On January 20, 2021, the City Council approved Resolution 09-21,
the adoption of which referred a ballot question to the regular municipal
election on April 6, 2021, to repeal Referred Measure A contingent
on and subject to voter approval of taxation of marijuana businesses.
The voters approved the April 2021 ballot measures and, by and with
such authority, City Council intends to regulate the use, possession,
and distribution of marijuana in a manner that is consistent with
Article XVIII, Sections 14 and 16 of the
Colorado Constitution and the Colorado Marijuana Code, C.R.S. § 44-10-101 et seq. With the adoption of this chapter, any provisions of the
City’s code that conflict with this chapter shall be superseded.
Article XVIII, Section 16(5)(g) of the Colorado Constitution authorizes a system of State licensing
for businesses engaging in the regulated sale of marijuana, collectively
referred to as “regulated marijuana establishments.” This
provision allows a municipality within its jurisdiction to prohibit
licensing of regulated marijuana establishments; regulate the time,
place, and manner in which regulated marijuana establishments may
operate; and limit the total number of regulated marijuana establishments.
The authority of localities to prohibit or regulate regulated
marijuana establishments within their respective jurisdictions, including
the authority to engage in local licensing of marijuana establishments,
is also provided in various provisions of the Colorado Marijuana Code.
The Colorado Marijuana Code, among other things, affords municipalities
the option to determine whether to license certain regulated marijuana
establishments within their respective jurisdictions. Consistent with
its lawful authority, this chapter affirmatively authorizes licensing
and regulating cannabis related businesses in the City of Grand Junction
and to designate a local licensing authority to issue and process
applications submitted for such licenses within the City.
This chapter is adopted pursuant to the constitutional and statutory
authority referenced above as well as the City’s Charter and
home rule authority to adopt and enforce ordinances under its police
powers all in order to preserve the public health, safety, and general
welfare. By adopting this chapter, the City intends to implement provisions
of the Colorado Marijuana Code and any rules and regulations thereunder
except to the extent that more restrictive or additional regulations
may be set forth herein.
Further, the purposes of this chapter are to:
(a)
Provide
time, place, and manner restrictions for operating a regulated cannabis
business in the City;
(b)
Protect
public health and safety through reasonable limitations on business
operations as they relate to air quality, security for the business
and its personnel, and other health and safety concerns;
(c)
Promote
high quality neighborhoods by limiting the concentration of regulated
cannabis businesses in specific areas;
(d)
Impose
fees to defray some of the costs to the City of licensing regulated
cannabis businesses;
(e)
Adopt
a mechanism for monitoring compliance with the provisions of this
chapter;
(f)
Create
regulations that address the needs of the residents, the businesses,
and the City and coordinate with laws enacted by the State of Colorado
regarding cannabis; and
(g)
Issue
regulated cannabis business licenses only to applicants that demonstrate
the intent and capability to comply with the law.
This chapter is to be construed to protect the interests of
the public over the interests of the regulated cannabis businesses.
Operation of a regulated cannabis business is a revocable privilege
and not a right in the City. There is no property right for any person
and/or business to have a regulated cannabis license in the City.
Nothing in this chapter is intended to promote or condone the
production, distribution, or possession of cannabis in violation of
any applicable law.
(Ord. 5064, 4-6-22)
(a)
This
chapter is known and may be cited as the “City of Grand Junction
Regulated Cannabis Code.” Reference to the City of Grand Junction
Regulated Cannabis Code, code or chapter and the applicable section(s)
thereof shall be sufficient when citing the provisions hereof in any
legal document, including, but not limited to, summons, subpoena,
pleading, summons and complaint, and memorandum.
(b)
This
chapter, together with all other titles and chapters of the Grand
Junction Municipal Code (hereinafter referred to as “GJMC”),
and any resolution(s) and/or administrative regulation(s) of the City
shall govern all applications submitted for licensing of any regulated
cannabis business in the City on and after the effective date.
(Ord. 5064, 4-6-22)
(a)
Except
as otherwise specifically provided herein, this chapter incorporates
and adopts the requirements and procedures set forth in the Colorado
Marijuana Code and the provisions of the Colorado rules and regulations
promulgated thereunder, as amended, relating to the definition of
terms, licensing, sales, hours of sale, records, inspection, unlawful
acts, and all other matters pertaining to regulated cannabis, as set
out in full therein and herein. In the event of any conflict between
the provisions of this chapter and the provisions of the Colorado
Marijuana Code or any other applicable State or local law, the more
restrictive provision shall control. Licensees shall comply with and
conduct their business in compliance with all applicable State and
local laws, rules and regulations, and the terms and conditions of
their license. Noncompliance with any applicable State or local laws,
rules or regulations shall be grounds for suspension, revocation or
nonrenewal of any license issued hereunder and/or imposition of fine(s),
and/or fine(s) in lieu of suspension, and other allowable sanctions.
(b)
Compliance
with any applicable State law or regulation shall be deemed additional
requirements for issuance of any license and conduct of any business
under this chapter, and noncompliance with any applicable law or regulation
shall be grounds for suspension, revocation or nonrenewal of any license
issued hereunder and/or imposition of fines and other allowable sanctions.
(c)
If
the State prohibits the sale or other distribution of cannabis through
regulated businesses, any license issued hereunder shall be deemed
immediately revoked by operation of law.
(Ord. 5064, 4-6-22)
The definitions set forth in Article XVIII, Subsections 14(2)
and 16(2) of the Colorado Constitution, as well as the definitions
provided by the Colorado Marijuana Code, the Colorado Code of Regulations,
and the Department of Revenue Regulated Marijuana Enforcement Division
rules and regulations, as amended, are adopted herein unless by reference
specifically amended hereby.
means the act of drawing the public’s attention, whether
in print, signs, or electronic means, to a regulated cannabis business
in order to promote the sale of cannabis by the business.
means a person, as defined herein, having ownership or any
level of control in common with an entity, in whole or in part, including,
without limitation, an entity’s parent corporation, franchisor,
licensor and any subsidiary(ies) or affiliates or such corporation(s).
“Affiliate” also means a person using the same trade name
as another person.
shall mean any person or entity who has applied for a license
or renewal of a license issued pursuant to this chapter. If the applicant
is an entity and not a natural person, “applicant” shall
include all persons who are the members, managers, officers, directors,
and shareholders of such entity.
shall mean the fee paid to the City by each applicant at
the time of submitting an application to the City.
shall mean a regulated cannabis business as defined in this
chapter.
means a medical cannabis business operator or a retail cannabis
business operator.
shall mean devices, contrivances, instruments and paraphernalia
for inhaling or otherwise consuming regulated cannabis, including,
but not limited to, rolling papers, related tools, water pipes and
vaporizers.
means medical cannabis product or retail cannabis product.
means a medical cannabis products manufacturer or a retail
cannabis products manufacturer.
means a medical cannabis testing facility or a retail cannabis
testing facility.
means the City of Grand Junction, a Colorado home rule municipality.
means the City Attorney or the City Attorney’s designee.
means the City Manager or the City Manager’s designee.
means a printed voucher or token entitling the holder to
a discount for a particular product or service. Coupon does not include
showing a government-issued verification of age or military status,
or registration for a charitable event, or similar item, the showing
of which, without providing a separate printing to the business, entitles
the holder to a discount for a particular product or service.
means the actual, constructive, or attempted transfer, delivery,
sale, or dispensing to another, with or without remuneration.
means materials prepared by a governmental or nonprofit entity
that are designed to provide information, facts, instructions, and
warnings related to the legal use or consumption of cannabis and cannabis
products. Educational materials do not include arguments for or against
the legalization of cannabis or encourage the use of cannabis or advertisements,
including the name and logo for any cannabis business.
means a domestic or foreign corporation, cooperative, general
partnership, limited liability partnership, limited liability company,
limited partnership, limited liability limited partnership, limited
partnership association, nonprofit association, nonprofit corporation
or any other organization or association that is formed under a statute
or common law of the State of Colorado or any other jurisdiction as
to which the laws of Colorado or the laws of any other jurisdiction
govern(s) relations among owners and between the owners and the organization
or association and that is recognized under the laws of the State
of Colorado or the other jurisdiction as a separate legal entity.
means that fee(s) set and established by resolution of City
Council and paid annually to the City by each licensee. Fees may be
charged by the City for costs including but not limited to licensing,
inspection, administration, and enforcement of cannabis businesses
authorized pursuant to the Colorado Constitution, the Colorado Marijuana
Code, this code, and any of the rules and regulations adopted pursuant
thereto.
shall mean any ownership interest(s).
means any person who lends money or otherwise provides assets
to any person applying for a license under this chapter. If a financier
is an entity rather than an individual, the same disclosure shall
be required for each entity with a financial interest until a managing
member that is a natural person is identified. Financier shall not
include a bank, savings and loan association, credit union, or industrial
bank supervised and regulated by an agency of the State or federal
government, or any person in the business of leasing equipment or
cannabis business for which the rental amount does not include any
percentage of the business or its profits, or any person that has
been qualified as a beneficial owner (as defined by the Colorado Marijuana
Code).
except as may apply to a social equity applicant or licensee,
for the purposes of approving, refusing, or denying the issuance or
renewal of a license, means:
The licensee or applicant has violated, does not meet, or has
failed to comply with any terms, conditions, or provisions of the
Colorado Marijuana Code, the City code, any rule and regulation adopted
pursuant thereto, or any supplemental relevant State or local law,
rule or regulation related to the cultivation, processing, manufacture,
storage, sale, distribution, transportation, research, or consumption
of any form of cannabis;
The licensee or applicant has failed to comply with any special
term or condition placed on the license by order of the State licensing
authority or the City’s licensing authority;
Evidence the licensee’s licensed premises has been operated
in a manner that adversely affects the public health, safety or the
general welfare of the City or the immediate neighborhood where the
business is located, which evidence may include a continuing pattern
of violations of the Colorado Marijuana Code, the City’s code,
or terms and conditions of a license issued pursuant to this chapter,
a continuing pattern of unlawful or violent activity occurring in
the location and in association with the operation of the business;
or
Evidence the applicant or licensee, or any officer, director,
owner, manager, agent or employee of the applicant or licensee, is
not of good moral character.
means an individual who has a personal history demonstrating
honesty, fairness, and respect for the rights of others and for conformance
to the law which, except as provided by § 44-10-308(4), C.R.S. for a person who qualifies as a social equity licensee,
may include considerations of whether an individual has:
Ever had a professional or occupation license denied, suspended,
or revoked;
Ever had a business or sales tax license denied, suspended,
or revoked;
Ever surrendered, been denied, or had any type of cannabis related
license or permit placed on an administrative hold, suspended or revoked;
Ever been denied any type of cannabis related business license;
Ever had a business temporarily or permanently closed for failure
to comply with any tax, health, building, fire, zoning, or safety
law;
Ever had any administrative, civil, or criminal finding of delinquency
for failure to file or failure to pay State or local sales or use
taxes or any other taxes;
Ever been convicted of or pled guilty or no contest to a crime
of moral turpitude; or
Within the previous five years been convicted of any misdemeanor,
petty offense or any local ordinance violation related to the cultivation,
processing, manufacture, storage, sale, distribution, transportation,
testing, research, or consumption of any form of cannabis, drug or
controlled substance; or within the previous five years been convicted
of a non-drug related felony; or, at any time, been convicted of a
felony related to the cultivation, processing, manufacture, storage,
sale, distribution, transportation, testing, research, or consumption
of any form of cannabis, drug or controlled substance.
means a flat or folded sheet of printed material that is
a notice, advertisement, or announcement, usually for distribution
by hand, for free, either directly to an individual or by placement
on vehicles or other locations. Handbill, leaflet, or flyer does not
include educational materials without the name or logo of a cannabis
business, or information made available within the licensed premises
of a cannabis business.
means an area described as all commercial property bounded
on the south by G Road, north on Horizon Drive through and including
H Road, bounded on the west by 27 Road/15th Street, and on the east
by 27 ½ Road northeast to Walker Field Airport Authority. The
boundaries of the Horizon Drive Association District include, but
are not limited to, Horizon Court, Compass Drive Association, Crossroads
Boulevard, Crossroads Court, Skyline Court, Sundstrand Way, and Hilaria
Avenue, or as the boundaries may be amended.
means a nonflowering cannabis plant that is no taller than
eight inches and no wider than eight inches; is produced from a cutting,
clipping, or seedling; and is in a cultivating container.
means the printing of the names of all sponsors of a particular
charitable event by the event organizer on advertisements, banners,
clothing, programs, or similar items. Incidental to sponsorship of
charitable events does not include the placement of a booth(s) or
distribution of material(s) that does not list or is for the use of
all sponsors of the event.
shall mean to grant a revocable privilege to lawfully operate
in the City a cannabis related business activity authorized pursuant
to the Colorado Marijuana Code and this chapter. A license may include
a social equity license as defined herein and by applicable Colorado
law, rules, and regulations.
shall mean that fee set and established by resolution of
City Council and paid annually to the City by each licensee.
means the premises specified in an application for a license
or permit authorized pursuant to the Colorado Marijuana Code and this
chapter, which are owned or in the legal possession of the licensee
and within which the licensee is authorized to cultivate, manufacture,
distribute, research, sell, store, transport, or test cannabis, cannabis
products, and cannabis concentrates in accordance with all applicable
laws.
means any person licensed or granted a permit pursuant to
the Colorado Marijuana Code or this chapter, including the cannabis
business named on the cannabis business license and all individuals
named in the cannabis business license application or later reported
to the City, including, without limitation, owners, managers, financiers,
and individuals owning any part of the entity that holds a financial
or ownership interest in the cannabis business.
also known as “cannabis licensing authority”
(“authority”) means an authority designated by the City
Council of the City of Grand Junction, Colorado.
means:
A member of a limited liability company in which management
is not vested in managers rather than members;
A manager of a limited liability company in which management
is vested in managers rather than members;
A member of a limited partnership association in which management
is not vested in managers rather than members;
A manager of a limited partnership association in which management
is vested in managers rather than members;
A general partner;
An officer or director of a corporation, a nonprofit, a cooperative,
or a limited partnership association; or
Any person whose position with respect to an entity, as determined
under the constituent documents and organic statutes of the entity,
without regard to the person’s title, is the functional equivalent
of any of the positions described in this definition.
means a person under 21 years of age.
means a change to a regulated cannabis business that requires
a building or other permit from the City or changes any part of the
plans required as part of the application for the cannabis business
license. Modification of premises does not include routine maintenance,
including replacement of light bulbs or filters, painting, cleaning,
or replacement of nonmechanical items such as windows and flooring
so long as the maintenance does not result in a change to the plans
required as part of the application.
means the person or persons whose beneficial interest in
a regulated cannabis business bears a risk of loss other than an insurer,
has an opportunity to gain profit from the operation or sale of the
business and has a controlling interest in a cannabis business, business
entity or license, and includes any other person(s) that qualifies
as an owner pursuant to State law, rules, or regulations.
shall mean a natural person, partnership, association, company,
corporation, limited liability company or other organization or entity
or a manager, agent, owner, officer, or employee thereof.
means any property owned, leased, or used by a public entity,
and any place on private property open to the public, common area
of buildings, private clubs, vehicles, those portions of any private
property upon which the public has an express or implied license to
enter or remain, and any place visible from such places.
means having physical control of the premises in which an
object is located or having the power and intent to control an object,
without regard to whether the one in possession has ownership of the
object. Possession may be held by more than one person at a time.
Use of the object is not required for possession. The owner of a regulated
cannabis business shall be considered in possession of the regulated
cannabis business at all times. The manager of a regulated cannabis
business shall be considered in possession of the regulated cannabis
business at all times that the manager is on the premises of the business
or has been designated by the owner as the manager in the absence
of the owner in accordance with this chapter.
means a distinct and definite location, which may include
a building, a part of a building, a room, or any other defined contiguous
area.
means any medical marijuana business and retail marijuana
business as defined by Colorado law. The term “regulated cannabis
business” shall not include the private cultivation, possession,
or use within a person’s residence of no more than:
means a cannabis seed that is germinated and all parts of
the growth therefrom, including, without limitation, roots, stalks,
and leaves. Cannabis plant shall include immature plants except where
specifically exempted in this code. For purposes of this chapter,
the portion of regulated cannabis plant harvested from the plant or
converted to a usable form of regulated cannabis for medical use is
not considered part of the plant upon harvesting.
means the portion of a cannabis business within which the
licensee defines on its application it intends to distribute, possess,
or produce regulated cannabis and which area is clearly identified
as the controlled area on the floor plan submitted with the cannabis
business license application for the business.
means a fixture, feature or improvement as specifically defined
herein, including any definition(s) adopted by reference, that is
either integral to the building structure or securely attached to
the building capable of: (1) being locked securely by either a mechanical
or electronic combination lock that is protected by a case-hardened
drill-resistant steel plate or drill-resistant material of equivalent
strength; (2) having door hinges that prevent the removal of the door,
including, but not limited to, hinges that are not exposed to the
outside, interlocking door designs, dead bars, jeweler's lugs and
active locking bolts; (3) being constructed in a manner to prevent
opening by human or mechanical force, or through the use of common
tools, including, but not limited to, hammers, bolt cutters, crowbars
or pry bars.
means a natural person who meets the criteria established
by this code and § 44-10-308(4), C.R.S.
means the State of Colorado.
means a fixture, feature or improvement as specifically defined
herein, including any definition(s) adopted by reference, that is
integral to the building structure within the limited access area
of the licensed premises capable of: (1) being locked securely by
either a mechanical or electronic combination lock that is protected
by a case-hardened drill-resistant steel plate or drill-resistant
material of equivalent strength; (2) having door hinges that prevent
the removal of the door; (3) being constructed in a manner to prevent
opening by human or mechanical force, or through the use of common
tools, including, but not limited to, hammers, bolt cutters, crow
bars or pry bars; and (4) with a steel door frame and with walls,
floors and ceiling reinforced with at least one of the following:
At least one layer of one-eighth-inch or thicker welded steel
plating;
Steel mesh of 10-gauge wire or thicker with openings no larger
than two-and-one-half-inch by two-and-one-half-inch that is securely
attached to the building structure;
Concrete four inches or thicker reinforced with one-half inch
or thicker steel rods no wider than six inches apart
A cage constructed to current 21 CFR 1301.72(b)(4) standards;
A vault constructed to current 21 CFR 1301.72(a)(3) standards.
means a plea or finding of a violation of any law in a criminal,
civil, or administrative proceeding whether part of a plea agreement,
settlement agreement or determination by an arbitrator, hearing officer,
court, or jury.
(Ord. No. 5209, 4/3/2024; Ord. 5064, 4-6-22)
(a)
It
shall be unlawful for any person to engage in any form of business
or commerce or activity involving cultivation, processing, manufacturing,
storage, sale, distribution, transportation, testing, research or
consumption of any form of cannabis or cannabis products other than
those forms of business and commerce activities that are expressly
contemplated by Sections 14 and 16 of Article XVIII of the
Colorado Constitution, Colorado Marijuana Code, this code, or other
applicable provisions of the GJMC.
(b)
It
shall be unlawful for any person to operate a regulated cannabis business
in the City without a license to operate issued pursuant to the requirements
of this chapter while concurrently holding a license in good standing
from the State and in compliance with any and all applicable laws.
(c)
No
regulated cannabis business shall operate without obtaining any other
license(s) or permit(s) required by any federal, State, or local law;
by way of example, a regulated sales and use tax license, a retail
food business license, or any applicable zoning or building permit.
No two or more different regulated cannabis businesses may be treated
as one premises unless approved as co-located businesses. Retail and
medical cannabis may be co-located; however, if not co-located, medical
licenses will not be separately considered in accounting for the 10-license
cap.
(d)
The
license(s) required to lawfully conduct business must be in full force
and effect, all applicable fees and taxes be paid in full, and all
conditions of the license application be satisfied in order to conduct
business. Each and every license applies to the person/entity named
thereon and the activity(ies) authorized by the license and the location
where the sale and/or possession occurs. Failure to maintain a current,
valid license shall constitute a violation of this chapter.
(e)
It
shall be unlawful for any person to exercise any of the privileges
granted by a license other than the person(s) issued the license.
(f)
It
shall be unlawful for any person(s) granted a license to allow any
other person to exercise any privilege granted under the license.
(g)
It
shall be unlawful for any person to operate any cannabis business
in the City without a license issued by the City and the State licensing
authorities pursuant to the Colorado Marijuana Code, this chapter,
and other applicable provisions of the GJMC and applicable law.
(h)
The
issuance of a City license pursuant to this chapter does not create
an exception, defense, or immunity to any person regarding any potential
criminal liability the person may have for the production, distribution,
storage, transportation, or possession of cannabis.
(i)
All
persons who are engaged in or who are attempting to engage in the
distribution and/or sale of regulated cannabis in any form shall do
so only in strict compliance with the terms, conditions, limitations,
and restrictions in Sections 14 and 16 of Article XVIII of the
Colorado Constitution, State law, the Colorado Marijuana Rules, the
GJMC, and all other laws, rules, and regulations.
(Ord. 5064, 4-6-22)
For the purpose of regulating and controlling the licensing
and the sale of regulated cannabis in the City, there is hereby created
a licensing authority appointed by the City Council, hereafter referred
to as “authority.”
(a)
Structure of Authority.
(1)
Hearing Officer.
A Hearing Officer for the authority
shall be appointed by, and serve at the pleasure of, the City Council.
Alternate Hearing Officer(s) may be appointed to serve if the Hearing
Officer is absent and/or a conflict exists for which the Hearing Officer
must be recused.
(i)
The Hearing Officer shall be a resident of the City and have an active
license to practice law in the State of Colorado.
(ii)
Duties of the Hearing Officer.
The Hearing Officer
shall:
(A)
Conduct all hearings required under this chapter, rules and
regulations, and codes construing and implementing the same.
(B)
Conduct all hearings for initial licenses, renewal of licenses,
for proposed changes of ownership of licenses and changes of the corporate
structure of license, and for proposed changes of location of licensed
premises or modification of premises.
(C)
Conduct all hearings brought under such codes when violations
of the codes or the regulations under the codes have been alleged
to have occurred and to impose penalties against licensees in the
manner provided by this chapter on its own motion or on complaint
by the City Attorney for any violation by the licensee after investigation
and public hearing at which the licensee shall be afforded an opportunity
to be heard.
(D)
Promulgate rules and regulations concerning the procedures for
hearings before the authority.
(E)
Require any applicant or licensee to furnish any relevant information
required by the authority.
(F)
Grant or deny motions, make findings and orders, administer
oaths and issue subpoenas to require the presence of persons and the
production of papers, books, and records at any hearing which the
authority is authorized to conduct.
(iii)
The Hearing Officer may be removed by the City Council for nonattendance
to duty, or with or without cause as determined by City Council. If
the Hearing Officer fails to attend three consecutive meetings of
the authority, he/she shall be removed from the Hearing Officer position
unless the City Council excuses any such absences.
(2)
The City Manager shall serve as the secretary of the authority and
shall provide or cause to be provided the necessary administrative
and reporting services for the authority. The City Manager shall accept
and process applications, schedule hearings for the authority, provide
public notice for the hearings, prepare the hearing room, be present
at all hearings, ensure the hearings are recorded, take meeting minutes
and any other duties as necessary. The City Manager shall be present
at all hearings.
(3)
The City Attorney shall serve as legal advisor for the authority
and shall be present at all hearings providing legal assistance to
the Hearing Officer and the City Manager.
(b)
Powers of the Authority.
(1)
The authority shall have and is vested with authority to grant or
to refuse a license application or renewal. The authority may order
special terms and conditions on licenses in the event of an emergency
or as temporarily required to protect the public health, safety, and
well-being without the need for a public hearing. Notice of such action
and for a public hearing before the authority on the matter shall
be provided to the licensee.
(2)
The authority shall have all the powers provided in this chapter,
and as set forth in § 44-10-301, C.R.S. et seq. and the Colorado Marijuana Rules, and the regulations
promulgated thereunder.
(3)
The authority may promulgate such rules and regulations as it deems
necessary for the proper administration and enforcement of this chapter;
provided, that the same are not in conflict with the Colorado Marijuana
Code, Colorado Constitution, and the Colorado Department of Revenue
enforcement rules.
(4)
The authority may exercise all other powers and duties as are set
forth in the Colorado Marijuana Code, the Colorado Constitution, the
Colorado Department of Revenue Marijuana Enforcement Division rules,
the GJMC and any rule or regulation adopted pursuant thereto.
(5)
Under any and all circumstances in which Colorado law requires communication
to the City by the State licensing authority or any other State agency
regarding any license authorized by this chapter, or in which State
law requires any review or approval by the City of any action taken
by the State licensing authority, the exclusive department in the
City for receiving such communications and granting such approvals
shall be the authority.
(c)
Action of the Authority.
(1)
The authority may issue subpoenas to require the presence of persons
and the production of papers, books, and records necessary to the
determination of any hearing the authority is authorized to conduct.
(2)
The authority, acting by and through the Hearing Officer, may suspend
or revoke licenses granted under this chapter for cause or as set
forth in this chapter or as applicable law may provide.
(3)
The authority, acting by and through the Hearing Officer, may summarily
suspend a license issued pursuant to this chapter without notice pending
any prosecution or public hearing for a period not to exceed 15 days
when the authority determines a licensee or an agent or employee of
the licensee has violated the Colorado Marijuana Code, the Colorado
Department of Revenue Marijuana Enforcement Division rules, the Colorado
Constitution, the City’s code, or any rule and regulation related
to the storage, sale, distribution, transportation, testing, or consumption
of any form of cannabis, or when the public health, safety or well-being
imperatively requires emergency action, and incorporates such findings
in the notice for a public hearing before the authority on the matter.
(d)
Nothing
in this chapter shall be construed to limit a law enforcement agency’s
ability to investigate unlawful activity in relation to a license
issued pursuant to this code.
(e)
Authority Hearing Procedures.
(1)
Hearings shall be scheduled as determined by the authority and generally
with the same frequency as the liquor licensing authority or at special
meetings as scheduled by the authority.
(2)
The Hearing Officer may establish such procedures and local rules
to be followed in actions before her/him. Such procedures shall include
the following:
(i)
Control the mode, manner and order of all proceedings and hearings.
(ii)
The adoption of rules, procedures, and policies for its own
proceedings and for filing applications and requests.
(iii)
The adoption of application forms and submission requirements,
including a requirement that applications, complaints and other documents
be filed in a digital format approved by the authority and to refuse
applications, complaints and other documents not filed in the approved
digital format.
(iv)
To perform any act that the authority is authorized to perform
by law.
(v)
To promulgate such rules and regulations deemed necessary to properly
administer and enforce this chapter, and to exercise all other powers
and duties as set forth in this chapter, as well as those set forth
in the Colorado Marijuana Code and Subsection 5(f) of Section 16 of Article XVIII of the
Colorado Constitution. The authority shall provide all proposed rules,
and subsequent changes thereto, to City Council for approval by resolution.
(vi)
Powers in the Conduct of Hearings.
The Hearing
Officer shall conduct hearings under and in accordance with this chapter,
local rules and procedures, and the Colorado Marijuana Code.
(vii)
Contempt.
In the event that any person, in the
immediate presence of the authority or within its sight or hearing,
while the authority is in session during a hearing, commits a direct
contempt of the authority by speech, gesture or conduct which disobeys
a lawful order of the authority, shows gross disrespect to the authority
tending to bring the authority into public ridicule, or substantially
interferes with the authority’s proceedings, the authority may
hold such person in contempt. Contemptuous conduct by any principal,
registered manager or employee shall be imputed to the licensee. The
authority may impose the following sanctions for contempt:
(A)
Removal of the person committing the contempt from the proceedings,
the hearing room and its environs;
(B)
Public censure, which shall be made a matter of the licensee’s
record and may be used as an aggravating factor in determining any
fine, suspension, revocation or renewal;
(C)
A prohibition against the individual or the licensee introducing
into the record testimony, documents, exhibits or other evidence;
(D)
An order striking, disregarding, and refusing to consider pleadings,
applications, documents, objections, testimony, exhibits or other
evidence or arguments already introduced by such person;
(E)
A fine, enforced by suspension of the license until the fine
is paid;
(F)
Default of any motion, complaint or other action then pending
against the licensee; and/or
(G)
Denial of any application by the licensee then pending before
the authority.
(viii)
Determinations With Respect to Hearings.
(A)
The Hearing Officer shall make his/her determination after hearings
in accordance with this code, the Colorado Marijuana Code and established
legal principles. The decision of the Hearing Officer shall be final,
and appeal from that decision shall be to the district court of the
21st Judicial District.
(B)
Actions taken by the authority are subject to review by the
courts pursuant to Rule 106(a)(4) of the Colorado Rules of Civil Procedure.
Any person applying to the court for review shall be required to pay
the cost of preparing a transcript of proceedings before the authority
whenever such a transcript is necessary for purposes of an appeal.
(C)
Appeals of Hearing Officer Decision(s). If the authority imposes
a condition on the license and/or suspends or revokes a license or
imposes a fine, the licensee may appeal the authority’s order
to the Mesa County District Court pursuant to Rule 106(a)(4) of the
Colorado Rules of Civil Procedure. The licensee’s failure to
timely appeal any decision/order of the authority is a waiver of the
licensee’s right to contest the decision/order. Any person applying
to the court for review shall be required to pay the cost of preparing
a transcript of proceedings before the authority whenever such a transcript
is necessary for the purposes of the appeal.
(Ord. 5064, 4-6-22)
(a)
Applications.
All applications for any license authorized
by this chapter shall be submitted to the City Manager upon forms
provided by the authority and shall include supplemental materials
as required by this chapter, the Colorado Marijuana Code, and any
rules and regulations adopted pursuant thereto. To the extent any
of the foregoing materials have been included with the applicant’s
State license application and forwarded to the City by the State,
the authority may rely upon the information forwarded by applicants
without requiring resubmittal of the same materials in conjunction
with the local license application.
(b)
The
authority may, at the authority’s discretion, require additional
information and/or documentation for the consideration of the application
as it may deem necessary to enforce the requirements of the Colorado
Marijuana Code and this chapter.
(c)
The general procedures and requirements of licenses, as more fully set forth in Chapter 5.04 GJMC, shall apply to regulated cannabis business licenses. To the extent of conflict between the provisions of this chapter and Chapter 5.04 GJMC, the provisions of this chapter shall control for regulated cannabis licenses.
(d)
The
City Manager will provide public notice of any open application period.
(e)
Initial Application.
(1)
Complete Application.
The City Manager shall receive all applications for a license authorized by this chapter. The City Manager will review and, if demonstrated from the application, find an application to be complete if the applicant, on forms provided by the City, provides materials and information demonstrating that all requirements for licensure can or will be met by the applicant at the time of licensure as provided in this section and in GJMC § 5.13.022. A complete application must comply in all material respect with this section, and the application forms and processes of this code, resolutions, and administrative regulations of the City.
(2)
No person or entity, to include an affiliate(s)/affiliated entity,
shall apply for more than one license for any location in the City,
unless applying for a co-located (medical and retail) licensure.
(3)
Each applicant may file only one application for only one license
at one location for each class of cannabis business license authorized
by this chapter. A co-located medical and retail cannabis business
location shall be deemed one license for the purpose of this section.
A location for a license shall be established and determined by lawful
street addressing. A unit(s) in a building that is not separately,
legally created and addressed is (are) not a separate location(s).
The City Manager shall not accept more than one application for the
same address. Applications shall be date and time stamped and the
first in time for an address shall be the only application considered.
A subsequent application for the same address shall be rejected.
(4)
The applicant has registered with the authority the name(s) of the
manager(s) of the cannabis business, and has provided to the authority
the names of all persons having 10 percent financial interest in the
cannabis business that is the subject of the application or, if the
applicant is an entity, having a 10 percent financial interest in
the entity together with the following:
(i)
Name, address, date of birth;
(ii)
Acknowledgment and consent that the City may conduct a background
investigation, including a criminal history check, and the City will
be entitled to full and complete disclosure of all financial records
of the regulated cannabis business and of any or all financial interests
thereof, including records of deposit, withdrawals, balances and loans;
(iii)
If the applicant is an entity, information regarding the entity,
including, without limitation, the name and address of the entity,
its legal status, and proof of registration with, or a certificate
of good standing from, the Colorado Secretary of State, as applicable;
(iv)
If the applicant is not the owner of the proposed licensed premises,
a notarized statement from the owner of such property authorizing
the use of the property for a cannabis business and specifying the
type of regulated cannabis business(es) permitted;
(v)
A copy of the deed reflecting the applicant’s ownership of,
or the lease or contract reflecting the legal right of the applicant
to possess, the proposed licensed premises for no less than three
years from the date of application submittal.
(5)
The applicant must disclose in writing any financial interests, including
individuals and/or entities.
(6)
The applicant must disclose in writing if the named owner(s), member(s),
manager(s), financier(s), agent(s), or person(s) named on the application
has (have) been:
(i)
Denied an application for a cannabis business license pursuant to
this chapter, or any State or local licensing law, rule, or regulation,
or had such a license suspended or revoked.
(ii)
Denied an application for liquor license pursuant to Title 44, Article 47, or Article 46, C.R.S. or any similar State or local licensing law, or had such a license suspended or revoked.
(A)
In the event an owner, member, agent, manager, financier, or
other person named on the application contains information regarding
violations of any law or previous denial or revocation of a license,
that person must include with the application any information regarding
such violation(s), denial, or revocation. Such information must include,
but is not limited to, a statement of the violation(s) and penalty(ies)
for such violation(s), evidence of rehabilitation, character references,
and educational achievements, and other regulatory licenses held without
compliance violations, especially those items pertaining to the period
of time between the applicant’s last violation of any law and
the date of the application.
(B)
The City may, prior to issuance of the certificate of occupancy
for the cannabis business, perform an inspection of the proposed licensed
premises to determine compliance with any applicable requirements
of this chapter or other provisions of this code, the International
Fire Code, or the International Building Code.
(7)
The applicant must provide affirmation in writing that the applicant
officers, directors, other owners, any person having a direct or indirect
financial interest in the business, and agents or employees of the
applicant are of good moral character considering the factors in the
Colorado Marijuana Code, this chapter, and rules and regulations adopted
pursuant thereto; have no felony convictions in the last five years,
no drug related local ordinance, petty offense or misdemeanor convictions
in the last five years, and no drug related felony convictions.
(8)
The applicant must provide affirmation in writing that the applicant
has no overlapping partner(s), investor(s) or immediate family member(s)
of a partner(s) or investor(s) (affiliate or affiliated entity) with
another application and that no application is an affiliate or affiliate
entity with another application. An application that includes an affiliated
entity shall not be considered for review or licensure.
(9)
The applicant must provide affirmation in writing that the applicant’s
principal officers, directors, members, or owners who now, or at any
time in the past, have had 10 percent or more ownership in any cannabis
business have not had, or the business has not had, a cannabis license
suspended or revoked by the State of Colorado or any other state,
or any other jurisdiction’s local authority or other controlling
authority. If the applicant had a prior cannabis license suspended
or revoked by the State of Colorado or any other state, or any other
jurisdiction’s local authority or other controlling authority,
the applicant will be disqualified for licensure hereunder.
A suspension or revocation of a prior cannabis license in which
a principal officer(s), director(s), member(s), or owner(s) had 10
percent or more ownership and with which the applicant had a prior
business relationship shall not in and of itself disqualify an applicant
for licensure hereunder; however, the applicant shall, in addition
to the affirmation, provide a written statement describing the circumstances
of the prior business relationship and of the suspension or revocation
of the license.
(10)
The applicant must submit a finding of suitability form.
(11)
The applicant must provide written proof of a binding quote for insurance as provided by GJMC § 5.13.030.
(12)
The applicant shall provide a written zoning and buffering verification
from the Community Development Department Director that states the
location proposed for licensing complies with any and all zoning laws
of the City, and any restrictions on location set forth in this code.
If drive-through cannabis service is contemplated, the applicant shall
provide sufficient detail to demonstrate the drive-through will comply
with the GJMC, specifically those requirements of the Zoning and Development
Code and Transportation Engineering Standards. If the Director makes
a determination that the proposed license location would be in violation
of any zoning law or other restriction on location set forth in the
GJMC and/or any administrative regulation(s) construing the same,
then the Director shall, no later than 10 working days from the date
the applicant requested the zoning and buffering verification, notify
the applicant in writing that the proposed license location cannot
be verified to be in compliance. As provided by the GJMC, the applicant
may appeal the Director’s decision.
(13)
The applicant must provide a written operating plan that includes, but is not limited to, the items in GJMC § 5.13.036.
(14)
The applicant must provide a written security plan indicating how
the applicant will comply with the requirements set forth in the Colorado
Marijuana Code, this chapter, and any other applicable law, rule,
or regulations pursuant thereto. The security plan includes specialized
details of security arrangements and will be protected from disclosure
as provided under the Colorado Open Records Act § 24-72-203(2)(a)(VIII), C.R.S. If the City finds that such documents are subject
to inspection, it will provide notice to the applicant as provided
by the Colorado Open Records Act.
(15)
The applicant must provide a written plan for preventing underage
persons from entering the premises.
(16)
The applicant must provide a written plan for disposal of any regulated
cannabis that is not sold in a manner that protects any portion thereof
from being possessed or ingested by any person or animal.
(17)
The applicant must provide a written plan for ventilation of the
regulated cannabis business that describes the ventilation systems
that will be used to prevent odor of cannabis off the premises of
the business.
(18)
The applicant must provide any supplemental materials required to
be provided by the State in order to receive a State-issued cannabis
business license pursuant to the Colorado Marijuana Code and rules
adopted pursuant thereto.
(19)
The applicant must provide any supplemental materials to comply with
City laws and any additional information that the authority reasonably
determines to be necessary in connection with the investigation and
review of the application.
(20)
The applicant shall provide affirmation in writing that it has and
will satisfy and continuously meet, if a license is awarded, all the
terms, conditions, provisions, and requirements imposed upon the applicant
or the licensee by the applicable provisions of the Colorado Marijuana
Code, the City’s code, and all the rules and regulations adopted
pursuant thereto, and all applicable building, fire, health or zoning
codes, ordinances, rules or regulations adopted pursuant thereto related
to the cultivation, processing, manufacture, storage, sale, distribution,
testing, research, transporting, or consumption of any form of cannabis.
(21)
The applicant shall provide affirmation in writing the license application
contains no fraudulent, misrepresented, or false statements of a material
or relevant fact.
(22)
The applicant shall pay all applicable application and licensing
fees.
(23)
The applicant provides affirmation in writing that it or the licensee
is not overdue on his/her/its payment of any taxes, fines, interest,
penalties, or collection costs assessed against or imposed upon such
applicant in any business matters, affairs, or dealings of the applicant
in any state, county, or municipality in which the applicant conducts
business.
(24)
The applicant provides affirmation in writing that the applicant
will make all the improvements to the licensed premises as required
by the GJMC so that the cannabis business operations shall begin within
12 months of the application being selected for licensure in the random
selection process.
(25)
The applicant affirms, in writing, the applicant is not a sheriff,
deputy, police officer, prosecuting officer, or an officer or employee
of the State.
(26)
The applicant affirms, in writing, the applicant is not a person
whose authority to be a primary caregiver as defined in § 25-1.5-106(2), C.R.S. has been revoked by the State health agency.
(f)
Incomplete Application.
Upon review of an application,
the City Manager shall provide a notice of initial determination to
the applicant in writing as to whether the applicant’s application
is complete and if found to be incomplete that the applicant may supplement
its application so long as the application is made complete within
the application period.
(g)
Denial of Initial Application.
The City Manager may
deny any application that does not meet the requirements of this chapter,
the Colorado Marijuana Code, or any other applicable State or City
law or regulation. In addition to prohibitions on persons as licensees
found in the Colorado Marijuana Code, should the applicant fail to
affirm any information or representation(s) as required by this section,
or the City discovers evidence that any affirmation was contrary,
false, misleading, or incomplete, such shall constitute full and adequate
grounds for denial of any application.
(1)
Notice of Denial.
If, after investigation and discovery,
the City Manager determines that the application will be denied, the
City Manager shall:
(2)
Appeal of Denial.
An applicant may appeal the City Manager’s
decision of denial by submitting a written request on a form provided
by the City, received by the City Manager within 10 days of the date
on the written notice of denial. The appeal request shall include
any legal and factual support for the appeal. An appeal hearing will
be set before the Hearing Officer for a written appeal. The Hearing
Officer shall only review and consider those issues specifically addressed
in the written appeal.
(Ord. 5064, 4-6-22)
(a)
All
applications that are confirmed to be complete and in accordance with
all applicable laws and regulations by the Hearing Officer shall enter
the randomized selection process if there are more such applications
than available licenses. In the event the number of confirmed applications
is the same or fewer than the number of available license(s), the
randomized selection process will not occur.
(b)
All qualified applicants as determined by the application of this code, including but not limited to those applications for locations from within Horizon Drive Association Business Improvement District (District) and the High Colorado LLC Application as provided in GJMC § 5.13.020(c), will be randomly selected and assigned a number.
(c)
The
random selection from qualified applications will be held by the authority
at City Hall, 250 North 5th Street, Grand Junction, CO 81501. The
random selection will be conducted publicly. Applicants need not be
present at the selection.
(d)
Following the assignment of random numbers to the applications as provided in subsection (b) of this section, the numbers will be placed in a selection container and 10 numbers will be randomly selected, and in the event the High Colorado LLC application is drawn an eleventh number will be selected. The legal effect, if any, of the eleventh number will be determined in accordance with subsection (e) of this section and GJMC § 5.13.020.
(e)
If more than two applications are selected from among the District applications pursuant to subsection (d) of this section, then a separate random process shall be immediately conducted among the District applications and without regard to the random numbers assigned in subsection (b) of this section, two District applications will be selected for licensure. The eleventh number will then be designated to replace the disqualified District application and a twelfth number will be selected. The legal effect, if any, of the twelfth number will be determined in accordance with GJMC § 5.13.020.
(f)
The selected applicants, including the contingent application as provided in GJMC § 5.13.020, will be announced at the conclusion of the random selection process. Subject to full and faithful compliance with this code, including but not limited to determination of the legal effect of the contingent application, those selected will have an opportunity to be issued a cannabis business license as provided in this code and other applicable law, rules and regulations.
(Ord. 5135, 3-15-23; Ord. 5064, 4-6-22)
Prior to the acceptance of applications for a license, transfer
of ownership, change of corporate structure, or other permit as provided
in this chapter, the Colorado Marijuana Code and the Colorado Marijuana
Rules, the following individuals shall provide verified fingerprint
information to the Grand Junction Police Department:
(a)
If
the applicant is a natural person, that person;
(b)
If
the applicant is a partnership, all of the partners; and
(c)
If
the applicant is a corporation, both the officers and directors, together
with any person owning more than 10 percent of the stock thereof.
(Ord. 5064, 4-6-22)
(a)
If,
at any time before or after a license is issued pursuant to this chapter,
any information required by the Colorado Marijuana Code, or any rule
and regulation adopted pursuant thereto, changes from that which is
stated in the application, the applicant or licensee shall supplement
its application with the updated information within 10 days from the
date upon which such change occurs.
(b)
An
applicant or licensee has a duty to notify the authority of any pending
criminal charge(s) and any criminal conviction(s) by the applicant,
licensee, any owner, officer, director, manager, agent or employee
of the applicant or licensee within 10 days of the event.
(c)
An
applicant or licensee has a duty to notify the authority of any pending
violation of, and any conviction for, a violation of any building,
fire, health or zoning statute, code or ordinance related to the cultivation,
processing, manufacture, transportation, storage, sale, distribution,
testing, research, or consumption of any form of cannabis by the applicant,
licensee, any owner, officer, director, manager, agent or employee
of the applicant or licensee within 10 days of the event.
(Ord. 5064, 4-6-22)
(a)
No
more than 10 regulated cannabis business licenses, excluding any cannabis
testing facilities and any medical cannabis business license(s) co-located
with a retail cannabis business license, shall be issued.
(b)
Included within the 10-license limit referenced in subsection (a) of this section, no more than two cannabis business licenses may be issued in the Horizon Drive Association Business Improvement District (District), which is described as all commercial property bounded on the south by G Road, north on Horizon Drive through and including H Road, bounded on the west by 27 Road/15th Street, and on the east by 27 ½ Road northeast to Walker Field Airport Authority. The boundaries of the District include, but are not limited to, Horizon Court, Compass Drive Association, Crossroads Boulevard, Crossroads Court, Skyline Court, Sundstrand Way, and Hilaria Avenue.
(c)
Notwithstanding
the litigation, and in accordance with the stipulation made by the
parties to the litigation, the City Council finds that it is in the
best interest of the City to enter the application of High Colorado
LLC in the random selection process. That action is not and shall
not be claimed or construed as a waiver of any decision(s), finding(s),
or ruling(s) made by the cannabis licensing authority and/or that
the inclusion of the High Colorado LLC application in the random selection
process is an abrogation of any defense(s) made, or that may be made,
by the City in the litigation.
(d)
In
accordance with the stipulation made by the parties to the litigation,
if the High Colorado LLC application is not drawn in the random selection
process, then High Colorado LLC shall file a motion to dismiss the
litigation with prejudice, bear its costs and release any and all
claims made by it in the litigation.
(e)
In accordance with the stipulation made by the parties to the litigation, if the High Colorado LLC application is drawn in the random selection process, then the eleventh or twelfth number as provided in GJMC § 5.13.017(d) and (e) (contingent application) shall be drawn with the licensure of either or both the High Colorado LLC application and/or the contingent application being conditional and subject to, as provided herein, resolution of the litigation, whether by judgment or settlement, in favor of High Colorado LLC.
(f)
If
the litigation is not resolved, whether by judgment or settlement,
in favor of High Colorado LLC, then the selection of the High Colorado
LLC application in the random selection process shall be without legal
effect and no license shall issue to High Colorado LLC and instead
a license shall issue to the contingent application.
(g)
If the contingent application does not commence operations as provided by this code following resolution of the litigation as provided above, or otherwise determines and advises the City in writing that the applicant selected for the contingent application decides to withdraw, then the City shall conduct another randomized selection process for one license (replacement application). The replacement application shall be determined from the unsuccessful applicants that participated in the randomized selection process in GJMC § 5.13.017(b). Notwithstanding GJMC § 5.13.017(e) the District application(s) not selected for purposes of the District only process will be eligible for the replacement license process provided herein so long as two applications for licensure in the District have not been previously selected in the randomized selection process.
(h)
If
the litigation is resolved, whether by judgment or settlement, in
favor of High Colorado LLC, then the selection of the contingent application
in the random selection process shall be without legal effect and
a license shall issue to High Colorado LLC.
(i)
If
a license is issued to High Colorado LLC the City acknowledges that
the licensed premises is and will be nonconforming due to its location
being closer than 1,000 feet (980.21 feet) to Grand Junction High
School (GJHS). The City further acknowledges that the nonconforming
distance may be a temporary condition due to the construction of a
new GJHS. The nonconforming distance, if it is not resolved by construction
of GJHS, shall not be a basis for a challenge to the issuance of a
license as provided herein or to the conduct of business operations
by High Colorado LLC.
(j)
Furthermore,
the existence of a nonconforming distance for High Colorado LLC shall
not be, or be claimed to be, a waiver of any distance requirement
for any other application made, or to be made, pursuant to the code.
(Ord. 5135, 3-15-23; Ord. 5064, 4-6-22)
For the purpose of regulating testing, distribution, offering
for sale and sale of cannabis, the licensing authority, in its sole
discretion, may issue and grant to the applicant a local license from
any of the following classes, and the City hereby authorizes issuance
of the licenses of the following classes by the State licensing authority
in locations in the City, subject to the provisions in this chapter:
(a)
Retail
cannabis store.
(b)
Co-located
medical cannabis store.
(c)
Retail
cannabis testing facility(ies).
(d)
Medical
cannabis testing facility(ies).
(Ord. 5064, 4-6-22)
The authority shall not issue a cannabis business license except
when each of the following requirements has been met:
(a)
The
City Manager approved the applicant’s initial application; and
(b)
The
Hearing Officer finds in writing the initial application to be complete,
and after a public hearing refers the initial application to the randomized
selection process for possible selection for licensure for a license
authorized by this chapter; and
(c)
If
there is to be a randomized selection process, the initial application
was selected for licensure in that process; and
(d)
The
applicant submitted all documents to the authority that it provided
to the State for marijuana business licensure; and
(e)
At
the time of issuance of a license, the applicant has paid all fees
and intends to commence operation within 12 months of selection in
the random selection process; the Hearing Officer may extend the period
for the applicant to commence operation for a period not to exceed
24 months from the date of selection in the random selection process,
if the applicant petitions the authority for an extended commencement
date and after a hearing the Hearing Officer finds good cause to grant
the extension; and
(f)
The
applicant and the applicant’s owner(s) and financier(s) are
in compliance with all federal, State, and local tax laws.
(Ord. 5064, 4-6-22)
(a)
A
nonrefundable application fee shall be paid to the State upon application
to the State for a cannabis business license.
(b)
The
application and license fees shall be paid to the City at the time
of application for a cannabis business license. The license fee may
be refunded if an application is withdrawn by the applicant, denied
by the City Manager or Hearing Officer, or the applicant is not selected
in the randomized selection process. The City Manager will refund
the license fee within 30 days of the date of the withdrawal, denial
of the application or failure of the applicant to be selected in the
randomized selection process for issuance of a cannabis business license.
The application fee is nonrefundable.
(c)
Renewal,
change of location, inspection and all other fees may be imposed as
necessary for the administration, regulation and implementation of
this code, and those fees shall be set by City Council resolution.
(d)
License
and application fees shall be set by City Council resolution, and,
as deemed necessary, adjusted to reflect the direct and indirect costs
incurred by the City in connection with the adoption, administration,
and enforcement of this code.
(e)
In
addition to fees and any other monetary remedy provided by this code,
the City shall have the right to recover all sums due and owing hereunder
by any civil remedy available at law.
(Ord. 5064, 4-6-22)
(a)
Notwithstanding
anything contained in this chapter, an application initially approved
for consideration of licensure and found to be complete by the Hearing
Officer, or in the event a license is issued, creates no vested right(s)
to the license or the renewal of a license, and no property right
in the license or the renewal of a license is created.
(b)
If a cannabis business does not commence operations within 12 months of selection through the randomized selection process, the license shall be deemed forfeited and the business may not commence operation, unless the authority has granted an extension pursuant to GJMC § 5.13.022(e).
(c)
It
shall be unlawful for the owner of a building to allow the use of
any portion of the building by a cannabis business unless the tenant
has a valid regulated cannabis business license or has applied for
one and been awarded a regulated cannabis business license or no cannabis
is located on the premises until a license has been issued by the
City. If the City has an articulable reason to believe that a regulated
cannabis business is being operated in a building, it shall be unlawful
for the owner of the building to refuse to allow the City access to
the portion of the building in which the suspected cannabis business
is located to determine whether any cannabis is on the premises.
(Ord. 5064, 4-6-22)
(a)
A cannabis business license is not transferable or assignable, in whole or in part, including, without limitation, to a different premises or to a different type of business for a period of three years of issuance of the license by the City as described in subsection (b) of this section. A regulated cannabis business license is valid only for the owner named thereon, the type of business disclosed on the application for the license(s), and the location for which the license is issued. The licensee(s) of a regulated cannabis business are only those persons disclosed in the application or subsequently disclosed to the City in accordance with this chapter.
(b)
Transfer
of ownership of any interest of the licensee may not occur within
three years of issuance of the license by the City unless by court
order or other operation of law such as probate or lawful seizure/dispossession.
(c)
Transfer of ownership of any regulated cannabis business license issued pursuant to this chapter shall be governed by the standards and procedures set forth in the Colorado Marijuana Code and any regulations adopted pursuant thereto and the authority shall administer transfers of local licenses in the same manner as the State licensing authority administers transfers of State licenses. The public hearing requirement set forth in GJMC § 5.13.027 shall apply to all applications for transfer of ownership of any regulated cannabis license.
(d)
In
determining whether to permit a transfer of ownership, the authority
may consider the requirements of law and the Colorado Marijuana Rules.
No application for transfer of ownership will be considered by the
authority if, at the time of such application, the licensee is under
a notice of violation or other unlawful acts issued by either the
authority or the State licensing authority.
(e)
The
submission or pendency of an application for transfer of ownership
does not relieve the licensee from the obligation to properly apply
to renew such license.
(f)
No
owner may apply for a transfer of ownership of any regulated cannabis
business license issued pursuant to this chapter if the transferee
is an owner of or an affiliate of any other business entity holding
another regulated cannabis license in the City.
(Ord. 5064, 4-6-22)
(a)
A change of corporate structure of any regulated cannabis business that results in any of the change(s) in subsections (a)(1) and (2) of this section shall require the filing of an application and payment of the requisite fees and shall be subject to all requirements of the licensing process. A change of corporate structure shall be heard and approved or denied by the authority.
(1)
Any transfer or assignment of 10 percent or more of the capital stock
of any corporation, or transfer of 10 percent or more of the ownership
interests of any general or limited partnership interest in any year,
or transfer of any liability company interest in a limited liability
company of any kind, joint venture or business entity that results
in any individual owning more than 10 percent of ownership interest
in the business entity if that individual’s ownership interest
did not exceed 10 percent prior to transfer.
(2)
Any change of officer or director of a corporation that involves
the addition or substitution of an individual(s) who was not previously
an officer or director of the corporation during a period of time
that the corporation held the license.
(b)
A
change of corporate structure that results in any transfer or assignment
of less than 10 percent of the capital stock of any corporation or
less than 10 percent of the ownership interests of any limited partnership
interest in any year to a person who currently has an interest in
the business, and that does not result in a change of controlling
interest, shall not require an application for change of corporate
structure.
(c)
No
application for transfer of ownership or change in corporate structure
may be approved by the authority until all City and State occupational
taxes, City and State sales and use taxes, excise taxes, any fines,
penalties, and interest assessed against or imposed upon such licensee
in relation to operation of the licensed business are paid in full.
(d)
A
licensee shall report each and every change of financial interest
in the license and/or the licensee to the authority prior to any such
change pursuant to and in accordance with the provisions of law and
the Colorado Marijuana Rules. A report shall be required for transfers
of capital stock of any corporation regardless of size, for transfers
of member interests of any limited liability company regardless of
size, and for any transfer of an interest in a partnership or other
entity or association regardless of size.
(e)
No
owner may apply for a change in corporate structure of any regulated
cannabis business licensed entity issued pursuant to this chapter
if the change adds any person or entity as an owner, officer or member
of the corporation or entity as an affiliate of any other business
entity holding another regulated cannabis license in the City.
(Ord. 5064, 4-6-22)
(a)
The public hearing procedure shall apply to any application that has been first approved by the City Manager for any regulated cannabis business and to any application for licensing renewal if the renewal application is referred to the licensing authority by the City Manager pursuant to GJMC § 5.13.035.
(b)
Public
notice of the application shall be given as follows or as more particularly
required by § 44-10-303, C.R.S. as applicable:
(1)
Posting a sign by the applicant on the premises for which an application
has been made, not less than 14 days prior to the public hearing,
stating the date of the application, the date of the hearing, the
name and address of the applicant and such information as may be required
to fully apprise the public of the nature of the application. The
City Clerk shall provide the sign to the applicant for posting. If
the building in which the regulated cannabis business is to be located
is in existence at the time of the application, any sign posted shall
be placed to be conspicuous and plainly visible to the public.
(2)
Publication of notice by the City Manager not less than 14 days prior
to the public hearing, in the same manner as the City posts notice
of other public hearing matters.
(c)
Any
decision of the authority, acting by and through the Hearing Officer,
approving or denying an application shall be in writing stating the
reasons therefor and a copy of such decision shall be mailed by certified
mail to the applicant at the address shown in the application and
to the State licensing authority.
(Ord. 5064, 4-6-22)
(a)
No
license shall be issued to, held by, or renewed by any of the following:
(1)
Any person until the annual fee for the license has been paid;
(2)
Any natural person who is not of good moral character;
(3)
Any entity whose officers, directors, or managing members are not
of good moral character;
(4)
Any person employing, assisted by, or financed in whole or in part
by any other person who is not of good moral character;
(5)
Any natural person who has been released within five years immediately
preceding the application from any form of incarceration or court-ordered
supervision, including a deferred sentence, resulting from a conviction
of any felony or any crime which under the laws of the State would
be a felony; or any crime of which fraud or intent to defraud was
an element, whether in the State or elsewhere; or any felonious crime
of violence, whether in the State or elsewhere;
(6)
Any person with 10 percent or greater financial interest in the entity that has been convicted of any of the offenses set forth in subsection (a)(5) of this section;
(7)
Any applicant who has made a false, misleading, or fraudulent statement
or who has intentionally omitted pertinent information on his or her
application for a license;
(8)
Any natural person who is under 21 years of age;
(9)
Any person who operates or manages a regulated cannabis business
contrary to the provisions of this chapter, any other applicable law,
rule, or regulation or conditions imposed on land use or license approvals,
or contrary to the terms of the plans submitted with the license application
or who has operated a business in violation of any law;
(10)
Any person applying for a license to operate a regulated cannabis
business who has been licensed to operate another regulated cannabis
business in the City pursuant to this chapter;
(11)
A person licensed pursuant to this chapter who, during a period of
licensure, or who, at the time of application, has failed to remedy
an outstanding delinquency for taxes owed, or an outstanding delinquency
for judgments owed to a government;
(12)
A sheriff, deputy, police officer, prosecuting officer, or an officer
or employee of the State or authority; and
(13)
A person whose authority to be a primary caregiver, as defined in
§ 25-1.5-106(2), C.R.S., has been revoked by the State health
agency.
(14)
No owner of any business applying for a license or in possession
of a license within the City may apply for or be an owner of or be
an affiliate of any other business entity applying for another cannabis
license within the City.
(b)
In
making an evaluation of the good moral character of an individual
identified on an application or amendment thereof, the authority shall
consider the following:
(1)
An applicant’s violation of law shall not, by itself, be grounds
for denying an application;
(2)
Verification of or lack of ability to verify items disclosed by the
applicant;
(3)
When a person has a history of violation of any law or a history
including denial, revocation, or suspension of a license, the types
and dates of violations; the evidence of rehabilitation, if any, submitted
by the individual; whether the violations of any laws are related
to moral turpitude, substance abuse, or other violations of any laws
that may directly affect the individual’s ability to operate
a regulated cannabis business; or whether the violations of any law
are unrelated to the individual’s ability to operate such a
business;
(4)
Rules adopted by the authority to implement this chapter;
(5)
Laws, rules, and regulations applicable to evaluation of other types
of licenses issued by the City that consider the good moral character
of the applicant; and
(6)
Any additional information the authority may request of the applicant
if the applicant has a violation of any laws, an administrative or
judicial finding of violation of laws regarding use of alcohol or
controlled substances or items disclosed by the individual which require
additional information for the authority to make a determination regarding
issuance of the license.
(Ord. 5064, 4-6-22)
Security measures at all licensed premises shall comply with
the requirements of the Colorado Marijuana Code and applicable rules
and regulations promulgated thereunder. In addition thereto, the following
security practices are required:
(a)
A
security plan submitted with the application, as it may be amended,
shall provide equipment, which shall be in good working order, monitored,
and secured 24 hours per day. The plan, at a minimum, shall include:
(1)
The installation and use of security cameras to monitor and record
all areas of the premises (except restrooms), and where persons may
gain or attempt to gain access to cannabis or cash maintained by the
regulated cannabis business. Cameras shall record operations of the
business to the off-site location, as well as all potential areas
of ingress or egress to the business with sufficient detail to identify
facial features and clothing. Recordings from security cameras shall
be maintained for a minimum of 40 days in a secure off-site location
in the City or through a service over a network that provides on-demand
access, commonly referred to as a “cloud.” The off-site
location shall be included in the security plan submitted to the City
and provided to the Grand Junction Police Department and updated within
72 hours of any change of such location.
(2)
Storage.
(i)
The installation and use of a safe or vault as defined in GJMC § 5.13.013, for storage of all cannabis and products containing cannabis and/or cash on the licensed premises when the business is closed to the public.
(ii)
Cannabis-infused products and cannabis concentrates that must be refrigerated or frozen shall be stored in a lockable refrigerator or freezer with all-metal sides and doors, which refrigerator or freezer shall either be secured to the building structure within the limited access area of the licensed premises or positioned within a vault, as defined in § 5.13.013, and such refrigerators and freezers shall be locked when the business is closed to the public.
(3)
The installation and use of an alarm system that is monitored by
a company that is staffed 24 hours a day, seven days a week. The security
plan submitted to the City shall identify the company monitoring the
alarm, including contact information, and be updated within 72 hours
of any change of monitoring company. If the alarm system includes
a panic alarm, an operable dedicated phone for law enforcement to
respond to the alarm shall remain on the premises at all times.
(4)
The installation and use of outdoor lighting and a diagram and description
of where the lighting shall be placed in accordance with the GJMC.
(5)
If drive-through cannabis service is contemplated, the applicant
shall provide (i) a description of security measures to prevent and
address diversion of cannabis to youth and (ii) how the applicant
will reduce potential criminal behavior such service may encourage.
(b)
(c)
On and after the effective date of Ordinance No. 5209, any licensed-regulated cannabis business in good standing with the City may amend its security plan to install and use a safe or vault as defined in GJMC § 5.13.013 for storage of all cannabis and products containing cannabis and/or cash on the premises when the business is closed to the public as provided in this Code, subject any State or local requirements for inspection(s) and/or modification of the licensed premises as required by § 5.13.039.
(Ord. No. 5209, 4/3/2024; Ord. 5064, 4-6-22)
(a)
All
applicants must provide at time of application a binder for workers’
compensation insurance as required by State law and general liability
insurance with minimum limits of $1,000,000 per occurrence and a $2,000,000
aggregate limit.
(b)
Licensee
shall at all times maintain in force and effect workers’ compensation
insurance as required by State law and general liability insurance
with minimum limits of $1,000,000 per occurrence and a $2,000,000
aggregate limit.
(d)
Licensee
shall be required to maintain insurance under this section and shall
annually provide the City a certificate of insurance evidencing the
existence of a valid and effective policy. The certificate shall show
the following:
(1)
The limits of each policy, the name of the insurer, the effective
date and expiration date of each policy, the policy number, and the
names of the additional insureds; and
(2)
A statement that licensee shall notify the City of any cancellation
or reduction in coverage within seven days of receipt of insurer’s
notification to that effect. The licensee shall forthwith obtain and
submit proof of substitute insurance in the event of expiration or
cancellation of coverage within 30 days.
(Ord. 5064, 4-6-22)
A cannabis business shall report to the City Manager each of
the following within the time specified. If no time is specified,
the report(s) shall be provided within 72 hours of the event:
(a)
Transfer
or change of financial interest, manager, or financier in the license
to the City at least 30 days before the transfer or change;
(b)
File
sales and use tax reports to the City monthly;
(c)
Any
violation of law by any licensee, applicant, or employee of a regulated
cannabis business;
(d)
A
notice of potential violation of any law to any license;
(e)
Upon
City request, any report that the regulated cannabis business is required
to provide to the State; and
(f)
Licensee
and any agent, manager or employee thereof shall immediately report
to the Grand Junction Police Department any disorderly act, conduct
or disturbance and any unlawful activity committed in or on the licensed
premises, including, but not limited to, any unlawful sale of regulated
cannabis, and shall also immediately report any such activity of which
the licensee has knowledge in the immediate vicinity of the business
within 12 hours of the occurrence.
(g)
Each
licensee shall post and keep at all times visible to the public in
a conspicuous place on the premises a sign with a minimum height of
14 inches and a minimum width of 11 inches with each letter to be
a minimum of one-half inch in height, which shall read as follows:
WARNING:
Grand Junction Police Department shall be notified of any disorderly
act(s), conduct or disturbance(s) and all unlawful activity(ies) which
occur on or within the premises of this licensed establishment.
(h)
It
shall not be a defense to a prosecution of a license under this section
that the licensee was not personally present on the premises at the
time such unlawful activity, disorderly act, conduct, or disturbance
was committed.
(i)
Failure
to comply with the requirements of this section shall be considered
by the authority in any action relating to the issuance, revocation,
suspension or nonrenewal of a license.
(Ord. 5064, 4-6-22)
(a)
All
regulated cannabis sold or otherwise distributed by the licensee shall
be labeled in a manner that complies with the requirements of the
Colorado Marijuana Code and all applicable rules and regulations promulgated
thereunder.
(b)
All
regulated cannabis sold or otherwise distributed by the licensee shall
be accompanied by a warning that advises the purchaser that it contains
cannabis and specifies the amount of cannabis in the product, that
the cannabis is intended for regulated use solely by the person to
whom it is sold, and that any resale or redistribution of the regulated
cannabis to a third person is prohibited. In addition, the label shall
comply with all applicable requirements of the State of Colorado and
any other applicable law.
(Ord. 5064, 4-6-22)
(a)
Regulated
cannabis stores licensed may serve customers through drive-up window
as permitted by the City and the State. If a licensed business intends
to permit walk-up and/or drive-through sales, this must be included
in the business plan submitted to the City in the application process.
(b)
As
allowed by this code, the Zoning and Development Code, and any other
application provision of the GJMC, a licensee may apply for a modification
of the licensed premises to add a drive-through.
(c)
Order and Identification Requirements.
(1)
Prior to transferring cannabis to a customer, the regulated cannabis
business must ensure that the consumer is the minimum sales age or
older by inspecting the consumer’s identification.
(2)
Regulated cannabis stores may accept telephone or online orders or
may accept orders from the consumer at the walk-up window or drive-up
window, to the extent allowed under State law.
(3)
All orders received through a walk-up window or drive-through window
must be placed by the customer from a menu. The regulated cannabis
store may not display cannabis at the walk-up or drive-through window.
(4)
Delivery windows for walk-up sales must be at a separate location
on the premises than those for drive-through sales.
(5)
For every transfer of regulated cannabis through either a walk-up
window or drive-up window, the regulated cannabis store video surveillance
must record the consumer’s facial features with sufficient clarity
to establish their identity (and consumer’s vehicle in the event
of drive-up window) and must record the licensee verifying the consumer’s
identification and completion of the transaction through the transfer
of regulated cannabis.
(Ord. 5064, 4-6-22)
It shall be unlawful:
(a)
For
any person to sell cannabis or cannabis products without valid regulated
cannabis business licenses from the City and a valid regulated cannabis
business license from the State;
(b)
For
any person to operate a regulated cannabis business at a licensed
regulated cannabis store any time not permitted by this code;
(c)
For
any person to sell or distribute cannabis to persons under the age
of 21;
(d)
For
any underage person to be on or within the limited access area of
any cannabis business;
(e)
For
any person to display, transfer, cultivate, distribute, serve, sell,
give away, produce, dispose of, smoke, use, or ingest cannabis or
any cannabis product openly or publicly in a place open to the general
public;
(f)
For
any person to possess or operate a cannabis business in violation
of this chapter or in a manner that is not consistent with the items
disclosed in the application for the cannabis business or be in violation
of any plan made part of the license application and/or license;
(g)
For
any person to produce, distribute, or possess more cannabis than allowed
by law, or than disclosed in the application to the State of Colorado
and the authority for a cannabis business license, or other applicable
law;
(h)
For
any person to refuse or fail to provide video surveillance footage
to the Grand Junction Police Department, the City Manager, the City
Attorney, or the authority in connection with a criminal and/or license
violation investigation, or to refuse to allow inspection of a cannabis
business;
(i)
For
any person to refuse to allow inspection of a regulated cannabis business
upon request of a City employee. Any licensee, owner, manager, or
operator of a regulated cannabis business, or the owner of the property
where a regulated cannabis business is located, may be charged with
this violation;
(j)
For
any person to store or keep cannabis intended for sale or distribution
by the licensee in any place outside of the licensed premises;
(k)
For
any person to smoke, use, or ingest on the premises of a regulated
cannabis business cannabis, fermented malt beverage, malt, vinous
and spirituous liquor, or any controlled substance(s), except in compliance
with the directions on a legal prescription for the person from a
doctor with prescription writing privileges;
(l)
For
any person to operate or be in physical control of any cannabis business
while under the influence of alcohol or other intoxicant, or cannabis,
or any controlled substance(s), except in compliance with the directions
on a legal prescription for the person from a doctor with prescription
writing privileges;
(m)
For
alcohol beverages to be on the licensed premises;
(n)
For
any person to possess or operate a regulated cannabis business in
violation of this chapter;
(o)
For
any person to produce, distribute, or possess more cannabis than allowed
by law; or than disclosed in the application to the State of Colorado
for a regulated cannabis business license, or other applicable law;
(p)
For
any person to give away, dispense, or otherwise distribute cannabis
for free or without use of a coupon approved and defined by this code;
(q)
For
any person to knowingly conduct or permit any employee to conduct
any sales transaction(s) when the video surveillance system or equipment
is inoperable;
(r)
For
any person to distribute cannabis for remuneration without a regulated
cannabis license or outside of the restricted area of the regulated
cannabis business;
(s)
For
any person to possess regulated cannabis, or own or manage a regulated
cannabis business, or own or manage a building with a regulated cannabis
business, where there is possession of regulated cannabis, by a person
who is not lawfully permitted to possess regulated cannabis;
(t)
For
any person to possess or operate a regulated cannabis business in
a location for which a regulated cannabis business license is prohibited
by law;
(u)
For
any person to operate a regulated cannabis business in a manner that
is not consistent with the application for the regulated cannabis
business or is in violation of any plan made part of the license application/issued
license;
(v)
For
any person to operate a regulated cannabis business without obtaining
and passing all building inspections and obtaining all permits required
by the City;
(w)
For
any person to operate a regulated cannabis business in violation of
any building, fire, zoning, plumbing, electrical, or mechanical code(s)
as adopted and amended by the City;
(x)
For
any person to operate a regulated cannabis business without disclosing,
in the application for a regulated cannabis business license or an
amendment thereto, an agent who acts with managerial authority;
(y)
For
any person to operate a regulated cannabis business without a sales
tax license as required by the GJMC;
(z)
For
any person to make any change(s), or for the licensee to allow any
change(s), to the terms of any plan(s) submitted with the license
application and approved by the City, or to the person(s) or entity(ies)
named in the application, without prior approval of the City;
(aa)
For any person to attempt to use or display a regulated cannabis
business license at a different location or for a different business
entity than the location and business entity disclosed on the application
for the issued license;
(bb)
For any person to cultivate, produce, distribute, or possess regulated
cannabis or own or manage a regulated cannabis business in which another
person cultivates, produces, distributes, or possesses cannabis, in
violation of law;
(cc)
For any person to allow an owner or manager that has not been disclosed
to the City as required by law to operate the business;
(dd)
For any person to dispose of regulated cannabis or any by-product
of regulated cannabis containing cannabis in a manner contrary to
law;
(ee)
For a person to distribute a regulated cannabis plant to any person,
except as permitted by law for immature plants;
(ff)
For any person to deliver regulated cannabis between regulated cannabis
businesses except in strict compliance with law;
(gg)
For any person to advertise or publish materials, honor coupons,
sell or give away products, or display signs that are in violation
of this code or the laws of the State of Colorado;
(hh)
For any person to violate any provision of this code or any condition
of a license granted pursuant to this code or any law, rule, or regulation
applicable to the use of regulated cannabis or the operation of a
regulated cannabis business;
(ii)
For any person to permit any other person to violate any provision
of this code or any condition of an approval granted pursuant to this
code, or any law, rule, or regulation applicable to the use of regulated
cannabis or the operation of a regulated cannabis business;
(jj)
For any person to lease any property to a regulated cannabis business
that has cannabis on the property without a regulated cannabis business
license from the City;
(kk)
For any person to distribute cannabis within a regulated cannabis
business to any person who shows visible signs of intoxication from
alcohol, cannabis, or other drug(s)/intoxicant(s);
(ll)
For any person to be on or within the licensed premises if such person
is under 21 years of age;
(mm)
For any person to permit any person under 21 years of age on the
premises of the regulated cannabis business; it is presumed that the
licensee is aware of the age of all people on the premises if identification
is not specifically checked at the entry to the building;
(nn)
For any person to fail to confiscate fraudulent proof of age and
notify the Grand Junction Police Department. It shall be an affirmative
defense to fail to confiscate the fraudulent proof of age if an attempt
to confiscate a fraudulent proof of age caused a reasonable person
to believe the act created a threat to any person;
(oo)
For any person to fail to provide a copy or record of a coupon issued
by or redeemed at the regulated cannabis business upon request of
an authorized City employee;
(pp)
For any licensee or any manager, agent, or employee of such licensee
to fail to immediately report to the Grand Junction Police Department
and the authority any disturbance(s), disorderly conduct or criminal
activity occurring at the regulated cannabis business, on the licensed
premises, within the licensed premises, or any property under the
control or management of the licensee, including any associated contiguous
parking area used by licensee’s patrons. For the purpose of
this subsection, “report” means to either:
(1)
Immediately, verbally, and directly in person notify any on-site
uniformed Grand Junction police officer whether on duty or working
secondary employment; or
(2)
Immediately place and complete a telephone call to the nonemergency
line at the Grand Junction Police Department; or
(3)
Immediately place and complete a telephone call to the emergency
line at the Grand Junction Police Department;
(qq)
For any person to fail to post the premises with signs notifying
the public of the closure of the business during a suspension as required
by this chapter;
(rr)
For any licensee holding a regulated cannabis store license, or for
any agent, manager, or employee thereof, to sell, give, dispense,
or otherwise distribute cannabis or regulated cannabis paraphernalia
from any outdoor location;
(ss)
For any person to employ a business manager that has not been properly
registered with the City; and
(tt)
For any person to operate or possess a regulated cannabis business
license in violation of any ordinance or regulation of the City, or
any applicable law, rule, or regulation.
|
Any person who pleads guilty or no contest to, or who, after a hearing, is found to have violated, any of the foregoing shall be subject to penalties pursuant to GJMC § 1.04.090 and any penalties specifically referenced within the GJMC.
|
(Ord. 5064, 4-6-22)
(a)
The
term and renewal of the license shall be governed by the standards
and procedures set forth in the Colorado Marijuana Code, the City’s
code and any rules and regulations adopted pursuant thereto.
(b)
The
authority, acting by and through the Hearing Officer, may, after notice
and hearing, suspend, revoke, or deny renewal of a license for any
of the following reasons:
(1)
The applicant or licensee, or his or her agent, manager, or employee,
or financier, has violated, does not meet, or has failed to comply
with, any of the terms, requirements, conditions, or provisions of
this code or with any applicable State or local law, rule, or regulation;
(2)
The applicant or licensee, or his or her agent, manager or employee,
or financier, has failed to comply with any special terms or conditions
of its license pursuant to an order of the State or the authority,
including those terms and conditions that were established at the
time of issuance of the license and those imposed because of any disciplinary
proceeding(s) held subsequent to the issuance of the license;
(3)
The regulated cannabis business has been operated, by a preponderance
of the evidence, in a manner that adversely affects the public health,
safety or welfare;
(4)
Misrepresentation or omission of any material fact, or false or misleading
information, on the application or any amendment thereto, or renewal
request, or any other information provided to the City related to
the regulated cannabis business;
(5)
Violation of any law by which, if occurring prior to and during submittal
and review of the application, could have been cause for denial of
the license application;
(6)
Distribution of cannabis, including, without limitation, in violation
of this chapter or any other applicable law, rule, or regulation;
(7)
Failure to maintain, or provide to the City upon request, any books,
recordings, reports, or other records required by this chapter;
(8)
Failure of the licensee to file any report(s), notification(s) or
furnish any information as required by the provisions of this chapter,
or any rule or law adopted pursuant thereto relating to any license
authorized by law;
(9)
Failure to timely notify the City and to complete necessary form(s)
for change(s) in financial interest, manager(s), financier, or agent;
(10)
Temporary or permanent closure, or other sanction of the business,
by the City, or by the County or State of Colorado or other governmental
entity with jurisdiction, for failure to comply with health and safety
provisions of this chapter or otherwise applicable to the business
or any other applicable law;
(11)
Revocation or suspension of another regulated cannabis business or
any other license issued by the City, the State, or any other jurisdiction
held by any licensee of the regulated cannabis business;
(12)
Failure to timely 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 or order;
(13)
Abandonment of the licensed premises by the licensee or otherwise
ceasing operations without notifying the authority and the State licensing
authority within 48 hours in advance and without accounting for and
forfeiting to the State licensing authority for the destruction of
all cannabis or products containing cannabis;
(14)
Failure to comply with the provisions of the Colorado Marijuana Code,
the City’s code, and any rule or regulation adopted pursuant
thereto, or any special term or condition placed upon the licensee
by order of the authority or State licensing authority;
(15)
Violations of any conditions imposed in connection with the issuance
or renewal of the license;
(16)
Failure to pay all required fines, interest, costs, fees, or penalties
assessed against or imposed upon such licensee in relation to the
licensed cannabis business;
(17)
Failure to file tax returns when due as required by this code, or
the licensee is overdue on his or her payment to the State or local
taxes related to the operation of the business associated with the
license;
(18)
Loss of right of possession to the licensed premises;
(19)
Failure of the licensee to comply with the duty to supplement the
license application;
(20)
Failure of the licensee to operate in accordance with any special
term or condition placed upon a license by the authority or the State
licensing authority;
(21)
The licensee, or any agent(s) or employee(s) of the licensee, have
committed any unlawful act as described in this chapter or violated
any ordinance of the City or any State law on the premises or have
permitted such a violation on the premises by any person;
(22)
The licensee has knowingly permitted or encouraged, or has knowingly
and unreasonably failed to prevent, a public nuisance within the meaning
of this chapter from occurring in or about the licensed premises;
(23)
The odor of cannabis is perceptible to an ordinary person at the
exterior of the building at the licensed premises or is perceptible
within any space adjoining the licensed premises;
(24)
The licensee knowingly permitted or allowed the consumption of cannabis
on the licensed premises;
(25)
The licensee knowingly permitted the possession or consumption of
an alcohol beverage within the licensed premises. At any hearing for
violation of this subsection, any bottle, can, or other container
label indicating the contents of such bottle, can, or other container,
shall be admissible into evidence and shall be prima facie evidence
that the contents of the bottle, can, or other container were composed
of, in whole or in part, an alcohol beverage;
(26)
The licensee has failed to appear upon a municipal or State court
summons;
(27)
The licensee, or any of the officer(s), director(s), owner(s), manager(s),
agent(s), or employee(s), has (have) been convicted of a felony or
drug related criminal offense within the previous 12 months;
(28)
The licensee engaged in any form of business or commerce involving
the cultivation, processing, manufacturing, storage, sale, distribution,
transportation, research, or consumption of any form of cannabis or
cannabis product other than the privileges granted under the regulated
cannabis business license;
(29)
The licensee has materially or substantially changed, altered, or
modified the licensed premises, or use of the licensed premises, without
obtaining prior approval to make such changes, alterations, or modifications
from the authority;
(30)
The licensee has failed to maintain a valid State license; and
(31)
The licensee, or any of the agent(s), servant(s) or employee(s) of
the licensee, has/have violated any ordinance of the City or any State
or federal law on the premises or have permitted such a violation
on the premises by any other person.
(c)
Evidence
to support a finding of a violation(s) may include, without limitation,
one or a combination of the following:
(1)
A continuing pattern of disorderly conduct, disturbance(s) or criminal
activity occurring at the location, on the licensed premises, within
the licensed premises, or on any adjoining grounds or property under
the control or management of the licensee;
(2)
An ongoing nuisance condition emanating from or caused by the regulated
cannabis business.
(d)
In
the event a business or licensee is charged with violation of any
law, upon which a final judgment would be grounds for suspension or
revocation of a license, the City may suspend the license pending
the resolution of the alleged violation.
(e)
If
the City revokes or suspends a license, the regulated cannabis business
may not move any cannabis from the premises except under the supervision
of the Grand Junction Police Department.
(f)
The
authority shall conduct a review of all licenses at least annually
and, in addition to examining the factors enumerated in this section,
may hold a hearing on each license at which the general public may
be invited to appear and provide testimony as to the effects of the
license on the surrounding community and the City at large, and the
authority may take such views into consideration when deciding whether
to continue or renew such license.
(g)
In
the event of the suspension of a regulated cannabis business license,
during the period of suspension, the business:
(Ord. 5064, 4-6-22)
All regulated cannabis businesses shall comply with the applicable
State and local laws, rules, and regulations, as amended. In addition,
licensees shall comply with the following local operational standards.
Failure to comply with any State or local law, rule or regulation
or any operational standard(s) may be grounds to suspend or revoke
any license and impose civil penalties where applicable.
(a)
Odor Management – Ventilation Required.
For
all cannabis businesses, ventilation shall be installed so that the
odor of cannabis cannot be detected by a person with a normal sense
of smell at the exterior of a regulated cannabis business or at any
adjoining use or property.
(b)
Hours of Operation.
A regulated cannabis business shall
be closed to the public, and no sale or other distribution of cannabis
shall occur upon the premises between the hours of 10:00 p.m. and
8:00 a.m.; provided, however, if a planned delivery of cannabis
cannot be completed on the day scheduled, the cannabis may be returned
to the business.
(c)
Display of Licenses Required.
The name and contact information
for the owner or owners and any manager of the regulated cannabis
business, the regulated cannabis business license, and the sales tax
business license shall be conspicuously posted inside the business
near the main entrance.
(d)
During
the term of the license, the licensee shall have the ongoing obligation
to operate in conformance with this code and all other applicable
laws, rules, and regulations.
(e)
The
licensee shall provide the City with copies of all material that it
voluntarily files, or is required to file, with the Colorado Department
of Revenue Marijuana Enforcement Division.
(f)
The
licensee shall post a 24-inch by 36-inch sign(s) within the licensed
premises of a regulated cannabis business which includes the warning
statements that comport with Marijuana Enforcement Division regulations,
as the same may be amended from time to time and as presently set
forth in Rule 6-115 of the Colorado Department of Revenue Marijuana
Enforcement Division permanent rules related to the Colorado Regulated
Marijuana Code, as amended.
(g)
Owner or Manager Required on Premises.
No regulated
cannabis business shall be managed by any person other than the licensee,
or the manager(s) listed in the application for the license or a renewal
thereof. Such licensee or manager(s) shall be on the premises and
responsible for all activities within the licensed business during
all times when the business is open.
(Ord. 5064, 4-6-22)
(a)
Each
licensee shall keep a complete set of books of account, invoices,
copies of orders and sales, shipping instructions, bills of lading,
weigh bills, correspondence, bank statements, including cancelled
checks and deposit slips, and all other records necessary to show
fully the business transactions of such licensee. Receipts shall be
maintained in a computer program or by prenumbered receipts and used
for each sale. The records of the business shall clearly track regulated
cannabis product inventory purchased and sales and disposal thereof
to clearly track revenue from sales of any regulated cannabis from
other paraphernalia or services offered by the regulated cannabis
business.
(b)
All
records shall be open at all times during business hours for the inspection
and examination of the City or its duly authorized representatives.
(c)
The
City shall require any licensee to furnish such information as it
considers necessary for the proper administration of this chapter.
The records shall clearly show the source, amount, price, and dates
of all cannabis received or purchased, and the amount, price, dates,
customer names, addresses, and contact information for all regulated
cannabis sold.
(d)
By
applying for a regulated cannabis business license, the licensee is
providing consent to disclose the information required by this chapter,
including information about customers. Any records provided by the
licensee that include customer confidential information may be submitted
in a manner that maintains the confidentiality of the documents under
the Colorado Open Records Act, § 24-72-201 et seq., C.R.S., or other applicable law. Any document that the
applicant considers eligible for protection under the Colorado Open
Records Act shall be clearly marked as confidential, and the reasons
for such confidentiality shall be stated on the document. If the licensee
does appropriately submit documents so as not to be disclosed under
the Colorado Open Records Act, the City shall not disclose it to other
parties who are not agents of the City, except law enforcement agencies.
If the City finds that such documents are subject to inspection, it
will provide at least 24-hour notice to the applicant prior to such
disclosure.
(Ord. 5064, 4-6-22)
(a)
The
City may require an audit, examination, or inspection to be made of
the books of account and financial records of a regulated cannabis
business on such occasions as it may deem necessary. Such audit may
be made by a person(s) to be selected by the City that shall likewise
have access to all books, records, and information of the regulated
cannabis business. The expense of any audit, examination or inspection
determined necessary by the City shall be paid by the regulated cannabis
business.
(b)
Application
for a regulated cannabis business license and/or operation of a regulated
cannabis business, or leasing property to a regulated cannabis business,
constitutes consent by the applicant, and all owner(s), manager(s),
and employees of the business, and the owner of the property to permit
the authority or agent of the authority, or anyone authorized to conduct
routine inspections of the regulated cannabis business to ensure compliance
with this chapter or any other applicable law, rule, or regulation.
The owner or manager on duty shall retrieve and provide the records
of the business pertaining to the inspection. For purposes of Rule
241 of the Colorado Rules of Municipal Procedure, inspections of regulated
cannabis businesses and recordings from security cameras in such businesses
are part of the routine policy of inspection and enforcement of this
chapter for the purposes of protecting the public safety, individuals
operating and using the services of the regulated cannabis business,
and the adjoining properties and neighborhood. This section shall
not limit any inspection authorized under any other provision of law
or regulation, including those of police, fire, building, and code
enforcement officials. Application for a regulated cannabis business
license constitutes consent to inspection of the business as a public
premises without a search warrant, and consent to seizure of any surveillance
records, camera recordings, reports, or other materials required as
a condition of a regulated cannabis license without a search warrant.
(c)
The
licensed premises, including any places of storage where regulated
marijuana or regulated marijuana products are stored, sold, dispensed,
or tested, are subject to inspection by the City, during all business
hours and other times of apparent activity, for the purpose of inspection
or investigation. When any part of the licensed premises consists
of a locked area, upon demand to the licensee, such area must be available
for inspection without delay, and upon request by the City, the licensee
shall open the area for inspection.
(d)
Initial Inspection.
The City may inspect any regulated
cannabis businesses prior to final issuance of a license to verify
that the facilities are constructed and can be operated in accordance
with the application submitted and the requirements of laws.
(e)
Regular Inspections.
The City is authorized to perform
regular inspections on a quarterly basis during the first year following
licensure, and on a yearly basis prior to license renewal following
the first year of operation.
(f)
Random Inspections.
Regular licensing inspection(s)
shall not prevent the City from inspecting regulated cannabis businesses
at random intervals and without advance notice pursuant to the the
Colorado Marijuana Code, the Colorado Department of Revenue Marijuana
Enforcement Division rules, the Colorado Constitution, the City’s
code, or any rules and regulations adopted thereto.
(g)
Inspection of Records.
The records to be maintained
by each regulated cannabis business shall include the source and quantity
of any cannabis distributed, produced, or possessed within the premises.
Such reports shall include, without limitation, for both acquisitions
from wholesalers and transactions to patients or caregivers, the following:
(h)
Disposal of Regulated Cannabis and Cannabis By-Products.
All regulated cannabis and any product containing a usable form of
cannabis must be made unusable and unrecognizable prior to removal
from the business in compliance with all applicable laws. This provision
shall not apply to licensed law enforcement, including, without limitation,
the Grand Junction Police Department, and the Grand Junction Fire
Department.
(i)
The
manager of a regulated cannabis business is required to respond by
telephone or email within 24 hours of contact by a City official concerning
its cannabis business at the telephone number or email address provided
to the City as the contact for the business. Each 24-hour period during
which an owner or manager does not respond to the City official shall
be considered a separate violation.
(Ord. 5064, 4-6-22)
(a)
Any
modification of the licensed premises shall be governed by the standards
and procedures set forth in the Colorado Marijuana Code, this chapter,
and any regulations adopted pursuant thereto.
(b)
The
authority shall administer applications to modify the premises in
the same manner as the State licensing authority administers changes
of location and modifications of premises for State licenses.
(c)
Any
application for a proposed modification of the licensed premises shall
comply with and shall be subject to review and approval of the Building
Department and any other agency that is required to approve such modification.
(Ord. 5064, 4-6-22)
(a)
A
regulated cannabis business license issued pursuant to this chapter
shall be valid for one year from the date of issuance and shall automatically
expire on the last day of the month in which the license is issued
of the year following issuance or renewal of the license.
(b)
Licensee
must apply for the renewal of an existing license at least 45 days
prior to the license’s expiration date. The licensee shall apply
for renewal using forms provided by the City. If the licensee fails
to timely file a renewal application, the licensee must provide a
written explanation detailing the circumstances surrounding the late
filing. If the authority accepts the application, then it administratively
continues the license beyond the expiration date, but for no longer
than 45 days after the expiration date, while the authority completes
the renewal licensing process, in which case, the licensee shall pay
an additional fee to the City prior to issuance of the renewed license.
The renewal license fee, and late fee if applicable, shall accompany
the renewal application. Such fee(s) are nonrefundable.
(c)
In
the event that there has been a change to any of the plans submitted
with the license application, a renewal, or modification of the premises
application, such change(s) shall be specifically proposed and described
prior to being made by the licensee and/or approved, if at all, by
the authority.
(d)
In
the event any person who has an interest in the license or any manager,
financier, agent as defined herein, or employee has been charged with
or accused of violations of any law since issuance of the license,
the renewal application shall include the name of the violator, the
date of the violation, the court and case number where the violation
was filed, and the disposition of the violation with the renewal application.
(e)
In
the event the regulated cannabis business licensee has received any
notice of violation of any law, the renewal application shall include
a copy of the notice or suspension.
(f)
The
renewal application shall include verification that the business has
a valid State license, and the State license is in good standing.
(g)
The
authority shall not accept renewal applications after the expiration
of the license.
(h)
No
renewal application shall be accepted by the authority that is not
complete. Any application mailed to or deposited with the authority
that, upon examination, is found to have some omission or error shall
be returned to the applicant for completion or correction.
(i)
In the event there have been allegations of violations of this chapter, if the licensee has a history of violation(s), or if the licensee has committed unlawful acts, and/or if there are allegations against the licensee that would constitute cause as defined herein by any of the licensee(s) or the business submitting a renewal application, the authority may hold a hearing, pursuant to GJMC § 5.13.027, prior to approving the renewal application. The hearing shall be to determine whether the application and proposed licensee(s) comply with this chapter. If the authority holds a hearing and the application and the licensee are not found to meet the requirements of this chapter, or the business has been operated in the past in violation of law, rule, or regulation, then the renewal application may be denied or issued with conditions, and the authority’s decision shall be final subject to judicial review.
(j)
All
renewal applications shall be reviewed and evaluated by the authority
if no hearing is scheduled. The authority may refuse to renew any
license for good cause as defined by the Hearing Officer in accordance
with this chapter, and any applicable law, rule, or regulation.
(k)
In
the event a regulated cannabis business that has been open and operating
and submitting monthly sales and use tax returns to the City ceases
providing sales and use tax returns to the City for a period of three
months or longer, the cannabis business license shall be set for a
public hearing for the authority to determine if the license shall
be revoked.
(l)
In
the event the City incurs costs in the inspection, cleanup, or any
other necessary or required action to remove regulated cannabis of
any regulated cannabis business, or any person cultivating, producing,
distributing, or possessing cannabis, or otherwise causes the business
to be in compliance with applicable law, the licensee shall reimburse
the City all costs incurred by the City for such inspection and/or
cleanup.
(Ord. 5064, 4-6-22)
(a)
The
City shall monitor compliance with this chapter, as it deems appropriate.
(b)
The
City shall have the discretion to consider any or all previous compliance
check histories of a licensee in determining how frequently to conduct
compliance checks of a licensee with respect to any licensee(s).
(c)
Compliance
checks shall be conducted as the City determines appropriate so as
to allow the City to determine, at a minimum, if the regulated cannabis
business is conducting business in a manner that complies with law.
(d)
It
shall not be a violation of the law for a person under the minimum
sale age for cannabis purchases or possession to purchase or possess
cannabis products if the underage person is participating in a compliance
check supervised by any person authorized by the City or the State
of Colorado to conduct compliance monitoring.
(Ord. 5064, 4-6-22)
Each regulated cannabis business shall collect and remit City
sales and use tax on all regulated cannabis, paraphernalia and other
tangible property used or sold at the licensed premises as provided
by the Grand Junction Municipal Code and other applicable law.
(Ord. 5064, 4-6-22)
(a)
The
authority shall hear all actions relating to the suspension or revocation
of licenses pursuant to this chapter. The authority shall have the
authority to impose disciplinary actions, sanctions, and/or penalties
upon a licensee including but not limited to additional terms and
conditions on the license, a fine in lieu of a suspension, a suspension
or a revocation of a license issued by the authority for any violation
by the licensee or by any of the agents or employees of the licensee
of any provision of the Colorado Marijuana Code, the City’s
code, any rule or regulation adopted pursuant thereto, any building,
fire, health or zoning statute, code, or ordinance, or any of the
rules and regulations adopted pursuant thereto, in addition to any
other penalties prescribed by this code.
(b)
In addition to the possible denial, suspension, revocation or nonrenewal of a license under the provisions of this chapter, any person, including, but not limited to, any licensee, manager or employee of a regulated cannabis business, or any customer of such business, who violates any of the provisions of this chapter, shall be guilty of a misdemeanor offense punishable in accordance with GJMC § 1.04.090. A person committing a violation shall be guilty of a separate offense for each and every day during which the offense is committed or continued to be permitted by such person and shall be punished accordingly.
(c)
The
City shall initiate suspension or revocation proceedings by petitioning
the authority to issue an order to the licensee to show cause that
the licensee’s license should not be suspended or revoked. The
authority shall issue such an order to show cause if the petition
demonstrates that evidence exists to determine that one or more grounds
exist to suspend or revoke the licensee’s license. The order
to show cause shall set the matter for a public hearing before the
licensing authority.
(d)
At
a public hearing, the licensee shall have the opportunity to be heard,
to present evidence and witnesses, and to cross-examine witnesses
presented by the City. The authority shall have the power to administer
oaths and issue subpoenas to require the presence of persons and the
production of papers, books, and records necessary to the determination
of any hearing that the authority is authorized to conduct. The standard
of proof at such hearings shall be a preponderance of the evidence.
The burden of proof shall be upon the City. The authority shall be
permitted to accept any evidence that the Hearing Officer finds to
be relevant to the show cause proceeding.
(e)
If
the authority, acting by and through the Hearing Officer, finds that
a violation has occurred, the authority may:
(1)
Revoke the license for any period up to and including permanent revocation;
(2)
Suspend the license for any period of time;
(3)
Impose a fine or fine in lieu of suspension of at least $500.00 but
no more than $100,000;
(4)
Establish conditions that must be met before the license holder may
apply for reinstatement of the license; and
(5)
The authority may impose the costs to conduct a public hearing upon
a licensee who has violated any of the provisions prescribed by this
chapter.
(f)
Payment
of fines or costs pursuant to the provisions of this chapter shall
be in the form of a certified check or cashier’s check made
payable to the City of Grand Junction and paid within seven days of
the imposed sanction.
(g)
If
the authority finds that the license shall be suspended or revoked
or a fine imposed in lieu of a suspension, the licensee shall be provided
written notice of such fine, suspension or revocation with the reasons
therefor within 20 days following the date of the hearing.
(h)
The
authority will establish factors to consider when determining the
amount of fine to impose and adopt guidance for penalties and/or fines.
That guidance will be used consistently for all imposed penalties.
(i)
If
a license is suspended, the licensee must post notice that states
the license is under suspension or revocation due to violation(s)
of this chapter, and that all sales of cannabis products are prohibited
for the period of the suspension. The signage shall be prominently
displayed at all entrances on the premises for the entirety of the
suspension or revocation.
(j)
When
a license has been revoked, no new license shall be issued to the
same licensee for the period of two years after the revocation.
(k)
All
licensees are assumed to be fully aware of the law and the City shall
not therefore be required to issue warnings before issuing citations
for violation(s) of this chapter.
(l)
If
the authority suspends or revokes a license or imposes a fine, the
licensee may appeal the fine, suspension or revocation to the Mesa
County District Court pursuant to Rule 106(a)(4) of the Colorado Rules
of Civil Procedure. The licensee’s failure to timely appeal
the decision is a waiver of the licensee’s right to contest
the fine imposed or the suspension or revocation of the licensee.
(m)
No
fee or portion thereof previously paid by a licensee in connection
with a license shall be refunded if the licensee’s license is
suspended or revoked.
(Ord. 5064, 4-6-22)
The City is specifically authorized to seek an injunction, abatement,
restitution, or any remedy necessary to prevent, enjoin, remove, or
prosecute any violation or unlawful act under this chapter, and any
remedies provided for herein shall be cumulative and not exclusive
and shall be in addition to any other remedies provided by law or
in equity. Any and all action(s) shall be filed in the Municipal Court.
(Ord. 5064, 4-6-22)
(a)
By
accepting a license issued pursuant to this chapter, the licensee
waives and releases the City, its officers, elected officials, employees,
attorneys, and agents from any liability for injuries, damages or
liabilities of any kind that result from any arrest or prosecution
of business owners, operators, employees, clients, or customers for
a violation of municipal, State, or federal laws, rules, or regulations.
(b)
By
accepting a license issued pursuant to this chapter, all licensees,
jointly and severally if more than one, agree to indemnify, defend
and hold harmless the City, its officers, elected officials, employees,
attorneys, agents and insurers against all liability, claims and demands
on account of any injury, personal injury, sickness, disease, death,
property loss or damage, or any other loss of any kind whatsoever
arising out of or in any manner connected with the operation of the
regulated cannabis business that is the subject of the license.
(Ord. 5064, 4-6-22)
This chapter is necessary to protect the public health, safety,
and welfare of the residents of the City and covers matters of local
concern or matters of mixed State and local concern as provided by
§ 44-11-101, C.R.S.
If any provision of this chapter is found to be unconstitutional
or illegal, such finding shall only invalidate that part or portion
found to violate the law. All other provisions shall be deemed severed
or severable and shall continue in full force and effect.
(Ord. 5064, 4-6-22)
(a)
The
City Manager is authorized to promulgate such rules, regulations,
and forms as are necessary to effectuate the implementation, administration,
and enforcement of this chapter.
(b)
The
City Council may, consistent with the Charter and other applicable
law, amend this chapter to stay current with applicable State laws,
rules, and regulations so long as no amendment, restriction, provision,
rule, or regulation shall be less stringent than that imposed, if
at all, by Colorado law.
(Ord. 5064, 4-6-22)
