Ordinance NO. 2013-10

BEFORE THE TOWN COUNCIL
TOWN OF MOUNTAIN VIEW
STATE OF COLORADO

ORDINANCE NO. 2013-10

TITLE: AN ORDINANCE AMENDING CHAPTER 6 OF THE MOUNTAIN VIEW MUNICIPAL CODE BY THE ADDITION OF A NEW ARTICLE 7 GOVERNING RETAIL MARIJUANA

THE TOWN COUNCIL OF THE TOWN OF MOUNTAIN VIEW, COLORADO, ORDAINS THAT:

Section 1. The Town of Mountain View Municipal Code is amended by the of a new Article 7 of Chapter 6 entitled "Retail Marijuana" to read as follows:

ARTICLE 7
Retail Marijuana

Sec. 6-7-10. Findings.

The Town Council finds as follows:

(a) On November 6, 2012, the voters of the state approved Amendment 64, which legalized the possession, use, display, purchase, transport, transfer, and consumption of marijuana accessories or one ounce or less of marijuana by persons 21 years of age or older ("Adult Use Marijuana") within the state;

(b) The Colorado Retail Marijuana Code, C.R.S. § 12-43.4-101, et seq., clarifies Colorado law regarding the scope and extent of Amendment 64 to the Colorado Constitution and provides a statutory framework for the regulation of retail marijuana establishments; and

(c) By requiring retail marijuana businesses to be operated in a manner that minimizes potential health and safety risks, the Town Council will mitigate the potential negative impacts that retail marijuana establishments might have on the public health, safety and welfare.

Sec. 6-7-20. Purpose and intent.

(a) The purpose of this Article is to implement the Colorado Retail Marijuana Code, C.R.S. § 12-43.4-101, et seq., which authorizes the licensing and regulation of retail marijuana businesses and affords the Town the option to determine whether or not to allow retail marijuana businesses within its jurisdiction and to adopt licensing requirements that are supplemental to or more restrictive than the requirements set forth in state law.

(b) The intent of this Article is to establish a nondiscriminatory mechanism by which the Town can control, through appropriate regulation, the location and operation of retail marijuana establishments within the Town.

Sec. 6-7-30. Other laws.

(a) The provisions of the Colorado Retail Marijuana Code; and any rules and regulations promulgated thereunder, are incorporated herein by reference except to the extent that more restrictive or additional regulations are set forth in this Article.

(b) If the state adopts any stricter regulation governing the sale or distribution of retail marijuana or retail marijuana products, the stricter regulation shall control the establishment or operation of any retail marijuana establishment in the Town.

(c) A licensee may be required to demonstrate, upon demand by the local licensing authority or by law enforcement officers, that the source and quantity of any marijuana fouud upon the licensed premises are in full compliance with applicable state regulation.

(d) If the state prohibits the sale or other distribution of marijuana, any license issued hereunder shall be deemed immediately revoked by operation of law, with no ground for appeal or other redress by the licensee.

(e) The issuance of any license pursuant to this Article shall not be deemed to create an exception, defense or immunity to any person in regard to any potential criminal liability the person may have for the cultivation, possession, sale, distribution or use of marijuana:

Sec. 6-7-40. Definitions.

(a) For purposes of this Article, the following terms shall have the following meanings:

Applicant means a person 21 years of age or older who has submitted an application for a license or renewal of a license issued pursuant to this Article. If the applicant is an entity, applicant includes all members, managers, officers and directors of such entity.

Colorado Medical Marijuana Code means Article 43.3 of Title 12, Colorado Revised Statutes.

Consumer means a person 21 years of age or older who purchases marijuana or marijuana products for personal use, but not for resale to others.

Criminal justice agency means any federal, state, or municipal court or any govermnental agency or sub-unit of such agency that performs the administration of criminal justice pursuant to a statute or executive order and that allocates a substantial part of its annual budget to the administration of criminal justice.

Cultivation or cultivate means the process by which a person grows a marijuana plant.

Dual operation means a business that operates as both a licensed medical marijuana business and a licensed retail marijuana establishment in accordance with Section 18-16-12 of this Code.

Industrial hemp means the plant of the genus cannabis and any part of such plant, whether growing or not, with a Delta-9 tetrahydrocannabinol concentration that does not exceed three-tenths percent on a dry weight basis.

Good cause (for the purpose of refusing or denying a license renewal under this Article) means: ( 1) the licensee has violated, does not meet, or has failed to comply with any of the terms, conditions or provisions of this Article and any rule and regulation promulgated pursuant to this Article; (2) the licensee has failed to comply with any special terms or conditions that were placed on its license at the time the license was issued, or that were placed on its license in prior disciplinary proceedings or that arose in the context of potential disciplinary proceedings; or (3) the licensee's retail marijuana establishment has been operated in a manner that adversely affects the public health, welfare or safety of the immediate neighborhood in which the retail marijuana establishment is located. Evidence to support such a finding can include: (i) a continuing pattern of offenses against the public peace; (ii) a continuing pattern of drug-related criminal conduct within the premises of the retail marijuana establishment or in the immediate area surrounding the retail marijuana establishment; or (iii) a continuing pattern of criminal conduct directly related to or arising from the operation of the retail marijuana establishment.

License means a document issued by the Town officially authorizing an applicant to operate a marijuana store, marijuana products manufacturing facility or marijuana cultivation facility pursuant to this Article.

Licensee means the person to whom a license has been issued pursuant to this Article.

Licensed premises means the premises specified in an application for a license under this Article, which is owned or in possession of the licensee and within which the license is authorized to cultivate, manufacture, distribute, or sell retail marijuana or retail marijuana products in accordance with state and local law.

Local licensing authority means the Town Council.

Marijuana means all parts of the plant of the genus cannabis whether growing or not, the seeds thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or its resin, including marijuana concentrate. Marijuana does not include industrial hemp, nor does it include fiber produced from the stalks, oil, or cake made from the seeds of the plant, sterilized seed of the plant which is incapable of germination, or the weight of any other ingredient combined with marijuana to prepare topical or oral administrations, food, drink, or other product.

Marijuana accessories means any equipment, products, or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, composting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, vaporizing, or containing marijuana, or for ingesting, inhaling, or otherwise introducing marijuana into the human body.

Marijuana cultivation facility means an entity licensed to cultivate, prepare, and package marijuana and sell marijuana to marijuana stores, to marijuana product manufacturing facilities, and to other marijuana cultivation facilities, but not to consumers.

Marijuana product manufacturing facility means an entity licensed to purchase marijuana; manufacture, prepare, and package marijuana products; and sell marijuana and marijuana products to other marijuana product manufacturing facilities and to marijuana stores, but not to consumers.

Marijuana store means an entity licensed to purchase marijuana from marijuana cultivation facilities and marijuana and marijuana products from marijuana product manufacturing facilities and to sell marijuana and marijuana products to consumers.

Marijuana testing facility means an entity licensed by the Town and State of Colorado to analyze and certify the safety and potency of marijuana.

Medical marijuana business means a medical marijuana center, optional premises cultivation operation, or medical marijuana-infused products manufacturer as defined in the Colorado Medical Marijuana Code.

Retail marijuana means marijuana that is cultivated, manufactured, distributed or sold by a licensed retail marijuana establishment.

Retail marijuana establishment means a marijuana store, a marijuana cultivation facility, a marijuana products manufacturing facility or a marijuana testing facility.

Retail marijuana products means concentrated marijuana products and marijuana products that are comprised of marijuana and other ingredients that are intended for use or consumption, including without limitation edible products, ointments and tinctures.

State licensing authority means the authority created by the Colorado Department of Revenue for the purpose of regulating and controlling the licensing of the cultivation, manufacture, distribution, sale and testing of retail marijuana in the State of Colorado pursuant to C.R.S. § 12-43.4-201.

(b) In addition to the definitions provided in Subsection (a) hereof, other terms used in this Article shall have the meaning ascribed to them in Article XVIII, § 16 of the Colorado Constitution, or the Colorado Retail Marijuana Code, and such definitions are hereby incorporated into this Article by reference.

Sec. 6-7-50. Licenses and permits required; taxes.

(a) The Town hereby authorizes the operation of retail marijuana establishments in the Town by license as set forth in this Article. It is unlawful to establish or operate a retail marijuana establishment in the Town without a current license for such business issued by the local licensing authority.

(b) In addition to the license required by this Article, a licensee shall obtain a valid business license issued under Section 6-1-20 of this Code.

(c) A licensee shall collect and remit Town sales tax and other relevant taxes on all retail marijuana, retail marijuana products, paraphernalia and other tangible personal property sold at retail.

(d) A license issued pursuant to this Article does not eliminate the need for the licensee to obtain other required permits or licenses related to the operation of the retail marijuana establishment, including, without limitation, a license from the state licensing authority and any development approvals or building permits required by this Article and any other applicable provisions of this Code.

Sec. 6-7-60. Location.

(a) Prior to the issuance of a license for a retail marijuana establishment, the local licensing authority shall determine whether the proposed location of the retail marijuana establishment complies with this Section. Failure to comply with the requirements of this Section shall preclude issuance of the license.

(b) No retail marijuana establishment shall be located within 200 feet of any:

(1) Licensed day care facility;

(2) Educational facility or school, college or university, either public or private;

(3) Public park, public pool, or public or private recreational facility;

(4) Halfway house or correctional facility; or

(5) Drug or alcohol treatment facility.

(d) The distances described herein shall be computed by direct measurement from the nearest property line of the premises used for the above purposes to the unit within a building or structure housing the retail marijuana establishment, using a route of direct pedestrian access.

(e) A retail marijuana establishment shall be operated from a permanent location. No retail marijuana establishment shall be permitted to operate from a moveable, mobile or transitory location.

(f) The suitability of a location for a retail marijuana establishment shall be determined at the time of the issuance of the first license. The fact that later changes in the neighborhood occur that may render the site unsuitable for a retail marijuana establishment shall not be grounds to suspend, revoke or refuse to renew the license.

Sec. 6-7-70. Persons prohibited as licensees and employees.

(a) No license shall be issued to, held by, or renewed by any of the following:

(1) A person who is not of good moral character satisfactory to the local licensing authority;

(2) A corporation, any of whose officers, directors or stockholders are not of good moral character satisfactory to the local licensing authority;

(3) A partnership, association or company, any of whose officers are not of good moral character satisfactory to the local licensing authority;

(4) A person employing, assisted by, or financed in whole or in part by any other person who is not of good character and reputation satisfactory to the local licensing authority;

(5) A sheriff, deputy sheriff, police officer, prosecuting officer, and state or local licensing authority or any of its members, inspectors or employees;

(6) A natural person under 21 years of age;

(7) A person who fails to file a tax return with a taxing agency, defaults on a

government-issued student loan, fails to pay child support, or owes delinquent taxes;

(8) A location that is also a wholesale food registrant or retail food establishment for food products or non-alcohol beverages that are not retail marijuana products;

(9) A person who has not been a resident of Colorado for at least two years prior to the date of the application;

(10) A person who has discharged a sentence for a felony conviction within the past five years;

(11) A person who, at any time, has been convicted of a felony for drug possession, distribution or use, unless such felony drug charge was based on possession or use of marijuana or marijuana concentrate that would not be a felony if the person were convicted of the offense on the date he or she applied for the license;

(12) A person whose license for a medical or retail marijuana business in another municipality, county or state has been revoked;

(13) An entity whose directors, shareholders, partners or other persons having a financial interest in said entity do not meet the criteria set forth above;

(14) A person who employs another person at a retail marijuana establishment who has not submitted fingerprints for a criminal record history check or whose criminal record history check reveals the employee is ineligible; or

(15) A person who has made a false, misleading or fraudulent statement on the application.

(b) No licensee shall employ or contract with a person to perform work directly related to the possession, cultivation, dispensing, selling, serving or delivering of marijuana for a retail marijuana establishment, any of the following:

(1) A person who is not of good moral character satisfactory to the local licensing authority;

(2) A person who is under 21 years of age;

(3) A person who is not currently a resident of Colorado;

(4) A person who has discharged a sentence for a felony conviction within the

past five years;

(5) A person convicted of a felony for drug possession, distribution or use, unless such felony drug charge was based on possession or use of marijuana or marijuana concentrate that would not be a felony if the person were convicted of the offense on the date he or she applied for the license; or

(6) A sheriff, deputy sheriff, police officer, prosecuting officer, or state or local licensing authority or any of its members, inspectors or employees.

(c) I n investigating the qualifications described herein, the local licensing authority may have access to criminal history record information furnished by a criminal justice agency subject to any restrictions imposed by such agency.

Sec. 6-7-80. Application.

(a) A person seeking a license shall submit an application to the local licensing authority on a form provided by the Town Clerk.

(b) The application shall be accompanied by a nonrefundable fee to the Town in an amount to be determined by the Town by resolution to defray the costs incurred by the Town, including without limitation inspection, administration, and enforcement.

(1) An operator's, chauffer's or similar type of driver's license issued by any state within the U.S. or a U.S. Territory;

(2) An identification card, issued by any state for purpose of proving age using requirements similar to those in C.R.S. § § 42-2-302 and 42-2-303;

(3) A U.S. military identification card;

(4) A valid passport; or

(5) An enrollment card issued by the government authority of a federally recognized tribe located in the state.

(d) The application shall include the following information for the applicant, all employees, including the proposed manager, and all persons having a 10% or more financial interest in the retail marijuana establishment that is the subject of the application or, if the applicant is an entity, having a 10% or more financial interest in the entity:

(1) Name, address and date of birth;

(2) A complete set of fingerprints;

(3) Suitable evidence of lawful presence, if applicable, and good character andreputation;

(4) An acknowledgment and consent that the local licensing authority will conduct a background investigation, including a criminal history check, and that the local licensing authority will be entitled to full and complete disclosure of all financial records of the retail marijuana establishment, including records of deposit, withdrawals, balances and loans;

(5) I f the applicant is a business 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;

(6) The name and complete address of the proposed retail marijuana establishment, including the facilities to be used in furtherance of such business, whether or not such facilities are, or are planned to be, within the territorial limits of the Town;

(7) I f 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 retail marijuana establishment;

(8) A copy of any deed, lease, contract or other document reflecting the right of the applicant to possess the proposed licensed premises along with the conditions of occupancy of the premises;

(9) Evidence of a valid sales tax license;

(10 ) I f the retail marijuana establishment will be providing retail marijuana products in edible form, evidence of at a minimum a pending application for any food establishment license or permit that may be required by the State;

(11) A "to scale" diagram of the premises, showing, without limitation, a site plan, building layout, all entry ways and exits, loading zones and all areas in which retail marijuana will be stored, grown or dispensed;

(12) A comprehensive business operation plan for the retail marijuana establishment which shall contain, without limitation, the following:

a. A security plan meeting the requirements of Section 6-7-210;

b. A description by category of all products to be sold,

c. A signage plan that is in compliance with all applicable requirements of this Article and other applicable provisions of this Code and the Colorado Retail Marijuana Code and all rules and regulations promulgated thereunder; and

d. A plan for the disposal of marijuana and related byproducts meeting the requirements of Section 6-7-260.

(13) For marijuana products manufacturing facility license applications, a copy of all contracts between the applicant and any marijuana cultivation facility from which it will be purchasing retail marijuana for use in the production of retail marijuana products; and

(14) Any additional information that the local licensing authority reasonably determines to be necessary in connection with the investigation and review of the application.

(d) The applicant shall verify the truthfulness of the information required by this Section by the applicant's signature on the application.

(e) Upon receipt of a completed application, the local licensing authority shall circulate the application to the Town staff to determine whether the application is in full compliance with all applicable laws, rules and regulations.

(f) Not less than 30 days after receipt of a complete application, the local licensing authority shall schedule a public hearing on the application. The local licensing authority shall cause notice of such hearing to be posted in a conspicuous place upon the proposed licensed premises and published in a newspaper of general circulation within the Town not less than ten days prior to the hearing. The posted notice shall include a sign of suitable material, not less than 22 inches wide and 26 inches high, composed of letters of not less than one inch in height. Both the posted and the published notice shall state the type of license applied for, the date of the hearing, the name and address of the applicant, and such other information as may be required to fully apprise the public of the nature of the application.

(g) Not less than five days prior to the public hearing, the local licensing authority shall cause its preliminary findings based on its investigation to be known in writing to the applicant and other parties in interest.

(h) Before approving or denying an application, the local licensing authority may consider, except where this Article specifically provides otherwise, the facts and evidence adduced as a result of its investigation, as well as any other facts pertinent to the type of license for which application has been made, including the number, type and availability of retail marijuana establishments located in or near the premises under consideration, and any other pertinent matters affecting the qualifications of the applicant for the conduct of the type of business proposed. The local licensing authority shall issue its decision within 180 days of the receipt of a complete application. Such decision shall be in writing, shall state the reasons for the decision and shall be sent via certified mail to the state licensing authority and the applicant.

(i) The local licensing authority shall, prior to issuance of the license, perform an inspection of the proposed licensed premises, including, without limitation, any associated dual operation facility, if applicable, to determine compliance with any applicable requirements of this Code.

Sec. 6-7-90. Denial or issuance of license.

(a) The local licensing authority shall deny any application that does not meet the requirements of this Article. The local licensing authority shall deny any application that contains any false, misleading or incomplete information. The local licensing authority shall deny an application for good cause. Denial of an application shall not be subject to further administrative review, but only to review by a court of competent jurisdiction.

(b) I f the local licensing authority considers information concerning the applicant's criminal history record, the local licensing authority shall also consider any information provided by the applicant regarding such criminal history record, including without limitation evidence of rehabilitation, character references, and educational achievements, especially those items pertaining to the period of time between the applicant's last criminal conviction and the consideration of the application for a license.

(c) The local licensing authority may impose such reasonable terms and conditions on a license as may be necessary to protect the public health, safety and welfare, and to ensure compliance with the requirements of this Article and applicable law.

(d) Upon issuance of a license, the local licensing authority shall provide the licensee with one original license for each retail marijuana establishment to be operated by the licensee in the Town. Each copy shall show the name and address of the licensee, the type of establishment, and the address of the establishment.

(e) A licensee shall pay to the Town a license fee in an amount determined by resolution of the Town Council to be sufficient to cover the cost of inspections conducted pursuant to Section 6-7-280 for the purpose of determining compliance with this Article and other applicable law.

(f) Each license shall be valid for one year from the date of issuance and may be renewed as provided herein.

(g) Each license shall be limited to use at the premises specified in the application, and shall be continuously posted in a conspicuous location at the retail marijuana establishment.

(h) A license shall be valid for one year from the date of issuance.

Sec. 6-7-100. Marijuana stores.

(a) A licensed marijuana store may sell retail marijuana or retail marijuana products to persons 21 years of age or older in the following quantities:

(1) Up to one ounce of retail marijuana or its equivalent in retail marijuana products during a single sales transaction to Colorado residents; or

(2) Up to one-quarter ounce of retail marijuana or its equivalent in retail marijuana products during a single sales transaction to a non-Colorado resident.

(b) The following forms of identification may be accepted to determine Colorado residency: a valid state of Colorado driver's license; a valid state of Colorado identification card; or any other valid government-issued picture identification that demonstrates that the holder of the identification is a Colorado resident.

(d) From January 1, 2014 to September 30, 2014, a marijuana store shall only sell retail marijuana that was grown in its commonly-owned marijuana cultivation facility and subsequently purchased or transferred from that marijuana cultivation facility, with the following exceptions:

(1) A marijuana store may purchase not more than 30% of its total on-hand retail marijuana inventory, in aggregate, from other retail marijuana establishments with which it does not share common ownership.

(2) A marijuana store may sell not more than 30% of its total on-hand retail marijuana inventory, in aggregate, to other retail marijuana establishments with which it does not share common ownership.

(3) For purposes of calculating the percentage limitations in this Section, the licensee shall use the total weight of its on-hand inventory at the end of the month preceding the purchase.

(e) Marijuana stores shall not sell, solicit or receive orders for retail marijuana or retail marijuana products over the internet.

(f) Marijuana stores shall not sell or give away any consumable product that is not a retail marijuana product, including without limitation cigarettes or tobacco products, alcohol beverages, and food products or non-alcohol beverages that are not retail marijuana products.

Sec. 6-7-110. Marijuana products manufacturing facilities.

(a) Licensed marijuana products manufacturing facilities may manufacture, prepare, package and label retail marijuana products, whether in concentrated form or that are comprised of marijuana and other ingredients intended for use or consumption. A licensed marijuana products manufacturing facility may sell retail marijuana products of its own manufacture to persons holding a marijuana store license or to other licensed marijuana products manufacturing facilities. Licensed marijuana products manufacturing facilities shall not sell retail marijuana or retail marijuana products to a consumer.

(b) From January 1, 2014 to September 30, 2014, licensed marijuana products manufacturing facilities shall not sell any retail marijuana that was cultivated in a commonly- owned marijuana cultivation facility to any other retail marijuana establishment; rather, such retail marijuana must be used solely in retail marijuana products produced by the licensed marijuana products manufacturing facility.

(c) Licensed marijuana products manufacturing facilities shall not manufacture, prepare, package or label retail marijuana products in a location that is operated as a retail food establishment or a wholesale food registrant.

(d) Retail marijuana products shall be sealed and conspicuously labeled m compliance with state law.

Sec. 6-7-120. Marijuana cultivation facilities.

(a) Licensed marijuana cultivation facilities may propagate, cultivate, harvest, prepare, cure, package and label retail marijuana, whether in concentrated form or otherwise. Subject to the limitations set forth i n subpart (b) of this Section, licensed retail marijuana cultivation facilities may sell retail marijuana that they cultivate to a person licensed by the local licensing authority to operate a marijuana store, marijuana products manufacturing facility or another marijuana cultivation facility. Licensed marijuana cultivation facilities shall not sell retail marijuana to any consumer.

(b) A marijuana cultivation facility license shall only be issued to a person who has also been issued a marijuana store license or marijuana products manufacturing facility license by the local licensing authority. Any retail marijuana that is grown in a licensed marijuana cultivation facility must be sold or transferred to its commonly-owned marijuana store or marijuana products manufacturing facility, except that a retail marijuana cultivation facility may sell up to 30% of its processed and finished retail marijuana inventory to other retail marijuana establishments not in common ownership.

Sec. 6-7-130. Marijuana testing facilities.

(a) Licensed marijuana testing facilities may accept samples of retail marijuana or retail marijuana products from retail marijuana establishments for testing and research purposes only. Licensed marijuana testing facilities are permitted to develop retail marijuana products, but may not engage in the manufacturing of retail marijuana. Licensed marijuana testing facility licensees shall not sell, distribute or transfer retail marijuana or retail marijuana products.

(b) A person who has an interest in a marijuana testing facility is prohibited from holding any interest in a medical marijuana business licensed pursuant to the Colorado Medical Marijuana Code or an interest in any other retail marijuana establishment.

Sec. 6-7-140. Dual operations.

(a) A licensed medical marijuana business may share its existing licensed premises with a retail marijuana establishment as follows:

(1) An optional premises cultivation operation and a marijuana cultivation facility may share a licensed premises to operate a dual cultivation business.

(2) A medical marijuana-infused products manufacturing business licensee may apply to hold a marijuana product manufacturing facility license and operate a dual manufacturing business at a shared licensed premises.

(3) A medical marijuana center that does not authorize patients under the age of 21 years to be on the premises may hold a marijuana store license and operate a dual retail business at a shared licensed premises.

(b) Dual cultivation facilities shall maintain either physical or virtual separation of the facilities, marijuana plants and marijuana inventory. Record-keeping must allow the local licensing authority to clearly distinguish the inventories and business transactions of medical marijuana from retail marijuana.

(c) Dual product manufacturing facilities shall maintain either physical or virtual separation of the facilities, product ingredients, product manufacturing and final product inventory. Record-keeping must allow the local licensing authority to clearly distinguish the inventories and business transactions of medical marijuana-infused products from retail marijuana products.

(d) Provided that a medical marijuana center licensee posts signage that clearly conveys that persons under the age of 21 years may not enter, such licensee may share the same entrances and exits to the shared premises with a marijuana store and medical and retail marijuana may be separately displayed on the same floor. Records must allow the local licensing authority to clearly distinguish the inventories and business transactions of medical marijuana and medical marijuana-infused products from retail marijuana and retail marijuana products.

(e) Licensees operating a dual operation shall maintain separate and distinct inventory tracking processes for medical and retail marijuana inventories. The inventories shall be clearly tagged or labeled so that the products can be reconciled to the particular medical or retail business.

Sec.6-7-150. Management.

(a) Licensees who are natural persons shall either manage the licensed premises themselves or employ a separate and distinct manager on the premises and report the name of such manager to the local licensing authority. Licensees that are entities shall employ a manager on the premises and report the name of the manager to the local licensing authority. All managers must be natural persons who are at least 21 years of age. No manager shall be a person having a criminal history as described in Sections 6-7-70(a)(11) and (12).

(b) A licensee shall report a change in manager to the local licensing authority within 30 days.

(c) When a licensee causes a change in its officers, directors or manager, and a license addendum is required to be filed with the state, a fee in the amount of $100.00 shall be paid to the local licensing authority upon filing of the addendum with the local licensing authority.

Sec. 6-7-160. Change in financial interest.

A licensee shall report a transfer or change of financial interest in the licensee or in the retail marijuana establishment that is the subject of the license within 30 days after any such transfer or change. A report shall be required for any transfer of the capital stock of a public corporation totaling more than 10 % of the stock in any one year, as well as any transfer of a controlling interest in the corporation whenever a sufficient number of shares have been transferred to effectuate the transfer of a controlling interest. When a licensee causes a change in financial interest totaling more than 10% of the stock in any one year, and a license addendum is required to be filed with the state, a fee in the amount of $100.00 shall be paid to the local licensing authority upon filing of the addendum with the local licensing authority. No person having or acquiring a financial interest in a retail marijuana establishment shall be a person having a criminal history as described in Sections 6-7-70(a)(11) and (12).

Sec. 6-7-170. Transfer of ownership.

For a transfer of ownership, a licensee shall apply to the state and local licensing authority on forms provided by the state licensing authority. A nonrefundable application transfer fee in the amount of five hundred dollars ($500.00) shall be paid to the Town at the time of making the application. In considering whether to permit a transfer of ownership, the local licensing authority shall consider the requirements of this Article, the Colorado Retail Marijuana Code, and the regulations promulgated in conformance therewith. The local licensing authority may hold a hearing on the application for a transfer of ownership, but such hearing shall not be held until a notice of such hearing has been posted on the licensed premises for a period of at least ten days prior to such hearing and the applicant has been provided at least ten days prior notice of such hearing.

Sec. 6-7-180. Change of location.

A licensee from another jurisdiction that has previously obtained a license from the state and any other local licensing authority as applicable may move his or her permanent location to theTown if the applicant and the new location comply with this Article.

Sec. 6-7-190. Hours of operation.

A retail marijuana establishment may open no earlier than 9:00 a.m. and shall close no later than 7:00p.m. the same day, and may be open seven days a week.

Sec. 6-7-200. Signage and advertising.

Signage and advertising for a retail marijuana establishment shall comply with applicable state law and applicable provisions of this Code, including Chapter 16. In addition, no licensee shall display a sign for the retail marijuana establishment that contains the word "marijuana" or a graphic/image of any portion of a marijuana plant.

Sec.6-7-210. Security.

(a) Security at retail marijuana establishments shall include the following:

(1) Security surveillance cameras installed to monitor all entrances, along with the interior and exterior of the premises, to discourage and facilitate the reporting of criminal acts and nuisance activities occurring at the premises;

(2) Robbery and burglary alarm systems, professionally monitored and maintained in good working condition;

(3) A locking safe permanently affixed to the premises that is suitable for storage of all marijuana and cash stored overnight on the licensed premises;

(4) Exterior lighting that illuminates the exterior walls of the licensed premises and complies with applicable provisions of this Code; and

(5) Deadbolt locks on all exterior doors.

(b) All security recordings shall be preserved for at least 72 hours and made available to the Mountain View Police Department upon request.

Sec. 6-7-220. Required notices.

There shall be posted in a conspicuous location in each retail marijuana establishment a legible sign containing the following warnings:

(1) That the use of marijuana or marijuana products may impair a person's ability to drive a motor vehicle or operate machinery, and that it is illegal under state law to drive a motor vehicle or to operate machinery when under the influence of or impaired by marijuana;

(2) That possession and distribution of marijuana is a violation of federal law;

(3) That loitering in or around a retail marijuana establishment is prohibited

by law; and

(4) That no one under the age of 21 years is permitted on the premises.

Sec. 6-7-230. Cultivation, growing and processing.

(a) Subject to Section 6-7-320 and C.R.S. § 12-43.3-403 and other applicable law, the growing, cultivation or processing of marijuana shall be allowed contiguous or not contiguous to the licensed premises of a retail marijuana business that submitted an application pursuant to Section 6-7-80; provided, however, that such growing, cultivation or processing shall be limited to commercial zoned land.

(b) The cultivation, growing, processing, display or storage of marijuana plants by a licensee shall be conducted only at the cultivation facility shown on the licensee's application.

(c) Access to a marijuana cultivation facility that is located in the same building as a marijuana store or a marijuana products manufacturing facility shall be secured so as to render the marijuana cultivation facility inaccessible to any unauthorized persons during all hours of operation of the business facility. Marijuana cultivation facilities shall be independently ventilated to prevent odors, debris and dust from entering the marijuana store.

(d) To the extent permitted by law, the local licensing authority shall keep confidential the location of marijuana cultivation facilities.

Sec. 6-7-240. Visibility of activities; paraphernalia.

(a) Activities of retail marijuana establishments, including without limitation cultivating, growing, processing, displaying, selling and storage, shall be conducted indoors. For purposes of this Section, greenhouse cultivation shall be deemed to occur indoors.

(b) Devices, contrivances, instruments and paraphernalia for inhaling or otherwise consuming marijuana, including without limitation rolling papers and related tools, water pipes, and vaporizers may lawfully be sold at a marijuana store. No retail marijuana or paraphernalia shall be visible from outside the licensed premises.

Sec. 6-7-250. Emissions.

Sufficient measures and means of preventing smoke, odors, debris, dust, fluids and other substances from exiting a retail marijuana establishment must be provided at all times. If odors, debris, dust, fluids or other substances exit a retail marijuana establishment, the owner of the premises and the licensee shall be jointly and severally liable for such conditions and shall be responsible for immediate, full clean-up and correction of such condition, and shall properly dispose of all such materials, items and other substances in a safe, sanitary and secure manner and in accordance with all applicable federal, state and local law.

Sec. 6-7-260. Disposal of marijuana byproducts.

The disposal of marijuana, marijuana products, byproducts and paraphernalia shall comply with plans and procedures approved in advance by the local licensing authority.

Sec. 6-7-270. Records.

(a) A licensee shall maintain an accurate and complete record of all retail marijuana purchased, sold or dispensed by the retail marijuana establishment in any usable form, including the following:

(1) The identity of the seller and purchaser involved in each transaction;

(2) The total quantity of, and amount paid for, the retail marijuana and retail marijuana products; and

(3) The date, time and location of each transaction.

(b) Transactions shall be kept in a numerical register in the order in which they occur.

(c) Records shall be kept in the English language in a legible manner and preserved and made available for inspection for a period of three years after the date of the transaction. Information inspected by the local licensing authority shall be used for regulatory and law enforcement purposes only and shall not be a matter of public record.

Sec. 6-7-280. Inspection of licensed premises.

During business hours and other times of apparent activity, licensed premises shall be subject to inspection by the Mountain View Police Department and other Town departments designated by the local licensing authority for the purpose of investigating and determining compliance with the provisions of this Article and other applicable state and local laws. Said inspection may include without limitation the inspection of books, records and inventory. Where any part of the licensed premises consists of a locked area, such area shall be made available for inspection.

Sec. 6-7-290. Renewal.

(a) A renewal application shall be filed with the local licensing authority not more than 60 days and not less than 30 days prior to the date of expiration of the license. The renewal application fee shall be $100.00. A licensee may submit a late renewal application, with a non refundable late application fee in an amount of $500.00, for a renewal application made less than 30 days prior to the date of the expiration of the license. The timely filing of a completed renewal application or a late renewal application shall extend the current license until a decision is made on the renewal.

(b) Notwithstanding state law to the contrary, a licensee whose license expires and for which a renewal application has not been received by the expiration date shall be deemed to have forfeited its license, and the local licensing authority shall not accept renewal applications after the expiration date of such license.

Sec. 6-7-300. Nonrenewal, suspension or revocation of license.

(a) The local licensing authority may, after notice and hearing, suspend, revoke or refuse to renew a license for good cause.

(b) The local licensing authority may, in its discretion, revoke or elect not to renew any license if it determines that the licensed premises has been inactive, without good cause, for at least one year.

Sec. 6-7-310. Liability; indemnification; immunity.

(a) By accepting a license under this Article, the licensee waives and releases the Town, its officers, officials, employees, attorneys and agents from any liability for injuries, damages or liabilities of any kind that result from any arrest or prosecution of retail marijuana establishment owners, operators, employees, clients or customers for a violation of state or federal law.

(b) By accepting a license under this Article, a licensee agrees to indemnify, defend and hold harmless the Town, its officers, officials, employees, attorneys, agents, insurers and self- insurance pool against all liability, claims and demands on account of any injury, loss or damage, including, without limitation, claims arising from bodily 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 retail marijuana establishment that is the subject of the license.

(c) In adopting this Article, the Town is relying on and does not waive or intend to waive by any provision of this Article the monetary limitations or any other rights, immunities or protections provided by the Colorado Governmental Immunity Act, C.R.S. § 24-10-101, et seq., or any other limitation, right, immunity or protection otherwise available to the Town, its officers, officials, attorneys, agents or employees.

Sec. 6-7-320. Prohibited acts.

It is unlawful for any licensee to:

(1) Employ a person at a retail marijuana establishment who is not at least 21 years of age or who has a criminal history as described in Sections 6-7-70(a)( l l) and (12);

(2) Purchase or otherwise obtain retail marijuana from a source that is not properly authorized under state and local law to sell or dispense retail marijuana;

premises;

(3) Dispense retail marijuana in or upon a marijuana cultivation facility;

(4) Permit the sale or consumption of alcohol beverages on the licensed premises;

(5) Permit the use, consumption, ingestion or inhalation of retail marijuana or retail marijuana products on or in the premises of a retail marijuana establishment;

(6) Post or allow to be posted signs or other advertising materials identifying cultivation facilities as being associated with the use or cultivation of marijuana; or

(7) Dispense marijuana to a person that is or appears to be under the influence of alcohol or under the influence of any controlled substance, including marijuana.

Sec. 6-7-340. Violation; penalty.

In addition to the denial, suspension, revocation or nonrenewal of a license under this Article, a person who violates any provision of this Article shall be subject to the following penalties:

(1) The penalties set forth in Section 1-6-20 of this Code.

(2) An injunction by a court of competent jurisdiction, including the Mountain View Municipal Court.

(3) Abatement as a public nuisance pursuant to Section 7-1-10, et seq., of this Code.

Section 2. Safety Clause. The Town Council hereby finds, determines and declares that this Ordinance is promulgated under the general police power of the Town of Mountain View, that it is promulgated for the health, safety and welfare of the public and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The Town Council further determines that this Ordinance bears a rational relation to the proper legislative object sought to be attained.

Section 3. Severability. If any clause, sentence, paragraph, or part of this Ordinance or the application thereof to any person or circumstances shall for any reason be adjudged by a court of competent jurisdiction invalid, such judgment shall not affect application to other persons or circumstances.

Section 4. Effective Date. This Ordinance shall become effective ten (10) days after passage.

INTRODUCED, FIRST READ, PASSED, AND ORDERED POSTED ON FIRST AND FINAL READING THIS 12th DAY OF AUGUST, 2013

PASSED, ADOPTED, AND APPROVED ON SECOND READING THIS 9th DAY OF SEPTEMBER 2013

Town of Mountain View, Colorado

Ordinance NO. 2013-10

Town of Mountain View, Colorado