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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 01/03/2012 - SECOND READING OF ORDINANCE NO. 182, 2011, AMENDINDATE: January 3, 2012 STAFF: Jerry Schiager, Ginny Sawyer Medical Marijuana Staff Team AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 18 SUBJECT Second Reading of Ordinance No. 182, 2011, Amending Section 15-483 of the City Code So as to Eliminate the Eight Ounce Limitation on the Amount of Medical Marijuana That Can Be Distributed by Licensees to Other Licensed Medical Marijuana Centers. EXECUTIVE SUMMARY All medical marijuana businesses in Fort Collins must cease operation by February 14, 2012. This Ordinance, adopted on First Reading on December 20, 2011 by a vote of 6-1 (nays: Troxell) will allow existing businesses to sell more than 8 ounces of product to another licensed business outside the City limits in an effort to eliminate inventory by February 14, 2012. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - December 20, 2011 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: December 20, 2011 STAFF: Jerry Schiager, Ginny Sawyer, Medical Marijuana Staff Team AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 28 SUBJECT First Reading of Ordinance No. 182, 2011, Amending Section 15-483 of the City Code So as to Eliminate the Eight Ounce Limitation on the Amount of Medical Marijuana That Can Be Distributed by Licensees to Other Licensed Medical Marijuana Centers. EXECUTIVE SUMMARY All medical marijuana businesses in Fort Collins must cease operation by February 14, 2012. This amendment would allow existing businesses to sell more than 8 ounces of product to another licensed business outside the City limits in an effort to eliminate inventory by February 14, 2012. BACKGROUND / DISCUSSION During the creation of regulations addressing medical marijuana businesses in Fort Collins limits were included on both sale of medical marijuana to patients and to other licensed businesses. The existing Code includes the following: Sec. 15-483. Prohibited Acts. (b) It shall be unlawful for any licensee holding a medical marijuana center licensed, or for any agent, manager or employee thereof, to: (2) sell, give, dispense or otherwise distribute to any patient or primary caregiver who is not a licensee more than two (2) ounces of any usable form of medical marijuana (excluding medical marijuana-infused products) within any seven-day period of time; (3) sell, give, dispense or otherwise distribute to another licensed center more than eight (8) ounces of medical marijuana in any usable form within any seven-day period of time; The proposed ordinance maintains the sale limitation to patients but amends the restriction to other licensed businesses. Knowing that local businesses are needing to eliminate their inventories, staff feels this amendment will help provide a legal means to do so. The Ordinance would only allow these sales to licensees outside the City limits. Should Council approve the amendment on First Reading on December 20, 2011 and on Second Reading on January 3, 2012, local businesses would have from January 17, 2012 to February 14, 2012 to make these amended sales. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. 1 1 Second Reading Proposed Ordinance to Eliminate the 8oz Limitation on the Amount of Medical Marijuana That Can be Sold to Other Licensees Outside of the City. City Council Meeting January 3, 2012 2 Amends current code to allow for sales of greater than 8oz to licensed medical marijuana centers outside the city limits. Ordinance No. 182 ATTACHMENT 2 2 3 Ordinance No. 182 Provides a lawful means for existing centers to eliminate inventory before the February 14, 2012 deadline. 4 Discussion ORDINANCE NO. 182, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 15-483 OF THE CITY CODE SO AS TO ELIMINATE THE EIGHT-OUNCE LIMITATION ON THE AMOUNT OF MEDICAL MARIJUANA THAT CAN BE DISTRIBUTED BY LICENSEES TO OTHER LICENSED MEDICAL MARIJUANA CENTERS WHEREAS, Chapter 15, Article VI of the City Code establishes a comprehensive licensing system for medical marijuana businesses in the City; and WHEREAS, on November 1, 2011, the voters of the City approved a citizen-initiated ordinance that, in effect, requires such businesses to cease operation on or before February 14, 2012; and WHEREAS, under federal, state and local law, the possession of medical marijuana by such businesses after the closure of the businesses would be unlawful and such medical marijuana would be subject to seizure and destruction by state or local law enforcement officers; and WHEREAS, the avenues presently available to the owners of such businesses to lawfully dispose of their inventory of medical marijuana prior to the cessation of their businesses are limited by state and local law; and WHEREAS, at the local level, Section 15-483(b)(3) of the City Code prohibits any licensed medical marijuana business from selling, giving, dispensing or otherwise distributing to another licensed medical marijuana center, either inside or outside of the City, more than eight ounces of medical marijuana in any usable form within any seven-day period of time; and WHEREAS, this limitation was imposed by the City Council in order to deter the wholesale distribution of medical marijuana in the City and to keep the production and distribution of medical marijuana at a level commensurate with the purpose and intent of Article XVII, Section 14 of the Colorado Constitution; and WHEREAS, in view of the fact that medical marijuana businesses in the City will be ceasing operation pursuant to the citizen-initiated ordinance, the limitation imposed by Section 15-483(b)(3) is no longer necessary for the protection of the citizenry; and WHEREAS, the inability of licensees to sell larger quantities of medical marijuana to licensed centers outside of the City impedes the ability of such licensees to lawfully dispose of their inventory prior to February 14, 2012; and WHEREAS, the City Council therefore believes it to be in the best interests of the City to modify this provision of the Code so as to allow licensees to sell more than eight ounces of medical marijuana within a seven-day period of time to another licensed center, but only if such center is located outside the City limits. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Section 15-483(b)(3) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 15-483. Prohibited acts. . . . (b) It shall be unlawful for any licensee holding a medical marijuana center licensed, or for any agent, manager or employee thereof, to: (1) sell, give, dispense or otherwise distribute medical marijuana or medical marijuana paraphernalia from any outdoor location; (2) sell, give, dispense or otherwise distribute to any patient or primary caregiver who is not a licensee more than two (2) ounces of any usable form of medical marijuana (excluding medical marijuana-infused products) within any seven- day period of time; (3) sell, give, dispense or otherwise distribute to another licensed center that is located within the City limits more than eight (8) ounces of medical marijuana in any usable form within any seven-day period of time; . . . Introduced, considered favorably on first reading, and ordered published this 20th day of December, A.D. 2011, and to be presented for final passage on the 3rd day of January, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 3rd day of January, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk -2-