CML s 94 th Annual Conference June 21 24, 2016 Vail, Colorado City of Colorado Springs Medical Marijuana Task Force & Consumption Club Regulation Marc Smith, Senior Attorney Marijuana History in Colorado Springs Amendment 20 (Medical Marijuana) passed in 2000 Everything ticked along until 2010ish Similar to everyone else, City needed to address MMJ uses through zoning and licensing 1
MJ History in C Springs, cont. Council task force made recommendations regarding zoning and licensing Recommendations adopted in 2011 MMJ uses proliferated at a rapid rate MJ History in C Springs, cont. 2012 Amendment 64 passed City Council exercised its local option to ban recreational retail sales Still plenty of MJ to be found in C Springs Statistics Sept 2015: El Paso County had 19,341 MMJ patients Leads the State of Colorado June 3, 2016 = 127 Licenses for dispensaries 2
Statistics, cont. 159 licenses for commercial MMJ grows 44 licenses for infused products manufacturing 330 total MMJ licenses issued Moratorium 6 month moratorium to study impacts of medical marijuana businesses Creation of a Council-appointed Task Force Reported back to Council w/ordinances Task Force City Council member City staff: Mayor s Office, Clerk, Attorney, Planning, CSPD, Fire Marshal Attorney representing MJ industry 3
Task Force, cont. MJ business owners Neighborhood organization Several unaffiliated citizens Public participation was permitted Hash Oil Extraction Major Themes Zoning Districts & New Uses Buffering MMJ Facilities Residential Plant Counts Residential Hash Oil Extraction Took place prior to Task Force Obvious health, safety & welfare concerns No hash oil production in residences Criminal code & subject to general penalty 4
Zoning Districts & New Uses Three types of uses: Centers, Optional Premises Grows & Infused Products Manufacturers Very permissive City-wide for all uses Restricted various uses by zoning district Infused Products Manufacturing Two classifications Non-hazardous Hazardous Classification determines zone & review Hazardous Infused Manufacturing Hazardous = fire & life safety risks through use of pressurized flammable gas, flammable or combustible liquids Hazardous extraction permitted in industrial zones only 5
Non-Hazardous Infused Manufacturing Non-hazardous = basically anything else Super/subcritical CO2 extraction Cooking & baking facilities Industrial = permitted; Commercial = CU Medical Marijuana Centers Commonly known as dispensaries Lots of debate Permitted in commercial & industrial Ideas ranged from no changes to limiting to industrial zones MMJ Centers, cont. Land uses relatively benign Commercial in nature Task Force recommended no changes City Council agreed 6
Commercial Grow Operations Prior to initial moratorium, permitted in commercial & industrial zones Essentially warehouse and commercial production type uses Task Force recommendation = permitted industrial & CU in commercial zones Distance & Buffering Dispensaries 400 buffer Schools, residential childcare, drug & alcohol treatment Task Force recommended & Council supported moving to 1,000 Licensing Updates for consistency w/state regs Enhanced odor mitigation requirements 7
Residential Home Grows The most discussed issue Prior to Task Force, 36 plants permitted Neighborhood & homeowner concerns Caregiver & patient concerns as well Mold Examples of the Problems Electrical Odor Water consumption Commercial Grade AC Units Grow Houses 8
Grow Houses, cont. DIY Vents Grow Houses, cont. Ventilation piping through main area of home Basement grow Grow Houses, cont. 9
Grow Houses, etc. Garage grow Mold Grow Houses, cont. Grow Houses, cont. Electrical Issues 10
Plant Count Limits Task Force recommended reduction to 12 150 sq. ft. total growing area single family 75 sq. ft. for all other dwelling unit types Odor mitigation Plant Count Limits, cont. If tenant does not have written permission, City may inform property owner of growing taking place on premises Grown in locked, enclosed space Criminal violation New Moratorium Council determined our work is not done Working group formed Report due in nine months Variety of issues to still be addressed 11
Marijuana Consumption Clubs 2013 MCC operating downtown Zoning enforcement action Planning Commission & City Council Determined similar to a social club MCC Proliferation Staff issued similar use determination Draft regulations (zoning & licensing) Clubs proliferate to point of 15-20 No specific recognition of MCCs in Code MCC Moratorium Same initial timing as MMJ Moratorium Moratorium on establishment of new MCCs after Sept 22, 2015 Staff researched issue for 6 months 12
Void in Regulation State legislature attempted to address Nothing passed in last legislative session City drafted multiple versions of regulations Zoning Component Planning Commission presented with options Industrial zoning option Ban option (similar to El Paso County) Zoning Component, cont. Planning Commission recommended ban City Council agreed on split vote to ban Tied to licensing moving forward 13
Licensing Component Gave grace period to receive information for licensing Have to substantiate compliance with Zoning Code prior to Sept. 22, 2015 Meet all normal licensing requirements Specific MCC Licensing Requirements Requires only 21+ City right to inspect Compliance with CO Clean Indoor Air Act No remuneration for MJ MCC Licensing Requirements, cont. No alcohol Maintain possession of premises Hours of operation (same as liquor) Odor mitigation 14
Lawsuit Collection of clubs & individuals filed suit Suit filed in CO District Court Federal claims City immediately removed to U.S. Dist. Ct. 15
6/14/2016 Marijuana Update Presented by Kathy Haddock, Senior Assistant City Attorney, Boulder June 22, 2016 Marijuana History in Boulder Adopted initial ordinance and moratorium in 2009 Licensing Ordinance in 2010 (before state legislation) Council guidelines: License and enforce so safe business operations and no negative impact on adjacent properties Maintain diversity of businesses in Boulder Recognize easier to ease up on regulations than try to impose more restrictions later Avoid subsidizing industry by city (fees cover costs) Regulate marijuana as a controlled substance Provisions That Have Made a Difference for Enforcement Any place with more than 6 plants is a marijuana business and requires a license No marijuana businesses in residential or mixed-use zones or residences No odor off-premises MIP requires industrial hygienist approval of process before can process Finding that marijuana is a heavily regulated industry 1
6/14/2016 Provisions and Practices That Have Made a Difference in Culture Limitations on advertisement Density restrictions Require manager on-site City background checks Interdepartmental coordination Statistics Initially Licensing processed over 127 applications in 11 months Over 50% failure rate Currently 81 Licenses 29 retail - 12 medical; 17 recreational 46 grows - 19 medical; 27 recreational 6 MIPs Boulder s Marijuana Advisory Panel Industry often asking for changes to marijuana codes and council wanted guidelines to prevent continually dealing with requests for changes Instructions for Panel: Analysis of possible changes to the City of Boulder code provisions Solicit public input of possible changes to the City code Panel discussion of possible changes to the code Review both the state and city laws to make coordinated recommendations on appropriate changes to the Boulder Code 2
6/14/2016 The Panel The city manager appointed an 11 member panel on January 5, 2016 to work until the end of June. All meetings of the panel are public and will include a period for public comment. Panel to be a balanced representation of the variety of interests related to medical and recreational marijuana. Manager provides a facilitator Representation of the Panel The Interests required to be on the panel: Representative of marijuana consumers Boulder Valley School District University of Colorado Physical and mental health perspectives including youth development theory and best practices in harm reduction/health promotion Chamber of Commerce Representatives of marijuana businesses to cover recreational and medical, retail, grows and MIPs Attorney with experience representing marijuana businesses Person familiar with state regulations Goals of the City Historically Minimize the negative impacts of marijuana businesses on others Eliminating marijuana from residential areas Prevent concentration of in certain areas Provide for business diversity Prevent moguls in Boulder Enforce regulations to encourage responsible businesses Require business licensing Protect public and first responder safety Ensure fees cover costs 3
6/14/2016 Alternative Goals of Panel Members Promote diverse businesses and protect neighbors against negative impacts Keep Boulder marijuana businesses on level playing field with all other marijuana businesses in the State No limit on hours, advertising, number or size of businesses Mainstream marijuana by removing all restrictions not imposed on non-marijuana businesses Issues Prioritized by Panel Zoning/Density Provisions Criteria for Background Checks for Business Managers Charge of the Panel Hours of Operation Sales of non-marijuana merchandise Advertising Limit on size and number of businesses Virtual separation Transfer of marijuana licenses Effects Panel Intended to Analyze for Each Issue Effect on: Youth Patients Medical vs. Recreational Other marijuana businesses Non-marijuana businesses Boulder economy 4
6/14/2016 Lessons Learned Provide clear assignment to Panel Provide for education of panel members Recognize varying levels of knowledge of marijuana laws Intimidation factor Links to relevant City of Boulder s websites: Marijuana Advisory Panel Marijuana information and forms https://bouldercolorado.gov/tax-license/marijuanaadvisory-panel https://bouldercolorado.gov/tax-license/recreationalmarijuana-businesses 5