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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/09/2010 - PROPOSED REGULATIONS FOR MEDICAL MARIJUANA DISPENS DATE: February 9, 2010 STAFF: Jerry Schiager, Steve WORK SESSION ITEM Dush, Peter Barnes, Ginny Sawyer, FORT COLLINS CITY COUNCIL Linda Samuelson, and Teresa Ablao SUBJECT FOR DISCUSSION Proposed Regulations for Medical Marijuana Dispensaries (MMDs). EXECUTIVE SUMMARY City staff has prepared proposed regulations for medical marijuana dispensaries (MMDs) for Council's consideration. These regulations are scheduled to be presented for formal consideration by the Council on First Reading on March 2, 2010. The proposed regulations for MMDs include a licensing process, zoning and other location requirements for retail MMD operations and their cultivation sites,and requirements governing the operation of both kinds of facilities. The regulations would also address the cultivation of marijuana by patients and primary caregivers serving a single patient that do not constitute an MMD. The overall purpose of the regulations is to protect the public health, safety and welfare, as well as the rights of patients and their primary caregivers,while discouraging the potential abuse of those rights by those seeking to circumvent the prohibition against the use of marijuana for purposes other than medical treatment. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED Staff is requesting Council feedback regarding the reasonableness of the proposed regulations and whether they strike an appropriate balance between accommodating the lawful use of marijuana for medical purposes while,at the same time,prohibiting abuses and protecting the community from the secondary effects that may accompany the establishment of MMDs. Staff is also interested in knowing whether any of the following seem too restrictive, too lenient, unnecessary or impractical: • licensing requirements; • zoning regulations; • separation requirements; • grandfathering options; • operating requirements for retail establishments; and • limitations on cultivation sites of the MMDs. February 9, 2010 Page 2 BACKGROUND On November 17, 2009, the City Council adopted Ordinance No. 128, 2009 (the "Moratorium Ordinance"),which established a moratorium on the acceptance and processing of any applications to the City for the approval of licenses, permits, or development proposals related to the establishment or operation of MMDs and on the processing of any pending applications for such licenses or permits. During the moratorium, no MMDs have been allowed to establish their businesses or continue to operate except those that had been issued a sales tax license (if required by the City Code)prior to November 17,2009,and that were in zone districts that currently permit such businesses, that is, those that allow retail sales. The Moratorium Ordinance also directed the City Manager to analyze the following issues and develop for Council consideration such regulations as he deems necessary and appropriate to address those issues: • the extent to which MMDs are legally protected under the Amendment; • the impact of MMDs on the character of residential neighborhoods and commercial areas where they may be located; and • any increase that will likely occur in vehicular traffic or in nuisance or criminal activities in areas where MMDs are located. Prior to the effective date of the Moratorium Ordinance, 108 businesses falling within the category of an MMD had obtained sales tax licenses from the City. These are in addition to any sales tax licenses held by pre-existing businesses that have expanded their operations to include the sale of medical marijuana. Of those 108, eleven have closed out their licenses, leaving a total of 97. The locations of those holding sales tax licenses for MMDs are shown on Attachment 2. City staff has met on several occasions over the last three months to develop the proposed regulations and has reviewed various models from other jurisdictions. Staff has also engaged the public through numerous outreach efforts. Policy decisions for Council include the MMD licensing components,zoning and other location regulations,grandfathering existing MMDs,retail operation requirements, and cultivation limitations. Amendment 20 The legal framework for consideration of the proposed regulations is Amendment 20 to the Colorado Constitution (Attachment 4), which was approved by Colorado voters in November, 2000. Essentially,Amendment 20 creates an exception and an affirmative defense to the state's criminal laws so that patients and their"primary caregivers"who are in lawful possession of a card issued by the Colorado Department of Public Health and Environment(the"Health Department")may possess and use a certain amount of marijuana for medical purposes. The presumptive amount that is, by definition,"lawful"under Amendment 20 is two ounces or six plants per patient. However,a person charged under state law may assert and prove that greater amounts were medically necessary. February 9, 2010 Page 3 The Amendment states that no person shall be entitled to the protection of Amendment 20 for acquisition,possession,manufacture,production,use,sale,distribution,dispensing or transportation of marijuana for any use other than medical. The use or distribution of marijuana is prohibited by federal law;however,federal law enforcement officials have indicated that federal resources should not be used to prosecute people who are in compliance with state medical marijuana laws. State criminal laws also prohibit the production,use or distribution of marijuana,except to the extent that such use is allowed by Amendment 20. There is considerable debate among state and local legislators and law enforcement officials about the scope of Amendment 20,and attempts to clarify its application to MMDs are ongoing. Pending clarification at the state level, many municipalities have enacted local ordinances on the subject, ranging from total bans (one of which is currently the subject of a court challenge) to very limited regulation. As noted above,the direction of the City Council was to use the moratorium period to develop local regulations and present those to the Council with the understanding that the regulations may need to be revisited if the state legislature enacts new laws on the subject. Definition of MMDs The proposed ordinance contains the following definition of"medial marijuana dispensary." Medical marijuana dispensary or dispensary shall mean the use of any property, structure, unit, facility or location where one or more primary care givers distributes delivers, transmits, gives, dispenses or otherwise provides medical marijuana in any manner to patients in accordance with the constitution and other laws and regulations of the State of Colorado. A medical marijuana dispensary does not include a patient or primary caregiver that provides medical marijuana to only one patient. Licensing requirements The proposed licensing requirements would require payment of an application fee and an annual renewal fee. The fees would cover costs associated with the zoning review, mapping required to determine if separations are met, application coordination, routing to other departments, issuance of license,background checks,police inspections and compliance checks.The initial application fee is estimated to be approximately$1,500. The first step in the licensing process would be to conduct a background check on the applicant and all of the financial interest holders in the proposed MMD as well as all of the primary caregivers and other employees. Applicants would have to be at least 21 years of age. No license would be issued to persons who,within the last ten years,have been released from any form of court supervision for a felony criminal conviction or any crime involving fraud,embezzlement,larceny or distribution of a controlled substance; or to a person who has had an MMD license revoked or who has submitted any fraudulent information in connection with the application. Prior to issuance of the license, the proposed premises would be inspected for compliance with all building and fire codes. No person or entity would be licensed to operate more than three local February 9, 2010 Page 4 MMDs. The purpose of this limitation is to recognize that a single person or entity may wish to have multiple locations for the convenience of patients, and to also ensure that the licensee is able to effectively supervise each establishment's compliance with all applicable regulations. All MMDs doing business in the City would have to be licensed, even if they are just delivering to patients in the City from an out-of-town business establishment. City sales tax would be collected on all such transactions. Location Requirements 1. LUC Zone districts. The City's Land Use Code will be amended to specifically identify MMDs as a permitted use in those zone districts where MMDs are considered to be compatible with neighboring uses. MMD retail establishments will likely be located in those districts that permit other commercial operations, and the cultivation sites for MMDs will be located elsewhere—most probably in the I-Industrial zone and other, similar areas of the City. 2. Seuaration requirements. In addition to the zoning designations,staff is recommending separation requirements. The purpose of these is twofold. First, the 1,000-foot separation requirement from other MMDs is intended to avoid"clusters"of MMDs so as to minimize their cumulative impact on any particular area of the community. Second,community feedback and model ordinances from other communities suggest that separation requirements from schools, places of worship, parks and recreation areas are advisable because of the concern that exposure of youth to MMDs could decrease their perception of harm related to the'use of marijuana or other drugs. 3. Home occupation licenses. The third component of the location requirements deals with the issuance of home occupation licenses for MMDs in residential neighborhoods. Experience has shown that MMDs are very susceptible to burglaries,robberies and other crimes against persons and property,primarily because of the nature of their inventory, the amount of cash involved in the transactions that occur on site, and the fact that marijuana is still an illegal substance under federal and state law except when used for medical purposes. This reality has prompted widespread concern among residents of the City. Accordingly, the proposed regulations would ban MMDs as a home occupation. MMDs that currently have home occupation licenses would be limited to maintaining just an office at the licensed residential premise, with no on-site sales, no indoor or outdoor cultivation and no inventory. Once the existing home occupation licenses expire,no new home occupation licenses for MMDs would be issued. Existing licenses have a two-year term from the date of issuance. February 9, 2010 Page 5 Grandfathering of existing locations Staff is presenting two options for Council's consideration with regard to whether the new location requirements would apply to existing locations. Under Option A,existing MMDs would be allowed to remain where they are as long as they have an actual, substantial use established at that location and they can comply with all other licensing and operational requirements. Under Option B, all MMDs in the City, including those that were established prior to the effective date of the Moratorium Ordinance, would have to meet all new requirements, including the new zoning and location requirements. An initial review of the current MMD locations indicates that a large percentage of the existing locations would not be in compliance with the 1,000 foot separation requirements. There may be several ways to alleviate some of those conflicts if Council chooses to impose the recommended location requirements on existing MMDs, such as reducing the distances from some or all of the protected facilities, institutions and businesses. Operating requirements for retail MMD establishments The following requirements would apply to the retail outlet of an MMD. • The retail establishment would,have to be operated by the licensee or.another primary caregiver employed by the licensee. • On-site sales would be allowed only to patients and primary caregivers that have a single patient. Sales could include marijuana, in any usable form, starter plants, seeds, paraphernalia, and other retail merchandise. No mature marijuana plants could be sold or maintained at the MMD. Quantities of marijuana would be limited to amounts permitted under Amendment 20 for personal medical use,with a presumptive limit of two ounces per customer per week. Larger amounts would be permissible if supported by a licensed physician's determination of medical necessity. • Only persons with state registry cards would be permitted to enter the premises. • Food products containing marijuana would have to contain warning labels explaining legal limitations on possession and use.If the food has not been inspected by state or county health officials, the label would have to so indicate. • No on-site consumption of marijuana would be permitted. • No on-site cultivation of marijuana plants would be permitted. • Security requirements would include safes and video cameras. • Hours of operation would be limited. • Detailed transaction records would be required, and books and records would be subject to inspection by the City to ensure compliance with applicable regulations. February 9, 2010 Page 6 • All normal Sign Code requirements would have to be met. In addition, if the term "marijuana"or an equivalent symbol(e.g.,marijuana leaf)was used on a sign,it would have to be preceded by the word "medical." • Advertising fliers could not contain any false or misleading information about the availability of medical marijuana or invite any illegal activity. Limitations on cultivation sites Because MMDs could sell only to patients and single-patient primary caregivers and because the quantities would be limited to amounts permitted for medical use by those individuals under Amendment 20,MMDs would not be able to obtain their inventory from other MMDs;instead,they would need to grow their own marijuana. They could do so at a cultivation site that was located either within or outside the City. If the site was located in the City, it would be subject to the zoning requirements mentioned above and to the following additional regulations: • To the extent permitted under the Colorado Open Records Act,the location of the site would not be made available by the City for public inspection. • The cultivation site would have to be operated by the licensee or another primary caregiver employed by the licensee. • No signs indicating the nature of the operation would be permitted. • No outdoor cultivation would be allowed. • No on-site consumption or sales would be allowed. • Marijuana grown at the site could be distributed only through the retail outlet of the same MMD. Limitations on cultivation by individual patients and single-patient primary caregivers Staff is also proposing that individual patients and primary caregivers having only one patient be allowed to cultivate marijuana at their residences,but only indoors. Quantities would be limited to no more than twelve plants, including six that are mature. This limitation is consistent with the presumptive level permitted under Amendment 20 for two persons. Public Outreach Public outreach regarding the purpose and content of the regulations has been broad and in-depth, especially considering the short time-frame. Staff conducted individual interviews with operators of both a retail MMD operation and a home delivery model MMD. Focus groups were conducted with patients, MMD operators, and with a group of interested citizens including business groups, property managers and school representatives. There was a communitywide open house, which approximately 100 people attended. Comments received were documented and made available for Council and public review. February 9, 2010 Page 7 Next steps First Reading of an ordinance adopting the proposed regulations is scheduled for March 2, 2010, with Second Reading on March 16. On February 18, the Planning and Zoning Board is scheduled to consider the proposed zoning changes since those would be contained in the Land Use Code. ATTACHMENTS 1. Power point presentation 2. Map of locations of existing MMDs. 3. Ordinance No. 128,2009 and Agenda Item Summaries(First Reading and Second Reading) 4. Amendment 20 to the Colorado Constitution ATTACHMENT 1 -PP J' � ty J� J �� f� � • r � �y CO Staff is seeking direction from Council on 11 proposed regulations for medical marijuana dispensaries 1 Council Conside ' on Policy decisions include . MMD licensing components Zoning regulations Separation requirements Grandfathering options Retail operation requirements Cultivation limitations tolls 3 General Purpose Protect the public health , safety and welfare , as well as the rights o patients and their primary caregivers , while discouraging the potential abuse and distribution of marijuana for recreational use . 4 ��s De What is an MMD ? — An MMD is a primary caregiver or caregivers who provide medical marijuana for more than one patient . License required . — Individual patients or primary caregivers with only one patient are not MMDs . No license required . — Some MMDs have a storefront/retail operation . — Some MMDs have a home occupation license with a delivery service model . Ol t Proposed Licensing Components Application fee and annual renewal fee . — Fee would be set to cover staff costs including application processing , zoning review , building inspection , compliance checks , etc . F6?t Collins 6 ' censi Background check of applicant , all interest holders , primary caregivers an other employees . c or i-F�t�s 7 Proposed Licensing Components No license issued to anyone : - who has been convicted of a felony or any crime involving fraud , embezzlement , larceny , or distribution of a controlled substance within the last 10 years ; - who has had an MMD license revoked ; - or who has submitted fraudulent application information . F�r of cins s PronosP..�l�icensi Applicant must be 21 or over . No more than three licensed premises per person or entity . Inspection of proposed licensed premises fo compliance with Building and Fire Codes . ctY or 9 -F�t�S Propose ire is Establish new Land Use Code zoning requirements for MMDs that define appropriate zones and separation requirements . Limit current home occupation MMDs to offices only , with no on -site sales , no indoor or outdoor cultivation and no inventory . aty or Oft CO��If15 10 Proposed Location Requirements Require 1 , 000 foot separation between MMDs and schools , places of worship , day care centers , halfway houses , recreational facilities , parks , or other MMDs . ctY or 11 F�t� Pro osed Require Option A : Existing MMDs allowed in current locations if all other licensing requirements and regulations are met . Option B : Existing MMDs allowed as non -conforming uses under new zoning regulations but still subject to new separation requirements . Frc��s 12 Proposed Retail O Requirements Allow the on - site sale of marijuana , including starter plants and seeds , food paraphernalia and other products . Allow sales only to patients and primary-givers with one patient . Olt t `'=s 13 Proposed R ration Requ Only allow people with state registry cards to enter a dispensary . Food products containing marijuana must contain warning labels and , if not inspected by State or County Health Department , must also contain a statement to that effect . or Collins 14 Prop Op ui ents No on -site consumption of marijuana . No on -site cultivation of flowering marijuana plants . Impose security requirements such as safes and video cameras . 15 Pro ose ' IOper ri Limit hours of operation . Licensed premises including books and records would be subject to inspection by City officials to ensure compliance . �t Collins 16 Prop Op ui ents Enforce applicable sign code requirements and require use of the term " medical " if the word marijuana or equivalent symbols are used . Prohibit distribution of advertising fliers that contain false or misleading information or that invite illegal activity . 17 Pro ose RetailOper it Impose record keeping requirements to ensure that : — all sales are to patients or primary caregivers who care for only one patient . — sales do not exceed 2 ounces per patient per week unless a larger quantity is recommended by a physician . �t Collins 18 Proposed ' Local cultivation facilities must be located in zone districts designated by the City , such as Industrial zones . Marijuana grown within the City limits can only be distributed in the City through the licensed MMD of the primary care-giver who grows the marijuana . ctY or 19 osed Cultivation Lij J , o. jon No signs that indicate that medical marijuana is being grown at that location . Location not public record . No outdoor cultivation . No on -site consumption or sales . 10 F�rc��s Zo Propo rking Model Primary Caregiver Cultivation site must be Cultivator operated by a Primary Caregiver who distributes to Q Primary Caregiver his or her patients through a MMD licensed MMD , including home ► e delivery . oa ee a ee --�i Cultivation operation cannot ° sell to another MMD . -a Patient ,�t�l�s 1 ose Home Occupation MMDs are not allowed to grow marijuana or maintain inventory in residential areas . Individual patients and Primary Caregivers for only one person can grow no more than 12 marijuana plants with no more than 6 mature plants . All growing must be indoors . F8'r't Collins 22 Public Outreach Individual meetings Focus groups Community Open House Collected emails and comments Fot23 try" xt Steps Draft an ordinance based on Council direction Planning and Zoning Board - February 18 City Council regular meeting - March 2 City Council regular meeting - March 16 �F`otry Collins 24 � J r -r riJ j • 11JJrsItJJ1l �' 13 ATTACHMENT 2 Medical Marijuana Sales Tax Licenses and City Zoning Mountain=Vista= DJJ ry m 1 1, ly — ' Vine= Dr r I — — I I - -IL-JI .`. i O Mulberry_St 14 -- Prospect:Rd I I I - - Q > Qj O Q a�Drake- Rd �o E J O ~ �� Horsetooth- RId —_iI LJ L \ � Ir III �J Harmony I I J I 281 II `I _1 l 7f T TrilbY-Rd l , Ll ZONE , LICENSES SUMMARY TOTAL COMMERCIAL DISTRICT, 13 0 COMMUNITY COMMERCIAL - NORTH COLLEGE DISTRICT, 1 COMMERCIAL , 57 COMMUNITY COMMERCIAL - POUDRE RIVER DISTRICT, 1 COMMUNITY COMMERCIAL DISTRICT, 11 RESIDENTIAL, 40 DOWNTOWN DISTRICT, 16 INDUSTRIAL DISTRICT, 1 m LIMITED COMMERCIAL DISTRICT, 1 LOW DENSITY MIXED-USE NEIGHBORHOOD DISTRICT, 8 IN E LOW DENSITY RESIDENTIAL DISTRICT, 26 MEDIUM DENSITY MIXED-USE NEIGHBORHOOD DISTRICT, 4 IS NEIGHBORHOOD COMMERCIAL DISTRICT, 7 City Of NEIGHBORHOOD CONSERVATION - BUFFER DISTRICT, 1 F0 C0111n`S • NEIGHBORHOOD CONSERVATION - MEDIUM DENSITY DISTRICT, 1 GIS • RIVER DOWNTOWN REDEVELOPMENT DISTRICT, 1 • SERVICE COMMERCIAL DISTRICT, 5 Printed : February 04, 2010 These map products and all underlying data are developed for use by the City of Fort Collins for its internal purposes only, and were not designed or intended for general use by members of the public. The City makes no representation or warranty as to its accuracy, timeliness, or completeness, and in particular, its accuracy in labeling or displaying dimensions, contours, property boundaries, or placement of location of any map features thereon. THE CITY OF FORT COLLINS MAKES NO WARRANTY OF MERCHANTABILITY OR WARRANTY FOR FITNESS OF USE FOR PARTICULAR PURPOSE, EXPRESSED OR IMPLIED, WITH RESPECT TO THESE MAP PRODUCTS OR THE UNDERLYING DATA. Any users of these map products, map applications, or data, accepts same AS IS, WITH ALL FAULTS, and assumes all responsibility of the use thereof, and further covenants and agrees to hold the City harmless from and against all damage, loss, or liability arising from any use of this map product, in consideration of the City's having made this information available. Independent verification of all data contained herein should be obtained by any users of these products, or underlying data. The City disclaims, and shall not be held liable for any and all damage, loss, or liability, whether direct, indirect, or consequential, which arises or may arise from these map products or the use thereof by any person or entity. ATTACHMENT 3 ORDINANCE NO. 128, 2009 ,. OF THE COUNCIL OF THE CITY OF FORT COLLINS IMPOSING A MORATORIUM ON THE ACCEPTANCE AND PROCESSING OF APPLICATIONS FOR THE ISSUANCE OF LICENSES OR PERMITS RELATED TO BUSINESSES THAT SEEK TO DISPENSE MEDICAL MARIJUANA AND ON THE ESTABLISHMENT OR OPERATION OF ANY SUCH NEW BUSINESSES IN THE CITY WHEREAS, at the general election held in November, 2000, the voters of the State of Colorado adopted Amendment 20 to the Colorado Constitution(the"Amendment")adding Article XVIII to the Constitution; and WHEREAS, the Amendment creates an affirmative defense to, and exception from, state criminal laws pertaining to the possession and use of marijuana when such possession or use is for the treatment of debilitating medical conditions and when certain conditions specified in the Amendment are met; and WHEREAS,over recent months,55 businesses offering medical marijuana for sale or other distribution have obtained or applied for sales tax licenses in the City, and the City is receiving inquiries on a daily basis from persons interested in establishing additional such businesses in the City; and WHEREAS,under the general zoning laws of the City,these businesses, referred to herein as medical marijuana dispensaries or"MMDs,"likely constitute retail sales operations or clinics that are permitted uses in a wide variety of zone districts, including those that are primarily intended for residential use; and WHEREAS, the City currently has no land use or business regulation concerning the operation of MMDs; and WHEREAS, the unregulated operation of MMDs in the City presents serious health and safety concerns to the citizens of Fort Collins; and WHEREAS, ambiguities in the wording of the Amendment have created uncertainty as to which MMDs may properly be considered "primary care-givers" under the Amendment for the purpose of providing medical marijuana to patients suffering debilitating medical conditions; and WHEREAS, the Colorado Department of Public Health and Environment (the "Department"), which is responsible for the administration of the medical marijuana program established by the Amendment, is continuing to consider changes in its administrative regulations that govern MMDs as primary care-givers; and WHEREAS,the same question about MMDs as primary care-givers is currently under review by the Colorado appellate courts and may also be the subject of proposed legislation in the upcoming session of the state legislature; and WHEREAS, municipalities throughout Colorado are struggling to gain control over the recent proliferation of MMDs and have enacted various kinds of local regulations in an attempt to curtail abuses of the medical marijuana exception created by the Amendment; and WHEREAS,a significant period of time will be required in order for the City Manager and City Attorney and their respective staffs to clarify the evolving state of the law with regard to MMDs,and to formulate recommended amendments to the City Code to deal with the subject;and WHEREAS, with the influx of MMDs, the City Council is concerned about its ability to protect the public welfare and preserve the character of the City's neighborhoods and commercial areas where MMDs might be located; and WHEREAS, the imposition of a moratorium for a reasonable period of time on the,. acceptance, consideration, and approval of all applications for City licenses, permits, and development proposals related to the operation of MMDs,and on the establishment of MMDs in the City, will allow City staff and the City Council to investigate the City's ability to regulate such businesses and develop and implement appropriate regulations; and WHEREAS,three to four months is a reasonable period of time and no longer than necessary for the City to determine the extent to which MMDs will be regulated on a statewide basis and to properly investigate,develop,and, if appropriate,adopt and implement any local regulations related to MMDs; and WHEREAS, neither the proprietors of existing and proposed MMDs nor the patients they serve or intend to serve will be unduly prejudiced by the imposition of such a moratorium,since the number of existing MMDs in the City should be adequate to meet the medical marijuana needs of such patients for said period of time. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLfNS as follows: Section 1. That the recitals contained in this Ordinance are hereby adopted and incorporated as findings of fact of the City Council. Section 2. That the proliferation of unregulated MMDs in the City warrants the imposition of a moratorium because of the serious health and safety concerns presented by such unregulated MMDs, including the following: (a) operators of MMDs are subject to a greater risk of violent burglaries and robberies than the operators of most other businesses because of the presence of marijuana and substantial amounts of cash on the premises; -2- (b) it is very hard to determine which MMDs are lawful and which are not since there are no licensing or permit requirements for such businesses, no requirement that records be kept of the number of patients served, no limitations on quantities or on-site consumption,and no other regulations that could help investigating officers make such determination; (c) the on-site production of marijuana can create unsafe conditions on the business premises such as excessive electrical connections that create fire hazards and mold and fungus in the areas used to grow the marijuana; and (d) in the absence of licensing requirements such as those associated with liquor establishments, there is no way to limit the ownership and operation of MMDs to persons of good moral character, so as to minimize the illegal activity that can be associated with such businesses. Section 3. That, for the purposes of this Ordinance,the following definitions shall apply: a. Medical mariyuana dispensary or MMD shall mean a property or structure used to sell, distribute, transmit, give, dispense or otherwise provide marijuana in any manner to patients or primary care-givers pursuant to the authority contained in Amendment 20 to the Colorado Constitution and the implementing state statutes and administrative regulations, except those properties or structures that are used by an individual primary care-giver to provide marijuana to a single patient. b. Patient shall mean a person who has a debilitating medical condition. Section 4. That it is necessary for thepreservation of the public safety,health,and welfare to delay the acceptance and processing of applications for City licenses,permits, and development proposals related to the establishment and operation of medical marijuana dispensaries in the City until the City has had a reasonable opportunity to determine the extent of the City's regulatory authority over such businesses and to further determine what regulations,if any,should be imposed by the City upon these businesses. Section 5. a. That a moratorium is hereby imposed, as of the effective date of this Ordinance (the "Effective Date"), on the acceptance and processing of any applications to the City for the approval of licenses,permits,or development proposals related to the establishment or operation of medical marijuana dispensaries, and on the processing of any pending.applications for such licenses or permits. -3- b. That this moratorium shall continue in effect until the 31st day of March, 2010,or such earlier date as maybe determined by the City Council by ordinance. C. That no medical marijuana dispensaries shall be established or shall operate within the City after the Effective Date and until the expiration of this moratorium, except those medical marijuana dispensaries that: (i) to the extent required under Sections 25-73 or 25-74 of the City Code, have been issued a sales tax license pursuant to an application filed with the City prior to the Effective Date,and(ii)are in compliance with all zoning requirements for the property on which they are located. Section 6. That no license,permit,or development proposal related to the establishment or operation of a medical marijuana dispensary that was approved by the City prior to the Effective Date of this ordinance may be amended during the term of this moratorium. Section 7. That all persons applying to the City for the issuance or amendment of a sales and use tax license during the term of this moratorium shall indicate, on a form approved by the City, whether any part of the business that is the subject of the application involves the provision of medical marijuana to patients with debilitating medical conditions or their primary care-givers. Section 8. That the failure of any person to provide the information required under Section 7 of this ordinance, or the provision of any false information to the City related to a sales tax application,or the establishment or operation of a medical marijuana dispensary contrary to the provisions of Section 5of this Ordinance during the term of this moratorium shall constitute a misdemeanor criminal offense punishable as provided in Section 1-15 of the Code of the City of Fort Collins. Section 9. That,during the term of this moratorium,the City Manager and City Attorney are hereby directed to analyze the following issues and develop for City Council consideration regulations as they may deem necessary and appropriate to address said issues: a. the extent to which MMDs are legally protected under the Amendment; b. the impact of MMDs on the character of residential neighborhoods and commercial areas where they may be located; and C. any increase that will likely occur in vehicular traffic or in nuisance or criminal activities in areas where MMDs are located. Section 10. That on or.before March 2, 2010, the City Manager and City Attorney are further hereby directed to present for the City Council's formal consideration such laws and regulations relating to medical marijuana dispensaries in the City as the City Manager considers -4- necessary and appropriate for the preservation of the health, safety and welfare of the residents of the City. Section 11. That nothing herein shall be construed as decriminalizing or making lawful in the City any MMD or other business involved in the acquisition, possession; manufacture, production,use,sale,distribution,dispensing,or transportation of marijuana or related paraphernalia that is not lawful under state criminal laws. Introduced, considered favorably on first reading, and ordered published this 17th day of November,A.D.2009,and to be presented for final passage on 1 s day of December,A.D.2009. Mayo ATTEST: •• )., V City Clerk Passed and adopted on final reading on the 1 st4oece, ber,A.D. 2009. Mayor ATTEST: City Clerk -5- DATE: November 17, 2009 AGENDA ITEM SUMMARY STAFF: Darin Atteberry _ T COLLINS CITY COUNCIL Steve Roy � .� Emergency Ordinance No. 128, 20091 Imposing a Moratonumr on Acceptance of Applications for the Issuance of Licenses or Permits Related to Businesses That``Seek t'o/Dispense Medical Marijuana and on the Establishment of Such Businesses in the City. \1\il � JLL EXECUTIVE SUMMARY The City has recently seen a proliferation of medical marijuana dispensaries ("MMDs") within its boundaries, some of which are operated as "home occupations" in zone districts that are primarily residential in character. As of November 9, 2009, twenty-six such businesses had been issued sales tax licenses by the City, twelve of which have been issued in the last month, and City staff continues to receive inquiries from persons interested in establishing additional such businesses at the rate of approximately ten per week. Fort Collins Police Services has serious concerns about the secondary effects of MMDs. Staff has held a number of meetings to discuss this issue and, on November 5, 2009, the City Manager, City Attorney, Chief of Police, Planning Director and members of their respective staffs met with their counterparts from Larimer County and the City of Loveland to discuss a coordinated approach to dealing with MMDs. Because court rulings and regulations at the state level are rapidly changing with regard to MMDs and because there is a strong possibility that the state legislature will address this subject during its upcoming.legislative.sess\o^n,City:staff-recommends that the City Council impose a ten- month moratorium on MMDs,by meansiofthis emergency ordinance,until ftie laws and regulations that govern MMDs are clarified and until the City has had(an opportu pity to determine how best to deal with them at the local level in the event that statewide regulations proveNto be iinadegquat/ This moratorium would maintain the status quo in that those MMDs that have been established would be allowed to continue to operate unless, under current law, they are illegal. BACKGROUND / DISCUSSION The origin of MMDs in Colorado. The reason that MMDs have come into existence is that, in November of 2000, the voters of the state of Colorado approved a constitutional amendment(the Amendment)that created an exception and an affirmative defense to the state's criminal laws so that patients and their "primary care-givers" who are in lawful possession of a registry identification card can possess and use a certain amount of marijuana for medical purposes. The presumptive amount which is, by definition, "lawful" under the Amendment, is two ounces or six plants per patient. However, as an affirmative defense to any prosecution, a person charged understate law may assert and prove that greater amounts were"medically necessary." I The Amendment states that no person/sha' II be entitle�e pr' otection ofthe Amendment for acquisition,possession, manufacture, production, use, sale distri�but�ion, dispensing o trr anspo�n of marijuana for any use other than medical use. The Department of Public Health and Environment (the "Department") is required and authorized under the Amendment to maintain a confidential registry of patients who have applied for and are entitled to receive a registry identification card. Local law enforcement officers can access the registry only if they have"stopped or arrested a person who claims to be engaged in the medical use of marijuana and is in possession of a registry identification card or its functional equivalent"and only for the purpose of verifying that the individual is lawfully in possession of the card. The Amendment sets forth in detail the criteria and procedures for obtaining such a card. Patients may, but are not required to, designate a primary care-giver. November 17, 2009 -2- ITEM 21 The Amendment defines a primary care-giver as a person other than the patient and the patient's physician who is eighteen years of age or older and who has a"significant responsibility for managing the well-being of a patient who has a debilitating medical condition." However, the Amendment does not define the term "significant responsibility for managing the well-being of a patient." A combination of factors have led tof ainsurgence of M�D)�i Cn olora municipalities. In the absence of a constitutional definition of this term, the rules made by the Department have largely determined the extent to which the Amendment has provided a�saf6 hamor"for MMDs. Initially,there was limited growth on the medical marijuana registry and in 2004, the Department created an administrative guideline that a primary care-giver could provide for only five registered patients. In 2007, however, a Denver District Judge overturned this limitation because of process concerns with the way the guideline had been adopted, including the fact that no public hearings were conducted by the Department.After this ruling, more MMDs began to open in communities throughout the state. In July of this year, the Department, through formal action of its Board following a public hearing, adopted a rule defining the term "significant responsibility for managing the well-being of a patient who has a debilitating medical condition" that further opened the door to MMDs. It defined the term to mean "assisting a patient with daily activities,including but not limited to transportation or housekeeping or meal preparation or shopping or making any necessary arrangement for access to medical care or services or provision of medical marijuana." (Emphasis added.) This rule adopted by the Board suggested that MMDs that have little, if any,actual responsibility for managing the well- being of patients could claim entitlement to the protection of the Amendment as primary care-givers. At its July hearing, the Board not only revised the definition to include the provision of marijuana as a way of assisting a patient with daily activities, but it also declined to limit primary care-givers to a certain number of patients. �� 7�� In addition,shortly after the Board hearing,the Obama administration announced that,even though the manufacture, 1 I I pF'� N l /./ �,h distribution, possession and use of ma`ijuana islp�ohibited bylfederal laW, federal law enforcement agencies should not seek to prosecute marijuana cases��hich the defendant is in compliance with states' medical marijuana programs. This reduced the risk that a MMD would be raided t5y the Drug Enforcement Administration. Finally, the state legislature has not tried to clarify or limit the extent to which MMDs fall within the protection of the Amendment, which has led to an even larger influx of MMDs in Colorado. In combination,these factors have created a huge growth in number of patients on the medical marijuana registry and a blossoming industry for producing and distributing the drug. In Fort Collins,the first sales tax license for a MMD was issued by the City on February 5, 2008,with a second issued on July 28, 2008. There have been 24 more issued to date in 2009 (12 in the last month). It also appears that more physicians have begun recommending marijuana to their patients and the number of written recommendations of medical marijuana issued by those physicians has increased dramatically.As of August 17, 2009, 732 of the 17,142 physicians licensed in Colorado(4.3%)had made recommendations for medical marijuana. Two of those physicians have written 38% of the recommendations, and the top 15 have made 76% of the recommendations. Recent rulings are more limiting. -7-7 771 The Colorado Court of Appeals ruled �n'late October that the actpf supplying marijuana for medical use, by itself, is insufficient to constitute significant management responsib�ilityvfor a,patient's well-being, and consequently is insufficient to constitutionally qualify a person doing\o asla Dnm' ary care-giver." People v. Stacy Clendenin,Colorado Court of Appeals, announced October 29,_2009`However;-the court-did-not address the question of whether the Board's regulatory definition of the term"significant responsibility for manage the well-being of a patient"would have changed its ruling because that definition was not in effect at the time of the defendant's trial and conviction in the case before the court. On the heels of the Court of Appeals decision, the Board repealed its definition of "significant responsibility for managing the well being of a patient" so as to be consistent with the court ruling. That decision of the Board, like the 2004 administrative guideline, was subsequently overturned by the Denver District Court. Therefore, at the present time, because of the conflict between the Court of Appeals decision and the Department regulations, it is unclear whether MMDs must provide daily assistance to patients beyond just providing marijuana to them. Hopefully,the courts,the Board or the state legislature will soon clarify what MMDs need to do in order to qualify November 17, 2009 -3- ITEM 21 as "primary care-givers". In the meantime, City staff continues to have serious concerns about the unregulated proliferation of MMDs in the City. The health and safety problems presented by M�MDss. ��� Police Services has identified a number o" f specific health and' 'safety proble"ins associated with MMDs. They include the following: %�/ � 111, 1. Thousands of people who do not meet the intended definition of"debilitating medical condition"are receiving certificates for medical marijuana.The number is growing too fast to obtain current statistics, but the number may be approaching 20,000 registered patients. About 10% of the certificate holders reside in Larimer County. 2. There are no regulations regarding MMDs. The term"dispensary"is not defined at the state level. There are no rules limiting the location, hours of operation, use on site, or criminal background of people who operate MMDs. At least six of the MMDs in Fort Collins are in residential areas. In Loveland, there is a MMD immediately next to a high school. Several of the Fort Collins MMD operators have arrest records for drugs and other serious crimes, criminal histories, including felony convictions for marijuana cultivation and distribution. 3. Due to the unregulated nature of MMDs and marijuana growing operations, and the quantity of money and drugs involved, there is serious crime associated with them. There have been several violent robberies and burglaries of MMDs and growers in Fort Collins. Many associated crimes go unreported because of the potentially illegal actions of the victims. ho �. 4. A large amount of marijuana is'being grown in resitlehtial houses 1A being imported from other areas to meet this demand. There is no provision in th6e Amendment'for third party producers; however,this is the manner in which many MMDs obtain their s pply�to meet the recent demand. There has been damage to rental properties and disruption to neighborhoods ro hoodss c"sed�by these marijuana growing operations. There are also hazards associated with electrical wiring coupled with high electrical demand of indoor growing operations, air quality issues and mold and fungus that develops in these indoor grows. There are also no controls to ensure thatthe marijuana grown and distributed underthe protective umbrella oftheAmendment is consumed by registered users. There have been local cases where medical marijuana has been distributed on the illegal market and even to high school students. 5. There is no requirement that a business disclose that it is providing medical marijuana on its sales tax application. While there are 23 businesses that have specifically listed it, Police Services believes that there are other businesses that are dispensing marijuana under licenses listing products like horticulture supply, paraphernalia and herbal medicine. Some MMDs may not have sales tax licenses at all. There is no way to determine how many MMDs are actually operating in the City. 6. Investigating unregulated MMD's for possible criminal violations is extremely difficult. For example, there is no requirement,as exists at liquor licensed establishments,that MMD operators allow police into their facility to ensure that applicable laws are being followed. Some MMDs advertise popular music, game rooms and smoking rooms where young u er_tea n"medicate"together. These look more like bars than medical facilities with none of the regulatory fra ework;. � l 7. The laws and regulations conl/cerning MMDs at the stlate and fede dal levels are unsettled at best,with several changes in the past few monttis~T:his/makes:itivery•difficult for Police Services to differentiate between legal and illegal marijuana activity. There are also liability risks if perceived errors are made in this uncertain environment. It is very difficult to create an enforcement strategy until these issues are resolved. In addition, Police Services does not have adequate staffing to devote to these investigations. This contributes to the completely unregulated nature of the marijuana business in the Fort Collins area. Depending on actions taken at the state level,further regulation maybe necessary at the local level to regulate this industry in accordance with local values. Possible Regulatory Approaches. November 17, 2009 -4- ITEM 21 Colorado municipalities have taken a variety of approaches to addressing MMDs. Many have enacted ordinances establishing a moratorium on MMDs pending further study. Long-term approaches range from adopting no local regulations to imposing a total ban. Regulations include locational requirements (e.g., minimum distances from schools or particular zone districts)aswell as regulations limiting on-site quantities,signage,hours ofoperation,on-site consumption etc. Some municipalities issue permits to MMDs and make the permits subject to suspension or revocation much like a liquor license./Each of these approache reflectsN particular policy position with regard to MMDs and each is designed to address certein perceived 1p�Aems\`such as their proximity to facilities that are occupied or frequented by school ages children`�or the possibility that MMDs will serve as "fronts" for illegal drug trafficking, etc. ` / Before City staff can make an informed recommendation to the City Council as to how to deal with MMDs,much needs to be determined. First and foremost, the law needs to be clarified as to just what the Amendment allows and does not allow. This clarification can come from either the Board or the state legislature or both. In addition,City staff needs to investigate the most reasonable approach to dealing with MMDs at the local level. Finally, the City needs to coordinate its efforts with Larimer County,Loveland and other neighboring municipalities so that the approach it adopts takes into consideration the impact of the City's regulations on neighboring communities. The recommended ten-month period of time should be sufficient to allow for the formulation of recommended amendments to the City Code to deal with MMDs in the City. In the interim, staff believes that an adequate number of MMDs already exist in the City to meet the intent of the Amendment at the local level. FINANCIAL IMPACTS • Potential sales tax and licensing revenues associated with MMD's during the Moratorium. • Staff time and resources assoc((iaated°with,re es arrch and potential code'changes to address the use. \, \\ // l.�_ 1L SUSTAINABILITY: ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS Part of the purpose of this proposed moratorium is to understand the economic, environmental and social impacts associated with MMDs. It is unclear as to the impacts MMD's as allowed by State Law would have on our community. The economic impacts associated with regulating and enforcement is unknown as well as the impacts of not regulating or enforcing them as a complete and unfettered allowance of the use may have economic impacts associated with safety issues as the use and potential negative impacts enter into residential neighborhoods. The environmental impacts are also unclear as there are potential issues associated with the varying scales of the MMD's. Finally, the social impacts are also unclear as the absence of any regulatory criteria may cause the residential character of neighborhoods to decline and sensitive uses such as schools, places of worship, daycare facilities, etc could also be impacted. The proposed moratorium will allow the City to review potential impacts and provide the City Council with information to make an informed decision regarding the appropriate regulatory methods to address MMD's STAFF RECOMMENDATION ��j--� �� For the foregoing reasons, City staff recommends t�� hat the City immediately adopt aten-month moratorium on the issuance of sales tax licenses�fo\MMDsland on the establishment of such businesses in any zone district in the City. On or before the terminatiorndate,of the,moratorium, staff willlprovide recommendations and proposed legislation to the Council for dealing with MMDs. ATTACHMENTS 1. Amendment 20 DATE: December 1, 2009 STAFF: Darin Atteberry _ Steve Roy Second Reading of Ordinance No. 129.2009 flmposing prato ium o the Acceptance and Processing of Applications for the Issuance of Licenses or Permits Related to Businesses hat Seek to Dispense Medical Marijuana and on the Establishment or Operation of a Any Such New�inesseshe City. EXECUTIVE SUMMARY This Ordinance,which was presented for Council's consideration on November 17,2009,as an emergency measure, was instead approved by Council on First Reading. Council also amended the Ordinance so that, if approved on Second Reading, it will impose a moratorium on new medical marijuana dispensaries for approximately three months rather than ten months. At the end of the Council discussion, staff was invited to inform the Council as to whether, in staffs opinion, a moratorium is still advisable and, if so, what the length of the moratorium should be. BACKGROUND / DISCUSSION Staff does believe that a moratorium is still advisable. On Second Reading, staff is recommending the following changes to the Ordinance: 1 ? 7mora�orium 1. Instead of imposing a ten-mnth moratorium;th will,be in place from the effective date of the ordinance, December 11, 2009, throug 312010. While this is more than three months,staff believes tha4elxtendinglt6 moratorium beyondithe second Council meeting in March will allow for better process ing=ofAthe proposed regulations that-staff will be bringing forward. That process will include development of the regulations,review of any Land Use Code changes with the Planning and Zoning Board, review of the draft regulations with the Council in a work session, and public outreach. 2. The Ordinance no longer provides for a case-by-case review of applications for sales tax license application for MMDs that are pending on December 11. When the Ordinance was presented as an emergency measure, that review was intended to allow applicants additional time to have their applications processed after adoption of the Ordinance if they had made substantial,nonrevocable, good faith investments in real or personal property based upon the expectation that they would be able to obtain a sales tax license for an MMD. Since Council decided not to adopt a moratorium on MMDs on an emergency basis, staff believes that those members of the public who are interested in establishing a new MMD will have had ample opportunity to apply for and obtain a sales tax license by the time this Ordinance takes effect. Therefore, under the Ordinance as presented on Second Reading,only those MMDs that have actually had a sales tax licenses issued by December 11, 2009, that date and that conform to all existing zoning requirements will be allowed to operate during the moratorium. 3. The declaration of emerge nc�been r�� emo ed. ,The risks hat businesses present to the City, �. u which are listed in Section 2 of the lordinanceiare now recited in support the imposition of a moratorium rather than in<sgppoft of�a ddeclar tion of e�gency. Those risks, which were previously listed in one of the`'whereas clauses of the Ordinance as well as in Section 2, have been consolidated and now appear just in Section 2. 4. A new section has been added directing the City Manager and City Attorney to present proposed regulations to Council for its formal consideration no later than the March 2, 2010 Council meeting. 5. Minor wording changes have been made and some sections have been renumbered or relocated. December 1, 2009 -2- ITEM 24 Preliminary ScheduleMorkplan: The following is a preliminary outline of action items and schedule for completing the review of potential regulations and enacting regulations by the time the moratorium expires on March 31, 2010. December 2009 research; dr aft regulation cppcepts r d + c3y Yr� January 2010 outreach (focus groups or a communi&i eting; modify+regulation concepts b sa ed on feedback and draft ordinance February 9, 2010 Council;Work Sessions February 18, 2010 Planning and Zoning Review March 2, 2010 First Reading of Regulating Ordinance March 16, 2010 Second Reading of Regulating Ordinance March 26, 2010 Ordinance and Regulations take effect All other provisions of the Ordinance remain the same as on First Reading. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary- November 17, 2009. (w/o original attachments) �; 0 Statute 0-4-287 Page 1 of 5 a ATTACHMENT 4 Colorado ,,,eicome to... '.. Live Help Advanced Search 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,iri 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. (0"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. hit„.rn,,,,.,., "Ink. ctoto p„ on nno Statute 0-4-287 Pace 2 of 5 excludes the plant's stalks,stems,and roots. 6)"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: (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 (111)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 slate'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 (11)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 slate health agency about physicians and littD:HwNkrU-.cdghe.state.co.us/hs/MediCallnarjjuaiia/mjaineiidment.littnl 9/1/2009 Statute 0-4-287 Page 3 of 5 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 slopped 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 stale 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 stale or local law enforcement official is lawfully in possession of such card. (b)In order to be placed on the slate'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; (11)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. J (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; (11)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; (111)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 dale 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 htil)://xk.\k,\N:.cdphe.state.co.us/hs/Medicalnlai-ijuana/ntiameiidnlent.litnil 9.1,11,2009 Statute 0-4-287 Page 4 of 5 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: (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 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 (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)(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 littp:/hN,wv-.cdplie.state.Co.us/hs/Medicalmarijuana/liijament(ment.11 till] 9/1/2009 Statute 0-4-287 Page 5 of 5 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 (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 1,2001,the governor shall designate, by executive order,the slate 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; (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 vole 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. litto://wwxe.cdilhe.state.co.us/hs/Meciicalt»ariii.iana/miamenrlmenl.litml