HomeMy WebLinkAbout128 - 12/01/2009 - IMPOSING A MORATORIUM ON THE ACCEPTANCE AND PROCESSING OF APPLICATIONS FOR THE ISSUANCE OF LICENSES }J
ORDINANCE NO. 128, 2009 ,
OF THE COUNCIL OF THE CITY OF FORT COLLINS
IMPOSING A MORATORIUM ON THE ACCEPTANCE AND PROCESSING OF
APPLICATIONS FOR THE ISSUANCE OF LICENSES OR PERMITS RELATED TO
BUSINESSES THAT SEEK TO DISPENSE MEDICAL MARIJUANA AND
ON THE ESTABLISHMENT OR OPERATION OF ANY SUCH NEW
BUSINESSES IN THE CITY
WHEREAS, at the general election held in November, 2000, the voters of the State of
Colorado adopted Amendment 20 to the Colorado Constitution(the"Amendment')adding Article
XVIII to the Constitution; and
WHEREAS, the Amendment creates an affirmative defense to, and exception from, state
criminal laws pertaining to the possession and use of marijuana when such possession or use is for
the treatment of debilitating medical conditions and when certain conditions specified in the
Amendment are met; and
WHEREAS,over recent months,55 businesses offering medical marijuana for sale or other
distribution have obtained or applied for sales tax licenses in the City, and the City is receiving
inquiries on a daily basis from persons interested in establishing additional such businesses in the
City; and
WHEREAS, under the general zoning laws of the City, these businesses, referred to herein
as medical marijuana dispensaries or"MMDs,"likely constitute retail sales operations or clinics that
are permitted uses in a wide variety of zone districts, including those that are primarily intended for
residential use; and
WHEREAS, the City currently has no land use or business regulation concerning the
operation of MMDs; and
WHEREAS, the unregulated operation of MMDs in the City presents serious health and
safety concerns to the citizens of Fort Collins; and
WHEREAS, ambiguities in the wording of the Amendment have created uncertainty as to
which MMDs may properly be considered "primary care-givers" under the Amendment for the
purpose of providing medical marijuana to patients suffering debilitating medical conditions; and
WHEREAS, the Colorado Department of Public Health and Environment (the
"Department'), which is responsible for the administration of the medical marijuana program
established by the Amendment, is continuing to consider changes in its administrative regulations
that govern MMDs as primary care-givers; and
WHEREAS,the same question about MMDs as primary care-givers is currently under review
by the Colorado appellate courts and may also be the subject of proposed legislation in the upcoming
session of the state legislature; and
WHEREAS, municipalities throughout Colorado are struggling to gain control over the
recent proliferation of MMDs and have enacted various kinds of local regulations in an attempt to
curtail abuses of the medical marijuana exception created by the Amendment; and
WHEREAS, a significant period of time will be required in order for the City Manager and
City Attorney and their respective staffs to clarify the evolving state of the law with regard to
MMDs,and to formulate recommended amendments to the City Code to deal with the subject; and
WHEREAS, with the influx of MMDs, the City Council is concerned about its ability to
protect the public welfare and preserve the character of the City's neighborhoods and commercial
areas where MMDs might be located; and
WHEREAS, the imposition of a moratorium for a reasonable period of time on the,,
acceptance, consideration, and approval of all applications for City licenses, permits, and
development proposals related to the operation of MMDs,and on the establishment of MMDs in the
City, will allow City staff and the City Council to investigate the City's ability to regulate such
businesses and develop and implement appropriate regulations; and
WHEREAS,three to four months is a reasonable period of time and no longer than necessary
for the City to determine the extent to which MMDs will be regulated on a statewide basis and to
properly investigate,develop,and, if appropriate,adopt and implement any local regulations related
to MMDs; and
WHEREAS, neither the proprietors of existing and proposed MMDs nor the patients they
serve or intend to serve will be unduly prejudiced by the imposition of such a moratorium, since the
number of existing MMDs in the City should be adequate to meet the medical marijuana needs of
such patients for said period of time.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the recitals contained in this Ordinance are hereby adopted and
incorporated as findings of fact of the City Council.
Section 2. That the proliferation of unregulated MMDs in the City warrants the
imposition of a moratorium because of the serious health and safety concerns presented by such
unregulated MMDs, including the following:
(a) operators of MMDs are subject to a greater risk of violent burglaries and
robberies than the operators of most other businesses because of the presence
of marijuana and substantial amounts of cash on the premises;
-2-
(b) it is very hard to determine which MMDs are lawful and which are not since
there are no licensing or permit requirements for such businesses, no
requirement that records be kept of the number of patients served, no
limitations on quantities or on-site consumption,and no other regulations that
could help investigating officers make such determination;
(c) the on-site production of marijuana can create unsafe conditions on the
business premises such as excessive electrical connections that create fire
hazards and mold and fungus in the areas used to grow the marijuana; and
(d) in the absence of licensing requirements such as those associated with liquor
establishments, there is no way to limit the ownership and operation of
MMDs to persons of good moral character, so as to minimize the illegal
activity that can be associated with such businesses.
Section 3. That, for the purposes of this Ordinance,the following definitions shall apply:
a. Medical mariyuana dispensary or MMD shall mean a property or structure
used to sell, distribute, transmit, give, dispense or otherwise provide
marijuana in any manner to patients or primary care-givers pursuant to the
authority contained in Amendment 20 to the Colorado Constitution and the
implementing state statutes and administrative regulations, except those
properties or structures that are used by an individual primary care-giver to
provide marijuana to a single patient.
b. Patient shall mean a person who has a debilitating medical condition.
Section 4. That it is necessary for thepreservation of the public safety,health,and welfare
to delay the acceptance and processing of applications for City licenses,permits, and development
proposals related to the establishment and operation of medical marijuana dispensaries in the City
until the City has had a reasonable opportunity to determine the extent of the City's regulatory
authority over such businesses and to further determine what regulations,if any, should be imposed
by the City upon these businesses.
Section 5.
a. That a moratorium is hereby imposed, as of the effective date of this
Ordinance (the "Effective Date"), on the acceptance and processing of any
applications to the City for the approval of licenses,permits,or development
proposals related to the establishment or operation of medical marijuana
dispensaries, and on the processing of any pending applications for such
licenses or permits.
-3-
b. That this moratorium shall continue in effect until the 31 st day of March,
2010, or such earlier date as may be determined by the City Council by ordinance.
c. That no medical marijuana dispensaries shall be established or shall operate
within the City after the Effective Date and until the expiration of this
moratorium, except those medical marijuana dispensaries that: (i) to the
extent required under Sections 25 -73 or 25 -74 of the City Code, have been
issued a sales tax license pursuant to an application filed with the City prior
to the Effective Date, and (ii) are in compliance with all zoning requirements
for the property on which they are located.
Section 6 . That no license, permit, or development proposal related to the establishment
or operation of a medical marijuana dispensary that was approved by the City prior to the Effective
Date of this ordinance may be amended during the term of this moratorium.
Section 7 . That all persons applying to the City for the issuance or amendment of a sales
and use tax license during the term of this moratorium shall indicate, on a form approved by the
City, whether any part of the business that is the subject of the application involves the provision
of medical marijuana to patients with debilitating medical conditions or their primary care-givers .
Section 8 . That the failure of any person to provide the information required under
Section 7 of this ordinance, or the provision of any false information to the City related to a sales
tax application, or the establishment or operation of a medical marijuana dispensary contrary to the
provisions of Section 5of this Ordinance during the term of this moratorium shall constitute a
misdemeanor criminal offense punishable as provided in Section 1 - 15 of the Code of the City of Fort
Collins .
Section 9 . That, during the term of this moratorium, the City Manager and City Attorney
are hereby directed to analyze the following issues and develop for City Council consideration
regulations as they may deem necessary and appropriate to address said issues :
a. the extent to which MMDs are legally protected under the Amendment;
b. the impact of MMDs on the character of residential neighborhoods and
commercial areas where they may be located; and
c , any increase that will likely occur in vehicular traffic or in nuisance or
criminal activities in areas where MMDs are located.
Section 10 . That on or before March 2 , 2010, the City Manager and City Attorney are
further hereby directed to present for the City Council ' s formal consideration such laws and
regulations relating to medical marijuana dispensaries in the City as the City Manager considers
-4-
necessary and appropriate for the preservation of the health, safety and welfare of the residents of
the City.
Section 11. That nothing herein shall be construed as decriminalizing or making lawful
in the City any MMD or other business involved in the acquisition, possession, manufacture,
production,use,sale,distribution,dispensing,or transportation of marijuana or related paraphernalia
that is not lawful under state criminal laws.
Introduced, considered favorably on first reading, and ordered published this 17th day of
November,A.D.2009,and to be presented for final passage on 1 s day of December,A.D.2009.
Mayo
l
\ 1
ATTEST:
City Clerk
Passed and adopted on final reading on the 1 st4ayoece- her, A.D. 2009.
Mayor
ATTEST:
ti -
City Clerk
-5-