Loading...
HomeMy WebLinkAbout09483 City Clerk’s Office Item # R-10 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: May 28, 2019 TO: President Dennis E. Flores and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Brenda Armijo, Acting City Clerk FROM: Trevor D. Gloss, Assistant City Attorney SUBJECT: AN ORDINANCE AMENDING CHAPTER 10 OF TITLE XI AND CHAPTER 11 OF TITLE XI OF THE PUEBLO MUNICIPAL CODE RELATING TO MEDICAL AND RETAIL MARIJUANA LICENSES SUMMARY: Attached for consideration is a text amendment that will amend Chapter 10 of Title XI and Chapter 11 of Title XI of the Pueblo Municipal Code, relating to Medical Marijuana and Retail Marijuana Licenses. PREVIOUS COUNCIL ACTION: None. BACKGROUND: The State statutes regarding Medical and Retail Marijuana Licenses were amended in late 2018 and additional changes to the statutes will be effective July 1, 2019. For example, as of October 2018, all Medical and Retail Marijuana Licensing statutes were relocated from Articles 43.3 and 43.4 of Title 12 of the Colorado Revised Statutes to Articles 11 and 12 of Title 44 of the Colorado Revised Statutes. This requires an update to the Pueblo Municipal Code, amending references to the applicable State statutes. More substantive changes are also being made to the State Medical Marijuana Licensing provisions. For example, as of July 1, 2019, the State will no longer require a Medical Marijuana Cultivation to have a corresponding Medical Marijuana Center. Instead, licensees will be able to have one or the other without being required to have both. The Pueblo Municipal Code currently requires every Medical Marijuana Cultivation to have a corresponding Medical Marijuana Center, which will soon conflict the amended State requirements. The attached Ordinance amends this and other provisions of the Pueblo Municipal Code to match the changes in the State statutes. Staff has also taken this opportunity to update the City’s marijuana licensing provisions. In addition to small changes to improve consistency and efficiency in the licensing process, a Medical Marijuana Testing Facility License has been added to match the existing Retail Marijuana Testing Facility License. Fees for Medical Marijuana Facilities, previously increased by Resolution No. 11964, will also slightly increase by about $200 to $450 to defray higher licensing and municipal costs. FINANCIAL IMPLICATIONS: Medical Marijuana Licensing Fees will increase by about $200 to $450 to meet increases in licensing and municipal costs. BOARD/COMMISSION RECOMMENDATION: None. STAKEHOLDER PROCESS: None. ALTERNATIVES: If City Council does not approve this Ordinance, Chapter 10 of Title XI and Chapter 11 of Title XI of the Pueblo Municipal Code will not be amended, and the local requirements for Medical and Retail Marijuana Licenses will conflict with State law and create issues for applicants and City personnel. RECOMMENDATION: Not applicable. Attachments: Proposed Ordinance ORDINANCE NO. 9483 AN ORDINANCE AMENDING CHAPTER 10 OF TITLE XI AND CHAPTER 11 OF TITLE XI OF THE PUEBLO MUNICIPAL CODE RELATING TO MEDICAL AND RETAIL MARIJUANA LICENSES WHEREAS, on November 6, 2012, the voters of the State of Colorado approved Amendment 64. Amendment 64 added §16 of Article XVIII to the Colorado Constitution, which authorized a system of state and local licensing of businesses engaged in the cultivating, testing, manufacturing, and selling of marijuana; and WHEREAS, Subsection 16(5)(f) of Article XVIII allows governmental entities, within their respective jurisdictions: to prohibit the operation of marijuana establishments; to regulate the time, place, and manner under which marijuana establishments may operate; and to limit the total number of establishments within their jurisdictions, including the authority to engage in local licensing of marijuana establishments; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate matter being deleted, underscoring indicating matter being added) SECTION 1. Section 11-10-103 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-10-103. - Definitions. The following definitions shall apply throughout this Chapter: (1) The definitions contained in Article XVIII, Section 14, Colorado Constitution and \[\] 44-11-104 Section 12-43.3-104, C.R.S., shall apply to this Chapter except where the ordinance provides a different definition or the context of this Chapter makes it clear that the statutory or constitutional definition does not apply. . . . (5) Character and record: includes all aspects of a person's character and record, \[ including but not limited to moral character, criminal record, serious traffic offenses, record of previous sanctions against liquor licenses, gambling licenses or medical marijuana licenses, which the person owned, in whole or in part, or in which the person served as a principal, manager \]\[\] , or employee; education, training, experience, civil judgments, truthfulness, honesty and , and records of previous sanctions against liquor licenses, gambling financial responsibility licenses or marijuana licenses, which the person owned, in whole or in part, or in which the person served as a principal, manager or employee . The conviction of any person for any offense shall not, in itself, be grounds for a finding of bad character and record if such person demonstrates that he or she has been rehabilitated, but rehabilitation shall not be considered if a provision in this Chapter declares that the offense is a per se disqualification. . . . (7) Contiguous: means located within the same building as the medical marijuana \[\] facility center, located in a separate building on the same parcel of land as the medical \[\] facility marijuana center, or located in a separate building on a separate parcel of land that is adjacent to and shares at least fifty percent (50%) of a common lot line with the lot on which the \[\] facility medical marijuana center is located. . . . (16) Medical marijuana facility: means a medical marijuana center, an optional , medical marijuana testing facility, premises cultivation operation or a medical marijuana infused products manufacturing operation. . . . SECTION 2. Section 11-10-201 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-10-201. - Licensing authority. \[\] (a) The Mayor, subject to Council confirmation, shall appoint a Board to serve as the Medical Marijuana Licensing Authority. \[ (b) As to any application for a medical marijuana license submitted before May 1, 2012, the application shall be suspended and shall not be processed until May 1, 2012, or thereafter, but shall not be granted or approved before July 1, 2012. An application submitted between May 1, 2012, and July 1, 2012, may be processed, but shall not be granted or approved before July 1, 2012. Nothing contained in this Subsection shall be construed as infringing upon \] any of the constitutional rights granted under Article XVIII § Colorado Constitution. SECTION 3. Section 11-10-203 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-10-203. - Powers of Authority. (a) The Authority shall have the following powers: . . . (11) To grant exceptions to the licensing requirements set forth in Section 11- \[\] 10-308(6)(d) provided that the licensee and licensed premises fully comply with all state laws, rules and regulations and after considering whether granting the exception(s) will have a negative impact on the health, safety and welfare of the surrounding neighborhood or public in general. . . . SECTION 4. Section 11-10-302 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-10-302. - Classes of medical marijuana licenses. The Authority may issue the following licenses for medical marijuana facilities, granting \[\]\[\] 44 11 the privileges described in Title 12, Article 43.3, C.R.S., subject to the requirements, conditions, qualifications, and limitations set forth in this Chapter: (1) Medical marijuana center license; \[\] (2) Optional premises cultivation license; and \[\] ; and (3) Medical marijuana infused products manufacturing license. (4) Medical marijuana testing facility SECTION 5. Section 11-10-303 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-10-303. - Nature of license. (a) Every license issued under this Chapter confers only a limited and conditional privilege subject to the requirements, conditions, limitations and qualifications of this Chapter and State law. The license does not confer a property right of any kind. The license and the privilege created by the license may be further regulated, limited or completely extinguished at the discretion of City Council or the electorate of the City, as provided in this Chapter, without any compensation to the licensee. (b) Every license approved or issued under this Chapter shall be subject to the future exercise of the reserved rights of referendum and initiative, exercise of the Local Option described \[\] 44-11-106 in Section 12-43.3-106, C.R.S., and any other future ordinances adopted by a vote of the People of the City of Pueblo or City Council. Nothing contained in this Chapter grants to any licensee any vested right to continue operating under the provisions of this Chapter as they existed at the time the license was approved or issued, and every license shall be subject to any ordinance or prohibition adopted after the license was approved or issued. (c) In the event that the People of the City of Pueblo, by a majority of the registered electors of the City, at a regular or special election, or a majority of City Council, vote to prohibit by ordinance the licensing and operation of medical marijuana centers, optional premises , medical marijuana testing facilities, cultivation operations or medical marijuana infused \[\] products manufacturing operations within the City of Pueblo, pursuant to Section 12-43.3-106 44-11-106 , C.R.S., then every license issued or approved under this Chapter, which is prohibited under such ordinance, shall be deemed void and the operation of any medical marijuana facility prohibited under the ordinance shall become illegal on the effective day of the ordinance. (d) Every license is separate and distinct and is tied to a specific location with specific conditions. The license cannot be assigned, delegated, sold, inherited or otherwise transferred between persons or transferred to a different location, except as provided in this Chapter. No licensee shall exercise the privileges of any other license or delegate the privileges of its own license. (e) The licenses issued under this Chapter consist of a limited and conditional privilege to operate a medical marijuana facility, provided that the licensee also obtains a State license. The license certificate issued by the Clerk of the Authority is merely evidence that a license was issued and is not the license itself. Assignment or conveyance of the license certificate alone does not transfer any right to the license. SECTION 6. Section 11-10-304 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-10-304. - License and other fees. (a) Applicants and licensees shall pay the following fees to the City of Pueblo in addition to any fees payable to the State: (1) Application packet for new license (which shall be credited against the application fee if a complete application is submitted): twenty-five dollars ($25.00). (2) Application for new license: \[ a. Medical marijuana center: three thousand four hundred seventy- \] six thousand five hundred dollars ($6,500.00) two dollars ($3,472.00). \[ b. Marijuana infused products manufacturing operation: three \] six thousand five thousand four hundred seventy-two dollars ($3,472.00) hundred dollars ($6,500.00) . : six thousand five hundred c. Optional premises cultivation license \[ dollars ($6,500.00). (if submitted, accepted, processed and heard at the same time as an application for a medical marijuana center license or marijuana infused \] products manufacturing license): zero ($0.00). Medical marijuana testing facility: four thousand five hundred d. \[ dollars ($4,500.00). Optional premises cultivation license (if not submitted, accepted, processed and heard at the same time as an application for a medical marijuana center license or marijuana infused products manufacturing license): \] three thousand four hundred seventy-two dollars ($3,472.00); \[ (3) Application for renewal of license: one thousand six hundred eighty-four \] four thousand five hundred dollars ($4,500.00) dollars ($1,684.00). (4) Application for transfer of location: one thousand seven hundred fifty dollars ($1,750.00). (5) Application for change of principals or ownership: three hundred dollars ($300.00). (6) Application for change in operational plan: three hundred dollars ($300.00). (7) Registration of manager: one hundred dollars ($100.00). (8) Application for modification of premises: four hundred dollars ($400.00). (9) Report of minor change: one hundred dollars ($100.00). (10) Late renewal fee: five hundred dollars ($500.00). (11) License extension fee: one hundred fifty dollars ($150.00) for each thirty (30) day period or portion thereof. (b) City Council may approve increases or decreases in the foregoing fees by resolution. . . . SECTION 7. Section 11-10-308 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-10-308. - Requirements to obtain and retain a medical marijuana license. and retain In order to obtain a license, the applicant shall demonstrate by a preponderance of the evidence to the Authority that the following requirements are satisfied: . . . (3) Location and other licensing of premises. . . . c. The premises are not licensed or operated as an establishment for the sale \[\] 44-3-103 or service of alcohol beverages as defined in Section 12-47-103(2), C.R.S., or as a massage parlor, a dance hall or an amusement establishment as defined in Chapter 2, Title IX, Pueblo Municipal Code. d. The premises are not licensed or operated as a retail food establishment or wholesale food registrant. e. No medical marijuana license of the same class has been denied at the location of the proposed licensed premises or at another location within one thousand (1,000) feet of the proposed licensed premises, as measured from any wall of the two (2) proposed licensed premises, within the preceding two (2) years due to the nature of the use or other concern related to the location. f. Retail and medical marijuana licenses may be co-located on a licensed premises under a common owner, but only in accordance with state law. . . . \[ (5) Requirements specific to a medical marijuana center license. a. The applicant also obtains an optional premises cultivation license, which is either contiguous to the licensed premises of the medical marijuana center or located outside the City of Pueblo. b. The applicant will cultivate at least seventy percent (70%) of the marijuana sold or exchanged on the licensed premises. \] (6)Requirements specific to optional premises cultivation license. \[ a. The applicant also holds a medical marijuana center license or a medical marijuana infused products manufacturer's license. b. The proposed licensed premises are either contiguous to the licensee's licensed premises for a licensed medical marijuana center or a marijuana infused products manufacturer's operation or are located outside the City of Pueblo. \] c.The area of the proposed licensed premises utilized for cultivation is equipped with a ventilation system with carbon filters sufficient in type and capacity to eliminate marijuana odors emanating from the interior to the exterior discernible by a reasonable person. The ventilation system must be inspected and approved by the Pueblo Regional Building Department. \[\] b. d. The proposed licensed premises are located in a separate building that does not share any doors, windows, air passages, vents, ducts or any heating, ventilation, air conditioning or air handling equipment or structures with any other building or premises \[\] except for whatsoever, including but not limited to a medical marijuana center or medical marijuana infused products manufacturing center. \[\] c. e. Walls, barriers, locks, signs and other means are in place to prevent the public from entering the area of the proposed licensed premises utilized for cultivation. \[\] d. f. No portion of the building in which the proposed licensed premises are located is utilized as a residence. \[\] (6) (7) Requirements specific to a marijuana infused product manufacturer's license: \[ a. The applicant has a contract with a medical marijuana center or a medical marijuana infused product manufacturer, stating the type and quantity of medical marijuana infused product that the medical marijuana center will buy from the licensee; b. The applicant also obtains an optional premises cultivation license, which is either contiguous to the licensed premises of the medical marijuana center or located outside the City of Pueblo; c. The applicant cultivates at least seventy percent (70%) of the marijuana necessary for its operation; and \] d.The applicant will use marijuana from no more than five (5) marijuana \[\] anyit may own, providers, including its own optional premises cultivation operation to manufacture its marijuana infused products. (7)Requirements specific to a medical marijuana testing facility license. a. No other type of medical marijuana facility or retail marijuana establishment may be located on the same premises as a medical marijuana testing facility, except that a retail marijuana testing facility may be co-located therewith. b. A person who has an interest in a medical marijuana testing facility license shall not have any interest in a medical marijuana center, optional premises cultivation, medical marijuana infused products manufacturer, retail marijuana store, retail marijuana cultivation, or a retail marijuana products manufacturer. (8) Requirements for premises that are not completed. a. If the proposed licensed premises have not been completed, inspected and approved as required in this Chapter at the time of the hearing for a new license or a hearing on transfer of an existing license to a new location, the applicant shall submit to the Authority: 1. A recorded deed to the licensee showing ownership of the proposed licensed premises or a lease showing a right to occupy the proposed licensed premises; and 2. Plans, specifications, drawings and other documents showing that \[\] the proposed licensed premises and adjacent grounds will probably comply with the requirements of this Chapter when completed and inspected. b. The Authority may approve the license before the proposed licensed premises are completed, inspected and approved, but shall not issue the license until the licensed premises have been completed and all inspections and approvals required under this Chapter have been obtained and submitted to the Authority. c. In the event that the license is approved, but the premises are not completed, inspected and approved as required in this Chapter within one hundred twenty (120) days of approval, the approval shall lapse and the license shall not be issued. (9) Requirements of this Section also apply to licensees; continuing duty. a. The requirements of this Section imposed on any applicant shall also apply to any licensee. The requirements of this Section imposed on any proposed licensed premises, proposed adjacent grounds or proposed location shall also apply to licensed premises, adjacent grounds and actual locations, respectively. b. Every licensee and its principals, registered manager and employees has a continuing duty to ensure that the requirements of this Section continue to be met after the license is issued and at all times that the license remains in effect. SECTION 8. Section 11-10-310 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-10-310. - Review of application for new license, determination and findings. . . . (e) Withdrawal of an application under this Section shall not constitute a denial of the \[\] 309 application under Paragraph 11-10- 308(d)(5) and shall not prevent the applicant from re- submitting its application upon payment of a new application fee. . . . SECTION 9. Section 11-10-313 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-10-313. - License certificate; posting of license certificate and notices on licensed premises. (a) After the Authority issues a license, the Clerk of the Authority shall issue to the licensee a certificate evidencing issuance of the license. The license certificate shall state the date issued, the term of the license, the name of the licensee, the address of the premises, conditions on the license and the following: THIS LICENSE CONFERS ONLY A LIMITED AND CONDITIONAL PRIVILEGE SUBJECT TO THE REQUIREMENTS, CONDITIONS, LIMITATIONS AND QUALIFICATIONS OF THE PUEBLO MUNICIPAL CODE, AS AMENDED, AND STATE LAW. THIS LICENSE DOES NOT CONFER A PROPERTY RIGHT OF ANY KIND. THE LICENSE AND THE PRIVILEGE CREATED BY THE LICENSE MAY BE FURTHER REGULATED, LIMITED OR COMPLETELY EXTINGUISHED BY THE CITY WITHOUT ANY COMPENSATION TO THE LICENSEE. THIS LICENSE IS SUBJECT TO THE FUTURE EXERCISE OF THE LOCAL OPTION DESCRIBED IN \[\] 44-11-106 C.R.S. §12-43.3-106, AND OTHER FUTURE ORDINANCES PASSED BY THE PEOPLE OF THE CITY OF PUEBLO OR CITY COUNCIL. THE HOLDER OF THIS LICENSE SHALL BE SUBJECT TO ANY ORDINANCE OR PROHIBITION PASSED AFTER THE LICENSE WAS APPROVED OR ISSUED. IN THE EVENT THAT THE PEOPLE OF THE CITY OF PUEBLO, BY A MAJORITY VOTE OF THE REGISTERED ELECTORS OF THE CITY, AT A REGULAR OR SPECIAL ELECTION, OR A MAJORITY OF CITY COUNCIL, VOTE TO PROHIBIT BY ORDINANCE THIS TYPE OF LICENSE AND THE OPERATION OF THIS TYPE OF MEDICAL MARIJUANA FACILITY WITHIN THE CITY OF PUEBLO, PURSUANT TO C.R.S. \[\] 44-11-106 §12-43.3-106, THEN THIS LICENSE SHALL BE VOID AND THE OPERATION OF THIS MEDICAL MARIJUANA FACILITY SHALL BE ILLEGAL ON THE EFFECTIVE DAY OF SUCH ORDINANCE. . . . SECTION 10. Section 11-10-314 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-10-314. - Registered manager. at least Every licensee shall designate one (1) registered manager and delegate to the registered manager authority over the day to day operations of the licensee and the responsibility to ensure that the licensed premises and adjacent premises are operated in compliance with this Chapter. SECTION 11. Section 11-10-318 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-10-318. - Trade names, trademarks, logos, labels, packaging and advertising. With regards to a licensee’s building façade, signs, and other outdoor (a) \[\] advertising, anot No licensee shall use any logo, trademark, trade name, sign or advertising using the word "marijuana," "cannabis," any alternative spelling or abbreviation of the same, any slang term for the same commonly understood as referring to marijuana, any image of a cannabis leaf, or any depiction of any paraphernalia or other image commonly understood as referring to marijuana, except that the complete phrase "medical marijuana" may be used, so long as both This prohibition shall not apply to any advertisement words are the same size, style and font. contained within a newspaper, magazine or other periodical of general circulation within the City or on the internet, which may include coupons, or that is purely incidental to sponsorship of a charitable event by a medical marijuana establishment. Such signage and advertising must not be misleading, false, or infringe upon any state or federal trademark. (b) Nothing contained in this Section shall be construed as creating a prior restraint on speech or press. The Authority shall not require an applicant or licensee to obtain any approval or license from the Authority before using any logo, trademark, trade name, sign or advertising. \[\] Section Nothing contained in this Subsection shall prevent the City from taking civil, administrative or criminal action against any person or license after any logo, trademark, trade An applicant or licensee may request the Authority name, sign or advertising has been used. make an administrative determination as to whether a logo, trademark, trade name, sign, or advertising would be prohibited under this Section, but the Authority shall not be required to make such a determination. (c) Any court of competent jurisdiction construing or applying this Section shall seek a saving construction and application that makes the Section constitutional. In the event that any court of competent jurisdiction determines that any provision in this Section violates any right that any person may have to free speech or press, despite the Court's saving construction and application, the Court shall strike this Section only and sever the same from the remainder of this Chapter, which shall remain valid and effective without this Section. SECTION 12. Section 11-10-321 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-10-321. - Inspection of licensed premises and adjacent grounds. (a) Every licensed premises and adjacent grounds shall be open to inspection by code enforcement officials, police officers, building officials, firefighters, zoning officials, sales, use and excise tax officials and health department officials at any time that anyone is present in the licensed premises, without obtaining a search warrant, and without reasonable suspicion to Such right of inspection shall believe that any violation or criminal offense has occurred. continue until all marijuana is removed from the licensed premises and adjacent grounds and all marijuana related business has terminated and final inspections are made in accordance with Subsection (f) below. (b) The licensee, principals, registered managers and employees shall have no reasonable expectation of privacy as to the buildings, rooms, areas, vehicles, furniture, safes, lockers or containers on the licensed premises and adjacent grounds, except as provided in this Section. (c) Licensees, principals, registered managers and employees on the licensed premises and adjacent grounds shall retain a reasonable expectation of privacy with regard to their persons, the personal effects in their immediate possession, and their own motor vehicles on the licensed premises and adjacent grounds, to the extent provided by other legal authority, but shall have no reasonable expectation of privacy as to other areas, vehicles, safes, lockers, containers or objects on the licensed premises or adjacent grounds. (d) Patients, primary caregivers and other persons on the licensed premises and adjacent grounds shall retain a reasonable expectation of privacy as to their medical condition, their persons, the personal effects in their immediate possession, and their motor vehicles on the licensed premises and adjacent grounds, to the extent provided by other legal authority, but shall have no reasonable expectation of privacy as to other areas, vehicles, containers or objects on the licensed premises and adjacent grounds. (e) Police officers and other officials shall not inspect records described in Section 11- 10-319(b), Pueblo Municipal Code, or any person, place or area in which a person retains a reasonable expectation of privacy, unless a search warrant is obtained for the same or there are legal grounds that would excuse the requirement of a warrant. (f) Within seven (7) days of the revocation, surrender, or other termination of a medical marijuana license, during which time licensee shall maintain possession of the premises, the licensees, principals, registered managers and employees shall make the licensed premises and adjacent grounds open to inspection by police officers, building officials, firefighters, zoning officials, code enforcement officials, sales, use and excise tax officials, and health department officials. Said final inspection shall reveal that marijuana is no longer present on the licensed premises or adjacent grounds and that all marijuana related business has terminated. A failed final inspection shall be met with criminal penalties. SECTION 13. Section 11-10-322 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-10-322. - Requests for information. . . . (f) If the licensee is a natural person, the licensee may seek an injunction against the request for information on the ground that the information is highly personal, does not involve the \[\]\[\] or finances or operation of the licensed premises, nor self incrimination, and is protected by \[\] the licensee's own constitutional right to privacy, but shall also be required to satisfy all the requirements under Colorado law for issuance of a temporary restraining order, preliminary injunction or permanent injunction. Failure of the licensee to seek an injunction against the request for information within twenty (20) days from the date the request for information is mailed to the licensee shall constitute a waiver of any right of privacy regarding the requested information. SECTION 14. Section 11-10-402 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-10-402. - Sanctions. (a) The Authority may impose any one or more of the following sanctions against a license, in whatever combination the Authority finds appropriate, except that no other sanction may be used in addition to revocation: (1) Additional conditions as described in Section 11-10-312, Pueblo Municipal Code; (2) A fine in an amount to be determined by the Authority; (3) Suspension for up to one hundred eighty (180) days; \[\] 44-11- (4) Fine in lieu of suspension, as provided in Section 12-43.3-601(3) 601 , C.R.S.; (5) The reasonable costs of investigating, prosecuting, and hearing the violation, including the direct and indirect costs of the City Attorney, police officers, witnesses, subpoenas, Clerk to the Authority, hearing officer and other City employees utilized in any proceedings for sanctions; and (6) Revocation. (b) The Authority may suspend any sanction or portion of sanction on any reasonable condition that the Authority deems appropriate in its discretion. SECTION 15. Section 11-10-403 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-10-403. - Factors to consider in determining sanctions. . . . (b) In determining the appropriate sanction, the Authority shall not consider the following factors: (1) Gender, race, ethnicity, ancestry, religion or sexual orientation; (2) The licensee's business income at the licensed premises, except as \[\] 44-11-601 provided in Section 12-43.3-601(3), C.R.S., for fines in lieu of suspension; . . . SECTION 16. Section 11-10-501 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-10-501. - Notice of hearings; setting of hearings. . . . (f) Failure of an applicant to successfully bring an application for a new license or any major change to a hearing in compliance with every requirement of this Section shall constitute withdrawal of the application. Withdrawal of an application under this Section shall not constitute \[\] Section 11-10-309 a denial of the application under Paragraph 11-10-308(d)(5) and shall not prevent the applicant from resubmitting its application upon payment of a new application fee. SECTION 17. Section 11-10-502 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-10-502. - Hearing procedures. (a) Hearings shall be conducted in accordance with the procedures outlined in this Chapter. Where this Chapter does not address a procedural issue, the procedures in Chapter 7, \[\]\[\] 11 44 Title I, Pueblo Municipal Code, Article 43.3, Title 12, C.R.S., and any procedural rules enacted pursuant to that article shall apply unless the same are clearly inconsistent with the provisions of this Chapter. (b) Failure of an applicant or licensee to appear at any scheduled hearing of which the applicant or licensee has received notice or has himself or herself set, and for which notice was posted and published in compliance with this Chapter, without a showing of good cause verified by the applicant's affidavit filed with the authority within ten (10) days of the scheduled hearing, shall constitute a default and a withdrawal of the application or motion, and a default of any complaint, Order to Show Cause, motion or other matter pending against the licensee. Any such application or motion withdrawn by the applicant or licensee may not be re-filed for one (1) year. (c) After an application has been filed, a hearing on the application has been set and notice has been published and posted in compliance with this Chapter, any withdrawal of the 309 application by the applicant shall constitute a denial of the license under Section 11-10- \[\]\[\] 44-11-308 308(d)(5) and Section 12-43.3-308, C.R.S., unless the City stipulates that the withdrawal shall not constitute such a denial. (d) The Authority may hear and decide motions. (e) The Authority may adjourn and continue any hearing, at the request of the applicant and with the consent of the City, to give the applicant an opportunity to fulfill any requirement that has not been met or to make changes to its application or operational plan. , (f) The Authority may join various matters pending concerning the same license multiple licenses at the same licensed premises, or any substantially related matters in a single hearing. (g) Every decision of the Authority shall be in writing, stating the reasons therefor, and shall be made within thirty (30) days after the date the complete application is submitted or within thirty (30) days of the public hearing if a public hearing is required or held. A copy of such decision shall be sent by certified mail to the applicant at the address shown in the application. SECTION 18. Section 11-10-703 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-10-703. - Unlawful acts - licensees, principals, registered managers and employees. It shall be unlawful and a Class 1 municipal offense for any licensee, principal, registered manager or employee of a licensee to commit any of the following acts: (1) To violate or to fail, neglect or refuse to comply with any requirement of this \[\]\[\] 11 44 Chapter, Chapter 1, Title IX Pueblo Municipal Code, Article 43.3, Title 12, C.R.S., or any State regulation pertaining to medical marijuana. . . . (15) Violation of patient confidentiality. . . . b. It shall not be a violation of this Section to disclose such information to: 1. Employees of the medical marijuana center with whom the patient has registered as a patient; 2. The physician who wrote the medical marijuana recommendation; 3. A law enforcement officer conducting an investigation concerning the violation of any law; 4. An employee of the State Department of Revenue, Medical Marijuana Enforcement Division or an employee of the City conducting an \[\] 44-11-101 investigation of violations of Section 12-43.1-101, et seq., C.R.S., or this Chapter; . . . SECTION 19. Section 11-11-103 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-11-103. - Definitions. The following definitions shall apply throughout this Chapter: (1) The definitions contained in Article XVIII, Section 16, Colorado Constitution and \[\] 44-12-103 Section 12-43.4-103, C.R.S., shall apply to this Chapter except where this Chapter provides a different definition or the context of this Chapter makes it clear that the statutory or constitutional definition does not apply. . . . SECTION 20. Section 11-11-203 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-11-203. - Powers of Authority. (a) The Authority shall have the following powers: . . . \[ (11) To grant exceptions to the licensing requirements set forth in Section 11- \] 11-11-308 10-308(6)(d) provided that the licensee and licensed premises fully comply with all state laws, rules and regulations and after considering whether granting the exception(s) will have a negative impact on the health, safety and welfare of the surrounding neighborhood or public in general. . . . SECTION 21. Section 11-11-302 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-11-302. - Retail marijuana licenses. (a) The Authority may issue the following licenses for retail marijuana establishments, \[\]\[\] 44 12 granting the privileges described in Title 12, Article 43.4, C.R.S., subject to the requirements, conditions, qualifications, and limitations set forth in this Chapter: . . . SECTION 22. Section 11-11-303 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-11-303. - Nature of license. (a) Every license issued under this Chapter confers only a limited and conditional privilege subject to the requirements, conditions, limitations and qualifications of this Chapter and State law. The license does not confer a property right of any kind. The license and the privilege created by the license may be further regulated, limited or completely extinguished at the discretion of City Council or the electorate of the City, as provided in this Chapter, without any compensation to the licensee. (b) Every license approved or issued under this Chapter shall be subject to the future exercise of the reserved rights of referendum and initiative, exercise of the options described in \[\] 44- Section 16(5)(f) of Article XVIII of the Colorado Constitution and Section 12-43.4-104 (3) 12-104(3) , C.R.S., and any other future ordinances adopted by a vote of the people of the City of Pueblo or City Council. Nothing contained in this Chapter grants to any licensee any vested right to continue operating under the provisions of this Chapter as they existed at the time the license was approved or issued, and every license shall be subject to any ordinance or prohibition adopted after the license was approved or issued. (c) In the event that the people of the City of Pueblo, by a majority of the registered electors of the City, at a regular or special election, or a majority of City Council, vote to prohibit by ordinance the licensing and operation of retail marijuana establishments within the City of \[ Pueblo, pursuant to Section 16(5)(f) of Article XVIII of the Colorado Constitution and Section 12- \] 44-12-104(3) 43.4-104(3), C.R.S., then every license issued or approved under this Chapter, which is prohibited under such ordinance, shall be deemed void and the operation of any retail marijuana establishment prohibited under the ordinance shall become illegal on the effective day of the ordinance. (d) Every license is separate and distinct and is tied to a specific location with specific conditions. The license cannot be assigned, delegated, sold, inherited or otherwise transferred between persons or transferred to a different location, except as provided in this Chapter. No licensee shall exercise the privileges of any other license or delegate the privileges of its own license. (e) The licenses issued under this Chapter consist of a limited and conditional privilege to operate a retail marijuana establishment, provided that the licensee also obtains a State license. The license certificate issued by the Clerk of the Authority is merely evidence that a license was issued and is not the license itself. Assignment or conveyance of the license certificate alone does not transfer any right to the license. SECTION 23. Section 11-11-304 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-11-304. - Fees. . . . (b) Operating fees and all other fees necessary for the administration, regulation, implementation, and enforcement of this Chapter are as follows and are to be paid to the City of Pueblo, in addition to any fees payable to the State: . . . (2) Additional administrative operating fees: (A) Transfer of location: One thousand five hundred dollars ($1,500.00). (B) Change of principals or ownership: One thousand five hundred dollars ($1,500.00). (C) Change in operational plan: Three hundred dollars ($300.00). (D) Registration of manager: One hundred dollars ($100.00). (E) Modification of premises: One thousand dollars ($1,000.00). (F) Report of minor change: One hundred dollars ($100.00). (G) Late renewal fee: Five thousand dollars ($5,000). (H) License extension fee: One hundred fifty dollars ($150.00) for each thirty-day day period or portion thereof. (I)Early issuance of a license: Five thousand dollars ($5,000). . . . SECTION 24. Section 11-11-306 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-11-306. - Relationship to Colorado Retail Marijuana Code and coordination with State Retail Marijuana Licensing Authority and State requirements. (a) Except as otherwise specifically provided herein, this Chapter incorporates the \[ requirements and procedures set forth in the Colorado Retail Marijuana Code, C.R.S. 12-43.4- \] 44-12-101 101 et seq. In the event of any conflict between the provisions of this Chapter and the provisions of the Colorado Retail Marijuana Code or any other applicable state or local law, the more restrictive provision shall control. . . . SECTION 25. Section 11-11-307 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-11-307. - Application for retail marijuana license. (a) An applicant for a retail marijuana license shall submit to the Authority an application with the following information: . . . \[\] A (5) For a retail marijuana store license, a business plan that demonstrates or provides: a. The ability of the applicant to successfully operate in a highly regulated industry; b. Clear estimates for revenues and operating costs; and c. Documentation to verify the applicant has the financial resources to pay all start-up and operational costs for at least the first year of business. . . . SECTION 26. Section 11-11-308 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-11-308. - Requirements to obtain and retain a retail marijuana license. and retain In order to obtain a license, the applicant shall demonstrate by a preponderance of the evidence to the Authority that the following requirements are satisfied: . . . (3) Location and other licensing of premises. a. The proposed licensed premises and adjacent grounds meet all requirements for issuance of a State license. b. The proposed licensed premises are located in a fixed, nonportable building. c. The premises are not licensed or operated as an establishment for the sale \[\] 44-3-103 or service of alcohol beverages as defined in Section 12-47-103(2), C.R.S., or as a non-cigarette tobacco product retailer, a massage parlor, a dance hall or an amusement establishment as defined in Title IX, Pueblo Municipal Code. d. The premises are not licensed or operated as a retail food establishment or wholesale food registrant. e. Retail and medical marijuana licenses may be co-located on a licensed premises under a common owner, but only in accordance with state law. . . . SECTION 27. Section 11-11-313 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-11-313. - License certificate; posting of license certificate and notices on licensed premises. (a) After the Authority issues a license, the Clerk of the Authority shall issue to the licensee a certificate evidencing issuance of the license. The license certificate shall state the date issued, the term of the license, the name of the licensee, the address of the premises, conditions on the license and the following: THIS LICENSE CONFERS ONLY A LIMITED AND CONDITIONAL PRIVILEGE SUBJECT TO THE REQUIREMENTS, CONDITIONS, LIMITATIONS AND QUALIFICATIONS OF THE PUEBLO MUNICIPAL CODE, AS AMENDED, AND STATE LAW. THIS LICENSE DOES NOT CONFER A PROPERTY RIGHT OF ANY KIND. THE LICENSE AND THE PRIVILEGE CREATED BY THE LICENSE MAY BE FURTHER REGULATED, LIMITED OR COMPLETELY EXTINGUISHED BY THE CITY WITHOUT ANY COMPENSATION TO THE LICENSEE. THIS LICENSE IS SUBJECT TO THE FUTURE EXERCISE OF THE OPTIONS DESCRIBED IN SECTION 16(5)(f) OF ARTICLE \[\] 44-12- XVIII OF THE COLORADO CONSTITUTION AND SECTION 12-43.4-104(3) 104 , C.R.S., AND OTHER FUTURE ORDINANCES PASSED BY THE PEOPLE OF THE CITY OF PUEBLO OR CITY COUNCIL. THE HOLDER OF THIS LICENSE SHALL BE SUBJECT TO ANY ORDINANCE OR PROHIBITION PASSED AFTER THE LICENSE WAS APPROVED OR ISSUED. IN THE EVENT THAT THE PEOPLE OF THE CITY OF PUEBLO, BY A MAJORITY VOTE OF THE REGISTERED ELECTORS OF THE CITY, AT A REGULAR OR SPECIAL ELECTION, OR A MAJORITY OF CITY COUNCIL, VOTE TO PROHIBIT BY ORDINANCE THIS TYPE OF LICENSE AND THE OPERATION OF THIS TYPE OF RETAIL MARIJUANA ESTABLISHMENT WITHIN THE CITY OF PUEBLO, PURSUANT TO SECTION 16(5)(f) OF ARTICLE XVIII OF THE COLORADO \[\] 44-12-104 CONSTITUTION AND SECTION 12-43.4-104(3), C.R.S., THEN THIS LICENSE SHALL BE VOID AND THE OPERATION OF THIS RETAIL MARIJUANA ESTABLISHMENT SHALL BE ILLEGAL ON THE EFFECTIVE DAY OF SUCH ORDINANCE. . . . SECTION 28. Section 11-11-314 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-11-314. - Registered manager. at least Every licensee shall designate one (1) registered manager and delegate to the registered manager authority over the day to day operations of the licensee and the responsibility to ensure that the licensed premises and adjacent premises are operated in compliance with this Chapter. SECTION 29. Section 11-11-315 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-11-315. - Major changes to license, licensed premises or adjacent grounds requiring approval of the Authority. (a) No licensee shall make any of the following changes without first obtaining the prior written approval of the Authority and demonstrating compliance with the pertinent requirements, if any: (1) Any transfer of the license or any ownership interest in the licensee entity or license shall comply with the following requirements: a. For a retail marijuana store license, any transfer of ownership of any license shall be prohibited for one (1) year after the date the license is issued by the Authority. However, during that time, a transfer of ownership may be permitted by the Authority if the licensee can demonstrate that a transfer of ownership is made necessary by death or disability of the licensee or other substantial hardship. b. For a retail marijuana store license, changes in the business structure of the licensee shall require a hearing before the Authority, at which time the license will be revoked if the new business structure does not meet the requirements of this Article or if the new business structure has fewer awarded points as set forth in Subsection 11-11-308(6)(a) than did the original business structure. retail marijuana store c. A licensee may request to transfer ownership after the expiration of one year. The request may be approved if the Authority finds that the new licensee can amass at least as many points set forth in Subsection 11-11-308(6)(a) as the original licensee; all occupational taxes, sales and excise taxes, any fines, penalties, and interest assessed against or \[\] imposed upon such license or licensee in relation to the licensed premises is paid in full or served in full; the new licensee can comply with the limitation on the number of retail marijuana store licenses set forth in Subsection 11-11-308(2)(o); \[\] the new licensee can comply with all other provisions of this Chapter; the new \[\] licensee has complied, and can continue to comply with all of the Retail Marijuana Rules and Regulations promulgated by the Authority pursuant to this Chapter; and the State has approved the transfer pursuant to requirements of the Colorado Retail Marijuana Code. d.All other licensees may request a transfer of ownership at any time. The request may be approved if the Authority finds that the new licensee satisfies the requirements of this Chapter, including Sections 11- 11-301 and 11-11-308; all occupational taxes, sales and excise taxes, any fines, penalties, and interest assessed against or imposed upon such license or licensee is paid in full or served in full; the new licensee has complied, and can continue to comply with the Retail Marijuana Rules and Regulations promulgated by the Authority pursuant to this Chapter; and the State has approved the transfer pursuant to requirements of the Colorado Retail Marijuana Code. \[\] e. d. For all retail marijuana licenses, a transfer of the license must be approved by the Authority after a hearing. (2) Any change in location of the licensed premises must comply with the following requirements: a. For a retail marijuana store license, any transfer of location shall be prohibited for one (1) year after the date the license is issued by the Authority. However, during that time, a transfer of location may be permitted by the Authority if the licensee can demonstrate that a transfer of location is made necessary by death or disability of the licensee or other substantial hardship. retail marijuana store b. A licensee may request to transfer location after the expiration of one year. The request may be approved if the Authority finds that the licensee has obtained a conditional use permit for the new location; all occupational taxes, sales and excise taxes, any fines, penalties, and interest assessed against or imposed upon such license or licensee in relation to the licensed premises is paid in full or served in full; the new location will not violate the limitation on the number of retail marijuana store licenses set forth in Subsection 11-11-308(2)(o); the new location complies with all other provisions of this Chapter; the licensee has complied, and can continue to comply with all of the Retail Marijuana Rules and Regulations promulgated by the Authority pursuant to this Chapter; and the State has approved the transfer pursuant to requirements of the Colorado Retail Marijuana Code. c.All other licensees may request a transfer of location at any time. The request may be approved if the Authority finds that the licensee has obtained a conditional use permit for the new location and the new location complies with all requirements of this Chapter; all occupational taxes, sales and excise taxes, any fines, penalties, and interest assessed against or imposed upon such license or licensee in relation to the licensed premises is paid in full or served in full; the new location complies with the Retail Marijuana Rules and Regulations promulgated by the Authority pursuant to this Chapter; and the State has approved the transfer pursuant to requirements of the Colorado Retail Marijuana Code. \[\] d. c. For all retail marijuana licenses, a transfer of the location may be approved by the Authority if the licensee obtains a conditional use permit for the new location, and demonstrates compliance with the requirements of this Title after a public hearing. (3) Any change in the licensee's principals or financiers; \[\]\[\] or (4) The hiring, substitution, resignation, replacement or termination of the registered manager; (5) Any change in ownership of any of the stock of the licensee corporation; (6) Any change in the structure, walls, doors, windows, ventilation, plumbing, \[\] electrical supply, floor plan, footprint, elevation, operation, operational plan, patios, decks, safe or vault, locks, surveillance system, doors, window coverings or security system at the licensed premises; (7) Any material change to the adjacent grounds, including but not limited to lighting, parking, traffic flow through and the adjacent grounds' surfaces, landscaping, fences, speakers or sound; and \[\] (8) Any material change in or deviation of the operation from the operational , security plan, or business plan plan submitted at the time that the license was approved. . . . SECTION 30. Section 11-11-316 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-11-316. - Reports of minor changes. Every licensee shall report the following to the Authority, in writing within ten (10) days of such event: (1) Any change in the licensee's trade name, trademark, logo or service mark used at or the licensed premises, adjacent grounds, on any product cultivated or manufactured at the licensed premises; (2) Any change in the labeling or packaging of products cultivated or manufactured at the licensed premises; (3) Any new financiers or debts that the licensee or its principals may incur that are related to the licensed premises, adjacent grounds or any ownership interest in the licensee, in a single or cumulative amount greater than ten thousand dollars ($10,000.00); (4) Any charges filed against or any conviction of any principal, registered manager or employee for any felony, misdemeanor or serious traffic offense, including but not limited to any deferred judgment or entry into any diversion program ordered or supervised by a court of law, where the event must be reported even if the principal, registered manager or employee will be dismissed; (5) Any change to any sign on the licensed premises or adjacent grounds; and \[\] The hiring of any (6) The hiring, dismissal or resignation of any employee employee, or the dismissal, termination or resignation of any employee or registered manager . SECTION 31. Section 11-11-318 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-11-318. - Trade names, trademarks, logos, labels, packaging and advertising. With regards to a licensee’s building façade, signs, and other outdoor (a) \[\] advertising, anot No licensee shall use any logo, trademark, trade name, sign or advertising using the word "marijuana," "cannabis," any alternative spelling or abbreviation of the same, any slang term for the same commonly understood as referring to marijuana, any image of a cannabis leaf, or any depiction of any paraphernalia or other image commonly understood as referring to ,except that the complete phrases “retail marijuana” or “recreational marijuana” marijuana may be used, so long as both words are the same size, style and fontThis prohibition . shall not apply to any advertisement contained within a newspaper, magazine or other periodical of general circulation within the City or on the internet, which may include coupons, or that is purely incidental to sponsorship of a charitable event by a retail marijuana establishment. Such signage and advertising must not be misleading, false, or infringe upon any state or federal trademark. (b) Nothing contained in this Section shall be construed as creating a prior restraint on speech or press. The Authority shall not require an applicant or licensee to obtain any approval or license from the Authority before using any logo, trademark, trade name, sign or advertising. Nothing contained in this subsection shall prevent the City from taking civil, administrative or criminal action against any person or license after any logo, trademark, trade name, sign or An applicant or licensee may request the Authority make an advertising has been used. administrative determination as to whether a logo, trademark, trade name, sign, or advertising would be prohibited under this Section, but the Authority shall not be required to make such a determination. (c) Any court of competent jurisdiction construing or applying this Section shall seek a saving construction and application that makes the Section constitutional. In the event that any court of competent jurisdiction determines that any provision in this Section violates any right that any person may have to free speech or press, despite the court's saving construction and application, the court shall strike this Section only and sever the same from the remainder of this Chapter, which shall remain valid and effective without this Section. SECTION 32. Section 11-11-321 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-11-321. - Inspection of licensed premises and adjacent grounds. (a) Every licensed premises and adjacent grounds shall be open to inspection by police officers, building officials, firefighters, zoning officials, code enforcement officials, sales, use and excise tax officials, and health department officials at any time that anyone is present in the licensed premises, without obtaining a search warrant, and without reasonable suspicion to Such right of inspection shall believe that any violation or criminal offense has occurred. continue until all marijuana is removed from the licensed premises and adjacent grounds and all marijuana related business has terminated and final inspections are made in accordance with Subsection (d) below. (b) The licensee, principals, registered managers and employees shall have no reasonable expectation of privacy as to the buildings, rooms, areas, vehicles, furniture, safes, lockers or containers on the licensed premises and adjacent grounds, except as provided in this Section. (c) Licensees, principals, registered managers and employees on the licensed premises and adjacent grounds shall retain a reasonable expectation of privacy with regard to their persons, the personal effects in their immediate possession, and their own motor vehicles on the licensed premises and adjacent grounds, to the extent provided by other legal authority, but shall have no reasonable expectation of privacy as to other areas, vehicles, safes, lockers, containers or objects on the licensed premises or adjacent grounds. (d) Within seven (7) days of the revocation, surrender, or other termination of a retail marijuana license, during which time licensee shall maintain possession of the premises, the licensees, principals, registered managers and employees shall make the licensed premises and adjacent grounds open to inspection by police officers, building officials, firefighters, zoning officials, code enforcement officials, sales, use and excise tax officials, and health department officials. Said final inspection shall reveal that marijuana is no longer present on the licensed premises or adjacent grounds and that all marijuana related business has terminated. A failed final inspection shall be met with criminal penalties. SECTION 33. Section 11-11-405 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-11-405. - Imputing knowledge and violations to the licensee. (a) Any fact that a licensee's principal, registered manager or employee knows or once had knowledge of, or in the exercise of reasonable diligence should know, or should have once \[\] of determining known, shall be imputed to the licensee for purposes finding whether a violation occurred and imposing sanctions. (b) Any fact that occurs in the licensed premises or adjacent grounds that a \[\] should reasonable person observing the area would be aware of shall be imputed to the licensee for purposes of determining whether a violation occurred and imposing sanctions. (c) Any violation of law committed by a licensee's principal, registered manager or employee, or which any of the same permit on the licensed premises or adjacent grounds, shall be imputed to the licensee for purposes of determining whether a violation occurred and imposing sanctions. SECTION 34. Section 11-11-406 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-11-406. - Effect of sanctions. \[\] a (a) New conditions. A licensee who has new conditions imposed on the license as a sanction shall bring the licensed premises into compliance with the new condition within such , or within thirty (30) days if the Authority does period as the Authority may specify in its order not specify a period of timeso . Failure to do may be grounds for further sanctions. (b) Fine, fine in lieu of suspension and costs. A licensee who has a fine, a fine in lieu of suspension or costs imposed on the license shall: (1) Pay the fine and costs imposed within the time specified in the Authority's , or within thirty (30) days if the Authority does not specify a period of time order. In the event that the fine is not paid within the time specified in the Authority's order, the Authority may impose alternative or additional sanctions for failure to pay the fine or costs in a timely manner. . . . SECTION 35. Section 11-11-502 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-11-502. - Hearing procedures. (a) Hearings shall be conducted in accordance with the procedures outlined in this Chapter. Where this Chapter does not address a procedural issue, the procedures in Chapter 7, \[\]\[\] 12 44 Title I, Pueblo Municipal Code, Article 43.4, Title 12, C.R.S., and any procedural rules enacted pursuant to that article shall apply unless the same are clearly inconsistent with the provisions of this Chapter. . . . SECTION 36. Section 11-11-602 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 11-11-602. - Unlawful acts - licensees, principals, registered managers and employees. It shall be unlawful and a Class 1 municipal offense for any licensee, principal, registered manager or employee of a licensee to commit any of the following acts: (1) To violate, fail, neglect or refuse to comply with any requirement of: the Retail Marijuana Rules and Regulations promulgated by the Authority pursuant to this Chapter; Chapter 11, Title XI of the Pueblo Municipal Code; Chapter 1, Title IX of the Pueblo Municipal Code; Article \[\]\[\] 12 44 43.4, Title 12, C.R.S.; or of any State regulation pertaining to retail marijuana. . . . SECTION 37. Rule 101 of the City of Pueblo Retail Marijuana Rules and Regulations is hereby amended to read as follows: Rule 101: Purpose and Intent. Section 16, Article XVIII of the Colorado Constitution (the “Recreational Marijuana Amendment” also known as Amendment 64) permits personal use of marijuana by persons aged twenty-one (21) years and older under Colorado law. To enact, restrict, and enforce the state constitution, the General Assembly enacted the Colorado Retail \[\]\[\] 12 44 Marijuana Code, Article 43.4 of Title 12, C.R.S. (the “CRMC”). In addition, the Colorado Department of Revenue adopted 1 CCR 212-2, Series 100 through 1500, Retail Marijuana Rules (the “RMR”). The CRMC and the RMR authorize counties and municipalities to determine whether to permit, as a matter of state law, certain retail (i.e. non-medical) marijuana establishments within their jurisdictions. . . . SECTION 38. Rule 502.1 of the City of Pueblo Retail Marijuana Rules and Regulations is hereby amended to read as follows: Rule 502: Hearing Procedures. 502.1 Hearings shall be conducted in accordance with the procedures outlined in these rules and regulations. Where these rules and regulations do not address a procedural issue, \[\] 12 the procedures in Chapter 7 of Title I, Pueblo Municipal Code, Article 43.4 of Title \[\] 44 12, C.R.S., and any procedural rules enacted pursuant to that article shall apply, unless the same are clearly inconsistent with the provisions of these rules and regulations. SECTION 39. Rule 1109.1 of the City of Pueblo Retail Marijuana Rules and Regulations is hereby amended to read as follows: Rule 1109: Unlawful Acts – Licensees, Principals, Registered Managers and Employees. 1109.1 It shall be unlawful for any licensee, principal, registered manager or employee of a licensee to commit any of the following acts: (a) To violate, fail, neglect or refuse to comply with any requirement of this these rules and regulations; Chapter 11; Title XI of the Pueblo Municipal Code; Chapter 1, Title IX of the \[\] \[\] 12 44 Pueblo Municipal Code; Article 43.4, Title 12, C.R.S.; or any State regulation pertaining to retail marijuana. . . . SECTION 40. The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of the Ordinance to effectuate the policies and procedures described herein. SECTION 41. This Ordinance shall become effective thirty (30) days after the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on May 28, 2019 . Final adoption of Ordinance by City Council on June 10, 2019 . President of City Council Action by the Mayor: ☒ Approved on June 13, 2019 . ☐ Disapproved on based on the following objections: _ Mayor Action by City Council After Disapproval by the Mayor: □ Council did not act to override the Mayor's veto. □ Ordinance re-adopted on a vote of , on □ Council action on _______ failed to override the Mayor’s veto. President of City Council ATTEST Acting City Clerk