City Council Study Session Agenda and Packet 2011 01 10

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PAGE FIVE SUBJECT: UPDATE /DISCUSSION – REGULATION OF MEDICAL MARIJUANA DATE: JANUARY 10, 2011 licensing requirements. 3. Business location requirements are unique to Louisville. Types of Licenses and Licensing Procedures The City will be allowing two types of licenses: 1. A medical marijuana center license shall be issued only to a person selling medical marijuana pursuant to the terms and conditions of this chapter and C.R.S. § 12- 43.3 -402 to registered patients or primary caregivers as defined in Article XVIII, Section 14 of the Colorado Constitution, but is not a primary caregiver. 2. A medical marijuana- infused products manufacturing license may be issued to a person who manufactures medical marijuana- infused products, pursuant to the terms and conditions of this chapter and C.R.S. § 12- 43.3 -404. The ordinance designates the existing Local Licensing Authority as the licensing authority for the City. It will have the power to review and act on applications for new licenses and renewals, and to consider revocation and suspension of licenses. The Authority is given the power to adopt rules of procedure related to these activities. While a number of the activities for licensing will be similar to those already conducted by the Authority for alcohol licensing —such as review of background checks, premises information and operations plans —some procedures and review areas are new and unique. The ordinance will be presented to the Authority for its comment and it will also develop rules and procedures for implementing the licensing requirements. Fees An extensive licensing process is proposed as an integral element of the regulations. Other requirements include payment of an application fee and an annual license fee. The fees will be defined in the ordinance and will cover costs associated with the background check, zoning review, mapping required to determine if separations are met, application coordination, and routing to other departments. The initial non - refundable application fee is estimated to be approximately Dollars ($ ). If the applicant meets all application, licensing, and zoning requirements, the proposed licensed premises would be inspected and, upon approval, an annual fee of approximately Dollars ($ ) would be collected. The purpose of this fee would be to cover the cost of compliance checks by Police Services and other applicable City departments. Background Checks The first step in the licensing process is to conduct a background check on the applicant, manager, and all of the financial interest holders in the proposed medical marijuana business. A license shall not be issued to or held by any person contrary to State Statue 12- 43.3 -307. 6