HomeMy WebLinkAboutMemo - Mail Packet - 4/6/2021 - Memorandum From Ginny Sawyer Re: Lpt Follow Up: Marijuana Advertising And Other Updates
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City Hall
300 LaPorte Ave.
PO Box 580
Fort Collins, CO 80522
970.221.6505
970.224.6107 - fax
fcgov.com
MEMORANDUM
DATE: April 1, 2021
TO: Mayor and Councilmembers
FM: Ginny Sawyer, Senior Project Manager
TH: Darin Atteberry, City Manager
Kelly DiMartino, Deputy City Manager
RE: LPT Follow-up: Marijuana Advertising and Other Updates
The purpose of the memo is to respond to questions from the Leadership Planning Team and to
provide an outline of marijuana related items that could come to Council in 2021.
Bottom Line:
The advertising on the billboard above the Exchange (photo attached) may have violated
Medical Marijuana rules and at staff request has been removed. Staff continues to regulate and
monitor all marijuana businesses. There is not any local regulation on CBD, Kratom, or hemp
products or sales.
Marijuana Advertising
Local ordinance prohibits medical marijuana licensees from advertising using the words
Medical marijuana businesses
are also prohibited from placing signage within 1000 feet of recreation centers and parks. The
sign in question was not installed by a licensed marijuana business. Staff informed the licensee
referenced on the sign that the licensee business logo and address needed to be removed or
the sign removed entirely. The code does not regulate what other businesses (such as vaping
product companies) can advertise; it only addresses what licensed marijuana businesses may
advertise.
Other Production and Sales
More and more non-hallucinogenic products are coming on the market. None of these are
currently regulated either at the state or locally. Enforcement staff has tracked and continues to
track and investigate the sale and content of these products. Staff is also working on code
updates to address vaping and the sale of vaping products.
Hemp Flower:
o Contains CBD and less than 0.3% THC.
CBD (Cannabidiol):
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o Found in marijuana and hemp but is not hallucinogenic and is not regulated
locally. CBD food products are regulated by the Colorado Department of Public
Health and Environment and U.S. Food and Drug Administration.
Kratom:
o A tree indigenous to SE Asia. Sold in powder and leaf form and marketed as a
relaxant. Kratom is not regulated. Police Services is tracking related complaints.
Delta 8 THC:
o This needs research and staff is working on both field and lab tests to determine
THC levels. This is currently being sold in the community and staff is receiving
and investigating complaints.
Marijuana Licensing* and Violations**
The City currently has:
21 Medical Marijuana licenses (11 stores, 8 cultivations, 2 product manufacturing)
28 Retail Marijuana licenses (10 stores, 13 cultivations, 5 product manufacturing)
*Businesses must have and maintain a medical marijuana store license to get a retail marijuana
store license. Manufacturing licenses are required for any extractions or production of products
(oils, edibles, tinctures, etc.)
In 2020:
2 violation notices were issued.
o Sale to a minor ($29K fine)
o Odor ($10K suspended fine)
** The City takes enforcement of marijuana business license rules seriously. With a dedicated
enforcement officer and a dedicated licensing clerk much time is put into education and
outreach. Voluntary compliance is most cost-effective and long-lasting.
The City has received numerous transfer of ownership applications and has managed those in
conjunction with the state Marijuana Enforcement Division.
Potential Updates (Local and State)
Regulations and licensing related to marijuana continue to change and expand on a regular
basis. Staff continuously tracks and evaluates changes for code consistency and to update
Council and City Leadership to potential requests from residents or for local policy decisions.
Code alignment items that staff is planning to bring on consent in Q2:
Aligning store hours of operation and amount of medical sales/week between medical
and retail (and aligning with the state.)
Align local criminal background criteria with the State of Colorado to reflect 3 years for all
felony convictions.
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Policy and regulatory options staff are developing and will bring to Council in Q2 or Q3:
Align medical and retail advertising regulations both locally and to state code. The
recent billboard placement has highlighted discrepancies and vagueness in our code.
Address where vaping is allowed and where vaping products can be acquired to better
address smoke shops, smokable products, and allowable locations for this activity.
New State licenses and programs (FYI only):
Numerous new state licenses have been enacted including Regulated Marijuana
Delivery Permits and Marijuana Hospitality Establishment Licenses. These are designed
- but not received
direction to pursue.
In 2020, a Social Equity Accelerator Program was created through the Department of
Marijuana Enforcement Division pursuant to House Bill 20-1424. This is not
-.
As described above: O-. O-pen paid for
the advertising and are not regulated under local ordinance.