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HomeMy WebLinkAboutR14-011 Medial and Retail Marijuana Business Licensing Regulations Adoption a Commissioner 41 ' A4" moved adoption of the following Resolution: BOARD OF COUNTY COMMISSIONERS COUNTY OF EAGLE, STATE OF COLORADO RESOLUTION NO. 204- 0 C A RESOLUTION ADOPTING EAGLE COUNTY MEDICAL AND RETAIL MARIJUANA BUSINESS LICENSING REGULATIONS WHEREAS, Article XVIII, Sections 14 and 16, of the Colorado Constitution allows limited, regulated medical and retail uses of marijuana; WHEREAS, the Colorado legislature enacted articles 43.3 and 43.4 of Title 12 of the Colorado Revised Statutes that authorized counties to determine whether to permit certain medical and retail marijuana businesses within their jurisdictions and, if so, to develop local licensing standards; WHEREAS, the Board of County Commissioners for the County of Eagle, Colorado ("Board") desires to authorize licensing in unincorporated Eagle County as permitted by state law, to establish specific standards for local licensing, and proscribe the manner in which marijuana businesses can be conducted in Eagle County; WHEREAS, amendments to the Eagle County Land Use Regulations have been adopted to provide for certain zoning, distance and use requirements for marijuana businesses; WHEREAS,the Eagle County Medical and Retail Marijuana Business Licensing Regulations ("Local Regulations") were adopted on December 31, 2013 per Resolution No. 2013-124; and WHEREAS, the Board desires to now amend the Local Regulations to allow, but not require, the Local Licensing Authority to give a preference to those applicants who had submitted a completed medical marijuana center license application and such application was pending with Eagle County at the time these Local Regulations became effective (December 31, 2013), provided the applicant can show that it has diligently worked toward obtaining its medical marijuana license. NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF EAGLE, STATE OF COLORADO: THAT,the Eagle County Medical and Retail Marijuana Business Licensing Regulations, as amended in the attached, are hereby adopted and approved. MOVED, READ AND ADOPTED by the Board of County Commissioners of the County of Eagle, State of Colorado, at its regular meeting held the 11th day of March, 2014. -1 - _ Y OF EAGLE, STATE OF 0.!!Itoi•4. P O, By and Through Its ATTEST: �5 4(''T-1171' 1 C• . NTY COM �i NERS Cler o the Boar of ill H. Ryan, Chair County Commissioner Sara J Fisher, mmissioner ei 147/1-<ifa Kathy h.ndler-Henry, ommi Y ner Commissioner CA-Pu0LAZ.44— - seconded adoption of the foregoing resolution. The roll having been called, the vote was as follows: Commissioner Ryan " Commissioner Fisher Commissioner Chandler-Henry " This Resolution passed by 5/ D vote of the Board of County Commissioners of the County of Eagle, State of Colorado. -2 - ,6114 EAGLE COUNTY EAGLE COUNTY MEDICAL AND RETAIL MARIJUANA BUSINESS LICENSING REGULATIONS Article 1: Applicability and Purpose. Regulated medical and retail marijuana use is allowed in Colorado under the provisions of Sections 14 and 16 of Article XVIII of the Colorado Constitution; the Colorado Medical Marijuana Code, Article 43.3 of title 12, C.R.S.; the Colorado Retail Marijuana Code, Article 43.4 of title 12, C.R.S.; and rules promulgated pursuant to these authorities, 1 CCR 212-1 and 1 CCR 212-2 ("State Regulations"). These laws authorize counties and municipalities to permit and regulate certain medical and retail marijuana establishments ("marijuana business") within their jurisdictions. The purpose of these regulations is to further prescribe the manner in which marijuana businesses can be conducted in unincorporated Eagle County and to authorize licensing in Eagle County as provided in §12-43.3-301 and§12-43.4-301, C.R.S., as amended. These regulations shall have no applicability within any local municipality. Article 2: Applicability. All licenses must comply with the regulations set forth herein; all other applicable State laws, rules and regulations as amended; and all County Land Use, Building Code, and other rules and regulations as amended. A person or entity must obtain a license in accordance with these regulations ("Local Regulations") and the applicable State Regulations prior to operating a marijuana business in Eagle County. All terms in these Local Regulations shall have the same • meaning and definition as in the Eagle County Land Use Regulations, the State Regulations, and all rules duly adopted by the State Licensing Authority or Marijuana Enforcement Division unless specifically stated otherwise. Article 3: Effective date and applicability. (a) Effective date. These regulations shall become effective upon adoption by the Board of County Commissioners for Eagle County. It shall be unlawful to operate any marijuana business in unincorporated Eagle County without first having obtained a local license under these Local Regulations and a State license under the State Regulations. These regulations shall replace and supersede prior resolutions and regulations dealing with medical Page 1 marijuana businesses licensing in Eagle County. Existing medical marijuana business licenses will remain effective for the remainder of their term unless otherwise revoked or suspended as provided for herein. (b) Applications for local licenses. On and after January 1, 2014,Eagle County shall begin receiving and processing applications for licensing under these Local Regulations. Article 4: Local Licensing Authority. The Eagle County Board of County Commissioners (the "Board") shall be the Local Licensing Authority ("Authority") and may appoint an individual to serve in this capacity in its sole discretion. The Board hereby appoints the Eagle County Planning Director or his designee to act in this capacity. Article 5: Licenses. (a) License Types. The Authority is authorized to issue the following local licenses should the applicant fulfill the requirements: medical marijuana center license; optional premises cultivation license; medical marijuana-infused products manufacturing license; retail marijuana store license;retail marijuana cultivation facility license; retail marijuana products manufacturing license, and a retail marijuana testing facility license. The licensing requirements in these regulations shall be in addition to, and not in lieu of, any other licensing and permitting requirements imposed by any other law or regulations applicable to the operation of marijuana business. A separate license shall be required from the State as provided by the State Regulations. (b) State License Requirement. Should the Authority approve an application of a local license, no such license shall be issued or effective until and unless the State Licensing Authority has approved the issuance of a State License for the proposed licensed premises. (c) Inspection. No such license shall be issued or effective until the building in which the licensed business operations are to be conducted is ready for occupancy with such furniture, fixtures, and equipment in place as are necessary to comply with applicable provisions of any State Regulations and Local Regulations, and only after the Authority, or its designated representative,has inspected the proposed licensed premises to determine that the applicant(s) has complied with the drawings and requirements provided herein. Article 6: Licensing Procedure. (a) General Procedure. The Authority shall consider and act upon all complete local license applications as authorized by these regulations unless otherwise stated herein. The Authority shall defer to the State to enforce compliance with the requirements in the State Regulations. The Authority shall grant, conditionally grant or deny a license based solely upon the Authority's investigation and findings, and no public hearing shall be required. The Page 2 Authority may deny any application or revoke any license that is not in full compliance with these regulations. (b) Application Forms. All applications for local licensing shall be made upon forms provided by the Authority or the State and shall include any supplemental materials as required by the State, these Regulations, the Authority, or the County Land Use and Building Codes. (c) Concurrent Application. As may be provided for under the State Regulations, upon receipt of a local licensing application under these regulations, the Authority may request that the State Licensing Authority conduct a concurrent review of a new license application and that the State advises the Authority of any items it finds that could result in the denial of the license. The applicant shall be responsible for submitting any required fees and materials directly to the State Licensing Authority under the State Regulations when a request is made. If the Authority receives such a notice from the State, the Authority shall suspend its review of the local license until it receives a notice from the State Licensing Authority that the noted discrepancies have been corrected. Article 7: Licensing Requirements. Before issuing a local license for a marijuana business, the Authority shall require that the applicant provide the requisite information necessary to determine that all of the following requirements have been met by the applicant: (a) The applicant has provided evidence that the appropriate application, renewal, or operating fees have been paid; (b) The.applicant has obtained a confirmation or authorization from the Eagle County Planning Department that states the use is permitted in the zone district proposed and the owner has obtained all required approvals under the Eagle County Land Use Regulations as determined by the Planning Director. To obtain such letter or authorization, the applicant shall provide a detailed legal description of the precise location and a map showing the following uses in the immediate vicinity: 1) any residences that are not part of a mixed-use commercial/residential development or within an Commercial General or Commercial Limited zone district, 2) any drug or alcohol rehabilitation facilities, 3) any public community centers or publically owned or maintained buildings open for use to the general public, 4) any public school or private school, and public park or playground, 5) any licensed child care facility, and 6) any other sensitive use that may be identified in the Eagle County Land Use Regulations, as may be amended from time to time. The map must show the distance of these uses from the proposed location, measured in accordance with the Eagle County Land Use Regulations, and must demonstrate that the proposed location meets the required separation distance; (c) The applicant has obtained a confirmation from the Eagle County Building Inspector that states the proposed structure and use comply with all applicable building code provisions and all necessary building permits have been obtained. To obtain such letter, the applicant shall provide a detailed floor plan layout drawn to scale which clearly reflects the uses, Page 3 functions, and operations within the building. The plan shall show mechanical functions such as cooling and ventilation systems, filters and discharge systems and locations, heating systems, grow light configurations, wall construction and separation from other occupants, and any other information necessary as determined by the Building Inspector; (d) The applicant has submitted a detailed report on the effective mitigation of any odors of the proposed operation or the mitigation and rectification of any past odors reported from the activity. Such report shall include proof that the design for the purification of air and odor shall have been either prepared or approved by a professional licensed mechanical engineer to the standards contained in the Local Regulations or as otherwise may be required to show proper ventilation systems so that odors are filtered and do not materially interfere with adjoining businesses or residences; (e) The applicant has submitted evidence that no zoning violations exist on the property or any property in the County owned by the applicant; (I) The applicant has obtained and submitted a confirmation from the Eagle County Treasurer showing that all property taxes have been paid and no tax liens exist on the property; (g) For renewals, the applicant has obtained and submitted proof from the Department of Revenue that all applicable excise and sales taxes have been paid during the prior licensed term; (h) The applicant has obtained and submitted proof of possession of the proposed licensed premises for the duration of the license; (i) The applicant has submitted letters to the appropriate fire and law enforcement personnel describing the location and nature of the proposed business; (j) The applicant has obtained and submitted confirmation that it or an entity associated with the applicant has not violated any State Regulations or Local Regulations during any previous licensed terms or a detailed description on how the applicant has satisfactorily corrected and mitigated any such past violation; (k) The applicant has obtained and submitted a copy of a State license or conditional license. For renewals or licenses requiring local approval prior to State approval, the applicant has submitted proof that all State Regulations pertaining to license submittal have been satisfied which may include a complete copy of the State application; (1) The applicant has submitted evidence that the nature and location of any existing or proposed exterior lighting and signage complies with all applicable sign codes of Eagle County and any additional conditions that may be placed on exterior lighting and signage in the discretion of the Authority; Page 4 (m) The applicant has submitted a listing of all other uses on the property and the uses of properties immediately surrounding the proposed licensed premises; (n) The applicant has provided the expected source and level of water use for the premises and evidence of permits or other applicable documentation showing the availability or ownership of water rights sufficient to meet such use; (o) The applicant has provided a copy of the applicable state sales tax license for the business; (p) The applicant has provided a marijuana management plan detailing the training program for employees and staff that shall contain, at a minimum, educational and operational standards on the prevention of sale or distribution of marijuana products to anyone under the age of twenty-one (21) years old. Such plan should detail any efforts being made or proposed to be made by the applicant to educate the community or otherwise participate in community outreach regarding the topic of underage marijuana use; (q) The applicant has obtained and submitted any additional materials that, in the discretion of the Authority, is necessary to make a determination under these regulations; (r) The Authority may waive, at its discretion, specific submission requirements. The Authority may refuse to accept an incomplete application. The Authority will refuse to accept an application if the approval of the license would exceed the cap on licenses holders as set forth in Article 14 below. Article 8: Fees. The operating fees for all local licenses shall be $2000. The operating fees for renewals shall be $1500. These operating fees must be paid upon application for a new license and annually upon renewal application. These fees will be refundable if the license is denied or the application is rejected. These fees are non-refundable once a license is issued and will not be prorated if the licensed holder ceases operations at the licensed premises for any reason during the term of the license. Such operating fee is to cover the County's costs, including but not limited to inspection, administration, and enforcement of marijuana businesses. Such fee may be adjusted by the Authority at any time and will become effective upon existing marijuana businesses during the succeeding license period. These fees for new licenses are payable regardless of whether multiple licenses are collocated on one premise. Notwithstanding the foregoing, renewal fees for multiple licenses collocated on the same premises shall be $2500 for every two (2) license collocated on the premises. Article 9: Changes in License. (a) Transfer of Ownership. Any license issued under these regulations is not transferable or assignable. Any change of ownership shall require a new license. Page 5 (b) Change of Location. Any license granted under these regulations is limited to the location(s) specified on the license application. Operation of a marijuana business at a new location requires a new license. Operating Fees paid for a prior location may not be applied to ' the new location. When making a change of location application, any existing license holder in good standing shall be given a preference for a new license pursuant to Article 14 hereunder. Notwithstanding such numerical limit preference, the approval of such license shall be subject to the approval criteria set forth in Article 12 hereunder. (c) Modification of premises. Modification of any building structure where a marijuana business is located is subject to all applicable provisions of the Eagle County Land Use and Building Codes. Article 10: Term of license; renewal. Any local license issued under these regulations shall be valid for a period of one (1) year from the date of issuance. Applications for renewals shall be processed in the same manner as new licenses under these regulations. A licensee shall submit a renewal application at least forty- five (45) days before the expiration of the license. Upon denial or revocation of a State license, any license issued under these regulations shall be null and void. If a court of competent jurisdiction determines that the issuance of local licenses violates any State or federal law, all licenses issued under these regulations shall be deemed immediately revoked by operation of law, with no ground for appeal or other redress on behalf of the licensee. Notwithstanding the provisions of this Article 10, a licensee whose license has been expired not more than ninety (90) days may file a late renewal application upon the payment of an additional and nonrefundable late fee of five hundred dollars to the Authority. Such fee shall be considered additional operating fees for the processing of the late application. A licensee who files a late renewal application and pays the requisite fees may continue to operate until the Authority takes final action to approve or deny the licensee's late renewal application. However, late renewal applications without good cause shown may be grounds for denial of the license application. Article 11: Violations. The Authority, in its reasonable discretion, may suspend or revoke a license for any of the reasons set forth in Article 12 below. If the Authority determines that a violation has occurred, it shall document the violation and notify the violator in writing of any suspension or revocation as a result. Notifications and decisions of the Authority may be delivered by mailing to the address submitted to the Authority on the most recent application, posting on the premises, or by personal service. Notification and decisions shall be deemed received three (3)business days after placement in the United States Mail, one (1) business day after posting on the licenses premises, and on the day of personal service. The Authority also has the ability to issue a notice to correct any continuing violation in lieu of a suspension or revocation. License holders will comply with notices to correct issued by Page 6 the Authority within ten (10) days of notification. Failure to timely correct such violations will also be grounds for immediate suspension or revocation. The Authority, in its sole discretion, may also accept a fine-in-lieu of suspension in an amount between five hundred ($500) and five thousand ($5000) dollars depending upon the nature and severity of the violation. Article 12: Denial of a license or renewal. The Authority may deny a license or renewal for any reasons articulated in the State Regulations and these Local Regulations, including but not limited to: 1. Submission of an incomplete application; 2. Submission of a late renewal without good cause for such delay; 3. Violation or failure to comply with any terms, conditions, or provisions of State Regulations, any rules promulgated pursuant to the Code, or any supplemental local law, rules or regulations; 4. Failure to comply with any special terms of conditions that were placed in the license by the State or this Authority. Pursuant to 12-43.4-309, the Authority is authorized to impose any conditions that in its reasonable discretion are necessary to address odors, neighborhood compatibility, and safety issues of any proposed license; 5. Operation of the premises in a manner that adversely affects the public health or the safety of the immediate neighborhood in which the establishment is located; 6. Failure to obtain or remain in good standing with an additional current or past medical marijuana license or retail marijuana license by the applicant or an entity associated with or related to the applicant; and 7. Exceeding the cap on licenses holders as set forth in Article 14 below. Article 13: Decision and Appeal. Any decision of the Authority regarding an application, renewal, suspension or revocation shall be in writing specifying the reasons for the decision. Decisions may be delivered and will be deemed received as set forth in Article 11 above. Within ten (10) days of a decision, the applicant or license holder may request that the Authority reconsider its decision by submitting a letter to the Authority clearly stating the grounds for the request. In response, the Authority may deny the request or issue a revised decision. The decision of the Eagle County Planning Director under these Local shall constitute a final administrative officer or agency decision appealable to the Eagle County Board of County Commissioners pursuant to the applicable provisions of Article 1.16 of the Eagle County Land Use Regulations. No additional hearing or appeal rights, including but not limited to such hearings allowed under C.R.S 12-43.4-302, shall be provided to applicants under these Local Regulations. At all times, the license holder or applicant bears the burden of proving it has not committed a violation or is qualified to hold a license by a preponderance of the evidence Page 7 • standard. If an appeal is filed, the Authority's decision shall be stayed until such appeal is finally resolved by the Board of County Commissioners. Article 14: Retail Marijuana Store License Caps. Pursuant to State Regulations, particularly §12-43.4-301, C.R.S. as amended, the Authority is limiting the number of retail marijuana store licenses that may be issued and active at one time in unincorporated Eagle County. The numerical limit of such licenses shall be eight (8). Of this limit, two (2) will be reserved for that portion of Eagle County in the Roaring Fork Valley and six (6) may be issued in the other allowable areas within unincorporated Eagle County. For the first one hundred-eighty (180) days that these Local Regulations are effective, there shall be reserved from the six (6) available licenses a number equal to the active medical marijuana center license holders currently operating in unincorporated Eagle County and in good standing with both state and local licensing regulations at the time these Local Regulations become effective. These medical marijuana center license holders will have this time to make a retail marijuana store license application with the Authority and will be given priority over additional applicants. If these holders have not made a complete application during this period, these reserved licenses will be released to other interested applicants. Additionally, those existing licenses in good standing making a change of location application pursuant to Article 9(b) herein, will be given a preference on the numerical limits herein. Available licenses will be issued on a first-come, first-serve basis. The time of filing a complete application will be considered but will not be dispositive of those granted a license. If more than one application is pending with the Authority, the approval factors contained in Article 7 above and elsewhere in these Local Regulations will be considered in addition to the time of filing a completed application. Additionally, the Authority may consider the availability of other retail marijuana store license holders in the same area as well as the compatibility of the propose retail marijuana store with the other uses in the same area. The Authority also has the discretion to give preference to those applicants who had submitted a completed medical marijuana center license application and such application was pending with Eagle County at the time these Local Regulations became effective (December 31, 2013). Such preference, if given, will only apply if the applicant can show, to the discretion of the Authority, that it has diligently worked toward obtaining its medical marijuana license and there is a strong likelihood that said applicant will obtain the local medical marijuana license. This preference will not preclude the Authority from selecting another applicant based on a review of the other applicable factors. The Authority may always use its reasonable discretion in awarding limited licenses when a greater number of applicants seek licenses above the limits set forth herein, and nothing herein shall be deemed as a limitation on such discretion. The Authority will not maintain a waiting list of those filing for licenses when these limits have been met. Such applications will be rejected. It will be up to such rejected applicants to resubmit when and if further licenses become available. The Authority will have no obligation to inform past applicants of future available licenses. Page 8 Article 15: Collocating of Medical and Retail Marijuana Businesses. Dual operation from the same premise of a licensed medical marijuana center, optional premises cultivation facility, or medical marijuana-infused products manufacturing facility with any retail marijuana facility is permitted so long as appropriate State and local licenses have been issued and remain valid and active for both operations. No dual medical marijuana center and retail marijuana store is permitted to sell marijuana to a person younger than twenty-one years of age. Article 16: Inspection. By submitting a license application, the applicant authorized the Authority or its designee to enter upon and inspect the premises at reasonable times. Upon request, the applicant or license holder shall timely provide the Authority with records related to the business. This section shall not limit any inspection authority authorized under any other provision of law or regulation. Article 17: Hours of Operation. Medical marijuana centers and retail marijuana stores must be closed to the public and no sale or other distribution of marijuana may occur upon the premises between the hours of 7:00 pm and 8:00 am. Article 18: Business Conducted Within Building. All cultivation, production, distribution, storage, display and sales of marijuana and marijuana—infused products must not be visible from the exterior of the business. Article 19: Entitlements. No person shall have any entitlement or vested right to licensing under these Local Regulations, any local zoning approvals, or any local building permits. Local licenses hereunder are a revocable privilege subject to the oversight of local and state authorities. These Local Regulations, the State Regulations, the Eagle County Land Use and Building Codes, and applicable zoning may be changed or amended from time to time. Such changes may preclude the continuance or further issuance of a local license at any given location. As of the date of the enactment of these Local Regulations, the use, possession, distribution, and sale of marijuana is illegal under Federal law and those who engage in such activities do so at their own risk of criminal prosecution. Any license given hereunder does not provide any exception, defense, or immunity to any person in regard to any potential criminal liability the person may have for the production, distribution, or possession of marijuana. Article 20: Severability. Page 9 If any provision of these regulations is found to be invalid by a court of competent jurisdiction, only the provision subject to the court decision shall be repealed or amended. All other provisions shall remain in full force and effect. Page 10