2.2.107: APPLICATION INVESTIGATION; DECISION:

   A.   For the Local Licensing Authority to grant a medical marijuana business license, the applicant must comply with all applicable State and local laws, ordinances, rules and regulations, and must meet the following qualifications:

      1.   The applicant must be in compliance with City Zoning Code;

      2.   The applicant must have a sales tax license;

      3.   The applicant must have possession of the licensed premises;

      4.   The applicants that are natural persons must be twenty one (21) years of age or older; and

      5.   The medical marijuana center license applicant must be in possession of a storefront from which the business will be operated.

   B.   In addition to the grounds set forth in this chapter and applicable State or local law, rules or regulations, the Local Licensing Authority may deny any medical marijuana license if:

      1.   The applicant fails to meet those criteria set forth in the Colorado Marijuana Code;

      2.   Has made a wilful misrepresentation in applying for a license;

      3.   Has been previously denied a license under this chapter;

      4.   Was a licensed medical marijuana establishment and the license was revoked, unless the Local Licensing Authority determines that the licensee was not responsible for the misconduct underlying the revocation;

      5.   Has been convicted of operating without a license under this part or performing any act for which a license is required under this chapter.

   C.   Failure of the applicant to provide proof of State Marijuana Enforcement Division acceptance of the application within one (1) year from the date of City application may cause the application to be deemed withdrawn. If the applicant does not receive State jurisdictional approval within one year of the date of Local Licensing Authority approval, the City license application expires and may not be renewed. If an application is denied by the State Licensing Authority, the Local Licensing Authority shall revoke the City issued approval or license.

   D.   Any applicant aggrieved by the decision of the Local Licensing Authority may appeal the decision to deny or condition a license to the Hearing Officer in accord with the Local Licensing Authority's rules and regulations. (Ord. 11-32; Ord. 16-32; Ord. 16-56; Ord. 20-93)

2.2.108: SUSPENSION OR REVOCATION; HEARINGS; DECISION:

   A.   Suspension or revocation of a license may be based on a violation of State Statutes, City Code, or State or local rules and regulations, any of the terms, provisions or requirements imposed as a condition of issuance of the license, or upon the discovery of information that the licensee has made a wilful misrepresentation in applying for and obtaining a license, or that the licensee is a person prohibited as a licensee pursuant to Colorado Revised Statutes section 44-10-307. If the licensee does not contest the violation of a State Statute, City Code, or State or local rules and regulations, the licensee may enter into a stipulated agreement with the Local Licensing Authority without the need for a hearing. If the licensee contests the alleged violation of a State Statute, City Code, or State or local rules and regulations, the licensee shall be afforded an opportunity to be heard, present evidence, cross examine witnesses, and offer evidence in defense of any alleged violations.

   B.   The Hearing Officer, upon the filing of a notice and order to show cause by the City, and after a hearing on the matter, shall have the power to suspend, revoke or deny renewal of any license issued pursuant to this article for any violation by the licensee, its agents, servants or employees. The power to summarily suspend a license exists only in the Hearing Officer.

   C.   Hearing procedures are to be in accord with the procedures contained in this section and article 1, part 8 of this chapter, as supplemented by State and local medical marijuana business licensing rules and regulations. The following procedures apply to suspension or revocation proceedings initiated against medical marijuana business licensees:

      1.   Following an investigation and upon determination that there is probable cause to believe that one or more of the grounds specified in subsection A of this section exist, the Local Licensing Authority may issue an order to show cause and, if the violation is contested, a notice of hearing to any person or business licensed pursuant to this article.

      2.   The order to show cause and notice of hearing shall be served by mail to the licensee at the address contained on the application or license, or by personal service.

      3.   The Hearing Officer shall have power to require an oath and to issue subpoenas. Compliance with any subpoena issued may be enforced by application of the Hearing Officer to the Municipal Court of the City, where enforcement may be in the same manner as contempt of court is enforced.

      4.   A record of the proceedings before the Hearing Officer shall be electronically recorded.

   D.   Appeals from the decisions of the Hearing Officer shall be to the courts of Colorado in accord with the Colorado Rules of Civil Procedure as now existing or as amended. The action of the Hearing Officer shall constitute final agency action of the Local Licensing Authority for all purposes under the applicable State Statutes, City Code and State and local rules and regulations. (Ord. 11-32; Ord. 16-32; Ord. 16-56; Ord. 20-93)

2.2.109: UNLAWFUL ACTS:

   A.   In addition to the grounds set forth in Colorado Revised Statutes section 44-10-701 et seq., it shall be unlawful for any person licensed pursuant to this article to:

      1.   Fail to comply with provisions of 1 CCR 212-3 et seq., and the Medical Marijuana Rules and Regulations for the City of Colorado Springs.

      2.   Make a wilful misrepresentation in applying for a license.

      3.   Fail to surrender to the Local Licensing Authority the license when required.

      4.   Fail to permit inspection/examination of books and records as required by law.

      5.   Consume or permit the consumption of medical marijuana in a licensed premises.

      6.   Fail to designate areas of ingress and egress for limited access areas and post signs in conspicuous locations as required by State law.

      7.   Fail to report a transfer or change in ownership, or any new financial interest or investment.

      8.   Fail to report the name of or a change in managers as required by City Code and regulations.

      9.   Display any signs or advertising that is inconsistent with City or State law or regulations.

      10.   Use advertising material that is misleading, deceptive, or false, or that is designed to appeal to minors, or that is inconsistent with the medicinal use of medical marijuana.

      11.   As a medical marijuana center licensee, fail to maintain possession of a storefront from which the business is operated.

      12.   Operate a retail marijuana establishment within the City of Colorado Springs.

      13.   Sell, serve, or distribute any medical marijuana or medical marijuana infused product at any time other than between the hours of eight o'clock (8:00) A.M. and nine o'clock (9:00) P.M., Monday through Sunday.

      14.   Initiate the transport of any medical marijuana or medical marijuana infused product to another licensed facility at any time other than between the hours of seven o'clock (7:00) A.M. and ten o'clock (10:00) P.M., Monday through Sunday.

      15.   Fail to report changes and apply for a modification of premises as required by City Code and regulations.

      16.   Fail to disclose or apply for changes to hazardous or nonhazardous extraction processes for medical marijuana infused product (MIP) licensed activities, as defined in Zoning Code, Fire Code, and the Medical Marijuana Rules and Regulations for the City of Colorado Springs.

      17.   Sell, transfer, or possess any products other than medical marijuana, medical marijuana products, consumable industrial hemp products in compliance with Colorado Revised Statutes section 44-10-501(3)(e), or non-consumable cannabis related products and accessories.

      18.   Sell or distribute any nicotine products or alcohol products, or medical marijuana or medical marijuana products that contain any nicotine or alcohol.

      19.   Sell medical marijuana or medical marijuana products over the internet or deliver medical marijuana or medical marijuana products to a person not physically present inside the medical marijuana center's licensed premises. Nothing in this section is meant to inhibit or prohibit the lawful sales and transportation of medical marijuana or medical marijuana products to other medical marijuana facilities licensed pursuant to State law.

      20.   Display, cultivate, sell, or transport any medical marijuana or medical marijuana products in a manner that is visible to the public.

      21.   Cultivate any medical marijuana not in an enclosed building or without adequate ventilation and filtration system that ensures odors from the cultivation activities are not detectible by a person with a typical sense of smell from any adjoining lot, parcel, tract, public right-of-way, building unit or residential unit.

      22.   Fail to maintain compliance with current Building and Fire Codes, including plumbing, electrical, and mechanical.

      23.   Fail to report or disclose any State Marijuana Enforcement Division violation notice or pending charges, or any suspension or revocation of an associated State Marijuana Enforcement Division license.

      24.   Fail to submit application for renewal of a City issued medical marijuana license not less than forty-five (45) days prior to the date of expiration. A licensee who files a late City medical marijuana license renewal application within forty-five (45) days prior to the date of expiration with the requisite fees and a non-refundable late application fee may continue to operate until the Local Licensing Authority has taken final action to approve or deny the licensee's late renewal application. No application for renewal of a medical marijuana license shall be accepted after the date of expiration.

   B.   A violation of any provision set forth in subsection A of this section may result in initiation of suspension or revocation proceedings.

   C.   A violation of any provision set forth in subsection A of this section, or cultivation, possession or sale of medical marijuana by an applicant who has not been granted a license, or by a licensee after suspension or revocation of a license may result in criminal prosecution by the appropriate authorities.

   D.   It shall be unlawful for any person to operate a retail marijuana establishment within the City of Colorado Springs. (Ord. 11-32; Ord. 13-47; Ord. 16-32; Ord. 16-56; Ord. 17-88; Ord. 20-93)

PART 2 MARIJUANA CONSUMPTION CLUBS

SECTION:

2.2.201: Legislative Declaration

2.2.202: Definitions

2.2.203: License Required; Term; Transferability; Fees

2.2.204: Qualifications Of Applicants

2.2.205: Application Requirements

2.2.206: Marijuana Consumption Club License

2.2.207: Manager Registration

2.2.208: Inspection

2.2.209: Modification Of Licensed Premises

2.2.210: Denial, Suspension Or Revocation Of License

2.2.211: Unlawful Acts; Violations

2.2.201: LEGISLATIVE DECLARATION:

   A.   The City Council declares it to be in the interest of the health, safety and welfare of citizens of the City and a proper exercise of the police power to require the licensing of marijuana consumption clubs as defined in this part.

   B.   Nothing in this part is intended to authorize or license anything otherwise prohibited by law.

   C.   Nothing in this part is intended to conflict with or violate any City or State law or regulation related to the use of marijuana, medical marijuana or marijuana product.

   D.   Nothing in this part is meant to inhibit any individual's right to personal use of marijuana pursuant to article XVIII, section 16(3) of the Colorado Constitution. (Ord. 16-34)

2.2.202: DEFINITIONS:

LICENSED PREMISES: The premises specified in an application for a license under this part within which the licensee is authorized to operate a marijuana consumption club.

MARIJUANA CONSUMPTION CLUB: An establishment, organization, association, club, teapad, or other similar entity or place where a purpose is to allow the consumption of marijuana, medical marijuana or marijuana product on the premises. (Ord. 16-34)

2.2.203: LICENSE REQUIRED; TERM; TRANSFERABILITY; FEES:

   A.   It shall be unlawful for any person to operate a marijuana consumption club within the City without first obtaining a license.

      1.   If a marijuana consumption club was lawfully operating pursuant to the "similar use determination" of the Manager of Community Development, dated May 28, 2014, on or before September 22, 2015, then the individual or entity owning or operating the marijuana consumption club shall submit a fully completed marijuana consumption club application to the City Clerk prior to five o'clock (5:00) P.M. on April 29, 2016.

      2.   Compliance with subsections 2.2.211A and B of this part is not required during the period within which applicants operating pursuant to the "similar use determination" of the Manager of Community Development, dated May 28, 2014, are seeking a license. Applicants shall comply with all other sections of this part.

      3.   Applicants not qualifying under subsection A1 of this section have no legal nonconforming rights, and will be deemed unlicensed and ineligible for application for licensing.

   B.   All marijuana consumption club licenses shall expire one year from the date of issuance, unless suspended or revoked earlier. In accord with section 7.3.303 of this Code, all marijuana consumption club licenses shall not be valid beyond the date of March 22, 2024.

   C.   No marijuana consumption club license granted or renewed shall be transferable from one person to another or from one location to another.

   D.   Fees shall be as established by City Council under article 1, part 5 of this chapter. (Ord. 16-34; Ord. 23-17 1 )

 

Notes

1	1. June 5, 2023 is the effective date of Ordinance 23-17.