City Council Study Session Agenda and Packet 2010 10 26

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Malcolm Fleming, City Manager May 25, 2010 Page 4 of 6 LIGHT, HARRINGTON & DAWES, P.C. Products Manufacturing Licensees that grow and cultivate "medical marijuana at an additional Colorado licensed premises contiguous or not contiguous with the licensed premises of the person's medical marijuana center license or the person's medical marijuana- infused products manufacturing license." C.R.S. § 12- 43.3 -403." The licensee may only grow marijuana for "a purpose authorized by section 14 of Article XVIII of the State Constitution." C.R.S. § 12- 43.3 - 104(11). • Medical Marijuana Infused Products Manufacturing License- A Medical Marijuana - Infused Products Manufacturing License permits a licensee to manufacture a "medical marijuana - infused product," which is defined as "a product infused with medical marijuana that is intended for use or consumption other than by smoking, including but not limited to edible products, ointments, and tinctures... "C.R.S. § 12- 43.3 - 104(9) and C.R.S. § 12 -43.3- 404(3). The licensee may sell its products to any licensed medical marijuana center, but it must enter into a written agreement with the medical marijuana center licensee setting "forth the total amount of medical marijuana obtained from a medical marijuana center licensee to be used in the manufacturing process, and the total amount of medical marijuana - infused products to be manufactured from the medical marijuana obtained from the medical marijuana center." C.R.S. § 43.3- 404(3). If the City determines that it is in its best interest to license the above - listed operations, and if the City will issue licenses prior to July 1, 2011, it must adopt an ordinance "containing specific standards for license issuance." C.R.S. § 12- 43.3- 301(2)(a). If the City does not adopt an ordinance prior to July 1, 2011, the Local Licensing Authority would be required to "consider the minimum licensing requirements" provided for in Part 3 of the Bill, which include, but are not limited to requirements for an application process, public hearing, notice, and guidelines for making a decision. C.R.S. § 12- 43.3- 301(2)(a). The Bill states that a municipality may "enact reasonable regulations or other restrictions applicable to medical marijuana centers, optional premises cultivation operations, and medical marijuana - infused products manufacturers' licenses based on local government zoning, health, safety, and public welfare laws for the distribution of medical marijuana that are more restrictive than [Article 43.3]" C.R.S. § 12- 43.3 -310. The Bill also provides municipalities with the authority to enact local regulations to be incorporated into the licensing procedure provided for in the Bill, including "additional standards for the issuance of medical marijuana center, optional premises cultivation, or medical marijuana - infused products manufacturer licenses consistent with the intent of [Article 43.3]." C.R.S. § 12- 43.3- 301(2)(b). Such standards may include, but are not limited to: • Distance restrictions between premises for which local licenses are issued; • Reasonableness restrictions on the size of an applicant's licensed premises; and " However, "a medical marijuana - infused products licensee that has an optional premises cultivation license shall not sell any of the medical marijuana that it cultivates." C.R.S. § 12- 43.3- 404(8). 14