City Council Study Session Agenda and Packet 2019 11 12

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Courts have held that the right to carry on a legitimate business is a property right and cannot be taken away or abridged by an exercise of the police power unless it appears that the interest of the public generally requires such interference and that the means are reasonably necessary for the accomplishment of the purpose and are not unduly oppressive.2' Licenses may not be revoked or suspended except for good cause and only after the licensee has received due process, including a fair hearing.212 Municipal officials must recognize these limitations on their exercise of the police power in their regulation and licensing of local businesses. However, businesses must comply with all applicable ordinances and other laws or else risk the suspension or revocation of their license.211 Liquor licensing. The State of Colorado has exclusive authority over the regulation, manufacture, and sale of intoxicating liquors (malt, vinous, and spirituous liquors).214 However, municipalities have been delegated the authority to review and approve applications for beer and liquor businesses that require local licenses, provided such authority is exercised in accordance with the provisions of the state liquor and fermented beverage (beer) codes.211 In granting liquor licenses, the governing body is required by statute to consider "the reasonable requirements of the neighborhood, (and) the desires of the adult inhabitants as evidenced by petitions, remonstrances, or otherwise, and all other reasonable restrictions that are or may be placed upon the neighborhood by the local licensing authority. 11211 Liquor licensing is addressed in detail in CML's publication Liquor and Beer Licensing Law and Practice. The governing body should not proceed in liquor -licensing cases without the benefit of competent legal counsel and should proceed only in careful compliance with the liquor code. Marijuana licensing. By constitutional amendment, Colorado voters authorized the private use, possession, sale, and manufacturing of marijuana products for both recreational and medicinal purposes.217 However, Colorado municipalities may prohibit within their boundaries the operation of marijuana cultivation facilities, marijuana manufacturing facilities, marijuana testing facilities, and retail marijuana stores .218 Those cities and towns that choose to allow medical or recreational marijuana stores or facilities may locally license these establishments.211 Differences exist between the licensing requirements for medical and recreational marijuana. The General Assembly has enacted comprehensive legislation concerning the licensing and regulation of medical and recreational marijuana establishments.221 Franchising. The rates of privately owned water, electric, and gas utilities are subject to regulation only by the state Public Utilities Commission; however, municipalities may further regulate the operations of certain of these companies within municipal limits through the power to prohibit the permanent use of streets or alleys. Permanent use of streets or alleys for water and gas lines or utility poles usually is permitted by granting a "franchise" to the company concerned. All franchises must be granted by ordinance and only after appropriate public notice is given.221 Franchises for gas, water, heating, cooling, and electric utility operations may not be granted for more than 25 years.222 No local franchise may be required of telecommunications service providers.221 Although the governing body may place certain requirements on the utility company before granting a franchise (such as requiring franchise fees), only the Public Utilities Commission may regulate the rate schedule itself. Land use and zoning. Municipalities have been granted broad authority to regulate the use, development, and zoning of property within its boundaries: 211 Wilson v. City & Cty. of Denver, 178 P. 17 (Colo. 1918). 212 State Bd. of Cosmetology v. Maddux, 428 P.2d 936 (Colo. 1967). 213 C.R.S. § 31-15-501(c). 214 Berger v. City of Boulder, 195 P.3d 1138 (Colo. App. 1138). 215 C.R.S. §§ 12-46-101 et seq.; C.R.S. §§ 12-47-101 et seq. 216 C.R.S. § 12-47-301(2)(a). 217 COLO. CONST. art. XVIII, § 16. 218 COLO. CONST. art. XVIII, § 16(5)(f); C.R.S. § 12-43.3-106. 219 COLO. CONST. art. XVIII, § 16(5)(f); C.R.S. § 12-43.3-103. 220 See C.R.S. §§ 12-43.3-101 et seq. (Colorado Medical Marijuana Code); C.R.S. §§ 12-43.4-101 et seq. (Colorado Retail Marijuana Code). 221 C.R.S. § 31-32-101. 222 C.R.S. § 31-15-707(1)(c). 223 C.R.S. §§ 38-5.5-101 et seq.; see also City & Cty. of Denver v. Qwest Corp., 18 P.3d 748 (Colo. 2001). Heather Balser / City of Louisville Order # 42201 / Qrder Date: 10/31/2019 Copyright by Croft COLORADO MUNCIPAL GOVERNMENT.' AN INTRODUCTION