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HomeMy WebLinkAboutBocc Packet 11202013 Marijuana Retail RegulationsAGENDA ITEM SUMMARY REGULAR MEETING DATE: AGENDA ITEM TITLE: November 20, 2013 An Ordinance of the Board of County Commissioners of Pitkin County, Colorado Repealing and Reenacting Ordinance No. 21-2013 Adopting Pitkin County Retail Marijuana Licensing Regulations to be Added to Title 6 of the Pitkin County Code as Chapter 6.48 STAFF RESPONSIBLE: John Ely, County Attorney ISSUE STATEMENT: This is the first reading of an Ordinance adopting the County's retail marijuana licensing regulations in their entirety to be added to Title 6 of the Pitkin County Code as Chapter 6.48. The first five articles were adopted by the BOCC on September 25, 2013 by Ordinance 21-2013. There were three work sessions to discuss the remaining regulations on October 1, October 17 and November 5, 2013. The attached regulations reflect changes that were discussed by the BOCC during its work sessions, which have been highlighted in redline for clarity but will be adopted without redline. The previously adopted regulations will be repealed and reenacted and the remaining regulations adopted, in one action by this Ordinance. BACKGROUND: Beginning on October 1, 2013, the State of Colorado began accepting and processing applications for State licenses for retail marijuana. Both a State and County license is required before any individual or enterprise can engage in retail marijuana activities. The State will begin issuing licenses in January 2014. The proposed Ordinance authorizes licensing regulations for the cultivation, manufacture, sale, and testing of retail marijuana in unincorporated Pitkin County as provided in § 12- 43.4-301, C.R.S., to protect the health safety, and welfare of the residents of Pitkin County by prescribing the number of retail marijuana establishments in the County and the time, place, and manner in which retail marijuana establishments may be conducted in the County. The majority of the following changes are a result of discussions at the work sessions and appear in the attached regulations in redline: 1. Sections 6.48.010-6.48.050 remain unchanged from their original adoption on September 25, 2013. 2. Section 6.48.060. The BOCC has expressed an intention that not all retail marijuana licenses be available for the same location. No other marijuana licensing facilities may be at the same location as a marijuana cultivation facility with the exception of a marijuana testing facility. Retail sales facilities are restricted to the sale of marijuana and marijuana products only. An alternative appears in the regulations to physical separation of medical marijuana and retail marijuana facilities. This is consistent 1 with the direction taken by state regulations developed by the Department of Revenue ("DOR"). The DOR through the Marijuana Enforcement Division has adopted a MITS program, Marijuana Inventory Tracking System. This system utilizes digital scanning technology on individual marijuana plants to effect a virtual separation of plants, inventory and product to track the marijuana produced from "seed to sale". The DOR is requiring this system and moving away from actual physical separation of facilities. 3. Section 6.48.070(A). The distance requirement in subsection 11 is only applicable at the time of initial application and not at the time for license renewals of individual retail marijuana facilities. 4. Section 6.48.070(C). Adds criteria for consideration of energy consumption of proposed facilities and specifically accepts and adopts County caucus recommendations for a period of one year from the adoption of this regulation and requires referral of all applications to the various affected caucuses for recommendation and comment. 5. Section 6.48.080. Clarifies that a renewal application may be processed administratively without a public hearing only if there are no outstanding complaints regarding the retail marijuana establishment for its previous license term. Also adds language that renewal applications shall contain a description of all previous violations and complaints and their outcome. 6. Section 6.48.100. Language was added to specifically prohibit delivery of marijuana or marijuana products such that all sales transactions for consumers must occur in person. The caretaker requirement for marijuana facilities was relaxed to read that this requirement shall be imposed at the BOCC's discretion. This language was inserted to reflect the physical restrictions of some medical marijuana facilities. Many of these locations and proposed retail marijuana store facilities are anticipated to be of such size that a caretaker unit would not be feasible. 7. Section 6.48.110. Language has been inserted to allow for modification of facilities associated with retail marijuana licenses with appropriate building permit and zoning approval. However, these facilities may not be enlarged nor other buildings included in the operation without a modification to the marijuana facility license. 8. Section 6.48.120. Pitkin County personnel may bring other individuals with them on inspection visits. 9. Section 6.48.130. Language has been inserted in this article to make it clear that complaints will be directed to either the Pitkin County Local Licensing Authority or the Attorney's Office for appropriate investigation. This Ordinance shall be in incorporated into Title 6, the Health and Safety section of the Pitkin County Code as Chapter 6.48 under the heading Pitkin County Retail Marijuana Licensing Regulations. The codification of these regulations shall conform to the existing numeric and subheading practices in the Pitkin County Code. This Ordinance repeals and reenacts Ordinance No. 21-2013. LINK TO STRATEGIC PLAN: Safe and Healthy Community BUDGETARY IMPACT: Cost of the retail marijuana program to be paid by licensing and operating fees 2 RECOMMENDED BOCC ACTION: Approve regulations on first reading and set for adoption and public hearing on December 4, 2013 and direction to staff to rewrite the medical marijuana regulations consistent with these regulations to be brought back to BOCC for consideration. ATTACHMENTS: Proposed Ordinance and Attachment 3 AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO REPEALING AND REENACTING ORDINANCE NO. 21-2013 ADOPTING PITKIN COUNTY RETAIL MARIJUANA LICENSING REGULATIONS TO BE ADDED TO TITLE 6 OF THE PITKIN COUNTY CODE AS CHAPTER 6.48 ORDINANCE NO. -2013 RECITALS 1. Section 16 of Article XVIII of the Colorado Constitution permits the personal use and possession of retail sale marijuana for adults under Colorado law. 2. To enact, restrict, and enforce the state constitution, the General Assembly enacted the Colorado Retail Marijuana Code, Title 12, Article 43.4 of the Colorado Revised Statutes ("CRMC"), which regulates the cultivation, manufacture, sale, and testing of retail marijuana. 3. CRMC authorizes counties and municipalities to determine whether to permit, as a matter of state law, retail marijuana establishments within their jurisdictions. 4. The Board of County Commissioners (the "Board") desires to authorize licensing in unincorporated Pitkin County as provided in § 12-43.4-301, C.R.S.; to establish specific standards and procedures for local licensing of marijuana establishments engaged in the cultivation, manufacture, sale, and testing of retail marijuana and retail marijuana products, as provided by state law to protect the health safety, and welfare of the residents of Pitkin County, by prescribing the number of retail marijuana establishments in the County and the time, place, and manner in which retail marijuana establishments may be conducted in the County. 5. The Board directed the regulations to be in incorporated into Title 6, the Health and Safety section of the Pitkin County Code, as Chapter 6.48 under the heading Pitkin County Retail Marijuana Licensing Regulations. 6. This Ordinance repeals and reenacts Ordinance 21-2013 which had previously adopted a limited portion of the regulations. 7. The Board finds that adoption of this ordinance is necessary for the immediate preservation of the public health, safety and welfare of the citizens of Pitkin County and therefore declares this ordinance and legislation to be effective immediately upon adoption. NOW THEREFORE, BE IT ORDAINED by the Board of County Commissioners of Pitkin County, Colorado that: 1. Ordinance 21-2013 is repealed and reenacted by this ordinance. 2. Pitkin County retail marijuana licensing regulations shall be added to Title 6 of the Pitkin County Code as Chapter 6.48. 3. The codification of these regulations shall conform with the existing numeric and subheading practices in the Pitkin County Code in a form substantially the same as attached hereto. INTRODUCED, FIRST READ, AND SET FOR PUBLIC HEARING ON THE NOVEMBER 20, 2013. NOTICE OF PUBLIC HEARING AND TITLE AND SHORT SUMMARY OF THE ORDINANCE PUBLISHED IN THE ASPEN TIMES WEEKLY ON NOVEMBER 21, 2013. NOTICE OF PUBLIC HEARING AND THE FULL TEXT OF THE ORDINANCE POSTED ON THE OFFICIAL PITKIN COUNTY WEBSITE POSTED ON THE OFFICIAL PITKIN COUNTY WEBSITE (www.aspenpitkin com) ON THE DAY OF NOVEMBER 2013. ADOPTED AFTER FINAL READING AND PUBLIC HEARING ON DECEMBER 4, 2013. PUBLISHED BY TITLE AND SHORT SUMMARY, AFTER ADOPTION, IN THE ASPEN TIMES WEEKLY ON 2013. POSTED ON THE OFFICIAL PITKIN COUNTY WEBSITE POSTED ON THE OFFICIAL PITKIN COUNTY WEBSITE (www.aspenpitkin com) ON 2013. THIS ORDINANCE IS EFFECTIVE ON DECEMBER 4, 2013. ATTEST: BOARD OF COUNTY COMMISSIONERS By By: Jeanette Jones George Newman, Chair Deputy County Clerk Date: APPROVED AS TO FORM: MANAGER APPROVAL John Ely, County Attorney Jon Peacock, County Manager 6.48: PITKIN COUNTY RETAIL MARIJUANA LICENSING REGULATIONS 6.48.010: PURPOSE AND INTENT Section 16 of Article XVIII of the Colorado Constitution permits the personal use and possession and retail sale of marijuana for adults. To enact, restrict, and enforce the state constitution, the General Assembly enacted the Colorado Retail Marijuana Code, Title 12, Article 43.4 of the Colorado Revised Statutes ("CRMC"). The purpose of these regulations is to authorize licensing in unincorporated Pitkin County as provided in § 12-43.4-301, C.R.S., by establishing specific standards and procedures for local licensing of retail marijuana establishments engaged in the cultivation, manufacture, sale, and testing of retail marijuana and retail marijuana products, as provided by state law to protect the health safety, and welfare of the residents of Pitkin County. 6.48.020: DEFINED TERMS The definitions in the CRMC, §12-43.4-103, C.R.S., shall apply to these regulations. The term "Local Licensing Authority" means the Pitkin County Retail Marijuana Licensing Authority. 6.48.030: EFFECTIVE DATE AND APPLICABILITY A. Effective date. These regulations are effective upon final adoption of Ordinance No. - 2013. It shall be unlawful operate a retail marijuana establishment in unincorporated Pitkin County for which a license is required under the CRMC without first having obtained a state license and a Pitkin County license under these regulations. B. Applications for local licenses. The Local Licensing Authority shall receive and process applications for licensing under the CRMC and these regulations. C. No entitlement of vested right. No person shall have any entitlement or vested right to licensing under these regulations. To lawfully engage in the business of cultivation, manufacture, sale, and testing of retail marijuana and retail marijuana products in unincorporated Pitkin County, all persons or entities must obtain a license under these regulations. 6.48.040: LICENSING AUTHORITY The Pitkin County Board of County Commissioners (the "Board") designates the Pitkin County Clerk and Recorder or her designee to act as the Pitkin County Retail Marijuana Licensing Authority. 6.48.050: LICENSES The Board shall issue the following types of retail marijuana licenses should the applicant fulfill the requirements for such license: retail marijuana store license; retail marijuana cultivation 1 facility license; retail marijuana products manufacturing facility license; and retail marijuana testing facility license. 6.48.060: MULTIPLE RETAIL MARIJUANA OR MEDICAL MARIJUANA LICENSES The license requirements in these regulations shall be in addition to, and not in lieu of, any other licensing and permitting requirements imposed by any State of Colorado or Pitkin County law. A valid license is required from both the State of Colorado and Pitkin County before operation of a retail marijuana establishment as provided by the CRMC. Each type of license is separate and distinct from another and confers no right to conduct any activity not specifically licensed. A person may operate a licensed retail marijuana store, retail marijuana cultivation facility, retail marijuana products manufacturing facility, and retail marijuana testing facility license at the same location if appropriate licenses for the activities are obtained. A person may operate a dual medical marijuana facility and licensed retail marijuana establishment if appropriate licenses for the activities are obtained. A dual medical marijuana center and retail marijuana store, dual retail marijuana manufacturing facility and medical marijuana infused products manufacturer, or dual testing facility shall maintain separate licensed uses physically separated in the premises, including entrances and exits, inventory, point of sale operations, and record keeping. A dual medical marijuana optional premises cultivation growing facility and retail marijuana cultivation facility operations shall maintain physical separation of the two facilities, the plants, and inventory of the two facilities. Physical separation is not required if the licensee complies with the Colorado Department of Revenue Marijuana Enforcement Division Marijuana Inventory Tracking System ("MITS"). 6.48.070: LICENSING PROCEDURE AND CRITERIA A. General Procedure. The Local Licensing Authority shall process and maintain all complete local license applications as authorized by these regulations. Only upon receipt of a state retail marijuana license shall a local license application be reviewed and determined by the Board. Upon issuance of a local license, Pitkin County shall inform the state of the local license issuance. All applications for local licensing shall be made upon forms provided by Pitkin County and shall include the following supplemental materials: 1. The type of retail marijuana facility for which the license is sought; 2. Property owner authorization; 3. The name, address and disclosure of the county of residence of the applicant and all individuals with an ownership interest in application; 4. A site plan of all buildings on the property where the premises is located, including a floor plan showing how the floor space is or will be used, parking for the premises, total floor area of the building(s), height of the building(s), total area of the property and the nature and location of any existing or proposed exterior lighting and signage; 2 5. A site plan of any proposed building(s) to be constructed, including a floor plan showing how the floor space is or will be used, location of proposed building(s) on the property, total proposed floor area of the building(s), height of the proposed building(s), the construction material of the proposed building(s), the screening of the proposed building(s); 6. The number of employees; 7. Identification of any interior lighting, screening and odor mitigation equipment and procedures to prevent the outflow of light and odor detrimentally impacting surrounding properties; interior lighting; 8. A list of all other uses on the property; 9. The number of vehicle trips per day expected to be generated by the business; 10. The expected source and level of water use for the premises; 11. Evidence that the premises is not within 1,000 feet of an existing alcohol or drug treatment facility, licensed child care facilities, and or educational facilities at the time of initial licensing as measured from the closest point of the subject property lines; 12. Statement of the relevant zoning; 13. The Local Licensing Authority or the Board at its discretion may require the submission of additional materials as may be useful in making a determination under these regulations. The applicant shall be responsible for submitting materials directly to the Local Licensing Authority. B. Public Hearing. The Board shall schedule a public hearing on any initial application and renewal application as required by these regulations. Notice of the public hearing shall be published by the applicant by posting a sign in a conspicuous place on the license premises for which a local license application has been made, and by publication in the county' s designated newspaper not less than ten days prior to the hearing, consistent with state law. C. Review Criteria. The Board shall consider the following criteria when evaluating a retail marijuana license application: 1. The number of licenses issued for operation of a retail marijuana store; 2. The number of licenses issued for operation of a retail marijuana cultivation facility; 3. The number of licenses issued for operation of a retail marijuana products manufacturing facility; 3 4. The number of licenses issued for operation of a retail marijuana testing facility; 5. Local license applications shall be reviewed in order of receipt of state license and completeness of local license application; 6. The activities associated with each type of retail marijuana establishment for which a license is sought must comply with the zoning for the premises upon which the retail marijuana establishment would be located; 7. The size of the facilities associated with a retail marijuana store license, including set backs from property boundary, visibility and proximity to neighboring properties; 8. The size of the facilities associated with a retail marijuana cultivation license, including set backs from property boundary, visibility and proximity to neighboring properties; 9. The size of the facilities associated with a retail marijuana products manufacturing license, including set backs from property boundary, visibility and proximity to neighboring properties; 10. The size of the facilities associated with a retail marijuana testing license, including set backs from property boundary, visibility and proximity to neighboring properties; 11. The retail marijuana establishment shall not cause a detrimental material increase in traffic impacts; 12. The visibility of the retail marijuana establishment; 13. The number of employees of the retail marijuana establishment; 14. Security concerns regarding the retail marijuana establishment; 15. The physical characteristics of the property upon which the retail marijuana establishment would be located; 16. The expected energy consumption of any proposed facility; 17. A license for a retail marijuana establishment shall not be issued for the following any types of retail marijuana establishments at the following caucus locations: in the Snowmass-Capitol Caucus area and Emma Caucus area for a period of one year following the adoption of these regulations. All applications for any type of retail marijuana establishment shall be referred to the appropriate caucus for recommendation and comment; 18. The degree to which the operation and facilities of the retail marijuana establishment are detrimental to community character; 4 19. The reasonable requirements of the neighborhood, any reasonable restrictions that should be placed upon a retail marijuana establishment, and the concentration of the same class of retail marijuana license; The Board shall grant or deny a license based solely upon its investigation and findings. The Board shall deny any application that is not in full compliance with these regulations. 6.48.080: TERM OF LICENSE; RENEWAL Any Pitkin County license issued under these regulations shall be valid for a period of one year from the date of issuance. A licensee shall submit a renewal application at least 30 days before the expiration of the license. Renewal applications may be processed administratively without a public hearing by the Pitkin County Retail Marijuana Licensing Authority only if the application is complete and the full renewal operating fee is paid, no violation of these regulations occurred during the previous license term, no changes to the license are requested, there was continuous operation of the retail marijuana establishment during the preceding three months and no unresolved complaints were made are outstanding regarding the retail marijuana establishment during concerning the previous license term. If a renewal application does not meet the requirements to be processed administratively, then the renewal application shall be heard by BOCC at public hearing under procedures in § 6.48.070(B) and review criteria contained in § 6.48.070(C). Renewal applications shall contain a description of all previous violations and complaints and their outcome. The Local Licensing Authority shall not accept an application for renewal of a license after 30 days prior to the date of expiration, except as otherwise provided in this section. The Local Licensing Authority may extend the expiration date of the license one time for a maximum of 30 days and accept a late application for renewal of a license provided that the applicant has filed a timely renewal application with the state licensing authority. 6.48.090: SIGNS No advertising sign or logo shall be permitted on any retail marijuana cultivation facilities. One advertising sign or logo may be placed to identify the retail marijuana establishment other than cultivation facilities, which shall comply with the Pitkin County Code § 7-60-50. 6.48.100: FACILITY REQUIREMENTS A. All retail marijuana and marijuana products shall be stored within a completely enclosed, alarmed, and secure building at all times; B. All retail marijuana establishments shall satisfy all applicable Pitkin County Building, Land Use, and Fire Codes; C. All retail marijuana establishments shall be equipped with a proper ventilation system so that odors are filtered and do not materially interfere with the enjoyment of adjoining property; 5 D. No retail marijuana establishment shall be permitted to operate from a moveable, mobile or transitory facility, or make deliveries to retail consumers; E. All retail marijuana stores all retail marijuana products manufacturing facilities and all retail FfraFi-jeaea-tes-tieg-faeilitie-s-shall not open earlier than 9:00 a.m. and shall close no later than 9:00 p.m. There is no limit on the hours of operation ef for retail marijuana products manufacturing facilities, retail marijuana testing facilities and retail marijuana cultivation facilities; F. All retail marijuana establishments must comply with current Pitkin County Zoning requirements. Cultivation of marijuana may not be considered agricultural activity; G. At the discretion of the Board, a retail marijuana establishment shall have an on -site caretaker or other resident occupant; _(h) No retail marijuana establishment shall be located within 1,000 feet of an alcohol or drug treatment facility, licensed child care facilities, and educational facilities as measured from the H. Any change of financial ownership interest or the ownership interest of any of the individuals associated with the retail marijuana establishment for which the license is granted shall be reported to the Pitkin County Retail Marijuana Licensing Authority within 7 days; I. No sales of products other than marijuana or products containing marijuana shall be available for sale at retail marijuana stores. No individuals under the age of 21 shall be allowed admittance into any retail marijuana store; J. All licensees must maintain with the Pitkin County Licensing Authority an up to date list of contact information for anyone in a managerial capacity for any retail marijuana establishment. A manager shall be any individual with the authority and responsibility to respond to any law enforcement inquiry, inspection request, emergency situation at the facility or any other circumstance requiring immediate attention and action. K. All licensees must maintain with the Pitkin County licensing authority a current list of employees that discloses names, addresses images, results of state background checks, and any occupational licenses. 6.48.110: CHANGES IN LICENSE A. Transfer of Ownership. Any license issued under these regulations or renewal of such license is not transferable or assignable; B. Change of Location. Any license granted under these regulations is limited to the location(s) specified on the license. Operation of a retail marijuana store license; retail marijuana cultivation facility license; retail marijuana products manufacturing facility license; retail marijuana testing facility license at a new location requires a new license; 6 C. Modification of premises. Licenses issued are based upon representations made in the application. Any structures identified in the application may not be modified enlarged nor additional structures added to the licensed retail marijuana establishment until a modification to the license is granted through application procedure in § 6.48.070(B) and pursuant to the review criteria contained in § 6.48.070(C). 6.48.120: INSPECTION By signing and submitting a license application, the owner(s) of the premises and the license holder(s) consent to inspections of the premises by Pitkin County personnel and individuals accompanied by Pitkin County personnel for the purpose of determining compliance with state and county law. 6.48.130: PENALTIES & REVOCATION A. The Board has the authority to suspend, restrict, or revoke a license or impose a fine upon any violation of these regulations or license requirements or any rule promulgated pursuant to these regulations; B. Any violation of the Pitkin County Retail Marijuana Licensing Regulations or licensing requirements may be subject to a fine of up to $1,000 per occurrence. Each day a violation exists shall be considered a separate occurrence subject to fine; C. Any complaint of a violation of Pitkin County Retail Marijuana Licensing Regulations or license requirements shall be referred to either the Pitkin County Marijuana Licensing Authority or the Pitkin County Attorney's Office and investigated if appropriate. investigated by Pitkin County. If upon investigation by Pitkin County a violation is found, a hearing on the violation will be presided over by the Pitkin County Hearing Officer. Upon the Pitkin County Hearing Officer's determination a violation occurred, the Board may suspend, restrict or revoke a license and/or impose a fine. Pitkin County shall defer to the state to enforce compliance with the requirements of the CRMC and any other state regulations not covered by these regulations. A licensee may appeal the determination of violation by the Pitkin County Hearing Officer to the Board at the same hearing in which the Board shall determine the imposition of the penalty. 6.48.140: OPERATING FEES Operating Fees Retail marijuana store $5,000 Retail marijuana cultivation facility $5,000 Retail marijuana products manufacturing facility $5,000 Retail marijuana testing facility $5,000 Make checks payable to: Pitkin County Treasurer. All fees are nonrefundable and must be paid at or before the time any license is issued. The Board of County Commissioners has authority to set and amend operating fees. 7