HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/15/2015 - ITEMS RELATING TO MARIJUANA CODE AMENDMENTSAgenda Item 12
Item # 12 Page 1
AGENDA ITEM SUMMARY September 15, 2015
City Council
STAFF
Ginny Sawyer, Policy and Project Manager
SUBJECT
Items Relating to Marijuana Code Amendments.
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 116, 2015, Amending Section 15-608 of the Code of the City of Fort Collins
to Limit to One the Number of Marijuana Store Fronts on the Same Contiguous Property.
B. First Reading of Ordinance No. 117, 2015, Amending Sections 15-613 and 15-614 of the Code of the City
of Fort Collins to Clarify the Standard for Persons Prohibited as Licensees and to Require a Six Month
Waiting Period for Reapplication of a License for Any Applicant Denied a License by the Marijuana
Licensing Authority on the Basis of False, Misleading, or Fraudulent Statements or Intentional Omissions
of Pertinent Information.
C. First Reading of Ordinance No. 118, 2015, Amending Article IX of Chapter 12 of the Code of the City of
Fort Collins to Prohibit Marijuana Plants to be Cultivated or Kept Within Mixed-Use Buildings and Fraternity
and Sorority Houses.
D. First Reading of Ordinance No. 119, 2015, Amending Section 17-194 of the Code of the City of Fort Collins
to Prohibit the Use of Alcohol or Ethanol in the Extraction of THC or Other Cannabinoids in Locations
Other Than Licensed Medical and Retail Marijuana Products Manufacturing Facilities.
The purpose of this item is to clean up various provisions of the City Code related to marijuana. The City of
Fort Collins and local marijuana businesses are just over a year into the licensing and operational processes,
and over the course of this time, the State has enacted new legislation and staff has identified gaps in the
existing City Code provisions. Staff anticipates periodic amendments as this industry matures.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinances on First Reading.
BACKGROUND / DISCUSSION
This agenda item includes the following recommended amendments:
1. Ordinance No. 116, 2015 – Limiting the number of storefronts to one on the same contiguous property:
When original location language was drafted, efforts were made to generally limit the number of marijuana
storefronts. Existing Code language states, “A retail marijuana store and medical marijuana center held by
the same licensee shall be located on the same legal parcel.” Staff is recommending this be changed to,
“A retail marijuana store and medical marijuana center held by the same licensee shall be contiguous,
located within the same building and under the exclusive control of the licensee.” This change would
prevent having two storefronts within the same strip-retail center.
Agenda Item 12
Item # 12 Page 2
2. Ordinance No. 117, 2015 – Application renewal corrections:
In the current language, if an applicant has made a false, misleading, or fraudulent statement, or omitted
pertinent information on his or her application, the Marijuana Licensing Authority (the “Authority”) has a
duty to deny the application. However, the only recourse for denial is that the application must be
resubmitted, which could be accomplished immediately after the denial. Staff is recommending the
following two changes:
a. Adding the word “intentionally” to the following Code language: any applicant who has made a false,
misleading or fraudulent statement, or who has intentionally omitted pertinent information, on his or
her application for a license…” This addition gives the Authority discretion to determine whether the
applicant made an unintentional mistake such as a typo or if the applicant was intentionally attempting
to include a false, misleading, or fraudulent statement.
b. Adding a six month waiting period for re-application of a license if an applicant is denied a license by
the Authority for including false, misleading, fraudulent information or for intentionally omitting
information.
3. Ordinance No. 118, 2015 – Prohibiting marijuana cultivation in mixed-use dwellings and in sorority and
fraternity houses:
Current regulations prevent cultivation in areas that would pose a health, safety, or nuisance risk to
residential units. However, existing regulations do not include mixed-use dwellings that could have
residential units on upper floors. This change would prevent any cultivation in mixed-use buildings that
include residential units.
The City Code currently prohibits the cultivation of marijuana in a multi-family dwelling. The definition of
multi-family excludes fraternities and sorority houses, thereby allowing the cultivation of marijuana in such
houses. Staff recommends amending this definition such that fraternity and sorority houses are included,
and therefore, that the prohibition on cultivation of marijuana applies.
4. Ordinance No. 119. 2015 – State extraction regulations:
During the past legislative session, the State passed prohibitions on marijuana extractions limiting the use
of flammable materials. The State did not include alcohol or ethanol in the list of prohibited materials. The
City would like to replace our previously adopted language with the new state regulations. However, we
will maintain our prohibition on the use of alcohol and add a prohibition on the use of ethanol in the
extraction of THC or other cannabinoids in the City based on recommendations from Poudre Fire
Authority.
PUBLIC OUTREACH
These proposed Code amendments are minor changes intended to provide greater clarity to the marijuana
licensing process. No public outreach was conducted as the amendments are considered minor in scope.
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ORDINANCE NO. 116, 2015
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING SECTION 15-608 OF THE CODE OF THE CITY OF FORT COLLINS
TO LIMIT TO ONE THE NUMBER OF MARIJUANA STORE FRONTS
ON THE SAME CONTIGUOUS PROPERTY
WHEREAS, Article XVII of Chapter 15 of the City Code places limitations on location
and operation of retail marijuana businesses; and
WHEREAS, the Code currently states that a retail marijuana store and medical marijuana
center held by the same licensee shall be on the same legal parcel; and
WHEREAS, this Code provision currently allows for two or more store fronts on one
legal parcel; and
WHEREAS, staff believes that this was not the intent of the City Council upon the
passage of such provision; and
WHEREAS, staff recommends that such provision be amended to only allow one store
front on the same contiguous premises; and
WHEREAS, the City has the authority to enact ordinances which are necessary and
proper to provide for the health, safety and welfare of the inhabitants of the City not inconsistent
with the laws of this State; and
WHEREAS, the City Council has determined that these proposed amendments to the
City Code are in the best interests of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS that Section 15-608 of the Code of the City of Fort Collins is hereby amended
to read as follows:
Sec. 15-608. Retail marijuana stores.
(a) Only a licensed medical marijuana center in good standing with state and local
licensing authorities may be licensed as, or may operate, a retail marijuana store in the
City.
(b) A retail marijuana store and medical marijuana center held by the same licensee
shall be contiguous, located within the same building and under the exclusive control of
the licensee. on the same legal parcel.
(c) All retail marijuana stores shall affix labels to all containers on the licensed
premises that hold retail marijuana or retail marijuana products, which labels shall clearly
display potency profiles and contaminant results from licensed retail marijuana testing
facilities.
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(d) All retail marijuana stores shall prohibit the entrance of persons under the age of
twenty-one (21) to the licensed premises, including that portion of the premises that is
licensed as a medical marijuana center.
Introduced, considered favorably on first reading, and ordered published this 15th day of
September, A.D. 2015, and to be presented for final passage on the 6th day of October, A.D.
2015.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on this 6th day of October, A.D. 2015.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk
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ORDINANCE NO. 117, 2015
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING SECTIONS 15-613 AND 15-614 OF THE CODE OF THE CITY OF FORT
COLLINS TO CLARIFY THE STANDARD FOR PERSONS PROHIBITED AS LICENSEES
AND TO REQUIRE A SIX MONTH WAITING PERIOD FOR REAPPLICATION OF A
LICENSE FOR ANY APPLICANT DENIED A LICENSE BY THE MARIJUANA
LICENSING AUTHORITY ON THE BASIS OF FALSE, MISLEADING, OR FRAUDULENT
STATEMENTS OR INTENTIONAL OMISSIONS OF PERTINENT INFORMATION
WHEREAS, Article XVII of Chapter 15 of the City Code limits those individuals
allowed to be licensed to sell retail marijuana; and
WHEREAS, the current language of City Code Section 15-614 in the retail marijuana
provisions states no license shall be issued to, held by or renewed by any applicant who has
omitted pertinent information on his or her application for a license; and
WHEREAS, Article XVI of Chapter 15 of the City Code limits those individuals allowed
to be licensed to sell medical marijuana; and
WHEREAS, the current language of Section 15-474 in the medical marijuana provisions
states no license shall be issued to, held by, or renewed by any applicant who has intentionally
omitted pertinent information on his or her application for a license; and
WHEREAS, staff recommends the Medical and Retail Marijuana licensing provisions be
consistent so that both prohibit persons from being issued licenses for intentionally omitting
pertinent information; and
WHEREAS, staff believes there should be a consequence and a limitation on subsequent
applications when an applicant is denied for such types of intentional omissions; and
WHEREAS, staff recommends that such consequence should be a prohibition on
applying to the Marijuana Licensing Authority (the “Authority”) for a period of six months from
the date of the denial by the Authority; and
WHEREAS, staff believes such a prohibition will encourage compliance with the
application standards and will reduce subsequent fraudulent applications; and
WHEREAS, the City has the authority to enact ordinances which are necessary and
proper to provide for the health, safety and welfare of the inhabitants of the City not inconsistent
with the laws of this State; and
WHEREAS, the City Council has determined that these proposed amendments to the
City Code are in the best interests of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
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Section 1. That Section 15-613 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 15-613. Denial of application and consequences.
(a) The Authority shall deny any application that does not meet the requirements of
the Colorado Retail Marijuana Code, the rules and regulations promulgated thereunder or
the provisions of this Article.
(b) An applicant that has been denied a license by the Marijuana Licensing Authority
for including a false, misleading or fraudulent statement, or for intentionally omitting
pertinent information on his or her application for a license, in violation of Section 15-
614 (6) of this Article, shall not be permitted by the Authority to submit a subsequent
application for a period of (6) six months from the date of the denial.
Section 2. That Section 15-614 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 15-614. Persons prohibited as licensees.
No license shall be issued to, held by or renewed by any of the following:
(1) any person who is, at the time of application for a retail marijuana store, not
currently licensed to operate a medical marijuana center and in good standing
under both the Colorado Medical Marijuana Code and the City Code;
(2) any person prohibited pursuant to Section 12-43.4-306, C.R.S;
(3) any natural person who has been released within the ten (10) years immediately
preceding the application from any form of incarceration or court-ordered
supervision, including a deferred sentence resulting from a conviction of any
felony or any crime which under the laws of the State would be a felony; or any
crime of which fraud or intent to defraud was an element, whether in the State or
elsewhere;
(4) any entity whose directors, shareholders, partners or other persons having a
financial interest in said entity have been convicted of any of the offenses set forth
in Paragraph (3) above;
(5) any person whose criminal history renders him or her ineligible under Paragraph
(2) above, or who employs a person at a retail marijuana establishment who has a
criminal history that renders said person ineligible;
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(6) any applicant who has made a false, misleading or fraudulent statement, or who
has intentionally omitted pertinent information, on his or her application for a
license;
(7) any applicant whose license for a medical or retail marijuana establishment in this
State or any other state has been revoked.
Introduced, considered favorably on first reading, and ordered published this 15th day of
September, A.D. 2015, and to be presented for final passage on the 6th day of October, A.D.
2015.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 6th day of October, A.D. 2015.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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ORDINANCE NO. 118, 2015
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING ARTICLE IX OF CHAPTER 12 OF THE CODE OF THE CITY OF FORT
COLLINS TO PROHIBIT MARIJUANA PLANTS TO BE CULTIVATED OR KEPT WITHIN
MIXED USE BUILDINGS AND FRATERNITY AND SORORITY HOUSES
WHEREAS, Article IX of Chapter 12 of the City Code regulates the cultivation of
marijuana; and
WHEREAS, the current regulations limit the cultivation of marijuana to no more than
twelve marijuana plants of any size, or six mature marijuana plants within a single–family
dwelling, and no marijuana plants to be cultivated within two-family, multi-family or single-
family attached dwelling; and
WHEREAS, there is a growing concern among staff concerning the cultivation of an
unlimited amount of marijuana within mixed use dwellings and fraternity and sorority houses
which directly affects the public’s health, safety and welfare; and
WHEREAS, staff recommends applying the same prohibition as set forth within two-
family, multi-family or single-family attached dwellings to mixed use dwellings and fraternity
and sorority houses; and
WHEREAS, the City Council has determined that these proposed amendments to the
City Code are in the best interest of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That Section 12-141 of the Code of the City of Fort Collins is hereby
amended by the addition of a new definition “Mixed-use dwelling” to read as follows:
Mixed-use dwelling shall mean a dwelling that is located in the same building as a non-
residential use.
Section 2. That the definition of “Multi-family dwelling” contained in Section 12-141
of the Code of the City of Fort Collins is hereby amended to read as follows:
Multi-family dwelling shall mean a dwelling containing three (3) or more dwelling units,
not including hotels, motels, fraternity houses and sorority houses and similar group
accommodations.
Section 3. That Section 12-142 of the Code of the City of Fort Collins is hereby
amended by the addition of a new paragraph (c) which reads in its entirety as follows:
Sec. 12-142. Marijuana cultivation.
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. . .
(c) Cultivation within mixed used dwellings. No marijuana plants may be cultivated
or kept within, or on the same legal parcel as, any mixed use dwelling.
Introduced, considered favorably on first reading, and ordered published this 15th day of
September, A.D. 2015, and to be presented for final passage on the 6th day of October, A.D.
2015.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on this 6th day of October, A.D. 2015.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk
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ORDINANCE NO. 119, 2015
BY THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING SECTION 17-194 OF THE CODE OF THE CITY OF FORT COLLINS TO
PROHIBIT THE USE OF ALCOHOL OR ETHANOL IN THE EXTRACTION OF THC OR
OTHER CANNABINOIDS IN LOCATIONS OTHER THAN LICENSED MEDICAL AND
RETAIL MARIJUANA PRODUCTS MANUFACTURING FACILITIES
WHEREAS, the adoption of Amendment 20 added Section 14 to Article XVIII of the
Colorado Constitution, which created an affirmative defense and a limited exception to state
criminal laws for patients and primary caregivers who possess or produce limited amount of
marijuana concentrate for medical use to treat a debilitating medical condition; and
WHEREAS, Article XVIII, Section 14 of the Colorado Constitution prohibits both
patients and primary caregivers from acquiring or producing marijuana concentrate in a way that
endangers the health and well-being of any person; and
WHEREAS, the adoption of Amendment 64 added a new Section 16 to Article XVIII of
the Colorado Constitution, which allowed persons over the age of twenty-one (21) in Colorado to
claim immunity from prosecution under city or state laws for possessing or processing marijuana
concentrate in a quantity of one ounce or less for personal use or for distribution to others
without compensation; and
WHEREAS, Article XVIII, Section 16 of the Colorado Constitution provides that, in the
interest of the health and public safety of our citizenry, marijuana sold in Colorado will be
subject to additional regulations to ensure that consumers are protected; and
WHEREAS, both of these provisions are silent on the question of how and where
marijuana concentrate may be processed for medical or personal use; and
WHEREAS, on May 29, 2015, the Governor signed House Bill 15-1305 into law; and
WHEREAS, House Bill 15-1305 prohibits the use of inherently hazardous substances,
including any liquid chemical, compressed gas, or commercial product such as butane, propane,
and diethyl ether, from being used during the manufacture of marijuana concentrate; and
WHEREAS, House Bill 15-1305 makes it a level two (2) drug felony to use an inherently
hazardous substance in the manufacture of marijuana concentrate; and
WHEREAS, House Bill 15-1305 specifically excludes all forms of alcohol and ethanol
from the definition of inherently hazardous substances; and
WHEREAS, Staff believes the use of alcohol and ethanol in the marijuana extraction
process in locations other than licensed medical and retail marijuana manufacturing products
facilities is a significant danger to the citizens of the City; and
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WHEREAS, the prohibition of compressed gases and solvents currently in the City Code
is a misdemeanor and staff believes the felony charge of HB 15-1305 will be better suited to
protect the citizens of the City; and
WHEREAS, by removing from the City Code provision the current prohibition of
compressed gases and solvents, while retaining the prohibition of the use of alcohol and ethanol
in the extraction process, under the combined provisions of state and local law the City may
continue to guard against a significant danger to the inhabitants of the City; and
WHEREAS, the City has the authority to enact ordinances which are necessary and
proper to provide for the health, safety and welfare of the inhabitants of the City not inconsistent
with the laws of this State; and
WHEREAS, City staff recommends that to better ensure the health, safety and welfare of
the citizens of Fort Collins, the City should replace the current language of the provision
prohibiting flammable gases and solvents with a prohibition against the use of alcohol and
ethanol in the marijuana extraction process in the City other than in licensed medical and retail
marijuana manufacturing facilities; and
WHEREAS, the City Council has determined that these proposed amendments to the
City Code are in the best interests of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS that Section 17-194 of the Code of the City of Fort Collins is hereby amended
to read as follows:
Sec. 17-194. Use of flammable gases, flammable solvents, flammable liquids, and/or
alcohol, including ethanol for extractions prohibited.
No person shall use flammable gases, flammable solvents, flammable liquids and/or
alcohol, including ethanol, in the extraction of THC or other cannabinoids in the City
unless such person is doing so. This Section shall not apply to any person licensed with
the City or State who is extracting or manufacturing THC or other cannabinoids in a
licensed medical marijuana infused products manufacturing facility or in a licensed retail
marijuana products manufacturing facility and in compliance with all applicable state and
city laws, and all rules and regulations promulgated thereunder, including any and all
necessary permits.
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Introduced, considered favorably on first reading, and ordered published this 15th day of
September, A.D. 2015, and to be presented for final passage on the 6th day of October, A.D.
2015.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 6th day of October, A.D. 2015.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk