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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 06/15/2010 - SECOND READING OF ORDINANCE NO. 069, 2010, AMENDIN DATE: June 15, 2010 SUMMARY STAFF: Jerry Schiager, Ginny Sawyer, Steve ITEM Dush, Peter Barnes, Steve Roy, Linda FORT COLLINSCOUNCIL Samuelson Second Reading of Ordinance No. 069, 2010, Amending Section 4 of Ordinance No. 025, 2010, to Change the Meaning of the"Same Ownership" Requirement as Applied to Existing Medical Marijuana Businesses That Wish to Apply for Licensing under Chapter 15, Article XVI of the City Code. EXECUTIVE SUMMARY Ordinance No. 069, 2010, unanimously adopted on First Reading on June 1, 2010, clarifies the licensing process for existing medical marijuana businesses. This Ordinance states that existing businesses applying for a Medical Marijuana Business License must list at least one original name from the City sales tax license on the application. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary-June 1, 2010 (w/o attachments) ATTACHMENT 1 DATE: June 1, 2010 SUMMARY STAFF: Jerry Schiager, Ginny Sawyer, Steve AGENDA ITEM Dush, Peter Barnes, Steve Roy, Linda FORT COLLINS CITY COUNCIL Samuelson First Reading of Ordinance No. 069, 2010, Amending Section 4 of Ordinance No. 025, 2010,to Change the Meaning of the"Same Ownership" Requirement as Applied to Existing Medical Marijuana Businesses That Wish to Apply for Licensing under Chapter 15, Article XVI of the City Code. EXECUTIVE SUMMARY /7 The purpose of this Ordinance is to((larify the Iicensing process-existing for medical marijuana businesses. This Ordinance states that existing businesses applying.fJ.Medical Marijuana Business License must list at least one original name from the City Sales Tax License on the application, BACKGROUND / DISCUSSION Between March 26 and May 4, 2010, Council adopted four ordinances addressing and regulating Medical Marijuana Businesses(MMB.) Existing MMBs have until June 30,2010,to make an application to the City. As these businesses work to conform to City Code, it has come to staffs attention that new business partnerships are being formed and original business structures are in flux. In•an effort.maintain� _the.integrity of working with"existing"businesses while still allowing these partnerships and business changes, staff is brin'ging4orward Ordinance No. 069, 2010, which will require only one original name from the City sales tax Iicense;to_be!,iricluded,on the application. The current version of the ordinance states that, in order to�be considered an existing medical marijuana business,all names on the sales tax license and the application for the\medical marijuana business license must be identical. FINANCIAL IMPACT Staff does not anticipate any additional financial impacts as a result of these ordinances. .STAFF RECOMMENDATION State recommends adoption of the Ordinance onFirst R adli Ig� PUBLIC OUTREACH No public outreach has been done. This change will only impact those existing businesses seeking to make application by June 30, 2010. ORDNANCE NO. 069, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 4 OF ORDNANCE NO. 025, 2010, TO CHANGE THE MEANING OF THE "SAME OWNERSHIP" REQUIREMENT AS APPLIED TO EXISTING MEDICAL MARIJUANA BUSINESSES THAT WISH TO APPLY FOR LICENSING UNDER CHAPTER 15, ARTICLE XVI OF THE CODE OF THE CITY OF FORT COLLINS WHEREAS,on March 16,2010,the City Council adopted on second reading Ordinance No. 025,2010,which added Article XVI to Chapter 15 of the City Code to govern the'licensing, location and operation of medical marijuana businesses; and WHEREAS,Ordinance No.025,2010,also temporarily limited eligibility for licensing under the newly established licensing provisions of Chapter 15,Article XV to"existing medical marijuana businesses" as defined in Section 3 of said Ordinance; and WHEREAS, on May 4, 2010, the City Council approved on second reading Ordinance No. 047, 2010, amending Sections 3 and 4 of Ordinance No. 025, 2010, to clarify the definition of an "existing medical marijuana business"; and WHEREAS, Section 4 of Ordinance No. 025, 2010, as amended, states that, in order for a medical marijuana business to qualify as an "existing medical marijuana business" that is currently eligible to apply for licensing under Chapter 15,Article XVI,the application for licensing submitted to the City must be submitted in the same business name and same owner's name as appear on any other license or permit previously issued to such business by the City; and WHEREAS, Section 4 of Ordinance No. 025, 2010, further states that, in order for an application submitted on behalf of an entity to be considered to be in the same owner's name, all of the principals listed on the application as having an ownership interest in the entity must be identical to the principals listed on the application for the sales and use tax license previously issued to such business by the City; and WHEREAS, City staff has found, during the early stages of the medical marijuana business licensing process, that many existing medical marijuana businesses in the City that are owned by business entities, rather than natural persons, have undergone changes in the identity of the individuals who hold ownership interests in the entities,even though the entities continue to operate under the same business name and even though one or more of the principals in the business has remained the same; and WHEREAS,the City Council believes that existing medical marijuana businesses should not be prevented from applying for licensing under Chapter 15,Article XVI simply because the identity of one or more of the principals who hold an ownership interest in such business has changed; and WHEREAS, some continuity of ownership is nonetheless necessary in order for a medical marijuana business to be considered an existing business. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Section 4 of Ordinance No.025,2010,as previously amended by Ordinance No.047, 2010, is hereby further amended to read in its entirety as follows: Section 4. That any owner or operator of an existing medical marijuana business shall, on or before June 30, 2010, submit an application for a license under the provisions of Section 15- 453 of the City Code as enacted by the adoption of this Ordinance, whether or not such owner or operator has previously obtained any other license or permit related to such business. Said application shall be submitted to the City in the same business name and owner's name as appear on the sales and use tax license previously issued to such business by the City. For the purposes of this provision, an application shall be considered to be in the same owner's name if at least one of the principals listed on the application as having an ownership interest in the business is identical to one of the principals listed on the application for the previously issued sales and use tax license. If such application is for a location different than the present location of the medical marijuana business, such location must be consistent with the location requirements contained in Section 15- 454 of the City Code, as enacted by the adoption of this Ordinance, and consistent with the zoning requirements contained in Ordinance No. 026,2010..If such application is approved by the City,the establishment of the medical marijuana business at such new location shall be subject to all relevant provisions and requirements of the Land Use Code. Introduced and considered favorably on first reading and ordered published this Ist day of June, A.D. 2010, and to be presented for final passage on t day of June, A.D. 20 0. VJ � Mayor ATTEST: City Clerk -2- Passed and adopted on final reading this 15th day of June, A.D. 2010. Mayor ATTEST: City Clerk -3-