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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/19/2020 - FIRST READING OF ORDINANCE NO. 072, 2020, RELATINGAgenda Item 13 Item # 13 Page 1 AGENDA ITEM SUMMARY May 19, 2020 City Council STAFF Honore Depew, Interim Policy and Project Manager Bronwyn Scurlock, Legal SUBJECT First Reading of Ordinance No. 072, 2020, Relating to the Extraction of Hemp within Dwellings. EXECUTIVE SUMMARY This item meets the following COVID-19 emergency priority for being on the Council agenda: • Priority 7 - Items that are required to comply with federal or state legal or other requirements. This item is required in order to comply with state law allowing the cultivation, extraction, processing, and manufacturing of industrial hemp and industrial hemp products, and the Uniform Fire Code which permits and regulates the extraction of hemp. The purpose of this item is to amend Article XII, Chapter 12 of the City Code as it relates to the extraction of industrial hemp to clarify that the prohibition on the use of inherently hazardous substances in the extraction process only applies to dwellings, not to commercial businesses. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In September 2019, Council adopted Ordinance No. 103, 2019, adding a new Article XII to Chapter 12 of the City Code relating to the cultivation and extraction of industrial hemp. The purpose of the new article was to regulate the personal cultivation of hemp within the City in the same manner that marijuana cultivation is regulated. The Ordinance also included a section making it unlawful to use inherently hazardous substances in the extraction of hemp to protect the health, safety and welfare of the inhabitants of the City by completely prohibiting the extraction of hemp in residential settings. Recently, staff and the Poudre Fire Authority have received several inquiries regarding the establishment of hemp extraction businesses in the City. It became apparent that the provision added to Chapter 12 regarding the extraction of hemp did not only apply to dwelling units, thereby unintentionally restricting commercial hemp extraction businesses that are otherwise in compliance with the provisions of the International Fire Code and State law. This amendment is necessary in order for Poudre Fire Authority to proceed with investigating and permitting commercial hemp extraction businesses. Agenda Item 13 Item # 13 Page 2 Relationship to Marijuana Although hemp and marijuana are both derived from the cannabis plant, by definition hemp contains less than 0.3% THC (the psychoactive component in marijuana). Hemp is considered an agricultural crop, legal under state and federal law. This ordinance does not amend any zoning designations. Extraction of hemp is considered light industrial, similar to the extraction of essential oils (like lavender). -1- ORDINANCE NO. 072, 2020 OF THE COUNCIL OF THE CITY OF FORT COLLINS RELATING TO THE EXTRACTION OF HEMP WITHIN DWELLINGS WHEREAS, in 2019, the Colorado General Assembly adopted SB19-240 authorizing local governments to adopt ordinances regulating the storage, extraction, processing, or manufacturing of industrial hemp or industrial hemp products; and WHEREAS, Ordinance No. 103, 2019, added a new Article XII to Chapter 12 of the City Code relating to the cultivation and extraction of hemp; and WHEREAS, within that Ordinance, staff recommended locally prohibiting hemp extractions to protect the health, safety and welfare of the inhabitants of Fort Collins in a manner consistent with the laws of the State; and WHEREAS, staff has recently received several requests for hemp extraction businesses to operate within the City; and WHEREAS, as adopted, Article XII, Chapter 12 of the City Code prohibits the use of inherently hazardous substances in the extraction of hemp anywhere in the City; and WHEREAS, these provisions were not intended to prohibit extractions in commercial businesses; and WHEREAS, the provisions of Article XII, Chapter 12 are currently preventing commercial businesses from receiving necessary approval from the Poudre Fire Authority to operate; and WHEREAS, staff recommends amending the Code so as to allow commercial hemp extractions while continuing to prohibit extractions using hazardous substances in residential dwelling units to protect the health, safety and welfare of the inhabitants of Fort Collins. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That Section 12-223 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 12-223. Use of inherently hazardous substances, alcohol, including ethanol for hemp extractions prohibited. -2- It shall be unlawful for any person to knowingly use inherently hazardous substances, or alcohol, including ethanol, in the extraction of THC or other cannabinoids from hemp within any dwelling in the City. Introduced, considered favorably on first reading, and ordered published this 19th day of May, A.D. 2020, and to be presented for final passage on the 2nd day of June, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 2nd day of June, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk