Chapter 8.50
MARIJUANA BUSINESS LICENSING REGULATIONS

Sections:

8.50.010    License required.

8.50.020    Application and license fee required.

8.50.030    Application for license.

8.50.040    License application processing and procedure.

8.50.050    Findings of fact.

8.50.060    Modification or alteration to premises following issuance of license.

8.50.070    License renewal.

8.50.080    Transfer of location of license.

8.50.090    Transfer of ownership.

8.50.100    License suspension or revocation.

8.50.010 License required.

No person shall operate any marijuana establishment within the city of Gunnison without a license from the state of Colorado and the city of Gunnison. The city may issue a license, or licenses as appropriate, from any of the following classes: medical marijuana center, optional premises cultivation operation, medical marijuana-infused products manufacturing, retail marijuana store, retail marijuana cultivation facility, retail marijuana products manufacturing facility, retail marijuana testing facility. Dual operations are allowed within the city. No person, or entity in which the same person has an interest, may obtain more than one license for each class of marijuana establishment. (Ord. 5-2015 § 4).

8.50.020 Application and license fee required.

An applicant shall pay the city application fee and license fee appropriate to the license sought when the city application is filed. City council shall set these fees by resolution. The application fee paid by an applicant to the city is in addition to the application fee paid to the state of Colorado, one-half of which is then remitted to the city. If an application is later withdrawn, the city shall refund the license fee paid by the applicant. Application fees are nonrefundable. (Ord. 1-2018 § 1; Ord. 17-2015 § 1; Ord. 5-2015 § 4).

8.50.030 Application for license.

A.    General Application Requirements. All applications for licenses authorized pursuant to Sections 44-11-301 and 44-12-301, C.R.S., shall be made on forms approved by the state of Colorado.

B.    City-Specific Application Requirements. In addition to the application requirements contained in subsection (A) of this section, the city requires the following to be included in all applications submitted to the city and the state licensing authority:

1.    Results of local background check performed by the city of Gunnison police department for all persons to be involved in the business, including proposed licensee, owner(s), business managers, or financier(s);

2.    Consent/acknowledgment in writing from the landlord and/or property owner if applicable, acknowledging that the premises will be operated as a marijuana establishment and consenting thereto;

3.    An approved site development application and/or conditional use permit as applicable;

4.    Approval from the community development department that the intended site, buildings and facilities meet necessary local regulations as well as industry-specific regulations, or any conditions necessary to make the site compliant. A pre-application conference with the community development department staff and review of the proposed site is optional, but is highly recommended, in order to assist in obtaining necessary approvals under this section. (Ord. 11-2018 § 1; Ord. 5-2015 § 4).

8.50.040 License application processing and procedure.

A.    Medical Marijuana Establishment.

1.    Public Hearing – City Council. Upon receipt of a complete application and the fees required for a local license, the city shall set a public hearing on the application to be held not less than 30 days after the receipt by city council of the application. Notice of such hearing shall be given pursuant to Section 44-11-302, C.R.S. The public hearing shall be conducted in the following format:

a.    Call to order.

b.    Record of attendance.

c.    Applicant identification.

d.    Report from city clerk/city attorney.

e.    Determination of the neighborhood within city limits.

f.    Applicant’s testimony.

g.    Testimony in favor.

h.    Testimony in opposition.

i.    Close public hearing.

2.    No action shall be taken by city council following the public hearing.

3.    Following receipt of proof by the state local licensing authority of conditional licensing of the applicant by the state licensing authority, the city shall proceed to make findings of fact and approve or deny the application as set forth in GMC 8.50.050.

B.    Retail Marijuana Establishment.

1.    If the state licensing authority receives an application for original licensing for any retail marijuana establishment, the state licensing authority shall provide, within seven days, a copy of the application to the city, and the city shall determine whether the application complies with the city’s time, place, and manner restrictions regarding retail marijuana businesses. All city-specific application requirements contained in GMC 8.50.030(B)(1) through (4) must be included in the application and must be completed in order for the city to inform the state licensing authority whether the application complies with such local restrictions as required by Section 44-12-301, C.R.S. The city clerk as the local licensing authority shall provide such determination to the state licensing authority.

2.    Public Hearing. If the applicant receives conditional state licensure from the state licensing authority, the city shall set a public hearing before the city council on the application to be held following public notice as set forth in Section 44-12-302, C.R.S. The public hearing shall be conducted in the following format:

a.    Call to order.

b.    Record of attendance.

c.    Applicant identification.

d.    Report from city clerk/city attorney.

e.    Determination of the neighborhood within city limits.

f.    Applicant’s testimony.

g.    Testimony in favor.

h.    Testimony in opposition.

i.    Close public hearing.

3.    Council Action Following Hearing. The city council may take action on the application following the public hearing, either on the same day as the public hearing, or at such regular session as determined by council. The city council shall make findings of fact and approve or deny the application as set forth in GMC 8.50.050. (Ord. 11-2018 § 1; Ord. 5-2015 § 4).

8.50.050 Findings of fact.

The city council shall make written findings approving, approving with conditions, or denying an application for a marijuana establishment within the city. In order to approve an application, the council must make at least the following findings:

A.    The application complies with all relevant provisions of the Colorado Medical Marijuana Code, Section 44-11-101 et seq., C.R.S., as amended, or the Colorado Retail Marijuana Code, Section 44-12-101 et seq., C.R.S., as amended, as applicable.

B.    That the application is complete and complies with the city application requirements.

C.    That the applicant has received conditional licensing from the state licensing authority.

D.    That the applicant has paid the application and license fees established by the city.

E.    That the application complies with all relevant provisions of the city of Gunnison land development code.

F.    That all testimony both in favor of or in opposition to issuance of the license sought has been considered.

G.    That the council has considered the needs and desires of the neighborhood in which the licensed premises will be located.

H.    That the local background check performed by the city of Gunnison police department does not establish any concern regarding the applicant’s ability to operate the marijuana establishment.

I.    That consent/acknowledgment in writing has been received from the landlord and/or property owner as applicable, acknowledging that the premises will be operated as a marijuana establishment and consenting thereto.

Any conditions of approval of the application shall be set forth in writing. A city license will not be issued until conditions of approval have been met. Any denial of an application shall be accompanied by written findings. (Ord. 11-2018 § 1; Ord. 5-2015 § 4).

8.50.060 Modification or alteration to premises following issuance of license.

In addition to receiving approval in advance from the state licensing authority, approval from the community development department, the building department and the fire department must be obtained prior to any modification or alteration of the premises following initial licensure of the premises. Modifications or alterations requiring approval are those that materially or substantially alter the licensed premises or the usage of the licensed premises from the plans originally approved. A determination of the community development department should be sought as to whether any change is material or substantial prior to any modification or alteration being made. If deemed necessary by the community development department, approval from a state-licensed engineer, that any proposed modifications are in compliance with all ICC codes, may be required. The city council shall set the fee for review of premises modifications by resolution. (Ord. 5-2015 § 4).

8.50.070 License renewal.

Licenses are valid for one year.

License renewal applications shall be processed pursuant to Section 44-11-311, C.R.S., for medical marijuana establishments and pursuant to Section 44-12-310, C.R.S., for retail marijuana establishments. No renewal of a license shall be approved by the city until the license renewal fee set by city council by resolution is paid, until results of a local background check are provided by the city of Gunnison police department, and until confirmation is received from the community development department, building department, and fire department that the licensed premises continue to meet the necessary regulations required for licensure. License renewal may be approved by the city clerk as the local licensing authority.

The city may revoke or elect not to renew any license if it determines that the licensed premises have been inactive, without good cause, for at least one year. (Ord. 11-2018 § 1; Ord. 5-2015 § 4).

8.50.080 Transfer of location of license.

A license for a marijuana establishment may be transferred to another location within the city pursuant to Section 44-11-310, C.R.S., for medical marijuana establishments, and pursuant to Section 44-12-309, C.R.S., for retail marijuana establishments. An application to transfer the location of a license must be accompanied by the transfer of license location fee set by city council by resolution. In addition, the applicant must comply with GMC 8.50.030(B)(1) through (4), except that no application fee is required, and will be subject to any reasonable restrictions that exist or may be placed upon the new location by city council. (Ord. 11-2018 § 1; Ord. 1-2018 § 2; Ord. 5-2015 § 4).

8.50.090 Transfer of ownership.

A marijuana establishment license may be transferred to a new owner pursuant to Section 44-11-309, C.R.S., for medical marijuana establishments, and pursuant to Section 44-12-308, C.R.S., for retail marijuana establishments. An application to transfer ownership must be accompanied by the transfer of ownership fee set by city council by resolution. In addition, the applicant must comply with GMC 8.50.030(B)(1), except that no application fee is required, and shall be subject to the procedures for licensure set forth in GMC 8.50.040. (Ord. 11-2018 § 1; Ord. 1-2018 § 3; Ord. 5-2015 § 4).

8.50.100 License suspension or revocation.

The city may suspend or revoke a license in accordance with the provisions of Section 44-11-601, C.R.S., for medical marijuana establishments, and Section 44-12-601, C.R.S., for retail marijuana establishments.

A.    A marijuana establishment license may be suspended or revoked by the city for any of the following violations:

1.    Conviction of the business, a licensee, or any owner, business manager, or financier of any violation of this chapter or any other law, rule or regulation applicable to the use of marijuana or operation of a marijuana establishment;

2.    Misrepresentation or omission of any material fact, or false or misleading information, on the application or any amendment thereto, or any other information provided to the city related to the marijuana establishment;

3.    Violation of any law which, occurring prior to submittal of the application, could have been cause for denial of the license application;

4.    Distribution of marijuana, including, without limitation, delivering or transporting marijuana in violation of this chapter or any other applicable law, rule or regulation;

5.    Operation of a marijuana establishment in violation of the specifications of the license application, any conditions of approval by the city;

6.    Failure to comply with all applicable kitchen-related health and safety standards of the Colorado Department of Public Health and Environment regulations as set forth in Code of Colorado Regulations;

7.    Failure to comply with the operation procedures and food service protection provisions of the marijuana product manufacturing facilities standards of the Colorado Department of Permanent Rules Related to Retail Marijuana Code;

8.    Disposal of organic toxic pollutants, hazardous substances, and toxic pollutants in violation of procedures established by city, state and federal regulations;

9.    Modification of the premises without prior approval pursuant to GMC 8.50.060;

10.    Failure to maintain, or provide to the city upon request, any books, recordings, reports, or other records required by this chapter;

11.    Failure to properly notify the city and to complete necessary forms for changes in financial interest, business managers, financier, agent, or change of address;

12.    Failure to comply with all relevant provisions of the city of Gunnison land development code;

13.    Temporary or permanent closure, or other sanction of the establishment, by the city, or other governmental entity with jurisdiction, for failure to comply with health and safety provisions of this chapter or otherwise applicable to the establishment or any other applicable law;

14.    Revocation or suspension of another marijuana establishment’s license or any other license issued by the city, the state of Colorado, or any other jurisdiction, held by a licensee of the marijuana establishment;

15.    Failure to maintain the proper occupational licenses and registrations issued by the state of Colorado for owners, managers, operators, employees, contractors, and other support staff employed by, working in, or having access to restricted areas of the licensed premises of a marijuana establishment;

16.    Failure to correct any violation of any law, or comply with any order to correct a violation of any law within the time stated in the notice and order; and

17.    Suspension or revocation of a license by the state of Colorado.

B.    In the event an establishment, licensee, owner, business manager, or financier is charged with violation of any law, upon which a final judgment would be grounds for suspension or revocation of the license, the city may suspend the license pending resolution of the alleged violation.

C.    If the city revokes or suspends a license, the establishment may not move any marijuana from the premises except under supervision of the city of Gunnison police department or the state licensing authority.

D.    In determining whether a license should be suspended or revoked, and in determining what conditions should be imposed in the event of a suspension, the city shall consider:

1.    The nature and seriousness of the violation; e.g., public safety, license violations, license infractions;

2.    Corrective action, if any, taken by the licensee;

3.    Prior violation(s), if any, by the licensee;

4.    The likelihood of recurrence;

5.    All circumstances surrounding the violation;

6.    Whether the violation was willful or deliberate;

7.    Previous sanctions, if any, imposed against the licensee; and

8.    Whether the owner or manager is the violator or has directed an employee or other individual to violate the law. (Ord. 11-2018 § 1; Ord. 5-2015 § 4).