured a lease, etc. in a strip mall here. We 6/29/2009 Page 3 of 3 denied the application based on Federal law prohibiting the sale of marijuana. In researching how to respond to the applicant, staff spoke to Aurora and Denver, both of which also had received applications in recent years and both denied for similar reasons. We chose not to base the decision on zoning, etc. as the Federal law is very clear and trumps all other discussions we might have regarding such a facility's legality. Let me know if you have any other questions. Ryan 303 - 486 -5746 From: CIVIL Municipal Managers List [mailto:MGRLIST @LIST.CML.ORG] On Behalf Of Patrick Goff Sent: Wednesday, June 17, 2009 9:35 AM To: MGRLIST @LIST.CML.ORG Subject: [MGRLIST] Medical Marijuana The City of Wheat Ridge currently has three medical marijuana distributors. How have other communities dealt with these types of businesses? Have you imposed any specific zoning, licensing, etc. requirements? Thanks Patrick Goff Deputy City Manager 7500 W. 29th Avenue Wheat Ridge, Colorado 80033 Office Phone: 303 - 235 -2805 Cell Phone: 303 -995 -6465 Fax: 303 - 235 -2805 www.ci.wheatridQe.co.us 1. 0 I of ff A Crrr 7 rCs6T F3 t 1Cge �ttA1�'oAR'Sitifit`5 {.?FCt. CONFIDENTIALITY NOTICE: This e -mail contains business- confidential information. It is intended only for the use of the individual or entity named above. If you are not the intended recipient, you are notified that any disclosure, copying, distribution, electronic storage or use of this communication is prohibited. If you received this communication in error, please notify us immediately by e -mail, attaching the original message, and delete the original message from your computer, and any network to which your computer is connected. Thank you. Register for the 87th CML Annual Conference, June 16 -19, in Vail at www.eml.org! For help or support with this listserv, please e -mail support @cml.zendesk.com 6/29/2009 DRAFT ORDINANCE NO. INTRODUCED BY: AN ORDINANCE AMENDING THE LAND DEVELOPMENT CODE OF THE CITY OF COMMERCE CITY FOR THE PURPOSE OF REGULATING MEDICAL MARIJUANA DISPENSARIES WHEREAS, because federal and state law prohibit the possession and sale of marijuana generally, marijuana sales have never been addressed by the City's zoning ordinances; and WHERAS, the voters of the State of Colorado affirmed the medical use of marijuana by voting for Amendment 20 in November of 2000; and WHEREAS, the intent of Amendment 20 was to enable persons who are in medical need of marijuana to be able to obtain and use it without fear of criminal prosecution; and WHEREAS, there appears to be a proliferation of businesses wishing to provide medical marijuana to those who qualify under state law ( "medical marijuana dispensaries "); and WHEREAS, the existing City zoning regulations do not provide for the location and regulation of medical marijuana dispensaries and such uses might be permissible in any zone that allows retail uses, drug stores, or medical facilities; and WHEREAS, if medical marijuana dispensaries were allowed to be established without appropriate regulation as to the location, such uses might be established in areas that would conflict with the City's comprehensive land use plan, be inconsistent with surrounding uses, or be detrimental to the public health, safety and welfare; and Whereas, the City Council of the City of Commerce City believes this ordinance is necessary to safeguard the urban environment by permitting compliance with state law in a manner consistent with the aforementioned concerns. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COMMERCE CITY, COLORADO AS FOLLOWS: SECTION 1. Table V -1 of the Land Development Code of the City of Commerce City is hereby amended to specify that medical marijuana dispensaries shall be permitted as a conditional use in the following zone districts: I -1, I -2, and I -3. SECTION 2. The Land Development Code of the City of Commerce City is hereby amended by adding Section 21 -5249, titled Medical Marijuana Dispensaries, which shall read as follows: Sec. 21 -5249. Medical Marijuana Dispensaries. (1) Definition. The term "medical marijuana dispensary" shall mean and include the use of any property or structure to distribute, transmit, give, dispense, or otherwise provide marijuana in any manner, in accordance with Section 14 of Article XVIII of the Colorado Constitution. (2) Location. No medical marijuana dispensary shall be located within 1,000 feet of the following: (a) The exterior boundary of any public zone district; (b) The exterior boundary of any residential zone district; (c) The exterior boundary of any existing or occupied mobile home; (d) The exterior boundary of any lot on which there is located a single family or multifamily residence, whether located within or outside of the city; (e) Any church or religious institution; (f) Any educational institution or school, either public or private; (g) Any licensed child care facility; (h) Any alcohol or drug rehabilitation facility; (i) Any public community center, park, fairground, or recreation center, or any publicly owned or maintained building open for use to the general public; (j) Any other medical marijuana business whether such business is located within or outside of the city; or (k) Any halfway house or correctional facility. (3) Advertisements. Advertisements, signs, displays, or other promotional material depicting medical marijuana uses shall not be shown or exhibited off the premises or in any manner which is visible to the public, from roadways, pedestrian sidewalks or walkways, or from other public areas. (4) Indoor Use. All business related to, or consumption of, medical marijuana shall be conducted indoors, and all building openings, entries, and windows shall be located, covered, or screened in such a manner as to prevent a view into the interior; and for new construction, the building shall be constructed so as to prevent any possibility of viewing the interior from the exterior of such structure. (5) Security. Medical marijuana dispensaries shall provide adequate security on the premises. At a minimum, such security shall include: (a) Security surveillance cameras installed to monitor the main entrance and the exterior of the premises to discourage and to facilitate the reporting of criminal acts as well as nuisance activities. Security video shall be preserved for at least 72 hours. (b) Robbery and burglary alarm systems which are professionally monitored and maintained in good working conditions. INTRODUCED, PASSED ON FIRST READING AND PUBLIC NOTICE ORDERED THIS DAY OF 200. PASSED ON SECOND AND FINAL READING AND PUBLIC NOTICE ORDERED THIS DAY OF 200. CITY OF COMMERCE CITY, COLORADO Paul Natale, Mayor ATTEST: Laura J. Bauer, CMC, City Clerk 3 Kenneth Johnstone Subject: Medical Marijuana Issues - See Narrative Location: 2nd Floor Conf Room - City Side Start: Tue 6/16/2009 1:00 PM End: Tue 6/16/2009 2:30 PM Show Time As: Tentative Recurrence: (none) Meeting Status: Not yet responded Required Attendees: Daniel Brennan; gdahl @mdkrlaw.com; Patrick Goff; Daniel Brennan; Kenneth Johnstone; John Schumacher: Jim Lorentz The City has had a couple of recent issues regarding medical marijuana distributors. Currently, there are two "businesses" that Wheat Ridge Police Department is aware of that have licenses. Here are the issues the Police Department has identified that need to be discussed and addressed: 1. Compliance with State Statutes by businesses 2. Need for a business license 3. Zoning - growing and packing of marijuana and associated odors 4. Status of the State Department of Health regulations pertaining to medical marijuana - update 5. How are other communities responding to this issue Please send other representatives who need to attend, and /or if you would like to add items to the agenda, please Contact Cheryl Keller at 303 - 235 -2913 or ckeller @ci.wheatridge.co.us. L) us . fC� JJs d t� JS c c,. ectl,p 1 � c lpec , .J -�U)NS �� , � q7 X 1 0 5 Statute 0 -4 -287 Colorado Welcome to.,. Colorado Department of Public Health and Environment 0 -4 -287 - ARTICLE XVIII - Miscellaneous Art. XVIII - Miscellaneous 0 -4 -287 - ARTICLE XVIII - Miscellaneous Art. XVIII - Miscellaneous Section 14. Medical use of marijuana for persons suffering from debilitating medical conditions. (1) As used in this section, these terms are defined as follows: (a) "Debilitating medical condition" means: (1) Cancer, glaucoma, positive status for human immunodeficiency virus, or acquired immune deficiency syndrome, or treatment for such conditions; (II) A chronic or debilitating disease or medical condition, or treatment for such conditions, which produces, for a specific patient, one or more of the following, and for which, in the professional opinion of the patient's physician, such condition or conditions reasonably may be alleviated by the medical use of marijuana: cachexia; severe pain; severe nausea; seizures, including those that are characteristic of epilepsy; or persistent muscle spasms, including those that are characteristic of multiple sclerosis; or (III) Any other medical condition, or treatment for such condition, approved by the state health agency, pursuant to its rule making authority or its approval of any petition submitted by a patient or physician as provided in this section. (b) "Medical use" means the acquisition, possession, production, use, or transportation of marijuana or paraphernalia related to the administration of such marijuana to address the symptoms or effects of a patient's debilitating medical condition, which may be authorized only after a diagnosis of the patient's debilitating medical condition by a physician or physicians, as provided by this section. (c) "Parent" means a custodial mother or father of a patient under the age of eighteen years, any person having custody of a patient under the age of eighteen years, or any person serving as a legal guardian for a patient under the age of eighteen years. - (d) "Patient" means a person who has a debilitating medical condition (e) "Physician" means a doctor of medicine who maintains, in good standing, a license to practice medicine issued by the state of Colorado. (f) "Primary care- giver" means a person, other than the patient and the patient's physician, who is eighteen years of age or older and has significant responsibility for managing the well -being of a patient who has a debilitating medical condition. (g) "Registry identification card" means that document, issued by the state health agency, which identifies a patient authorized to engage in the medical use of marijuana and such patient's primary care- giver, if any has been designated. (h) "State health agency" means that public health related entity of state government designated by the governor to establish and maintain a confidential registry of patients authorized to engage in the medical use of marijuana and enact rules to administer this program. (i) "Usable form of marijuana" means the seeds, leaves, buds, and flowers of the plant (genus) cannabis, and any mixture or preparation thereof, which are appropriate for medical use as provided in this section, but excludes the plant's stalks, stems, and roots. 0) "Written documentation" means a statement signed by a patient's physician or copies of the patient's pertinent medical records. (2) (a) Except as otherwise provided in subsections (5), (6), and (8) of this section, a patient or primary care- giver charged with a violation of the state's criminal laws related to the patient's medical use of marijuana will Page 1 of 5 Colorado= http: / /www.edphe. state. co. us /hs /medicalmarijuana /mjamendment.html 06/16/2009 Statute 0 -4 -287 be deemed to have established an affirmative defense to such allegation where: (1) The patient was previously diagnosed by a physician as having a debilitating medical condition; (11) The patient was advised by his or her physician, in the context of a bona fide physician - patient relationship, that the patient might benefit from the medical use of marijuana in connection with a debilitating medical condition; and (III) The patient and his or her primary care -giver were collectively in possession of amounts of marijuana only as permitted under this section. This affirmative defense shall not exclude the assertion of any other defense where a patient or primary care- giver is charged with a violation of state law related to the patient's medical use of marijuana. (b) Effective June 1, 2001, it shall be an exception from the state's criminal laws for any patient or primary care -giver in lawful possession of a registry identification card to engage or assist in the medical use of marijuana, except as otherwise provided in subsections (5) and (8) of this section. (c) It shall be an exception from the state's criminal laws for any physician to (1) Advise a patient whom the physician has diagnosed as having a debilitating medical condition, about the risks and benefits of medical use of marijuana or that he or she might benefit from the medical use of marijuana, provided that such advice is based upon the physician's contemporaneous assessment of the patient's medical history and current medical condition and a bona fide physician- patient relationship; or (II) Provide a patient with written documentation, based upon the physician's contemporaneous assessment of the patient's medical history and current medical condition and a bona fide physician - patient relationship, stating that the patient has a debilitating medical condition and might benefit from the medical use of marijuana. No physician shall be denied any rights or privileges for the acts authorized by this subsection. (d) Notwithstanding the foregoing provisions, no person, including a patient or primary care- giver, shall be entitled to the protection of this section for his or her acquisition, possession, manufacture, production, use, sale, distribution, dispensing, or transportation of marijuana for any use other than medical use. (e) Any property interest that is possessed, owned, or used in connection with the medical use of marijuana or acts incidental to such use, shall not be harmed, neglected, injured, or destroyed while in the possession of state or local law enforcement officials where such property has been seized in connection with the claimed medical use of marijuana. Any such property interest shall not be forfeited under any provision of state law providing for the forfeiture of property other than as a sentence imposed after conviction of a criminal offense or entry of a plea of guilty to such offense. Marijuana and paraphernalia seized by state or local law enforcement officials from a patient or primary care -giver in connection with the claimed medical use of marijuana shall be returned immediately upon the determination of the district attorney or his or her designee that the patient or primary care -giver is entitled to the protection contained in this section as may be evidenced, for example, by a decision not to prosecute, the dismissal of charges, or acquittal. (3) The state health agency shall create and maintain a confidential registry of patients who have applied for and are entitled to receive a registry identification card according to the criteria set forth in this subsection, effective June 1, 2001. (a) No person shall be permitted to gain access to any information about patients in the state health agency's confidential registry, or any information otherwise maintained by the state health agency about physicians and primary care- givers, except for authorized employees of the state health agency in the course of their official duties and authorized employees of state or local law enforcement agencies which have stopped or arrested a person who claims to be engaged in the medical use of marijuana and in possession of a registry identification card or its functional equivalent, pursuant to paragraph (e) of this subsection (3). Authorized employees of state or local law enforcement agencies shall be granted access to the information contained within the state health agency's confidential registry only for the purpose of verifying that an individual who has presented a registry identification card to a state or local law enforcement official is lawfully in possession of such card. (b) In order to be placed on the state's confidential registry for the medical use of marijuana, a patient must reside in Colorado and submit the completed application form adopted by the state health agency, including the following information, to the state health agency: (1) The original or a copy of written documentation stating that the patient has been diagnosed with a Page 2 of 5 http: / /www.cdphe. state. co. us/ hs/ medicalmarijuana /miamendment.html 06/16/2009 Statute 0 -4 -287 debilitating medical condition and the physician's conclusion that the patient might benefit from the medical use of marijuana; (II) The name, address, date of birth, and social security number of the patient; (III) The name, address, and telephone number of the patient's physician; and (IV) The name and address of the patient's primary care- giver, if one is designated at the time of application. (c) Within thirty days of receiving the information referred to in subparagraphs (3) (b) (I) -(IV), the state health agency shall verify medical information contained in the patient's written documentation. The agency shall notify the applicant that his or her application for a registry identification card has been denied if the agency's review of such documentation discloses that: the information required pursuant to paragraph (3) (b) of this section has not been provided or has been falsified; the documentation fails to state that the patient has a debilitating medical condition specified in this section or by state health agency rule; or the physician does not have a license to practice medicine issued by the state of Colorado. Otherwise, not more than five days after verifying such information, the state health agency shall issue one serially numbered registry identification card to the patient, stating: (1) The patient's name, address, date of birth, and social security number; (II) That the patient's name has been certified to the state health agency as a person who has a debilitating medical condition, whereby the patient may address such condition with the medical use of marijuana; (III) The date of issuance of the registry identification card and the date of expiration of such card, which shall be one year from the date of issuance; and (IV) The name and address of the patient's primary care- giver, if any is designated at the time of application. (d) Except for patients applying pursuant to subsection (6) of this section, where the state health agency, within thirty-five days of receipt of an application, fails to issue a registry identification card or fails to issue verbal or written notice of denial of such application, the patient's application for such card will be deemed to have been approved. Receipt shall be deemed to have occurred upon delivery to the state health agency, or deposit in the United States mails. Notwithstanding the foregoing, no application shall be deemed received prior to June 1, 2001. A patient who is questioned by any state or local law enforcement official about his or her medical use of marijuana shall provide a copy of the application submitted to the state health agency, including the written documentation and proof of the date of mailing or other transmission of the written documentation for delivery to the state health agency, which shall be accorded the same legal effect as a registry identification card, until such time as the patient receives notice that the application has been denied. (e) A patient whose application has been denied by the state health agency may not reapply during the six months following the date of the denial and may not use an application for a registry identification card as provided in paragraph (3) (d) of this section. The denial of a registry identification card shall be considered a final agency action. Only the patient whose application has been denied shall have standing to contest the agency action. (f) When there has been a change in the name, address, physician, or primary care- giver of a patient who has qualified for a registry identification card, that patient must notify the state health agency of any such change within ten days. A pafient who has not designated a primary care -giver at the time of application to the state health agency may do so in writing at any time during the effective period of the registry identification card, and the primary care -giver may act in this rapacity after such designation. To maintain an effective registry identification card, a patient must annually resubmit, at least thirty days prior to the expiration date stated on the registry identification card, updated written documentation to the state health agency, as well as the name and address of the patient's primary care - giver, if any is designated at such time. (g) Authorized employees of state or local law enforcement agencies shall immediately notify the state health agency when any person in possession of a registry identification card has been determined by a court of law to have willfully violated the provisions of this section or its implementing legislation, or has pled guilty to such offense. (h) A patient who no longer has a debilitating medical condition shall return his or her registry identification card to the state health agency within twenty-four hours of receiving such diagnosis by his or her physician. (i) The state health agency may determine and levy reasonable fees to pay for any direct or indirect administrative costs associated with its role in this program. (4) (a) A patient may engage in the medical use of marijuana, with no more marijuana than is medically Page 3 of 5 http: / /www.cdphe. state. co. us /hs /medicalmarijuana /mjamendment.html 06/16/2009 Statute 0 -4 -287 necessary to address a debilitating medical condition. A patient's medical use of marijuana, within the following limits, is lawful: (1) No more than two ounces of a usable form of marijuana; and (II) No more than six marijuana plants, with three or fewer being mature, flowering plants that are producing a usable form of marijuana. (b) For quantities of marijuana in excess of these amounts, a patient or his or her primary care -giver may raise as an affirmative defense to charges of violation of state law that such greater amounts were medically necessary to address the patient's debilitating medical condition. (5) (a) No patient shall: (1) Engage in the medical use of marijuana in a way that endangers the health or well -being of any person; or (11) Engage in the medical use of marijuana in plain view of, or in a place open to, the general public. (b) In addition to any other penalties provided by law, the state health agency shall revoke for a period of one year the registry identification card of any patient found to have willfully violated the provisions of this section or the implementing legislation adopted by the general assembly. (6) Notwithstanding paragraphs (2) (a) and (3) (d) of this section, no patient under eighteen years of age shall engage in the medical use of marijuana unless: (a) Two physicians have diagnosed the patient as having a debilitating medical condition; (b) One of the physicians referred to in paragraph (6) (a) has explained the possible risks and benefits of medical use of marijuana to the patient and each of the patient's parents residing in Colorado; (c) The physicians referred to in paragraph (6) (b) has provided the patient with the written documentation, specified in subparagraph (3) (b) (1); (d) Each of the patient's parents residing in Colorado consent in writing to the state health agency to permit the patient to engage in the medical use of marijuana; (e) A parent residing in Colorado consents in writing to serve as a patient's primary care- giver; (f) A parent serving as a primary care -giver completes and submits an application for a registry identification card as provided in subparagraph (3) (b) of this section and the written consents referred to in paragraph (6) (d) to the state health agency; (g) The state health agency approves the patient's application and transmits the patient's registry identification card to the parent designated as a primary care- giver; (h) The patient and primary care -giver collectively possess amounts of marijuana no greater than those specified in subparagraph (4) (a) (1) and (II); and (1) The primary care -giver controls the acquisition of such marijuana and the dosage and frequency of its use by the patient. (7) Not later than March 1, 2001, the governor shall designate, by executive order, the state health agency as defined in paragraph (1) (g) of this section. (8) Not later than April 30, 2001, the General Assembly shall define such terms and enact such legislation as may be necessary for implementation of this section, as well as determine and enact criminal penalties for: (a) Fraudulent representation of a medical condition by a patient to a physician, state health agency, or state or local law enforcement official for the purpose of falsely obtaining a registry identification card or avoiding arrest and prosecution; (b) Fraudulent use or theft of any person's registry identification card to acquire, possess, produce, use, sell, distribute, or transport marijuana, including but not limited to cards that are required to be returned where patients are no longer diagnosed as having a debilitating medical condition; Page 4 of 5 http: / /www.cdphe. state. co. us /hs /medica lmarijuana/mjamendment.html 06/16/2009 Statute 0 -4 -287 (c) Fraudulent production or counterfeiting of, or tampering with, one or more registry identification cards; or (d) Breach of confidentiality of information provided to or by the state health agency. (9) Not later than June 1, 2001, the state health agency shall develop and make available to residents of Colorado an application form for persons seeking to be listed on the confidential registry of patients. By such date, the state health agency shall also enact rules of administration, including but not limited to rules governing the establishment and confidentiality of the registry, the verification of medical information, the issuance and form of registry identification cards, communications with law enforcement officials about registry identification cards that have been suspended where a patient is no longer diagnosed as having a debilitating medical condition, and the manner in which the agency may consider adding debilitating medical conditions to the list provided in this section. Beginning June 1, 2001, the state health agency shall accept physician or patient initiated petitions to add debilitating medical conditions to the list provided in this section and, after such hearing as the state health agency deems appropriate, shall approve or deny such petitions within one hundred eighty days of submission. The decision to approve or deny a petition shall be considered a final agency action. (10) (a) No governmental, private, or any other health insurance provider shall be required to be liable for any claim for reimbursement for the medical use of marijuana. (b) Nothing in this section shall require any employer to accommodate the medical use of marijuana in any work place. (11) Unless otherwise provided by this section, all provisions of this section shall become effective upon official declaration of the vote hereon by proclamation of the governor, pursuant to article V, section (1) (4), and shall apply to acts or offenses committed on or after that date. Enacted by the People November 7, 2000 -- Effective upon proclamation of the Governor. Page 5 of 5 http: / /www.cdphe. state. co. us/ hs/ medicalmarijuana/mjamendment.html 06/16/2009 Medical Marijuana in Colorado Colorado Welcome to... Colorado Department of Public Health and Environment Frequently asked questions about Medical Marijuana Page 1 of 1 Colorado cow Can you refer me to a doctor? No. It is the responsibility of the patient to work with a physician with whom he /she has a bona fide doctor - patient relationship. Where do I get the seeds or plants to start growing medical marijuana? Are there clubs or organizations that help patients to grow or acquire their medicine? The Medical Marijuana Registry is not affiliated with any privately operated club, organization or dispensary and is not authorized to provide information on acquisition of marijuana. Where can I legally use my medicine? No patient shall: Engage in the medical use of marijuana in a way that endangers the health or well -being of any person; or engage in the medical use of marijuana in plain view of, or in a place open to, the general public. Law enforcement has informed the Medical Marijuana Registry of the following: Any place outside of the patient's home is considered public. "In plain view" also includes the patient's yard or garage if that patient can be seen using their medicine by neighbors. Why can't I go to a pharmacy to fill a prescription for medical marijuana? Pharmacies can only dispense medications that are prescribed. Marijuana is currently classified by the federal government as a Schedule I drug, which means it cannot be prescribed by any health care professional. Amendment 20 allows doctors to recommend marijuana, and it allows patients to grow their own medical marijuana for their private use. How is my confidentiality protected? Your confidentiality is protected by law and by the procedures used by the registry. No lists of doctors, patients of caregivers are given out to anyone. Local law enforcement may only contact the registry to verify the information on a specific identification card. The registry database resides on a stand -alone computer and is password protected and encrypted. The office and all of its contents are locked at night when the registry administrator is out of the office. How does my card protect me? A patient may engage in the medical use of marijuana, with no more marijuana than is medically necessary to address a debilitating medical condition. A patient's medical use of marijuana, within the following limits, is lawful: No more than two ounces of a usable form of marijuana; and no more than six marijuana plants, with three or fewer being mature, Flowering plants that are producing a usable form of marijuana. I do not have the money for the fee. Is it a one -time payment? Can it be waived? Can I make installment payments? Will my insurance pay? Full payment must be made at the time of application. The fee must be paid with the renewal application each year. The fee cannot be waived, and the registry cannot accept installment payments. Insurance companies are not required to pay the fee. What if I move or my caregiver moves? What if I want to change my caregiver? When there has been a change in the name, address, physician, or primary caregiver of a patient who has qualified for a registry identification card, that patient must notify the registry of any such change within ten days. A patient who has not designated a primary caregiver at the time of application may do so in writing at any time during the effective period of the registry identification card, and the primary caregiver may act in this capacity after such designation. Can I use my Colorado Medical Marijuana Registry identification card in another state? At this time, there are no "reciprocity" agreements with other states to recognize the Colorado law except in Montana and Rhode Island. I am a registered patient in another state, do I have any legal right to use my medicine while visiting Colorado? No, Colorado's law does not recognize patients registered in other states. Does the Medical Marijuana Registry give free legal advice? No, patients are on their own to seek out legal advice or hire an attorney. http: / /www.edphe. state. co. us/ hs/ medicalmarijuana /marijuanafags.html 06/16/2009 Medical Marijuana in Colorado Colorado welcome t.... Colorado Department of public health and Environment Medical Marijuana Registry Program Update (as of April 30, 2009) Page 1 of 3 Colorado no In the November 2000 general election, Coloradoans passed Amendment 20, and the Colorado Department of Public Health and Environment (CDPHE) was tasked with implementing and administering the Medical Marijuana Registry program. In March of 2001, the State of Colorado Board of Health approved the Rules and Regulations pertaining to the administration of the program, and on June 1st, 2001, the Registry began accepting and processing applications for Registry Identification cards. Statistics of the registry include: • 8,315 new patient applications have been received to date since the registry began operating in June 2001. Thirty-two (32) applications have been denied, 18 cards have been revoked, 171 patients have died, and 1,390 cards have expired, bringing the total number of patients who currently possess valid Registry ID cards to 6,704. The renewal rate is 56 %. • Seventy -two percent of approved applicants are male. • The average age of all patients is 27. Currently 4 patients are minors (under the age of 18). • Sixty-three counties (98% of counties) in Colorado have registered applicants. Forty -nine percent of patients reside in the Denver -metro and Boulder area, with the remainder of patients found in counties throughout Colorado. • Patients on the Registry represent all the debilitating conditions covered under Amendment 20. Severe pain accounts for 88% of all reported conditions; muscle spasms account for the second -most reported condition at 24 %. • Forty-six percent of patients have designated a primary care -giver (someone who has significant responsibility for managing the patient's care). • Over 600 different physicians have signed for patients in Colorado. Please see the tables below for a complete listing of all statistical information. As of June 14, 2004 care- givers are no longer issued cards. As of January 25, 2008 only a portion of the patient's social security number appears on their registration card As of October 27, 2008 all applications, renewal and changes to the Registry must be submitted via mail and include a legible photo copy of the patient's Colorado Identification. Faxes and emails will no longer be accepted. As of December 1, 2008 all changes to the Registry must be signed by the patient making the change in blue ink. The Amendment requires that an application be approved or denied within 35 days of receipt by CDPHE. Currently, the Registry is issuing ID cards within three weeks of receipt of a complete application. In addition to administering the Registry, CDPHE has been charged with accepting and reviewing petitions to add conditions to the current list of debilitating medical conditions /symptoms. To date, four petitions have been received, one for Parkinson's disease, one for Asthma, one for Anxiety and another for BI-Polar Disorder. All petitions were subsequently denied due to lack of scientific evidence that treatment with marijuana might have a beneficial effect. There have been three marijuana - related convictions of patients on the Registry, and no physicians have experienced federal reprisals. However, reluctance to participate due to the inconsistencies between state and federal marijuana laws has been expressed by doctors and patients alike. Another barrier to participation on the Registry may be the cost. No general funds have been designated for this program, and the Amendment allows CDPHE to collect fees to cover the administrative costs of administering the program. Currently the fee is $90, and is evaluated annually by CDPHE. The fee was lowered from $110 on June 1, 2007. Numerous questions have arisen regarding interpretation of statutory language. The law does not clearly state where marijuana plants may be grown or if two or more patients and /or care- givers may share one growing space. Statutory language also places certain burdens upon local and state law enforcement officers, such as the requirement of keeping alive plants that are confiscated until a resolution is reached (i.e. a decision not to prosecute, the dismissal of charges, an acquittal, etc.). http: / /www.cdphe. state. co. us /hs/Medicalmarijuana /marijuanaupdate.html 06/16/2009 Medical Marijuana in Colorado Table]: County Information County Number of Patients Percent of Patients Adams 445 7% Alamosa 7 <1% Arapahoe 543 8% Archuleta 22 <1% Baca 6 <1% Bent 4 <1% Boulder 513 9% Broomfield 57 <1% Chaffee 33 <1% Cheyenne Clear Creek 18 <1% Conejos Costilla 3 <1% Crowley 7 <1% Custer 7 <1% Delta 57 1% Denver 865 13% Dolores 7 <1% Douglas 197 3% Eagle 56 <1% El Paso 755 11% Elbert 23 <t% Fremont 62 <1% Garfield 52 <1% Gilpin 37 <1% Grand 35 <t% Gunnison 38 <1% Hinsdale 4 <1% Huerfano 40 <1°/ Jackson 3 <1% Jefferson 770 11% Kiowa Kit Carson ' La Plata 108 2% Lake 27 0% Larimer 697 10% Las Animas 21 0% Lincoln Logan 11 <1% Mesa 166 2% Moffat 10 0% Montezuma 26 0% Montrose 66 1% Morgan 11 <1% Otero 30 <1% Ouray 11 <1% Park 62 1% Phillips 8 <1% Page 2 of 3 http: / /www.edphe. state. co. us/ hs/ Medicalmarijuana /marijuanaupdate.htrnl 06/16/2009 Medical Marijuana in Colorado Pitkin 16 <1% Prowers 3 <1% Pueblo 140 2% Rio Blanco 6 <1% Rio Grande 7 <t% Routt 22 <1% Saguache 16 <1% San Juan 5,917 88% San Miguel 16 <t% Sedgwick Summit 82 1% Teller 86 1% Washington ' Weld 274 4% Yuma 4 <1% ' Indicates fewer than three patients in each category Table II: Conditions Reported Condition Number of Patients Reporting Condition Percent of Patients Reporting Condition" Cachexia 149 2% Cancer 233 4% Glaucoma 95 1% HIV /AIDS 109 2% Muscle Spasms 1,586 24% Seizures 247 4% Severe Pain 5,917 88% Severe Nausea 1,522 23% "Does not add to 100% as some patients report using medical marijuana for more than one debilitating medical condition. Table III: User Characteristics Sex Percent on Registry Average Age" Male 72% 27 Female 28% 29 " The overall average age of all patients is 27 years old. Page 3 of 3 http: / /www.cdphe. state. co. us/ hs/ Medica lmarijuana/marijuanaupdate.html 06/16/2009