Issue: Trying to sort out the details on Medical Marijuana in Commerce City...

Solution: Emergency ordinance extending moratorium on medical marijuana business licensing

In December, City Council directed staff to develop a licensing program for medical marijuana businesses recognized by the Medical Marijuana Code (C.R.S. 12-43.3-101, et seq.) In January, HB 11-1043 was introduced in the Colorado Legislature. That bill, which is expected to pass, will significantly impact the City's approach to licensing. For instance, under the Land Development Code ("LDC"), all medical marijuana businesses require a conditional use permit ("CUP") to operate. The CUP process involves two public hearings - one before the Planning Commission and one before the City Council.

Under the current version of the Medical Marijuana Code which specifically prohibits the disclosure of the location of optional premise cultivation operations, the disclosure requirment presents a problem because public hearings require a publication of the proposed location. Consequently, the City would need to amend the LDC to be able to license these businesses in compliance with state law. However, the adoption of HB-1043 would remove the confidentiality provision contained in the Medical Marijuana Code and, therefore, no amendment to the LDC would be required. Accordingly, staff needs to await the outcome of this proposed legislation to be able to develop an appropriate licensing program. In the meantime, staff is requesting that City Council reinstate our prior moratorium, to run concurrently with that imposed by the State (which is being extended to July 1, 2012), in order to eliminate any confusion or conflict with the state law.

An additional issue that the City Council needs to address is whether a tax on marijuana sales should be imposed over and above the existing 3.5% city sales tax. If so, a ballot issue needs to be placed on the November 2011 ballot and that decision needs to be made no later than August 1, 2011.