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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 09/03/2013 - FIRST READING OF ORDINANCE NO. 125, 2013, ESTABLISDATE: September 3, 2013 STAFF: Steve Roy, Ginny Sawyer, Don Vagge AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 28 SUBJECT First Reading of Ordinance No. 125, 2013, Establishing a Temporary Ban on Marijuana Establishments Within the City of Fort Collins. EXECUTIVE SUMMARY The purpose of this item is to establish a temporary ban on marijuana cultivation facilities, marijuana testing facilities, marijuana product manufacturing facilities, and retail marijuana stores (collectively “marijuana establishments”) in the City of Fort Collins through March 31, 2014. The City Council recommended proceeding with a temporary ban at a work session on July 30, 2013. BACKGROUND / DISCUSSION On November 6, 2012, Colorado voters approved Amendment 64, which allows for the licensing of marijuana establishments in Colorado, including marijuana cultivation facilities, marijuana testing facilities, marijuana product manufacturing facilities, and retail marijuana stores. Under Amendment 64, local municipalities have three options in regard to marijuana establishments: (1) adopt an ordinance prohibiting them; (2) refer a prohibition question to the voters; or (3) allow them and impose local restrictions on their time, place, manner and number. Amendment 64 requires local municipalities to adopt an ordinance specifying the entity that is responsible for processing applications submitted for a license to operate a marijuana establishment by October 1, 2013. Additionally, Amendment 64 allows an applicant to apply directly to a local jurisdiction if the state fails to issue a license by January 1, 2014, or within ninety (90) days of an application being filed. The Colorado Department of Revenue (“DOR”) has adopted emergency rules for the regulation of the state retail marijuana industry by the DOR’s Marijuana Enforcement Division, which are set to expire on October 1, 2013. A question imposing an excise and sales tax on marijuana and marijuana products will appear on the November 2013 ballot. During the July 30, 2013 work session, Council determined that having additional time to determine the degree and extent of the state rules, to analyze the results of the November ballot question on taxation, and to conduct outreach within the community would be beneficial. Staff is proposing a six month temporary ban to complete such efforts. FINANCIAL / ECONOMIC IMPACTS There are no immediate financial impacts with the exception of potential medical marijuana businesses that are anxious to begin operations in Fort Collins. Pursuant to state law, January 1, 2014 is the earliest date that a currently existing medical marijuana business can obtain a marijuana establishment license. Approximately nine months later, October 1, 2014, is the earliest date that a marijuana establishment that was not a previously existing medical marijuana business can obtain a license. ENVIRONMENTAL IMPACTS None. September 3, 2013 -2- ITEM 28 STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BOARD / COMMISSION RECOMMENDATION This item has not gone to any boards or commissions. PUBLIC OUTREACH There has not been formal public outreach; however, citizens have been contacting City Leaders with their thoughts. ATTACHMENTS 1. Work Session Summary. July 30, 2013 2. Powerpoint presentation ATTACHMENT 1 1 1 Temporary Ban on Recreational Marijuana Businesses City Council Regular Meeting September 3, 2013 2 Purpose Consideration of a temporary ban on recreational marijuana businesses in the City of Fort Collins. Ban would expire March 31, 2014. ATTACHMENT 2 2 3 Background Amendment 64 allows local municipalities to: • adopt an ordinance prohibiting recreational marijuana businesses; • refer a prohibition question to the voters; or • allow them and impose local restrictions. 4 Background Amendment 64 requires local municipalities to adopt an ordinance by October 1, 2013 either: • Banning all businesses. • Adopting local regulations. • Enacting a temporary ban and taking action at a later date. • 3 5 Background July 30, 2013 work session- Additional time to: • Determine degree and extent of the state rules; • Understand results of the November ballot question on taxation; • conduct outreach within the community. Staff is proposing a six month temporary ban. (March 31, 2014) 6 Types of Businesses • Retail Store- May purchase marijuana/ products and sell to the public. • Manufacturing Facility- May purchase marijuana for the manufacture, preparation, and packaging of marijuana products. May not sell to the public. • Testing Facility- Analyze and certify the safety and potency of marijuana. • Cultivation Facility-May cultivate, prepare, and package marijuana for sale to a retail store or manufacturer. May not sell to the public. 4 7 Comment and Discussion - 1 - ORDINANCE NO. 125, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS ESTABLISHING A TEMPORARY BAN ON MARIJUANA ESTABLISHMENTS WITHIN THE CITY OF FORT COLLINS WHEREAS, on November 6, 2012, Colorado voters approved an amendment to the State Constitution, Article XVIII, Section 16 of the Colorado Constitution (“Amendment 64”); and WHEREAS, Amendment 64 allows for the licensing of marijuana cultivation facilities, marijuana testing facilities, marijuana product manufacturing facilities, and retail marijuana stores (collectively “marijuana establishments”); and WHEREAS, under Article XVIII, Section 16(5)(e), local governments, including cities, must enact an ordinance or regulation by October 1, 2013, specifying the entity that is responsible for processing applications submitted for a license to operate a marijuana establishment; and WHEREAS, under Article XVIII, Section 16(5)(e)(g)&(h), if the state fails to issue a license by January 1, 2014, or within ninety (90) days of an application being filed, an applicant for a marijuana establishment license may submit its application directly to the City; and WHEREAS, under Article XVIII, Section 16(5)(f), the City may prohibit the operation of such marijuana establishments within its territorial limits; and WHEREAS, pursuant to Amendment 64, the Colorado Department of Revenue (“DOR”) has adopted emergency rules for the regulation of the state retail marijuana industry by the DOR’s Marijuana Enforcement Division, which rules are set to expire on October 1, 2013; and WHEREAS, the DOR intends to adopt final rules prior to any marijuana establishments opening for operation on January 1, 2014; and WHEREAS, a proposal that would impose an excise and sales tax on marijuana and marijuana products will appear on the November 2013 ballot; and WHEREAS, prior to making a final decision as to whether, and to what extent, the City Council should authorize the licensing of marijuana establishments in the City, it is important that City staff have sufficient time to formulate a recommendation to the City Council and to develop proposed regulations after reviewing and considering the DOR’s final rules, analyzing the outcome of the November ballot question, and conducting public outreach to determine the desires of the adult residents in the City; and WHEREAS, City staff believes that six months is a reasonable period of time to complete such efforts, and has recommended that a temporary ban on marijuana establishments be imposed by the City Council in the interim; and - 2 - WHEREAS, the City Council believes that such a temporary ban is in the best interests of the City and is reasonably necessary to protect the health, safety, and welfare of the citizens of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the recitals of this Ordinance are hereby adopted by the City Council as findings of fact. Section 2. That, for the foregoing reasons, there is hereby imposed, as of midnight September 27, 2013, a temporary ban on the acceptance, processing, and approval of any marijuana establishment application for any City of Fort Collins license pertaining to marijuana establishments. This temporary ban shall automatically terminate at midnight on March 31 2013, unless terminated earlier by the City Council or extended by the enactment of another ordinance. Section 3. That this Ordinance shall control over any conflicting ordinance of the City, but only to the extent of the conflict. Section 4. That if any section, paragraph, sentence, clause or phrase of this Ordinance is held to be unconstitutional or invalid for any reason, such decision shall not affect the validity or constitutionality of and shall be severable from the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each part or parts hereof irrespective of the fact that any one part or parts may be declared unconstitutional or invalid. Introduced, considered favorably on first reading, and ordered published this 3rd day of September, A.D. 2013, and to be presented for final passage on the 17th day of September, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ Chief Deputy City Clerk - 3 - Passed and adopted on final reading on the 17th day of September, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk