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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/21/2021 - ITEMS RELATED TO LOCAL MARIJUANA CODES Agenda Item 5 Item # 5 Page 1 AGENDA ITEM SUMMARY September 21, 2021 City Council STAFF Ginny Sawyer, Policy and Project Manager Honore Depew, Interim Policy and Project Manager Jim Lenderts, Marijuana Enforcement Officer Adam Stephens, Legal SUBJECT Items Related to Local Marijuana Codes. EXECUTIVE SUMMARY A. Second 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 S tate Law. B. Second 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. These Ordinances, unanimously adopted on First Reading on September 7, 2021, 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 that 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 Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary (w/o attachments) (PDF) 2. Ordinance No. 104, 2021 (PDF) 3. Ordinance No. 105, 2021 (PDF) 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 that 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 t he 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 control 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 legalization. ATTACHMENT 1 Agenda Item 8 Item # 8 Page 2 • 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 aligning 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 the 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 regu lations 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. 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 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 15-474 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. 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 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 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 store 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 any 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 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 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 12 a.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. . . . (c) No retail marijuana business 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 occurs. Sufficient measures and means of preventing the escape of such substances from a retail marijuana business must be provided at all times. In the -3- 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