HomeMy WebLinkAboutBocc Packet 01222014 Retail Marijuana License RegulationsAGENDA ITEM SUMMARY
REGULAR MEETING DATE:
AGENDA ITEM TITLE:
January 22, 2014
An Ordinance of the Board of County
Commissioners of Pitkin County, Colorado
Repealing Ordinance No. 21-2013 and 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, continued from the regular meeting on November 20, 2013.
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 the form resulting from
the BOCC's work session discussions. The previously adopted regulations will be repealed
and the regulations in their entirety will be 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 time, place, and manner in which retail marijuana
establishments may conduct business in the County.
Previous sections of these regulations discussed particularly by the Board have been:
1. Sections 6.48.010-6.48.050 remain essentially 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
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
1
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
at the licensed location. 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.
Additionally, the Board may wish to consider allowing a preference for local businesses
or a temporary cap on the number of licenses. Initially, it was anticipated that these
regulations would be adopted in 2013. State law establishes a preference in the granting
of retail licenses to medical marijuana licensees. This preference expires on October 1,
2014. To extend this preference, the Board may consider a cap on licenses or reducing
their general availability until sometime after October 1, 2014 to encourage local, existing
entrepreneurs.
2
There has been some discussion with the law enforcement community, specifically by
Pitkin County Sheriff, Joe DiSalvo, that retail marijuana licensees should have some type
of training, analogous to T.I.P.S. training for the sale of alcohol, to assist customers
purchasing retail marijuana. This would be particularly valuable for customers not
familiar with consuming infused marijuana products or high concentrated THC
marijuana. There is no such program development as yet. However, a requirement
dealing with this issue has been inserted in Section 6.48.100(K).
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 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
RECOMMENDED BOCC ACTION: Approve regulations on first reading and set for
adoption and public hearing on February 12, 2014 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
ORDINANCE NO. 21-2013 AND ADOPTING PITKIN COUNTY
RETAIL MARIJUANA LICENSING REGULATIONS
TO BE ADDED TO TITLE 6 OF THE PITKIN
COUNTY CODE AS CHAPTER 6.48
ORDINANCE NO. -2014
RECITALS
1. Section 16 of Article XVIII of the Colorado Constitution permits the personal use and
possession and retail sale of marijuana for adults.
2. To implement 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 time, place, and manner in which retail
marijuana establishments may conduct business in the County.
5. The Board directed these 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 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 by this ordinance.
ORDINANCE # -2014
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 ON NOVEMBER 20, 2013. CONTINUED TO JANUARY 22, 2014.
FIRST READ ON JANUARY 22, 2014 AND SET FOR PUBLIC HEARING ON FEBRUARY
12, 2014.
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 NOVEMBER 22, 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 JANUARY , 2014.
ADOPTED AFTER FINAL READING AND PUBLIC HEARING ON FEBRUARY 12, 2014.
PUBLISHED BY TITLE AND SHORT SUMMARY, AFTER ADOPTION, IN THE ASPEN
TIMES WEEKLY ON 2014.
POSTED ON THE OFFICIAL PITKIN COUNTY WEBSITE POSTED ON THE OFFICIAL
PITKIN COUNTY WEBSITE (www.aspenpitkin com) ON 2014.
THIS ORDINANCE IS EFFECTIVE ON FEBRUARY 12, 2014.
ATTEST: BOARD OF COUNTY COMMISSIONERS
By By:
Jeanette Jones Robert A. Ittner, Jr., Chair
Deputy County Clerk
Date:
APPROVED AS TO FORM: MANAGER APPROVAL
John Ely, County Attorney Jon Peacock, County Manager
2
6.48: PITKIN COUNTY RETAIL MARIJUANA LICENSING REGULATIONS
6.48.010: PURPOSE AND INTENT
Section 16 of Article XVIII of the Colorado Constitution decriminalizes the personal use and
possession and retail sale of marijuana for adults. To implement 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.
The term "Board" shall mean the Pitkin County Board of County Commissioners.
6.48.030: EFFECTIVE DATE AND APPLICABILITY
A. Effective date. These regulations are effective upon final adoption of Ordinance No.
-2014. 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 or 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 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.
Local license applications shall be reviewed in order of receipt of state license and completeness
of local license application.
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 products manufacturing
facility, and retail marijuana testing facility at the same location if appropriate licenses for the
activities are obtained. The location of a retail marijuana cultivation facility may only be shared
with a retail marijuana testing facility or an optional premises cultivation facility for medical
marijuana if appropriate licenses for the facility 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 may share the same location if appropriate
licenses are obtained, but these licenses shall maintain 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 information:
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 the application;
4. A site plan of all existing buildings on the property where the premises is located,
including a floor plan showing how the floor space will be used, parking for the
2
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;
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, their names, addresses, ages, the results of any
background checks and if they hold occupational licenses;
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 and disposal of any
waste water, waste marijuana or waste marijuana products;
11. Evidence that the premises is not within 1,000 feet of an existing alcohol or drug
treatment facility, licensed child care facilities, 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.
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;
3
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;
4. The number of licenses issued for operation of a retail marijuana testing facility;
5. 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;
6. The size of the facilities associated with a retail marijuana store license, including
setbacks from property boundary, visibility and proximity to neighboring
properties;
7. The size of the facilities associated with a retail marijuana cultivation license,
including setbacks from property boundary, visibility and proximity to
neighboring properties;
8. The size of the facilities associated with a retail marijuana products
manufacturing license, including setbacks from property boundary, visibility and
proximity to neighboring properties;
9. The size of the facilities associated with a retail marijuana testing license,
including setbacks from property boundary, visibility and proximity to
neighboring properties;
10. The retail marijuana establishment shall not cause a detrimental material increase
in traffic impacts;
11. The visibility of the retail marijuana establishment;
12. The number of employees of the retail marijuana establishment;
13. Security concerns regarding the retail marijuana establishment;
14. The physical characteristics of the property upon which the retail marijuana
establishment would be located;
15. The expected energy consumption of any proposed facility;
16. A license for a retail marijuana establishment shall not be issued for any type of
retail marijuana establishments in the Snowmass-Capitol Caucus area and Emma
Caucus area for a period of one year following the adoption of these regulations.
4
All applications for any type of retail marijuana establishment shall be referred to
the appropriate caucus for recommendation and comment;
17. The degree to which the operation and facilities of the retail marijuana
establishment are detrimental to community character;
18. 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
complaints are outstanding regarding the retail marijuana establishment 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
5
A. All retail marijuana and marijuana products that have been prepared for sale, testing,
infusion or manufacturing 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, Zoning, 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.
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 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 for retail marijuana products
manufacturing facilities, retail marijuana testing facilities and retail marijuana cultivation
facilities.
F. At the discretion of the Board, a retail marijuana establishment shall have an on -site
caretaker or other resident occupant.
G. Any change of the ownership interest of any of the individuals or entities 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.
H. 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.
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.
J. All licensees must maintain with the Pitkin County licensing authority a current list of
employees that discloses names, addresses, ages, results of state background checks, and
any occupational licenses.
K. All retail marijuana store licensees, their agents or employees and anyone conducting
sales to the general public shall be familiar with the potency of all products for sale and
shall assist customers with their purchases by advising customers of expected effect, and
the duration, strength and delay after actual consumption, of the expected effect for each
infused product or strain of marijuana.
6
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.
C. Modification of premises. Licenses issued are based upon representations made in the
application. Any structures identified in the application may not be 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. 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
7
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
Payments shall be received by the Pitkin County Treasurer. All fees are nonrefundable and must
be paid at or before the time of any license application. The Board of County Commissioners
has authority to set and amend operating fees. All fees associated with these regulations shall be
used as general funds of Pitkin County.
8