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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/03/2015 - SECOND READING OF ORDINANCE NO. 030, 2015, ADDINGAgenda Item 7 Item # 7 Page 1 AGENDA ITEM SUMMARY March 3, 2015 City Council STAFF Ginny Sawyer, Policy and Project Manager Don Vagge, Police Deputy Chief SUBJECT Second Reading of Ordinance No. 030, 2015, Adding Section 17-194 to the Code of the City of Fort Collins to Prohibit the Use of Flammable Gases, Flammable Solvents, Flammable Liquids, and/or Alcohol in the Extraction of THC or Other Cannabinoids in Locations Other Than Licensed Medical and Retail Marijuana Manufacturing Products Facilities and Deleting Subsection (b)(5) of Section 12-142 of the Code. EXECUTIVE SUMMARY Ordinance No. 030, 2015, adopted unanimously on First Reading on February 17, 2015, prohibits the use of flammable gases and liquids, carbon dioxide, and alcohol in the extraction of THC except in a licensed facility. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, February 17, 2015 (w/o attachments) (PDF) 2. Ordinance No. 030, 2015 (PDF) Agenda Item 15 Item # 15 Page 1 AGENDA ITEM SUMMARY February 17, 2015 City Council STAFF Ginny Sawyer, Policy and Project Manager Don Vagge, Police Deputy Chief SUBJECT Items Relating to Marijuana Code Amendments. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 029, 2015, Amending the Code of the City of Fort Collins to Regulate Cultivation of Marijuana in Locations Other Than Retail Marijuana Establishments and Medical Marijuana Businesses. B. First Reading of Ordinance No. 030, 2015, Adding Section 17-194 to the Code of the City of Fort Collins to Prohibit the Use of Flammable Gases, Flammable Solvents, Flammable Liquids, and/or Alcohol in the Extraction of THC or Other Cannabinoids in Locations Other Than Licensed Medical and Retail Marijuana Manufacturing Products Facilities and Deleting Subsection (b)(5) of Section 12-142 of the Code. C. [OPTION A] First Reading of Ordinance No. 031, 2015, Amending Section 15-609 of Article XVII of the Code of the City of Fort Collins to Allow the Sale or Distribution of Retail Marijuana from Retail Marijuana Cultivation Facilities to Certain Retail Marijuana Stores or Retail Marijuana Cultivation Facilities. Or: [OPTION B] First Reading of Ordinance No. 032, 2015, Amending Section 15-609 of Article XVII of the Code of the City of Fort Collins to Allow the Sale or Distribution of Retail Marijuana from Retail Marijuana Cultivation Facilities to Certain Retail Marijuana Stores or Retail Marijuana Product Manufacturing Facilities. The purpose of this item is to address safety and nuisance gaps in the existing codes and to offer options for potential changes to the existing marijuana wholesale prohibition. Ordinance No. 029, 2015, amends City Code to address non-licensed growing (caregivers or personal use) in non-residential settings. It also allows for greater flexibility in determining what lighting is deemed safe for residential growing. Ordinance No. 030, 2015, prohibits the use of flammable gases and liquids, carbon dioxide, and alcohol in the extraction of THC except in a licensed facility. Ordinances Nos. 031 and 032, 2015, remove the existing prohibition on the wholesale of marijuana between licensed businesses. Option A allows sales only to City-licensed establishments; Option B is not limited to Fort Collins establishments. ATTACHMENT 1 Agenda Item 15 Item # 15 Page 2 STAFF RECOMMENDATION Staff recommends the adoption of Ordinances No. 029 and No. 030, 2015 on First Reading. Should Council opt to remove the wholesale prohibition, staff recommends adoption of Ordinance No. 031, 2015. BACKGROUND / DISCUSSION Fort Collins has been on the leading edge of incorporating and regulating medical, retail, and personal marijuana use and practices. Because this a new and developing arena, anticipating all practices, impacts, and community desires has not been possible. Staff has continued to meet throughout the last year to consider needed improvements and adjustments to our existing codes. The proposed Ordinances are a result of staff experience or community dialogue. Ordinance No. 029, 2015, Amending the Code of the City Of Fort Collins to Regulate Cultivation of Marijuana in Locations Other than Retail Marijuana Establishments and Medical Marijuana Businesses. While licensed grows are heavily regulated there currently are not any regulations in place for caregivers or personal growers who choose to rent warehouse/industrial space for these grow operations. This ordinance requires separate enclosures for each grow, identification on each enclosure identifying the responsible party and providing proof of legal plant count, contents of each enclosure must be viewable, and requires control of odors similar to licensed businesses. This Ordinance also provides the opportunity to adjust to the changing grow-light industry. The current cultivation ordinance regulates and limits the type of lighting allowed in residential units. Staff has received pushback for not allowing high intensity (HID) lighting which runs very hot and requires fans to blow air across them to keep them cool. The industry is rapidly changing so staff is recommending a language change that would say only CFL/LED or lighting approved by the building official is allowed. Ordinance No. 030, 2015, Adding Section 17-194 to the Code of the City of Fort Collins to Prohibit the Use of Flammable Gases, Flammable Solvents, Flammable Liquids, and/or Alcohol in the Extraction of THC or Other Cannabinoids in Locations Other Than Licensed Medical and Retail Marijuana Manufacturing Products Facilities and Deleting Subsection (b)(5) of Section 12-142 of the Code. Fort Collins has seen an increase in explosions as a result of marijuana extraction. This operation is heavily regulated in licensed businesses but not at all in residential units by personal growers/users. Banning flammable gases was originally included in the cultivation ordinance but evidence shows people are extracting with flammable gases and other hazardous materials without actually growing. This Ordinance addresses this activity in Chapter 17 (so police can enforce) and removes it from the cultivation ordinance. Language has also been expanded to include gases, solvents, alcohol, and carbon dioxide. Ordinance No. 031, 2015, Amending Section 15-609 of Article XVII of the Code of the City of Fort Collins to Allow the Sale or Distribution of Retail Marijuana from Retail Marijuana Cultivation Facilities to Certain Retail Marijuana Stores or Retail Marijuana Cultivation Facilities. (Option A) or Ordinance No. 032, 2015, Amending Section 15-609 of Article XVII of the Code of the City of Fort Collins to Allow the Sale or Distribution of Retail Marijuana from Retail Marijuana Cultivation Facilities to Certain Retail Marijuana Stores or Retail Marijuana Product Manufacturing Facilities. (Option B) When the retail marijuana regulations were adopted, they included a prohibition on any wholesaling of marijuana between businesses. This was included, and recommended, as a disincentive for marijuana businesses to grow more than they could sell through their licensed business. Fort Collins is the only Agenda Item 15 Item # 15 Page 3 community to have this restriction and our local businesses are interested in relaxing this regulation. Options and considerations are listed in the table below. ACTION CONSIDERATIONS No Change  Provides disincentive for businesses to grow more than they can sell.  Tightest control on tracking of plants and products.  May put local businesses at a disadvantage. Sales between local businesses  Gives greater flexibility and options to local businesses.  Maintains straightforward plant and product tracking.  Currently, local law enforcement does not have access to the State tracking system. By only having local sales, law enforcement can more readily contact local businesses to ensure legal sales. Sales between all licensed businesses in Colorado  Puts local businesses on even playing field statewide.  Difficult for law enforcement without access to State tracking system. Would be reliant on out-of-town agencies. PUBLIC OUTREACH The City Code amendments in Ordinance Nos. 029 and No. 030, 2015, were shared with the community at the October 4, December 12, and February 9 open houses. Wholesale options were presented at the February 9 open house. The amendment included in Ordinance No. 029, 2015 is a direct result of open house feedback. ATTACHMENTS 1. Powerpoint presentation (PPTX) - 1 - ORDINANCE NO. 030, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADDING SECTION 17-194 TO THE CODE OF THE CITY OF FORT COLLINS TO PROHIBIT THE USE OF FLAMMABLE GASES, FLAMMABLE SOLVENTS, FLAMMABLE LIQUIDS, AND/OR ALCOHOL IN THE EXTRACTION OF THC OR OTHER CANNABINOIDS IN LOCATIONS OTHER THAN LICENSED MEDICAL AND RETAIL MARIJUANA MANUFACTURING PRODUCTS FACILITIES AND DELETING SUBSECTION (b)(5) OF SECTION 12-142 OF THE CODE 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 a 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, as a result in a gap in the law in terms of regulating the appropriate methods and locations where marijuana concentrate may be extracted from marijuana plants, both Fort Collins Police Services and the Poudre Fire Authority have encountered dangerous situations where persons in inappropriate, unregulated settings including dwellings, are using flammable gases, including but not limited to, butane, in the extraction of THC; and WHEREAS, the prohibition of compressed gases and solvents currently in the City Code under a section designed to regulate cultivation within dwellings does not cover situations where a person is not growing marijuana, but is only extracting marijuana with the use of flammable gases; and WHEREAS, C.R.S. Section 9-7-113 provides that a local government may ban the use of a compressed, flammable gas as a solvent in the extraction of THC or other cannabinoids in a residential setting; and - 2 - 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 eliminate the current provision prohibiting compressed gases and solvents under a section of the code dealing with cultivation within dwellings, and prohibit the use of flammable gases, flammable solvents, flammable liquids and/or alcohol in the extraction of THC or other cannabinoids in the City other than in licensed medical and retail marijuana manufacturing facilities; and WHEREAS, City staff recommends that the City Code be amended to include such a prohibition: 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: Section 1. That Section 17-190 of the Code of the City of Fort Collins is hereby amended by the addition of two new definitions, “Cannabinoids” and “Tetrahydrocannabidinol (THC)” which read in their entirety as follows:: Sec. 17-190. Definitions. Cannabinoids shall mean any of a group of closely related compounds that include cannabinol and the active constituents of cannabis. Tetrahydrocannabidinol (THC) shall mean a compound obtained from cannabis or made synthetically, that is the primary intoxicant in marijuana and hashish. Section 2. That Article XI of Chapter 17 of the Code of the City of Fort Collins is hereby amended by the addition of a new Section 17-194 which reads in its entirety as follows: Sec. 17-194. Use of flammable gases, flammable solvents, flammable liquids, and/or alcohol for extractions prohibited. No person shall use flammable gases, flammable solvents, flammable liquids and/or alcohol in the extraction of THC or other cannabinoids in the City unless such person is doing so 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. - 3 - Section 3. That Section 12-142(b)(5) of the Code of the City of Fort Collins is hereby deleted in its entirety and all subsequent subparagraphs are renumbered accordingly: Introduced, considered favorably on first reading, and ordered published this 17th day of February, A.D. 2015, and to be presented for final passage on the 3rd day of March, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 3rd day of March, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk