HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/07/2021 - ITEMS RELATED TO LOCAL MARIJUANA CODES Agenda Item 8
Item # 8 Page 1
AGENDA ITEM SUMMARY September 7, 2021
City Council
STAFF
Ginny Sawyer, Policy and Project Manager
Honore Depew, Interim Policy and Project Manager
Jim Lenderts, Special Operations Officer
Adam Stephens, Legal
SUBJECT
Items Related to Local Marijuana Codes.
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 104, 2021, Amending Chapter 15, Article XVI of the Code of the City of
Fort Collins Regulating Medical Marijuana Businesses to Update, Clarify and Align City Code with State
Law.
B. First Reading of Ordinance No. 105, 2021, Amending Chapter 15, Article XVII of the Code of the City of
Fort Collins Regulating Retail Marijuana Businesses to Update, Clarify and Align City Code with State Law.
The purpose of these items is to update and align two City marijuana Code provisions with state law at the
request of the industry. Since the adoption of local marijuana regulations in 2010 and 2012 , many City
requirements are now covered in state law. There are also minor differences tha t if aligned will be more easily
communicated for public awareness and licensing enforcement. Further, staff recommends two other changes
to City Code to address additional local control and social equity concerns regarding access to the legal
marijuana industry.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinances on First Reading.
BACKGROUND / DISCUSSION
The City has regulated and licensed medical and retail marijuana businesses since 2010 and 2012
respectively. Changes to marijuana law continue to emerge at the state level on a regular basis.
These Ordinances align the two articles of the City Code related to marijuana businesses to certain changes in
state regulations for both medical and retail licenses and address additional local con trol and social equity
concerns regarding access to the legal marijuana industry.
Proposed amendments include the following:
Chapter 15:
• Persons Prohibited as Licensees: Amend Sections 15-474 (Medical Code) and 15-614 (Retail Code),
changing the restriction on who may be issued a license from having a felony within the last 10 years to
within the last 3 years. The proposed changes will align with state law and replicate the state criminal
background check requirements. This change also addresses social equity concerns in marijuana
Agenda Item 8
Item # 8 Page 2
legalization.
• Prohibited Acts: Amend Section 15-482 (b)(2) (Medical Code). Changes the allowable sale amount of
medical marijuana from 2 ounces within a 7-day period to mirror state law by removing the 7-day period
between sales of medical marijuana to patients and instead align ing City Code with 2020 C.R.S. § 44-10-
501(10)(a), to permit the purchase of not more than two ounces of medical marijuana flower, forty grams of
medical marijuana concentrate, or medical marijuana products containing a combined total of twenty
thousand milligrams per patient in a single business day.
• Local Licensing Authority: Amend Sections 15-462 (Medical Code) and Sec 15-605 (Retail Code) to
allow the Chief Municipal Judge or their designee to act as the Licensing Authority effective January 1,
2022. The proposed change will allow for additional local control and potential cost savings. To date, the
City has been contracting out for this service. The current hearing officer’s contract will expire on
December 31, 2021.
• Operating Hours of Regulated Marijuana Businesses: Amend Section 15-620 (f and g) (Retail Code).
Changes the current operating hours of retail marijuana stores from 8:00 am to 8:00 pm to 8:00 am to
12:00 am, which is consistent with state law, and eliminate a duplicate subparagraph.
• Regulate Odor from All Retail Marijuana Businesses: Amend Section 15-621(c) (Retail Code). Prohibits
the emission of any gas, vapors, odors, smoke, dust, heat or glare that is noticeable at or beyond t he
property line of all retail marijuana businesses rather than just at cultivation facilities. Staff makes this
recommendation to this local regulation due to lawful industry practice of preparing smoking products for
individual sale.
Having both licensed and enforced marijuana regulations for the last 10-years, staff supports these changes
and does not anticipate any negative unintended consequences.
In November 2017, voters approved an amendment to the voter-approved provisions of the City Code that
allows Council to adopt amendments to or add provisions to Chapter 15 pertaining to medical marijuana
licensing to stay current with applicable state laws, rules and regulations, so long as such amendments or
additions are not contrary to and do not eliminate any of the 2012 voter-approved provisions. The City sought
the 2017 amendment in anticipation of the need for changes due to evolution of state law.
PUBLIC OUTREACH
Staff meets quarterly with marijuana business owners to communicate any potential legal changes as well as
relay new regulations at both the state and local levels. Staff discussed these proposed changes with local
marijuana business owners in Quarter 2 of 2021. In addition, owners were informally surveyed about the
possibility of further changes in 2021 addressing State law (new license types, such as social equity and
accelerator). Staff will continue to engage the marijuana industry as additional Code changes are evaluated.
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ORDINANCE NO. 104, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 15, ARTICLE XVI OF THE CODE OF THE CITY OF FORT
COLLINS REGULATING MEDICAL MARIJUANA BUSINESSES TO UPDATE, CLARIFY
AND ALIGN CITY CODE WITH STATE LAW
WHEREAS, the City has regulated and licensed medical marijuana businesses since 2010
and changes to marijuana industry practice, administrative regulations and state law continue to
emerge on a regular basis; and
WHEREAS, in November 2017, voters approved an amendment to the City Code that
allows the City Council to adopt amendments to or add provisions to Chapter 15 pertaining to
medical marijuana licensing to stay current with applicable state laws, rules and regulations, so
long as such amendments or additions are not contrary to and do not eliminate any of the 2012
voter-approved provisions; and
WHEREAS, City staff conducts regular quarterly meetings with City marijuana business
licensees and at the last meeting of Quarter 2, 2021, the marijuana business licensees requested
the City to consider removing the seven day waiting period between the sale of medical
marijuana to patients and instead align the City Code with 2020 Colorado Revised Statutes
Section 44-10-501(10)(a), which currently permits the daily purchase of not more than two
ounces of medical marijuana flower, forty grams of medical marijuana concentrate, or medical
marijuana products containing a combined total of twenty thousand milligrams to a patient in a
single business day; and
WHEREAS, staff is also recommending changes to the City Code regarding medical
Marijuana businesses to do the following:
• Amend Section 15-462 of the City Code to allow the Chief Municipal Judge or their
designee to act as the Licensing Authority, which would align with current practi ce for
the Liquor Authority and provide additional local control and potential cost savings since,
to date, the City has been contracting out for this service;
• Amend Section 15-474 of the City Code to change the restriction on criminal
backgrounds of licensees to align with current state criminal background check
requirements and address social equity concerns to access into lawful marijuana
licensure; and
• Amend Section 15-482 of the City Code to mirror state law by changing the allowable
sale amount of medical marijuana from two ounces within a seven-day period to daily
limits to align with current industry sales records practice and state regulations and
provide consistency in public expectation and licensing enforcement; and
WHEREAS, Council has determined that the proposed amendments will be beneficial
and will advance the interests of the Fort Collins community by updating local provisions to
conform to state law and in general.
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NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That Section 15-462 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 15-462. Composition.
The Authority shall be a person appointed by the City Manager the Chief Municipal Judge or
their designee.
Section 3. That Section 15-474(1) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 15-474. Persons prohibited as licensees.
No license shall be issued to, held by or renewed by any of the following:
(1) any natural person who has been released within the ten (10) three (3) years
immediately preceding the application from any form of incarceration or court-ordered
supervision, including a deferred sentence, resulting from a conviction of any felony or
any crime which under the laws of the State would be a felony; or any crime of which
fraud or intent to defraud was an element, whether in the State or elsewhere; or any
felonious crime of violence, whether in the State or elsewhere;
. . .
Section 4. That Section 15-482(b)(2) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 15-482. Prohibited acts.
. . .
(b) It shall be unlawful for any licensee holding a medical marijuana centerstore license, or
for any agent, manager or employee thereof, to:
. . .
(2) sell, give, dispense or otherwise distribute to any patient or primary caregiver who
is not a licensee more than two (2) ounces of any usable form of medical marijuana
(excluding medical marijuana-infused products) within any seven-day period of time any
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amount of marijuana flower, marijuana concentrate or marijuana product in excess of the
daily limits prescribed in Section 44-10-501(10)(a), C.R.S. or any state administrative
rule governing the same.
. . .
Section 5. That Section 2 of this Ordinance is not effective until January 1, 2022.
Introduced, considered favorably on first reading, and ordered published this 7th day of
September, A.D. 2021, and to be presented for final passage on the 21st day of September, A.D.
2021.
____________________________________
Mayor
ATTEST:
_____________________________
Interim City Clerk
Passed and adopted on final reading on this 21st day of September, A.D. 2021.
____________________________________
Mayor
ATTEST:
_____________________________
Interim City Clerk
-1-
ORDINANCE NO. 105, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 15, ARTICLE XVII OF THE CODE OF THE CITY OF FORT
COLLINS REGULATING RETAIL MARIJUANA BUSINESSES TO UPDATE, CLARIFY
AND ALIGN CITY CODE WITH STATE LAW
WHEREAS, the City has regulated and licensed retail marijuana businesses since 2012
and changes to marijuana law continue to emerge at the state level on a regular basis; and
WHEREAS, City staff conducts regular quarterly meetings with City marijuana business
licensees and at the last meeting of Quarter 2, 2021, the marijuana business licensees requested
the City to consider amending the City Code to extend daily business hours past 8 p.m.,
consistent with state law, and
WHEREAS, staff is also recommending changes to the City Code regarding retail
Marijuana businesses to do the following:
• Amend Section 15-605 of the City Code to allow the Chief Municipal Judge or their
designee to act as the Licensing Authority, which would align with current practice for
the Liquor Authority and provide additional local control and potential cost savings,
since, to date, the City has been contracting out for this service;
• Amend Section 15-614 of the City Code to change the restriction on criminal
backgrounds of licensees to align with state criminal background check requirements and
address social equity concerns to access into lawful marijuana licensure;
• Amend Section 15-620 of the City Code to change the current operating hours of retail
marijuana stores from 8:00 am to 8:00 pm to 8:00 am to 12:00 am in alignment with
current state law, and to eliminate a duplicate subparagraph; and
• Amend Section 15-621 of the City Code to regulate odor from all retail marijuana
businesses, rather than just cultivation facilities, to close a loophole and address
neighborhood concerns regarding the smell of marijuana at any licensed marijuana
facility; and
WHEREAS, Council has determined that the proposed amendments will be beneficial
and will advance the interests of the Fort Collins community by updating local provisions to
conform to state law and in general.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
-2-
Section 2. That Section 15-605 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 15-605. Composition.
The Authority shall be a person appointed by the City Manager the Chief Municipal Judge or
their designee.
Section 3. That Section 15-614(3) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 15-614. Persons prohibited as licensees.
No license shall be issued to, held by or renewed by any of the following:
. . .
(3) Any natural person who has been released within the ten (10) three (3) years
immediately preceding the application from any form of incarceration or court-ordered
supervision, including a deferred sentence resulting from a conviction of any felony or
any crime which under the laws of the State would be a felony; or any crime of which
fraud or intent to defraud was an element, whether in the State or elsewhere;
. . .
Section 4. That Section 15-620 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 15-620. Prohibited acts.
. . .
(f) It shall be unlawful for any licensee to sell marijuana or marijuana products at a licensed
retail marijuana store at any time other than between the hours of 8:00 a.m. and 8:00 p.m. 12
a.m. daily.
(g) It shall be unlawful for any licensee to sell marijuana or marijuana products at a licensed
retail marijuana store at any time other than between the hours of 8:00 a.m. and 8:00 p.m. daily.
Section 5. That Section 15-621(c) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 15-621. Visibility of activities; control of emissions.
. . .
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(c) No retail marijuana business cultivation activity shall result in the emission of any gas,
vapors, odors, smoke, dust, heat or glare that is noticeable at or beyond the property line of the
establishment at which the retail marijuana business cultivation occurs. Sufficient measures and
means of preventing the escape of such substances from a retail marijuan a business must be
provided at all times. In the event that any gas, vapors, odors, smoke, dust, heat or glare or other
substances exit a retail marijuana business, the owner of the subject premises and the licensee
shall be jointly and severally liable for such conditions and shall be responsible for immediate,
full clean-up and correction of such condition. The licensee shall properly dispose of all such
materials, items and other substances in a safe, sanitary and secure manner and in accordance
with all applicable federal, state and local laws and regulations.
Section 6. That Section 2 of this Ordinance is not effective until January 1, 2022.
Introduced, considered favorably on first reading, and ordered published this 7th day of
September, A.D. 2021, and to be presented for final passage on the 21st day of September, A.D.
2021.
____________________________________
Mayor
ATTEST:
_____________________________
Interim City Clerk
Passed and adopted on final reading on this 21st day of September, A.D. 2021.
____________________________________
Mayor
ATTEST:
_____________________________
Interim City Clerk