HomeMy WebLinkAbout09652
City Clerk’s Office Item # R-13
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: January 13, 2020
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, MAKING UPDATES IN
ACCORDANCE WITH CHANGES TO THE COLORADO MARIJUANA CODE
SUMMARY:
Attached for consideration is a text amendment to Chapter 10 of Title XI and Chapter 11 of Title
XI of the Pueblo Municipal Code, relating to Medical and Retail Marijuana Licenses, and making
updates which correspond to changes in the Colorado Marijuana Code.
PREVIOUS COUNCIL ACTION:
None.
BACKGROUND:
State statutes regarding Medical and Retail Marijuana Licenses were amended throughout 2019.
Pursuant to House Bill 19-1090, applicable on or after November 1, 2019, publicly traded
companies are now allowed to maintain ownership interests in medical and retail marijuana
businesses. This change is intended to create new ownership and investment opportunities,
bringing in business and money from other states and countries. The Pueblo Municipal Code is
not currently drafted to allow publicly traded companies because they were previously prohibited
by state law.
The State also passed Senate Bill 19-224, effective January 1, 2020. This is the Sunset Bill,
extending medical and retail marijuana codes until 2028. The bill completely reorganizes the state
code, eliminating Articles 11 and 12 of Title 44 of the Colorado Revised Statutes, governing
licensure of medical and retail marijuana facilities, and creating a new Article 10 that combines
certain portions of the repealed articles, removes other language, and creates entirely new
provisions.
These two bills require an update to the Pueblo Municipal Code, amending references to the
applicable State statutes and incorporating other changes made to State law.
FINANCIAL IMPLICATIONS:
None.
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
As Amended
ORDINANCE NO. 9652
January 27, 2020
AN ORDINANCE AMENDING CHAPTER 10 OF TITLE XI AND
CHAPTER 11 OF TITLE XI OF THE PUEBLO MUNICIPAL CODE,
MAKING UPDATES IN ACCORDANCE WITH CHANGES TO THE
COLORADO MARIJUANA CODE
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 11-10-101 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby
amended to read as follows:
Sec. 11-10-101. - Findings and purpose.
City Council finds that the cultivation, manufacture, distribution, testing, possession,
sale and use of medical marijuana may be harmful to public health, safety and welfare if not
carefully regulated. This Chapter is designed to protect public health, safety and welfare from the
potential adverse effects of medical marijuana, while permitting medical marijuana to be
cultivated, manufactured, distributed, tested, possessed, sold and used in accordance with
law. City Council further finds and declares that the subject matter of this Chapter is a matter of
local and municipal interest.
SECTION 2.
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
Section \[44-11-104\] 44-10-103, 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.
. . .
(8) Creditor: means any person lending, paying or providing funds, directly or
indirectly, to pay any part of the costs of: \[(a)\] operating the medical marijuana facility, including
but not limited to the costs of rent, mortgage payments, utilities, debt payments, supplies, product,
equipment, advertising, vehicles, salary and wages\[; or (b) purchasing an ownership interest, in
any form, in the licensee business\].
. . .
(10) Harm or harmful to public health, safety or welfare: means any matter that
adversely affects the health, safety or welfare of any person or group of persons within the City
of Pueblo or any adjacent community, including but not limited to matters related to crime, lighting,
security, traffic, graffiti, loitering, litter, parking and noise. A showing of actual harm shall not be
required and a showing of potential or threatened harm shall be sufficient. Any violation of any
criminal statute or ordinance is per se substantially harmful to public health, safety and welfare,
without any showing of actual or threatened harm. The mere possession, advertising, sale,
cultivation, processing, smoking or ingestion of medical marijuana and medical marijuana
\[infused\] products, when performed lawfully, shall not in itself be considered harmful to public
health, safety and welfare.
. . .
(14) Licensed premises: means the area inside a building in which the cultivation,
manufacture, processing, \[infusion,\] possession, weighing, display, packaging, sale and
exchange of medical marijuana or marijuana \[infused\] products is licensed under this Chapter.
(15) Marijuana or medical marijuana: except where the context clearly indicates
otherwise, means growing marijuana plants, harvested marijuana in any state and medical
marijuana \[infused\] products of all kinds.
(16) Medical marijuana facility: means a medical marijuana \[center\] store, \[an optional
premises cultivation operation\] medical marijuana cultivation facility, medical marijuana
testing facility, or a medical marijuana \[infused\] products \[manufacturing operation\]
manufacturer.
. . .
(23) Principal: means\[:\] a controlling beneficial owner pursuant to C.R.S. § 44-10-
103, including, but not limited to, a natural person, business entity, publicly traded
corporation, or qualified private fund that acting alone or in concert owns or acquires
beneficial ownership of ten percent (10%) or more of an ownership interest in the licensed
business, is an affiliate that controls the business, including any manager, or that is in a
position to control the business and is not a licensed Medical Marijuana Business
Operator.
\[a. In the case of any entity, including any general or limited partnership,
corporation, limited liability company or other entity: any person who has a 5% or greater
interest in the ownership of the entity, and any person who has the day to day authority to
or actually does manage the entity's finances.
b. In the case of a corporation: the persons described for any entity in
Subsection (w)(1)of this Section and the president, vice-president, secretary, chief
executive officer, chief financial officer and any person who holds 5% or more of the capital
stock of the corporation.
c. In the case of a limited liability company: the persons described for any
entity in Subsection (w)(1) of this Section and any member of the limited liability company.
d. In the case of a sole proprietorship, the individual owner.\]
(24) Publicly traded corporation: means any person other than an individual that
is organized under the laws of and for which its principal place of business is located in
one of the states or territories of the United States or District of Colombia or another
Country that authorizes the sale of marijuana and that meets the definition and
qualifications of a publicly traded corporation as promulgated by the State of Colorado.
(25) Serious traffic offense: means any driving offense carrying eight points or more
under Section 42-2-127, C.R.S., or the substantial equivalent of such offense in any other State.
SECTION 3.
Section 11-10-301 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby
amended to read as follows:
Sec. 11-10-301. - Licenses and permit required.
(a) No person shall operate a medical marijuana facility unless he or she has first
obtained the following and maintains the same in full force and effect:
(1) A conditional use permit from the City for the location of the proposed
licensed premises;
(2) A City sales and use tax license;
(3) A State sales and use tax license;
(4) A City license for any other business \[activity\] that will be \[operated\]
conducted on the licensed premises;
(5) Ownership of, or a lease in effect on, the proposed licensed premises; and
(6) \[A City license to operate any other business that will be conducted on the
licensed premises;
(7) A City license to operate a medical marijuana facility; and
(8)\] A State license to operate a medical marijuana facility.
(b) No person may apply for a license to operate a medical marijuana facility until he
or she has first met the requirements stated in \[(a)(1) through (6) of this Section\] Subsection (a)
above.
(c) A medical marijuana facility opened prior to June 1, 2019 shall not be required to
replace an existing limited use permit with a new conditional use permit, except that any change
or amendment to an existing limited use permit shall terminate said permit and require the
issuance of a new conditional use permit.
(d) The City of Pueblo shall not be required to cultivate or care for any marijuana
or marijuana products belonging to or seized from any licensee. The City of Pueblo is not
authorized to sell marijuana, medical or otherwise. Any marijuana seized by the City for
whatever reason shall be disposed of in accordance with law.
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
the privileges described in Title 44, Article \[11\] 10, C.R.S., subject to the requirements,
conditions, qualifications, and limitations set forth in this Chapter:
(1) Medical marijuana \[center\] store license;
(2) \[Optional premises\] Medical marijuana cultivation facility license;
(3) Medical marijuana \[infused\] products \[manufacturing\] manufacturer license;
and
(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
in Section \[44-11-106\] 44-10-104, 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 any type of medical marijuana facility \[centers,
optional premises cultivation operations, medical marijuana testing facilities, or medical marijuana
infused products manufacturing operations\] within the City of Pueblo\[,\] pursuant to Section \[44-
11-106\] 44-10-104, 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 \[center\] store: six thousand five hundred
dollars ($6,500.00).
b. \[Marijuana infused products manufacturing operation\] Medical
marijuana products manufacturer: six thousand five hundred dollars
($6,500.00).
c. \[Optional premises\] Medical marijuana cultivation facility
\[license\]: six thousand five hundred dollars ($6,500.00).
d. Medical marijuana testing facility: four thousand five hundred
dollars ($4,500.00).
(3) Application for renewal of license: four thousand five hundred dollars
($4,500.00).
(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.
(12) Application or renewal for a centralized distribution permit for a
medical marijuana cultivation facility: three hundred dollars ($300.00).
(b) City Council may approve increases or decreases in the foregoing fees by
resolution.
. . .
SECTION 7.
Section 11-10-306 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby
amended to read as follows:
Sec. 11-10-306. - Coordination with State \[Medical\] Marijuana Licensing Authority and
State requirements.
(a) The Authority shall inform the State \[Medical\] Marijuana Licensing Authority of its
investigations, inspections and all decisions approving new licenses, issuing new licenses,
imposing conditions on licenses, renewing licenses, approving major changes in licenses,
information regarding minor changes, and sanctions imposed on licenses.
(b) To the extent that such coordination is reasonably feasible and efficient, the
Authority shall coordinate its investigations and actions with the State Department of Revenue,
but the Authority reserves the right to act independently and to reach its own findings of fact,
findings of law and conclusions regarding approvals, issuance, denials, conditions, renewals,
major changes, sanctions of licenses and any other matter related to licenses, without regard to
the findings of fact, findings of law and conclusions that the State may reach regarding the same
licenses based on the same incident or conduct.
(c) The approval or issuance of a license under this Chapter shall not constitute a
representation by the Authority that the licensee is qualified for or will receive a State medical
marijuana license. In the event of any conflict between the provisions of this Chapter and
the provisions of the Colorado Marijuana Code or any other applicable state or local law,
the more restrictive provision shall control.
SECTION 8.
Section 11-10-307 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby
amended to read as follows:
Sec. 11-10-307. - Application for medical marijuana license.
(a) An applicant for a medical marijuana license shall submit to the Authority an
application with the following information:
(1) Information required on the application forms prescribed by the State of
Colorado. \[;\]
(2) Information required on the application forms prescribed by the Authority,
which may require any information, document or photograph relevant to any requirement
for a license under State law or this Chapter, or relevant to any condition that may be
imposed on the license. \[; and\]
(3) An operational plan showing how the business, licensed premises and
adjacent grounds will be operated, including but not limited to:
a. How and where marijuana or marijuana \[infused\] products will be
cultivated, advertised, processed, stored, packaged, exhibited, purchased,
exchanged and sold;
. . .
SECTION 9.
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.
In order to obtain and retain a license, the applicant shall demonstrate by a preponderance
of the evidence to the Authority that the following requirements are satisfied:
(1) General requirements.
a. The applicant has obtained a conditional use permit from the City for the
location of the proposed licensed premises;
b. The applicant has obtained a City sales and use tax license;
c. The applicant has obtained a State sales and use tax license;
d. The applicant has obtained a City license for any other business activity
that will be \[operated\] conducted on the licensed premises;
e. The applicant has submitted an application for a license that the Clerk to
the Authority has determined is complete; and
f. The applicant has paid all fees required under this Chapter.
(2) Personal requirements for the licensee, principals, registered manager and
employees.
a. The applicant, principals, registered manager and employees meet all
requirements for issuance of a State license.
b. The applicant, principals, registered manager and employees are all over
the age of twenty-one (21).
c. The applicant, principals, registered manager and employees have not
been determined by any \[medical\] marijuana licensing authority, any other licensing
board within the State, or the Colorado Department of Revenue to not be persons of good
character and record within the preceding three (3) years.
d. The applicant, principals, registered manager and employees have not
discharged a sentence for any felony in the five (5) years immediately preceding the
application, nor are they currently subject to a deferred judgment or sentence for a
felony. \[This shall constitute a per se and complete disqualification. Rehabilitation shall
not be considered.\]
e. \[The applicant, principals, registered manager and employees have never been
convicted of a felony pursuant to state or federal law regarding the possession, distribution
or use of a controlled substance, except that this provision shall not apply as to employees
if the crime the employee was convicted of is no longer a felony. This shall constitute a
per se and complete disqualification. Rehabilitation shall not be considered.
f.\] The applicant, the applicant's creditors, principals, registered manager, and
employees are persons of good character and record. When making any determination
as to good character and record, the Authority may consider whether an applicant,
principal, registered manager or employee has rehabilitated himself after committing a
crime or other act or omission tending to indicate that such person is not a person of good
character\[, but rehabilitation shall not be considered when the crime or other disqualifying
act or omission is declared a per se disqualification under this Chapter\]. Notwithstanding
any other burden for proof stated in this Chapter, the burden of proof to show that a person
has been rehabilitated shall be beyond a reasonable doubt and shall be on the individual
whose character is at issue. When evaluating claims of rehabilitation, the Authority shall
consider the following factors:
1. The facts of the specific crime or other act tending to show a bad
character and record;
2. Whether the specific crime or other act tending to show bad
character and record involved controlled substances, dishonesty, fraud, bad faith,
moral turpitude or violence;
3. Whether the specific crime or other act tending to show bad
character and record involved a felony, misdemeanor, municipal offense, a civil
wrong or other wrongful conduct;
4. Whether the specific crime or act caused injury or harm to other
persons or entities and the extent of such harm or injury;
5. The length of time that has expired since the act or omission was
committed;
6. Whether the person has led a law abiding life and has demonstrated
good character since the act or omission was committed;
7. Whether the person has committed other acts tending to indicate
bad character since the act or omission was committed;
8. Restitution, damages and compensation that the person has paid
to persons victimized by the act or omission;
9. Fines, jail sentences, probation, community service and other
penalties paid or served since the act was committed; and
10. Any other factor tending to show that the person has or has not
rehabilitated his or her character and conduct.
\[g.\] f. The applicant, principals and registered manager have not held an interest
in any liquor license, medical marijuana license or other license issued by any City, County
or State that has been revoked, suspended, or fined within the preceding two (2) years.
\[h.\] g. The applicant, principals, registered agent, creditors and employees have
not had their authority, if any, to act as a primary caregiver revoked by the State within the
preceding two (2) years.
\[i.\] h. The applicant, principals, creditors and \[employees\] are not in default on
any City, county, state or federal taxes, fees, fines or charges, do not have any outstanding
warrants for their arrest, and do not have any outstanding liens or judgments payable to
the City.
\[j.\] i. The applicant and principals are not in default on any student loan.
\[k.\] j. The applicant, principals and employees are trained or experienced in, and
able to comply with, the requirements of this Chapter and state law pertaining to medical
marijuana facilities. In determining whether an applicant, principal or employee has shown
sufficient training or experience, the Authority shall consider, among other things, the
following factors:
1. The role that the individual will play in operating the facility;
2. Previous experience operating medical marijuana facilities;
3. Completion of state or industry-approved courses on how to comply
with Colorado laws and regulations regarding medical marijuana facilities; and
4. The individual's understanding of state law and City ordinances
regulating medical marijuana as shown under questioning by the authority at the
hearing.
\[l.\] k. The applicant, principals, registered manager and employees all hold valid
occupational licenses and registrations for medical marijuana issued by the State of
Colorado.
\[m.\] l. The applicant and principals do not have any orders or judgments against
them for child support in default or arrears.
\[n.\] m. The applicant and principals are not peace officers or prosecuting
attorneys.
\[o.\] n. The applicant and principals are not licensed physicians who recommend
medical marijuana.
\[p. The applicant and principals do not have an ownership or financial interest
in more than one other license issued in the City of Pueblo or any other jurisdiction.\]
\[q.\] o. If the licensee or principals already hold one or more medical marijuana
license in the City of Pueblo, and the application is for another medical marijuana license
of the same class, issuance of the second license will not significantly restrain competition
among licensees of that class.
(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
or service of alcohol beverages as defined in Section 44-3-103, 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.
(4) Control, security and code compliance of premises.
a. The applicant has sole legal control of the proposed licensed premises at
the time the application is submitted, under a lease that is presently in effect or through
present ownership of the proposed licensed premises.
b. The proposed licensed premises have a suitable limited access area where
the cultivation, display, storage, processing, weighing, handling and packaging of medical
marijuana and marijuana \[infused\] products occurs, which is posted "employees only,"
and is separated from the areas accessible to the public by a wall, counter or some other
substantial barrier designed to keep the public from entering the area.
c. The applicant has submitted a security plan for the proposed licensed
premises, which has been inspected and approved by the Police Department, showing at
least the following security measures:
1. All doors, windows and other points of entry have secure and
functioning locks;
2. A locking safe or enclosed metallic storage vault located inside the
proposed licensed premises in which any harvested medical marijuana and
medical marijuana \[infused\] products will be secured when the licensed premises
are not open to the public;
3. If the licensed premises are connected by any passage or entryway
to any other premises, there is a door between the two premises that can be locked
from the licensee’s side and cannot be opened from the other side;
4. A professionally monitored burglar alarm system that detects
unauthorized entry of all doors, windows and other points of entry to the
\[proposed\] licensed premises; and
5. Windows facing the adjacent grounds and lighting of the adjacent
grounds sufficient to ensure that customers entering and leaving the licensed
premises, entering and exiting parked cars on the adjacent grounds, and walking
across the adjacent grounds can be observed by employees from inside the
licensed premises.
d. The proposed licensed premises and adjacent grounds comply with all
zoning, health, building, plumbing, mechanical, fire and other codes, statutes and
ordinances, as shown by completed inspections and approvals from the Pueblo Zoning
Department, Regional Building Department, Pueblo Fire Department and Regional Health
Department.
e. There is sufficient parking available on the \[proposed\] adjacent grounds
given the size of the licensed premises and the number of employees and customers that
can reasonably be expected to be present at any given time.
f. The proposed licensed premises and adjacent grounds of the licensed
premises will be operated in a manner that does not cause \[any substantial\] harm to
public health, safety and welfare.
(5) Requirements specific to \[optional premises\] a medical marijuana cultivation
facility license.
a. 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. 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
\[whatsoever\], except for a medical marijuana \[center\] store or medical marijuana
\[infused\] products \[manufacturing center\] manufacturer.
c. 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. No portion of the building in which the proposed licensed premises are
located is utilized as a residence.
e. A medical marijuana cultivation facility may obtain a centralized
distribution permit, authorizing temporary storage on the licensed premises of
medical marijuana concentrate and products received from a medical marijuana
products manufacturer for the sole purpose of transfer to the permit holder’s
commonly owned medical marijuana stores, by providing a copy of the State
application to the Authority, along with documents showing any changes to be
made to the premises, operational plan, or security plan.
(6) Requirements specific to a medical marijuana \[infused\] product manufacturer's
license:
a. The area of the proposed licensed premises utilized for
manufacturing 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. \[The
applicant will use marijuana from no more than five (5) marijuana providers, including any
optional premises cultivation operation it may own, to manufacture its marijuana infused
products.\]
(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 \[center\] store, \[optional premises\]
medical marijuana cultivation facility, 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 \[to\] in the name of 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 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 \[any\] the applicant shall also
apply to \[any\] the licensee. The requirements of this Section imposed on \[any\] the
proposed licensed premises, \[proposed\] adjacent grounds or \[proposed\] location shall
also apply to the licensed premises, adjacent grounds and actual locations, respectively.
b. \[Every\] The licensee and its principals, registered manager and
employees \[has\] have 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 10.
Section 11-10-312 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby
amended to read as follows:
Sec. 11-10-312. - Conditions on licenses.
(a) At the time that a new license is first approved, when an existing license is
renewed, at any time that a sanction other than revocation is imposed, or at any time that the
Authority approves a major change to a license, licensed premises or adjacent grounds, the
Authority may impose on the license, after a hearing, any condition related to the license, licensed
premises or adjacent grounds, that is reasonably necessary to protect public health, safety, or
welfare, including but not limited to the following:
(1) Additional security requirements, including but not limited to security
guards, steel doors, steel window coverings and surveillance cameras;
(2) Additional record keeping requirements;
(3) Limits and requirements on parking and traffic flow;
(4) Requirements for walls, doors, windows, locks and fences on the licensed
premises and adjacent premises;
(5) Limits on the number of registered medical marijuana patients who may
patronize the establishment;
(6) Limits on the quantity of marijuana that may be sold to a medical marijuana
\[infused\] product manufacturer;
(7) Limits on medical marijuana \[infused\] products;
(8) Requirements and limits on ventilation and lighting;
(9) Limits or requirements on areas on the licensed premises that are closed,
locked or not open to public view;
(10) Limits on the products other than medical marijuana and marijuana
\[infused\] products that can be sold on the premises;
(11) Limits on noise inside the licensed premises or on the adjacent grounds;
(12) Prohibitions on certain conduct on the premises;
(13) Sanitary requirements;
(14) Limits on hours of operation;
(15) Requirements for screening new and existing employees;
(16) Requirements for identifying medical marijuana patients and primary
caregivers;
(17) A requirement that the licensee temporarily close the licensed premises to
the public until certain changes, inspections or approvals are made; and
(18) A limit on the square footage of the licensed premises.
(b) The Authority may impose the foregoing conditions in lieu of or in addition to any
sanctions that it may impose, except where the sanction is revocation.
(c) Any condition imposed on a license shall be placed on the face of the license
certificate.
SECTION 11.
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
C.R.S. §\[44-11-106\] 44-10-104, 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.
§\[44-11-106\] 44-10-104, THEN THIS LICENSE SHALL BE VOID AND THE OPERATION OF
THIS MEDICAL MARIJUANA FACILITY SHALL BE ILLEGAL ON THE EFFECTIVE DAY OF
SUCH ORDINANCE.
(b) The licensee shall post the following on the licensed premises in a prominent place
where the public, patients, and primary caregivers can easily view and read while standing in a
location accessible to the public:
(1) The license certificate issued by the State, along with any conditions on the
same.
(2) The license certificate issued by the Authority, along with any conditions on
the same.
(3) A notice at least twenty-four (24) inches by twenty-four (24) inches in letters
at least one (1) inch in height, stating:
THIS MEDICAL MARIJUANA LICENSED PREMISES IS MANAGED BY: (STATE NAME,
ADDRESS AND PHONE NUMBER FOR REGISTERED MANAGER). THE PRINCIPALS IN THIS
BUSINESS ARE AS FOLLOWS: (NAMES)
(4) A notice at least twenty-four (24) inches by twenty-four (24) inches in letters
at least one (1) inch in height, stating:
IF YOU HAVE CONCERNS ABOUT THE WAY THIS MEDICAL MARIJUANA LICENSED
PREMISES IS OPERATED, OR OTHER ACTIVITY ON THESE PREMISES, PLEASE CONTACT
THE PUEBLO POLICE DEPARTMENT AT: 553-2538.
(5) If the Licensee has received any sanction from the Authority during the
preceding five years, a notice at least twenty-four (24) inches by twenty-four (24) inches
in letters at least one (1) inch in height, stating:
THIS MEDICAL MARIJUANA LICENSE HAS BEEN SANCTIONED BY THE PUEBLO MEDICAL
MARIJUANA LICENSING AUTHORITY DURING THE PRECEDING FIVE (5) YEARS FOR THE
FOLLOWING MISCONDUCT: (STATE DATE, VIOLATION AND SANCTION RECEIVED,
LISTING ALL VIOLATIONS AND SANCTIONS IMPOSED IN THE PRECEDING FIVE (5)
YEARS).
(6) A notice at least thirty (30) inches by thirty (30) inches in letters at least one
(1) inch in height, stating:
THE MEDICAL MARIJUANA, MARIJUANA PLANTS AND MEDICAL MARIJUANA \[INFUSED\]
PRODUCTS SOLD ON THESE PREMISES ARE CULTIVATED, MANUFACTURED AND
PROCESSED WITHOUT ANY GOVERNMENTAL OVERSIGHT AS TO HEALTH, SAFETY OR
EFFICACY.
THERE MAY BE HEALTH RISKS ASSOCIATED WITH THE CONSUMPTION OF MEDICAL
MARIJUANA AND MEDICAL MARIJUANA \[INFUSED\] PRODUCTS.
\[THE CHEMICALS, ADDITIVES, PESTICIDES, HERBICIDES AND FERTILIZERS, ARTIFICIAL
AND NATURAL, USED IN THE CULTIVATION, PROCESSING, PRODUCTION AND STORAGE
OF THE PRODUCT ARE LISTED ON THE PACKAGING OF EACH PRODUCT.\]
(7) A notice at least thirty (30) inches by thirty (30) inches in letters at least one
(1) inch in height, stating:
THE DIVERSION OF MEDICAL MARIJUANA FOR NON-MEDICAL PURPOSES IS A
VIOLATION OF STATE LAW.
THE USE OF MEDICAL MARIJUANA MAY IMPAIR A PERSON'S ABILITY TO DRIVE A MOTOR
VEHICLE OR OPERATE MACHINERY. IT IS ILLEGAL UNDER STATE LAW TO DRIVE A
MOTOR VEHICLE OR OPERATE MACHINERY WHILE UNDER THE INFLUENCE OF OR
IMPAIRED BY MARIJUANA.
POSSESSION AND DISTRIBUTION OF MEDICAL MARIJUANA IS A VIOLATION OF FEDERAL
LAW.
SMOKING OR CONSUMING MEDICAL MARIJUANA WITHIN THESE PREMISES, WITHIN 15
FEET OF THESE PREMISES OR ANYWHERE IN PUBLIC IS UNLAWFUL.
(c) The licensee shall post the following on the licensed premises in a prominent place
near other notices to employees, where the licensee, principals, registered manager and
employees can easily view the same, \[:\] a notice at least twenty-four (24) inches by twenty-four
(24) inches in letters at least one (1) inch in height, stating:
NOTICE TO LICENSEE, PRINCIPALS, REGISTERED MANAGER AND EMPLOYEES:
THESE PREMISES, THE ADJACENT GROUNDS AND EVERY ROOM, AREA, LOCKER, SAFE
AND CONTAINER ON THE LICENSED PREMISES AND ADJACENT GROUNDS EXCEPT
YOUR PERSON, THE PERSONAL EFFECTS IN YOUR IMMEDIATE POSSESSION, AND
YOUR PRIVATE VEHICLE, ARE SUBJECT TO INSPECTION BY CITY EMPLOYEES AND
POLICE OFFICERS AT ANY TIME THAT ANY PERSON IS PRESENT ON THE LICENSED
PREMISES, WITHOUT A WARRANT, AND WITHOUT REASONABLE SUSPICION TO
BELIEVE THAT ANY OFFENSE HAS OCCURRED. YOU HAVE NO REASONABLE
EXPECTATION OF PRIVACY ON THESE PREMISES AND THE ADJACENT GROUNDS
EXCEPT IN YOUR PERSON, THE PERSONAL EFFECTS IN YOUR IMMEDIATE
POSSESSION, AND YOUR PRIVATE VEHICLE.
SECTION 12.
Section 11-10-315 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby
amended to read as follows:
Sec. 11-10-315. - 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
written approval of the Authority:
(1) Any transfer of the license or \[any\] ownership involving a principal.
\[interest in the licensee entity or license\] A person that becomes a principal of a
publicly traded corporation that is a medical marijuana business or that becomes a
beneficial owner, through direct or indirect ownership of a controlling beneficial
owner, of ten percent (10%) or more of a medical marijuana business that is a
publicly traded corporation in accordance with Section 11-10-316(7), will not be
required to obtain prior approval from the Authority;
(2) Any change in location of the licensed premises;
(3) Any change in the licensee's principals or creditors;
(4) The hiring, substitution, \[resignation,\] or 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, security plan, surveillance system, doors, window coverings or
security system at the licensed premises;
\[(7)\] (6) 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 sounds; and
\[(8)\] (7) Any material change in or deviation \[of the operation\] from the
operational plan submitted at the time that the license was approved.
(b) The Authority shall require a public hearing before approving any change of
location.
(c) The Authority may summarily approve all other proposed major changes or hold a
public hearing on the same, in the Authority's discretion, depending on how substantial the change
appears to be and whether the proposed change is likely to cause \[any\] substantial harm to
public health, safety or welfare.
(d) At any hearing regarding any of the foregoing changes, the Authority shall
determine whether the proposed change would probably cause substantial harm to public health,
safety or welfare or result in a violation of any law or regulation. If the Authority finds that the
change will probably not cause substantial harm to public health, safety or welfare or result in a
violation of any law or regulation, it shall approve the change. If the Authority finds that the
proposed change would probably harm public health, safety or welfare or result in a violation of
any law or regulation, the Authority may either disapprove the proposed change or impose
conditions on the license.
(e) No application for transfer of ownership, transfer of location or other major change
may be applied for or acted upon while any complaint for sanctions is pending with the Authority
or the State.
(f) The transfer of a license to a new owner does not constitute a new license. The
transferee of a license or ownership interest in a license takes transfer of such license or interest
subject to the conditions, waivers, history, record and sanctions imposed on that license under
the previous ownership of the license. The fact that the license is \[owned\] held by new persons
or entities shall not preclude the Authority from considering the history, record and past sanctions
imposed on the license under previous ownership when the Authority considers \[new\] sanctions
for violations committed under new ownership of the license.
SECTION 13.
Section 11-10-316 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby
amended to read as follows:
Sec. 11-10-316. - 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
the licensed premises, adjacent grounds, on any product sold or exchanged at the licensed
premises, on any advertising or sign, or in any correspondence or document;
(2) Any change in the labeling or packaging of products sold at the licensed premises;
(3) Any new \[creditors\] loans 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 \[one thousand dollars ($1,000.00)\] 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;
(5) Any change to any sign on the licensed premises or adjacent grounds; and
(6) The hiring, dismissal or resignation of any employee or the dismissal or
resignation of a registered manager.
(7) A person that becomes a principal of a publicly traded corporation that is a
medical marijuana business or that becomes a beneficial owner, through direct or indirect
ownership of a controlling beneficial owner, of ten percent (10%) or more of a medical
marijuana business that is a publicly traded corporation must disclose said change to the
Authority within ten (10) days of the State licensing authority providing a Finding of
Suitability, or exemption from such finding, for said person pursuant to C.R.S. § 44-10-
312(4). Such a notification shall not require a hearing.
SECTION 14.
Section 11-10-317 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby
amended to read as follows:
Sec. 11-10-317. - Renewal of license.
(a) A licensee may renew its license by submitting an application at least thirty (30)
days before and no more than ninety (90) days before the expiration of the license. If a licensee
fails to file an application for renewal of his or her license at least thirty (30) days before expiration
of the license, the license shall expire.
(b) A licensee may renew a license that has expired if:
(1) The license has expired less than ninety (90) days; and
(2) The licensee pays the regular renewal fee and an additional five hundred
dollars ($500.00) late renewal fee.
(c) In the event that an application for renewal has been filed at least thirty (30) days
before the expiration of the previous license, but the Authority does not rule on the application for
renewal before the expiration of the previous license, the previous license shall be deemed
extended until the Authority rules on the application for renewal, but in no event may the license
be extended more than ninety (90) days under this Subsection. The licensee shall pay a license
extension fee for any such extension after the first thirty (30) days.
(d) The Authority may hold a hearing on any application for renewal. The Authority
may summarily grant an application for renewal without a hearing if it appears from the application
and other information that the licensee is:
(1) In compliance with this Chapter;
(2) There have not been any significant changes in the licensee, the principals,
the licensed premises, the adjacent grounds or the registered manager previously
approved; and
(3) There is no reason to believe that there are any grounds for sanctions or
denial of the license.
(e) The Authority shall set a public hearing on the application for renewal if it finds that
there is probable cause to believe that the licensee \[is\]:
(1) Is not \[Not\] in compliance with this Chapter or has committed violations of
this Chapter; or
(2) \[There is probable cause to believe\] Committed acts that \[there\] are
grounds for sanctions as provided in this Chapter; or
(3) \[There have been\] Failed to report any major changes \[described in
Section 11-10-315, Pueblo Municipal Code,\] or \[any unreported\] minor changes
\[described in Section 11-10-316, Pueblo Municipal Code\].
(f) The fact that the Authority has granted a renewal of a license shall not constitute
a waiver of any previous violations and shall not stop or bar the City from seeking sanctions for,
or the Authority from imposing sanctions for, any violation that occurred during any license period
before the renewal.
SECTION 15.
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.
(a) With regards to a licensee’s building façade, signs, and other outdoor advertising,
a licensee may use a logo, trademark, trade name, sign or advertising using the word "marijuana"
or "cannabis," but not any alternative spelling or abbreviation of the same, any slang term for the
same commonly understood as referring to marijuana, or any depiction of any paraphernalia or
other image commonly understood as referring to marijuana. A licensee may use images of a
cannabis leaf, which shall be considered a commercial message, not art, and which must comply
with Chapter 10 of Title XVII of the Pueblo Municipal Code. This 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 medical marijuana establishment. Such signage and
advertising must not be misleading, false, \[or\] infringe upon any state or federal trademark, nor
be designed to appeal to minors.
(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 Section shall prevent the City from taking civil, administrative or criminal
action against any person or license after any logo, trademark, trade name, sign or advertising
has been used. An applicant or licensee may request the Authority 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 16.
Section 11-10-319 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby
amended to read as follows:
Sec. 11-10-319. - Books and records.
(a) Every licensee shall maintain on the licensed premises, at any time that any person
is present on the licensed premises, accurate and up to date books and records of the business
operations of the licensee, or an authentic copy of the same, including but not limited to the
following:
(1) Lists, manifests, orders, invoices and receipts for all marijuana, marijuana
plants and marijuana \[infused\] products cultivated, harvested, processed, produced,
delivered, purchased, stored, sold and exchanged during the preceding two (2) years, by
each transaction or event, including the date and time of each transaction, source, strain,
type, quantity, weight and purchaser and whether each transaction involved harvested
marijuana, live plants, marijuana \[infused\] products or seeds;
(2) An inventory of all marijuana and marijuana \[infused\] products presently
on the licensed premises;
(3) Sales and use taxes collected and paid;
(4) The name, address and a copy of the patient's medical marijuana card for
every patient who has registered the medical marijuana \[center\] store as his or her
primary \[center\] store or who has purchased medical marijuana, marijuana plants or
medical marijuana \[infused\] products at the licensed premises;
(5) The written recommendation of any physician who has recommended that
a patient registered with the medical marijuana \[center\] store needs more than two (2)
ounces of medical marijuana and six (6) marijuana plants to address the patient's
debilitating medical condition;
(6) The name, address and a copy of the medical marijuana license of any
other medical marijuana facility licensee with whom the licensee has transacted any
business, including but not limited to any purchase, sale, or exchange of marijuana plants,
harvested marijuana or medical marijuana \[infused\] products; and
(7) Copies of the medical marijuana card of a homebound patient and the
waiver from the State of Colorado authorizing the primary caregiver to purchase medical
marijuana for the homebound medical marijuana patient and transport the same to the
homebound medical marijuana patient presented by a primary caregiver who purchases
marijuana or marijuana \[infused\] products on behalf of a homebound patient.
(b) The licensee shall separate any record showing the patient's debilitating medical
condition from all other records, maintain such records separately from all other records, and mark
the cover to such records: "Confidential Patient Medical Information."
SECTION 17.
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;
(4) Fine in lieu of suspension \[, as provided in Section 44-11-601, C.R.S.\];
(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 18.
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
provided in Section \[44-11-601\] 44-10-901, C.R.S., for fines in lieu of suspension;
. . .
SECTION 19.
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,
Title I, Pueblo Municipal Code, Article \[11\] 10, Title 44, 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 \[authority\] 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
application by the applicant shall constitute a denial of the license under Section 11-10-309 and
Section \[44-11-308\] 44-10-311, 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 20.
Section 11-10-701 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby
amended to read as follows:
Sec. 11-10-701. - Unlawful acts - any person.
It shall be unlawful and a Class 1 municipal offense for any person to:
(1) Forge, duplicate or alter any medical marijuana card;
(2) Possess, exhibit or use any medical marijuana card issued to another person,
except that a primary caregiver who has received a waiver from the State authorizing him or her
to purchase and transport medical marijuana to a homebound patient may possess and use the
medical marijuana card of the homebound patient while purchasing and transporting medical
marijuana to the homebound patient;
(3) Make any false statement, written or verbal, to the Authority or to any City
employee, in any investigation, inquiry, hearing, testimony, application, report or document related
in any way to medical marijuana or the licensing thereof;
(4) Unseal on any licensed premises any marijuana \[infused\] product;
(5) Purchase, sell, exchange or deliver any medical marijuana, marijuana plant or
marijuana \[infused\] product in public, except in a licensed premises; or
(6) Cultivate, possess, sell, transfer, give away, or dispose of marijuana unless so
licensed or in the course of their municipal duties, or otherwise permitted to do so by law. An
individual may be held criminally liable for violations of Chapter 10 of Title XI of the Pueblo
Municipal Code even if not properly licensed hereunder. The lack of a license is not an affirmative
defense.
SECTION 21.
Section 11-10-702 of Chapter 10 of Title XI of the Pueblo Municipal Code is hereby
amended to read as follows:
Sec. 11-10-702. - Unlawful acts - patients and primary caregivers.
It shall be unlawful and a Class 1 municipal offense for any patient or primary caregiver to:
(1) Give, lend or sell a medical marijuana card or identification to any other person,
except that a homebound patient who has received a waiver from the State permitting his or her
primary caregiver to transport medical marijuana to him or her may lend his or her medical
marijuana card and identification to his or her primary caregiver for the purpose of purchasing and
transporting medical marijuana to the homebound patient;
(2) Fail to have in his or her possession a medical marijuana card at any time the
patient or primary caregiver is purchasing, exchanging, receiving, transporting or in possession
of any medical marijuana, marijuana plants or marijuana \[infused\] product;
(3) Purchase and transport marijuana from a medical marijuana facility to a
homebound patient without having in his or her possession the primary caregiver's own medical
marijuana card, the medical marijuana card of the homebound patient, and a copy of the State
waiver permitting the primary caregiver to purchase medical marijuana from a medical marijuana
\[center\] store and transport the medical marijuana to the homebound patient; or
(4) Smoke, eat, drink or otherwise use or consume any medical marijuana or
marijuana \[infused\] products on any licensed premises or anywhere in public.
SECTION 22.
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
Chapter, Chapter 1, Title IX, Pueblo Municipal Code, Article \[11\] 10, Title 44, C.R.S., or any State
regulation pertaining to medical marijuana.
(2) To permit any violation of this Chapter or any law or regulation on the licensed
premises or the adjacent grounds.
(3) To operate a medical marijuana \[center\] store at any time that any of the
requirements or conditions contained in Sections 11-10-301 and 11-10-308, Pueblo Municipal
Code, are not satisfied.
(4) To sell, dispense or give away any medical marijuana, marijuana plants or medical
marijuana \[infused\] product to any person except:
a. Another medical marijuana licensee, to the extent and in the manner
permitted by law;
b. A medical marijuana patient who presents at the time and place of each
sale or gift his or her own valid medical marijuana card along with his or her own
government-issued photographic identification which matches the name shown on the
medical marijuana card; or
c. A primary caregiver purchasing or receiving medical marijuana or medical
marijuana \[infused\] products on behalf of a homebound patient who presents at the time
and place of each sale or gift: (a) his or her own medical marijuana card, along with his or
her own government-issued photographic identification which matches the name shown
on the medical marijuana card; (b) the waiver from the State of Colorado authorizing the
primary caregiver to purchase medical marijuana for the homebound medical marijuana
patient and transport the same to the homebound patient; and (c) the homebound patient's
medical marijuana card along with the homebound patient's government-issued
photographic identification, which matches the name shown on the medical marijuana
card.
(5) To fail, neglect or refuse to collect sales taxes on any transaction or to promptly
pay any tax, fee or charge required under this Chapter.
(6) To fail, neglect or refuse to promptly provide any books, records, reports,
information, documents or answers to requests for information required under this Chapter.
(7) To refuse to provide signed answers to requests for information, except as
provided in this Chapter, or to refuse to answer any request for information on any ground
prohibited under this Chapter.
(8) To violate any ordinance, statute or regulation on the licensed premises or on the
adjacent grounds.
(9) To violate any condition or to permit the violation of any condition placed on a
license issued under this Chapter.
(10) To permit anyone under the age of twenty-one (21) to be present on the licensed
premises, except a patient under the age of twenty-one (21) who has a valid medical marijuana
card.
(11) To permit anyone who is not an employee to enter the limited access area.
(12) To permit any employee to enter the limited access area without a visible employee
badge.
(13) To conduct any cultivation, processing, packaging, display, sale or exchange of
marijuana plants, harvested medical marijuana or medical marijuana \[infused\] products outside
the licensed premises.
(14) To possess on the licensed premises of a medical marijuana \[center\] store more
than (6) medical marijuana plants or more than two (2) ounces of harvested medical marijuana
for each patient who has registered the medical marijuana \[center\] store as his or her primary
\[center\] store, except that the medical marijuana \[center\] store may exceed these limits if a
patient who has registered the medical marijuana \[center\] store as his or her primary \[center\]
store has received a written recommendation from a physician licensed to practice in Colorado
stating that the patient needs more medical marijuana to address his or her debilitating condition
than these limits allow and the medical marijuana \[center\] store has a copy of such physician
statement in its books and records on the licensed premises.
(15) Violation of patient confidentiality.
a. It shall be unlawful to intentionally, knowingly, recklessly or negligently
disclose any of the following information, in any form, concerning any medical marijuana
patient, or to conduct any discussion, assessment or evaluation of the patient or the
patient's records where any person may overhear or observe any of the following
information:
1. The fact that the patient possesses, cultivates or uses medical
marijuana or medical marijuana \[infused\] products or utilizes the services of a
medical marijuana \[center\] store;
2. The patient's diagnosis, prognosis or other information concerning
the patient's physical, emotional or psychological condition;
3. The fact that the patient has a medical marijuana recommendation
or the contents of the medical marijuana recommendation;
4. The form, type, quantity and frequency in which the patient
purchases and uses medical marijuana or medical marijuana \[infused\] products;
and
5. The efficacy of the medical marijuana or medical marijuana
\[infused\] products in treating the patient's condition.
b. It shall not be a violation of this Section to disclose such information to:
1. Employees of the medical marijuana \[center\] store 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
investigation \[of violations of Section 44-11-101, et seq., C.R.S., or this Chapter\];
5. Any person to whom the patient has signed a release directing the
release of the information; or
6. A court or an attorney conducting a deposition when compelled to
testify or produce documents pursuant to a subpoena or other court order.
(16) To sell, give away or provide to any patient, or to any primary caregiver obtaining
harvested medical marijuana or medical marijuana \[infused\] products on behalf of a homebound
patient, more than the following quantities of harvested medical marijuana or medical marijuana
\[infused\] products, or any combination thereof, within any twenty-four\[-hour\] (24) hour period:
a. Two (2) ounces of medical marijuana \[, whether in the form of harvested
medical marijuana, marijuana contained within a marijuana infused product or both\] or
forty (40) grams of medical marijuana concentrate; or
b. The quantity of harvested medical marijuana, marijuana contained within a
marijuana \[infused\] product or any combination thereof, in excess of \[two (2) ounces\]
the amount specifically recommended \[in the physician's recommendation for medical
marijuana obtained from\] by a physician licensed to practice medicine in Colorado, when
the person providing the same views and retains a copy of the physician recommendation
for marijuana.
(17) To sell, give away or provide to any patient or to any primary caregiver obtaining
medical marijuana on behalf of a homebound patient, more than the following quantities of live
medical marijuana plants within any thirty-day period:
a. Six (6) plants; or
b. The quantity of live marijuana plants in excess of six (6) plants specifically
recommended \[in the physician's recommendation for medical marijuana obtained from\]
by a physician licensed to practice medicine in Colorado when the person providing the
same views and retains a copy of the physician recommendation for marijuana.
(18) To transport any quantity of medical marijuana without carrying with the medical
marijuana a written manifest showing the following information, or to refuse to provide to any law
enforcement officer upon demand a written manifest showing the following information:
a. The weight and volume of marijuana carried;
b. A description of the make, model and VIN number of the vehicle carrying
the medical marijuana;
c. The name and address of the driver of the vehicle;
d. The name and address of the licensed medical marijuana facility from
which the medical marijuana originated;
e. The name and address of the licensed medical marijuana facility to which
the medical marijuana is being delivered;
f. The date and time that the marijuana departed the licensed medical
marijuana facility where the marijuana originated; and
g. The intended route from source to the destination.
SECTION 23.
Section 11-11-101 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby
amended to read as follows:
Sec. 11-11-101. - Findings and purpose.
City Council finds that the cultivation, manufacture, distribution, testing, possession,
sale and use of retail marijuana may be harmful to public health, safety and welfare if not carefully
regulated. This Chapter is designed to protect public health, safety and welfare from the potential
adverse effects of retail marijuana, while permitting retail marijuana to be cultivated,
manufactured, distributed, tested, possessed, sold and used in accordance with law. City
Council further finds and declares that the subject matter of this Chapter is a matter of local and
municipal interest.
SECTION 24.
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
Section \[44-12-103\] 44-10-103, 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.
. . .
(9) Financier means any person lending, paying or providing funds, directly or
indirectly, to pay any part of the costs of: \[(a)\] operating the retail marijuana facility, including but
not limited to the costs of rent, mortgage payments, utilities, debt payments, supplies, product,
equipment, advertising, vehicles, salary and wages\[; or (b) purchasing an ownership interest, in
any form, in the licensee business\].
. . .
(14) Licensed premises means the area inside a building in which the cultivation,
manufacture, testing, processing, \[infusion,\] possession, weighing, display, packaging, sale and
exchange of retail marijuana or marijuana \[infused\] products is licensed under this Chapter.
. . .
(21) Principal means\[:\] a controlling beneficial owner pursuant to C.R.S. § 44-10-
103, including, but not limited to, a natural person, business entity, publicly traded
corporation, or qualified private fund that acting alone or in concert owns or acquires
beneficial ownership of ten percent (10%) or more of an ownership interest in the licensed
business, is an affiliate that controls the business, including any manager, or that is in a
position to control the business and is not a licensed Retail Marijuana Business Operator.
\[a. In the case of any entity, including any general or limited partnership,
corporation, limited liability company or other entity: any person who has an interest in the
ownership of the entity; any person who has the day to day authority to or actually does
manage the entity any person who responsible for the entity's finances.
b. In the case of a corporation: the president, vice-president, secretary, chief
executive officer, chief financial officer and any person who holds or owns the capital stock
of the corporation.
c. In the case of a limited liability company: any manager or member of the
limited liability company.
d. In the case of a sole proprietorship, the individual owner.\]
(22) Publicly traded corporation means any person other than an individual that
is organized under the laws of and for which its principal place of business is located in
one of the states or territories of the United States or District of Colombia or another
Country that authorizes the sale of marijuana and that meets the definition and
qualifications of a publicly traded corporation as promulgated by the State of Colorado.
(23) Serious traffic offense means any driving offense carrying eight (8) points or more
under Section 42-2-127, C.R.S., or the substantial equivalent of such offense in any other State.
SECTION 25.
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:
(1) To issue or deny retail marijuana licenses and renewals of the same within
the City.
(2) To impose sanctions on any license issued by the Authority on its own
motion or on complaint by the City for any violation by the licensee after investigation and
public hearing at which the licensee shall be afforded an opportunity to be heard.
(3) To issue approvals and disapprovals as provided in this Chapter.
(4) To conduct hearings, grant or deny motions, make findings and orders,
administer oaths, and issue subpoenas to require the presence of persons and the
production of papers, books and records necessary to the determination of any hearing
which it is authorized to conduct.
(5) To control the mode, manner and order of all proceedings and hearings.
(6) To adopt rules, procedures and policies for its own proceedings.
(7) To adopt rules and policies for filing applications and requests.
(8) To adopt application forms and submission requirements, including a
requirement that applications, complaints and other documents be filed in a digital format
approved by the Authority and to refuse applications, complaints and other documents not
filed in the approved digital format.
(9) To perform any act that the Authority is authorized to perform under this
Chapter.
(10) To perform any other act that may be implied or necessary to carry out any
act that the Authority is authorized to perform under this Chapter.
(11) To grant exceptions to the licensing requirements set forth in Section 11-
10-308 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.
(12) To promulgate such rules and regulations deemed necessary to properly
administer and enforce this Chapter, and to exercise all other powers and duties as are
set forth in this Chapter, as well as those set forth in the Colorado \[Retail\] Marijuana Code
and subsection 5(f) of Section 16 of Article XVIII of the Colorado Constitution. The
Authority shall provide all proposed rules and subsequent changes thereto, to City Council
for approval by Resolution.
. . .
SECTION 26.
Section 11-11-301 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby
amended to read as follows:
Sec. 11-11-301. - Licenses and permit required.
(a) No person shall operate a retail marijuana establishment unless he or she has first
obtained the following and maintains the same in full force and effect:
(1) A conditional use permit, issued by the Director of Planning and Community
Development, for the location of the proposed licensed premises;
(2) The necessary City sales and use tax license and excise tax license;
(3) The necessary State sales and use tax license and excise tax license;
(4) Ownership of, or a lease in effect on, the proposed licensed premises;
(5) A City license to operate any other business that will be conducted on the
licensed premises \[;
(6) A City license to operate a retail marijuana establishment\]; and
\[(7)\] (6) A State license to operate a retail marijuana establishment.
(b) No person may apply for a license to operate a retail marijuana establishment until
he or she has first met the requirements stated in Subsection (a) above \[subsection (a)(1) and
subsections(a)(3) through (a)(5) of this Section; and demonstrates he or she has received or
applied for the necessary City sales and use tax license and excise tax license required by
subsection (a)(2)\].
(c) The City of Pueblo shall not be required to cultivate or care for any marijuana or
marijuana products belonging to or seized from any licensee. The City of Pueblo is not authorized
to sell marijuana, retail or otherwise. Any marijuana seized by the City for whatever reason shall
be disposed of in accordance with law.
SECTION 27.
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,
granting the privileges described in Title 44, Article \[12\] 10, C.R.S., subject to the requirements,
conditions, qualifications, and limitations set forth in this Chapter:
(1) Retail marijuana cultivation facility;
(2) Retail marijuana products manufacturer;
(3) Retail marijuana testing facility; and
(4) Retail marijuana store facility.
(b) No more than four (4) retail marijuana store facility licenses shall be issued for
each retail marijuana district.
(c) The holder of a license for a retail marijuana testing facility may not hold or have
an interest in any other class of retail or medical marijuana license.
SECTION 28.
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
Section 16(5)(f) of Article XVIII of the Colorado Constitution and Section \[44-12-104(3)\] 44-10-
104, 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 \[44-
12-104(3)\] 44-10-104, 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 29.
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:
(1) Operating fees are to be paid upon issuance of the initial license by the
Authority, and yearly thereafter upon renewal:
(A) Retail marijuana cultivation facility:
With a plant count between 1 and 3,600: Six thousand five
hundred dollars ($6,500.00).
With a plant count between 3,601 and 10,200: Ten thousand
dollars ($10,000.00).
With a plant count of or over 10,201: Fifteen thousand dollars
($15,000.00).
(B) Retail marijuana product manufacturing facility: Fifteen thousand
dollars ($15,000.00) for the first year; and ten thousand dollars ($10,000.00) each
subsequent year thereafter.
(C) Retail marijuana testing facility: Five thousand dollars ($5,000.00).
(D) Retail marijuana store: Fifteen thousand dollars ($15,000.00).
(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).
(3) Permit fees:
(A) Application or renewal of a centralized distribution permit for
a retail marijuana cultivation: five hundred dollars ($500.00).
. . .
SECTION 30.
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 \[, C.R.S. 44-12-
101 et seq\]. 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.
(b) The Authority shall inform the State \[Retail\] Marijuana Licensing Authority of its
investigations, inspections and all decisions approving new licenses, issuing new licenses,
imposing conditions on licenses, renewing licenses, approving major changes in licenses,
information regarding minor changes, and sanctions imposed on licenses.
. . .
SECTION 31.
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.
In order to obtain and retain a license, the applicant shall demonstrate by a preponderance
of the evidence to the Authority that the following requirements are satisfied:
(1) General requirements.
a. The applicant has obtained a conditional use permit, issued by the Director
of Planning and Community Development, for the location of the proposed licensed
premises;
b. The applicant has applied for, and will be issued the necessary City sales
and use tax license and excise tax license upon receipt of any retail marijuana license;
c. The applicant has obtained the necessary State sales and use tax license
and excise tax license;
d. The applicant has obtained a City license for any other business activity
that will be \[operated\] conducted on the licensed premises;
e. The applicant has submitted an application for a license that the Clerk to
the Authority has determined is complete; and
f. The applicant has paid all fees required under this Chapter.
(2) Personal requirements for the licensee, principals, registered manager and
employees.
a. The applicant, principals, registered manager and employees meet all
requirements for issuance of a State license.
b. The applicant, principals, registered manager and employees are all over
the age of twenty-one (21).
c. The applicant, principals, registered manager and employees have not
been determined by any \[retail\] marijuana licensing authority, any other licensing board
within the State, or the Colorado Department of Revenue to not be persons of good
character and record within the preceding three (3) years.
d. The applicant, principals, registered manager and employees have not
discharged a sentence for a conviction of a felony in the five (5) years immediately
preceding the application, nor are they currently subject to a deferred judgment or
sentence for a felony. \[This shall constitute a per se and complete disqualification.
Rehabilitation shall not be considered.\]
e. \[The applicant, principals, registered manager and employees have not
discharged a sentence for a conviction of a felony pursuant to any state or federal law
regarding the possession, distribution, manufacturing, cultivation, or use of a controlled
substance in the ten (10) years immediately preceding his or her application date or five
(5) years from May 28, 2013, whichever is longer; except that the licensing authority may
grant a license to a person if the person has a state felony conviction based on possession
or use of marijuana or marijuana concentrate that would not be a felony if the person were
convicted of the offense on the date he or she applied for licensure. This shall constitute
a per se and complete disqualification. Rehabilitation shall not be considered.
f.\] The applicant, the applicant's financiers, principals, registered manager,
and employees are persons of good character and record. When making any
determination as to good character and record, the Authority may consider whether an
applicant, principal, registered manager or employee has rehabilitated himself after
committing a crime or other act or omission tending to indicate that such person is not a
person of good character\[, but rehabilitation shall not be considered when the crime or
other disqualifying act or omission is declared a per se disqualification under this Chapter\].
Notwithstanding any other burden for proof stated in this Chapter, the burden of proof to
show that a person has been rehabilitated shall be beyond a reasonable doubt and shall
be placed on the individual whose character is at issue. When evaluating claims of
rehabilitation, the Authority shall consider the following factors:
1. The facts of the specific crime or other act tending to show a bad
character and record;
2. Whether the specific crime or other act tending to show bad
character and record involved controlled substances, dishonesty, fraud, bad faith,
moral turpitude or violence;
3. Whether the specific crime or other act tending to show bad
character and record involved a felony, misdemeanor, municipal offense, a civil
wrong or other wrongful conduct;
4. Whether the specific crime or act caused injury or harm to other
persons or entities and the extent of such harm or injury;
5. The length of time that has expired since the act or omission was
committed;
6. Whether the person has led a law abiding life and has demonstrated
good character since the act or omission was committed;
7. Whether the person has committed other acts tending to indicate
bad character since the act or omission was committed;
8. Restitution, damages and compensation that the person has paid
to persons victimized by the act or omission;
9. Fines, jail sentences, probation, community service and other
penalties paid or served since the act was committed; and
10. Any other factor tending to show that the person has or has not
rehabilitated his or her character and conduct.
\[g.\] f. The applicant, principals, financiers and registered manager have not
held an interest in any liquor license, medical marijuana license, retail marijuana license
or other license issued by any City, County or State that has been revoked, suspended,
or fined within the preceding two (2) years.
\[h.\] g. The applicant, principals, financiers, employees and registered manager
have not had their authority, if any, to act as a medical marijuana primary caregiver
revoked by the State within the preceding two (2) years.
\[i.\] h. The applicant, principals, financiers and registered manager are not in
default on any City, county, State or federal taxes, fees, fines or charges, do not have any
outstanding warrants for their arrest, and do not have any outstanding liens or judgments
payable to the City.
\[j.\] i. The applicant, principals and registered manager are not in default on any
student loan.
\[k.\] j. The applicant, principals, registered manager and employees are trained
or experienced in, and able to comply with, the requirements of this Chapter and state law
pertaining to retail marijuana establishments. In determining whether such persons have
shown sufficient training or experience, the Authority shall consider, among other things,
the following factors:
1. The role that the individual will play in operating the establishment;
2. Previous experience operating retail marijuana establishments;
3. Completion of state or industry-approved courses on how to comply
with Colorado laws and regulations regarding retail marijuana establishments; and
4. The individual's understanding of State law and City ordinances
regulating retail marijuana as shown under questioning by the Authority at the
hearing.
\[l.\] k. The applicant, principals, registered manager and employees all hold valid
occupational licenses and registrations for retail marijuana issued by the State of
Colorado.
\[m.\] l. The applicant, principals and registered manager do not have any orders
or judgments against them for child support in default or arrears.
\[n.\] m. The applicant, principals and registered manager are not peace officers or
prosecuting attorneys.
\[o.\] n. All licensees or principals that already hold one (1) retail marijuana license
in the City of Pueblo, may apply and be approved for another retail marijuana license of
the same class, except that licensees or principals may only hold one (1) retail marijuana
store license. The Authority shall not issue a second license to a licensee or principal
unless it determines that issuance of the second license will not significantly restrain
competition among licensees of that class.
(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
or service of alcohol beverages as defined in Section 44-3-103, 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.
(4) Control, security and code compliance of premises.
a. The applicant has sole legal control of the proposed licensed premises at
the time the application is submitted, under a lease that is presently in effect or through
present ownership of the proposed licensed premises.
b. The proposed licensed premises have a suitable limited access area where
the cultivation, manufacturing, testing, display, storage, processing, weighing, handling
and packaging of retail marijuana and marijuana products occurs, which is posted
"employees only," and is separated from the areas accessible to the public by a wall,
counter or some other substantial barrier designed to keep the public from entering the
area.
c. The applicant has submitted a security plan for the proposed licensed
premises, which has been inspected and approved by the Police Department, showing at
least the following security measures:
1. All doors, windows and other points of entry have secure and
functioning locks;
2. A locking safe or enclosed metallic storage vault located inside the
proposed licensed premises in which any harvested retail marijuana and retail
marijuana products will be secured when the licensed premises are not open to
the public;
3. If the licensed premises are connected by any passage or entryway to
any other premises, there is a door between the two (2) premises that can be
locked from the licensee’s side and cannot be opened from the other side;
4. A professionally monitored burglar alarm system that detects
unauthorized entry of all doors, windows and other points of entry to the
\[proposed\] licensed premises; and
5. Windows facing the adjacent grounds and lighting of the adjacent
grounds sufficient to ensure that persons entering and leaving the licensed
premises, entering and exiting parked cars on the adjacent grounds, and walking
across the adjacent grounds can be observed by employees from inside the
licensed premises.
d. The proposed licensed premises and adjacent grounds comply with all
zoning, health, building, plumbing, mechanical, fire and other codes, statutes and
ordinances, as shown by completed inspections and approvals from the City's Department
of Planning and Community Development, Regional Building Department, Pueblo Fire
Department and Pueblo City-County Health Department.
e. There is sufficient parking available on the \[proposed\] adjacent grounds
given the size of the licensed premises and the number of employees and customers that
can reasonably be expected to be present at any given time.
f. The proposed licensed premises and adjacent grounds of the licensed
premises will be operated in a manner that does not cause \[any substantial\] harm to
public health, safety and welfare.
g. The area of the proposed licensed premises is equipped with a ventilation
and filtration system that is sufficient in type and capacity to eliminate marijuana odors
emanating from the interior to the exterior discernible by a reasonable person at the
property line. For facilities which are located on the same property as another use, the
ventilation and filtration system must be sufficient to eliminate marijuana odors discernible
by a reasonable person at the exterior of the building. The ventilation system must be
inspected and approved by the Pueblo Regional Building Department.
(5) Requirements specific to a retail marijuana cultivation facility license.
a. 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. 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.
c. No portion of the building in which the proposed licensed premises are
located is utilized as a residence.
d. A retail marijuana cultivation facility may obtain a centralized
distribution permit, authorizing temporary storage on the licensed premises of retail
marijuana concentrate and products received from a retail marijuana business for
the sole purpose of transfer to the permit holder’s commonly owned retail
marijuana stores, by providing a copy of the State application to the Authority,
along with documents showing any changes to be made to the premises,
operational plan, or security plan.
(6) Requirements specific to a retail marijuana store license.
a. The local licensing authority shall review the application of each applicant
that satisfies the minimum requirements set forth in Sections 11-11-307 and 11-11-308,
Pueblo Municipal Code, and award points according to the Retail Marijuana Rules and
Regulations. The following is a non-exhaustive list of categories or criteria that may be
considered for the award of points to an applicant:
1. Successful experience in operating a licensed marijuana
establishment;
2. Pueblo County residency;
3. Criminal background and history of applicant, principals, owners,
operators, managers, and employees;
4. Employment of local residents;
5. \[The air\] Air filtration or scrubbing system to minimize odors and
public nuisance complaints;
6. Security plan;
7. Operating plan;
8. Business plan; and
9. Assets, operating capital, and overall financial capability.
b. The Authority may issue a retail marijuana store license to the applicant in
each district who earns the highest point total pursuant to subparagraph (a) of this Section.
The Authority may deny a retail marijuana store license to any applicant that does not earn
the minimum point total set forth in the Retail Marijuana Rules and Regulations
promulgated by the Authority pursuant to this Chapter. If two (2) or more applicants
applying for licensure in the same district receive the same total score, and, pursuant to
this Chapter, the Authority cannot issue a license to each of those applicants, the Authority
shall randomly select the applicant that will be awarded a retail marijuana store license.
c. Before the Authority issues a local license to an applicant for a retail
marijuana store, the applicant shall procure and file with the City evidence of good and
sufficient bond in the amount of twenty thousand dollars ($20,000.00) with a corporate
surety duly licensed to do business with the State of Colorado, approved as to form by the
City Attorney, to guarantee that the applicant shall pay all City sales, use, and any other
taxes as provided by law. A corporate surety shall not be required to make payments to
the City claiming under such bond until a final determination to pay taxes due to the City
has been made by the Director of Finance or a court of competent jurisdiction. All bonds
required pursuant to this subsection shall be renewed before the bond holder's license is
renewed. The renewal may be accomplished by continuing the certificate issued by the
surety.
(7) 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 \[to\] in the name of 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 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 license approval, the approval shall lapse and the license shall not be issued.
The applicant may submit a written request for additional time to complete the premises
at least thirty (30) days prior to the expiration of the one hundred twenty (120) days. Any
such written request must state the reasons for the request and the additional time
necessary to complete the premises. The Authority may approve the request if it
determines there was good cause for the delay, the applicant can reasonably complete
the premises within the additional time requested, and the additional time will not defeat
the competitive application process.
(8) Requirements of this Section also apply to licensees; continuing duty.
a. The requirements of this Section imposed on \[any\] the applicant shall also
apply to \[any\] the licensee. The requirements of this Section imposed on \[any\] the
proposed licensed premises, \[proposed\] adjacent grounds or \[proposed\] location shall
also apply to the actual licensed premises, actual adjacent grounds and actual locations,
respectively.
b. \[Every\] The licensee and its principals, registered manager and
employees have 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 32.
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
XVIII OF THE COLORADO CONSTITUTION AND SECTION \[44-12-104\] 44-10-104,
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
CONSTITUTION AND SECTION \[44-12-104\] 44-10-104, 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 33.
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 involving a principal
\[interest in the licensee entity or license\] 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. \[For a retail marijuana store license, changes in the business
structure of the licensee shall require a hearing before the Authority, at which time
the license will be revoked if the new business structure does not meet the
requirements of this Article or if the new business structure has fewer awarded
points as set forth in Subsection 11-11-308(6)(a) than did the original business
structure.
c.\] A retail marijuana store licensee may request to transfer ownership
after the expiration of one (1) year. The request may be approved if the Authority
finds that the new licensee \[can amass at least as many points set forth in
Subsection 11-11-308(6)(a) as the original licensee\] 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 can comply with the limitation on the number of retail marijuana store
licenses set forth in Subsection 11-11-308(2)(o); \[the new licensee can comply
with all provisions of this Chapter;\] 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.
\[d.\] c. 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.
b. A retail marijuana store licensee may request to transfer location
after the expiration of one (1) 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.
\[d. For all retail marijuana licenses, a transfer of the location may be
approved by the Authority if the licensee obtains a conditional use permit for the
new location, and demonstrates compliance with the requirements of this Title after
a public hearing.\]
(3) Any change in the licensee's principals or financiers;
(4) The hiring, substitution, or replacement 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, patios, decks, safe or vault,
locks, security plan, surveillance system, doors, window coverings or security system at
the licensed premises;
\[(7)\] (6) 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
\[(8)\] (7) Any material change in or deviation from the operational plan, security
plan, or business plan submitted at the time that the license was approved.
(b) The Authority shall require a public hearing before approving any change of
location.
(c) The Authority may summarily approve all other proposed major changes or hold a
public hearing on the same, in the Authority's discretion, depending on how substantial the change
appears to be and whether the proposed change is likely to cause any harm to public health,
safety or welfare.
(d) At any hearing regarding any of the foregoing changes, the Authority shall
determine whether the proposed change would probably cause substantial harm to public health,
safety or welfare or result in a violation of any law or regulation. If the Authority finds that the
change will probably not cause substantial harm to public health, safety or welfare or result in a
violation of any law or regulation, it shall approve the change. If the Authority finds that the
proposed change would, more probably than not, harm public health, safety or welfare or result
in a violation of any law or regulation, the Authority may either disapprove the proposed change
or impose conditions on the license.
(e) No application for transfer of ownership, transfer of location or other major change
may be applied for or acted upon while any complaint for sanctions is pending with the Authority
or the State.
(f) The transfer of a license to a new owner does not constitute a new license. The
transferee of a license or ownership interest in a license takes transfer of such license or interest
subject to the conditions, waivers, history, record and sanctions imposed on that license under
the previous ownership of the license. The fact that the license is \[owned\] held by new persons
or entities shall not preclude the Authority from considering the history, record and past sanctions
imposed on the license under previous ownership when the Authority considers \[new\] sanctions
for violations committed under new ownership of the license.
SECTION 34.
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
the licensed premises, adjacent grounds, or 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 \[financiers\] loans 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
(6) The hiring of any employee, or the dismissal, termination or resignation of any
employee or registered manager.
(7) A person that becomes a principal of a publicly traded corporation that is a
retail marijuana business or that becomes a beneficial owner, through direct or indirect
ownership of a controlling beneficial owner, of ten percent (10%) or more of a retail
marijuana business that is a publicly traded corporation must disclose said change to the
Authority within ten (10) days of the State licensing authority providing a Finding of
Suitability, or exemption from such finding, for said person pursuant to C.R.S. § 44-10-
312(4). Such a notification shall not require a hearing.
SECTION 35.
Section 11-11-317 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby
amended to read as follows:
Sec. 11-11-317. - Renewal of license.
(a) A licensee may renew its license by submitting an application at least thirty (30)
days before and no more than ninety (90) days before the expiration of the license. If a licensee
fails to file an application for renewal of his or her license at least thirty (30) days before expiration
of the license, the license shall expire.
(b) A licensee may renew a license that has expired if:
(1) The license has expired less than ninety (90) days; and
(2) The licensee pays the annual operating renewal fee and an additional five
thousand dollars ($5,000.00) late fee.
(c) In the event that an application for renewal has been filed at least thirty (30) days
before the expiration of the previous license, but the Authority does not rule on the application for
renewal before the expiration of the previous license, the previous license shall be deemed
extended until the Authority rules on the application for renewal, but in no event may the license
be extended more than ninety (90) days under this subsection. The licensee shall pay a license
extension fee for any such extension after the first thirty (30) days.
(d) The Authority may hold a hearing on any application for renewal. The Authority
may summarily grant an application for renewal without a hearing if it appears from the application
and other information that the licensee is:
(1) In compliance with this Chapter;
(2) There have not been any significant changes in the licensee, the principals,
the licensed premises, the adjacent grounds or the registered manager previously
approved; and
(3) There is no reason to believe that there are any grounds for sanctions or
denial of the license.
(e) The Authority shall set a public hearing on the application for renewal if it finds that
there is probable cause to believe that the licensee \[is\]:
(1) Is not \[Not\] in compliance with this Chapter or has committed violations of
this Chapter; or
(2) \[There is probable cause to believe\] Committed acts that \[there\] are
grounds for sanctions as provided in this Chapter; or
(3) \[There have been\] Failed to report any major changes \[described in
Section 11-11-315 of this Chapter\] or \[any unreported\] minor changes \[described in
Section 11-11-316 of this Chapter\].
(f) The fact that the Authority has granted a renewal of a license shall not constitute
a waiver of any previous violations and shall not stop or bar the City from seeking sanctions for,
or the Authority from imposing sanctions for, any violation that occurred during any license period
before the renewal.
SECTION 36.
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.
(a) With regards to a licensee’s building façade, signs, and other outdoor advertising,
a licensee may use a logo, trademark, trade name, sign or advertising using the word "marijuana"
or "cannabis," but not any alternative spelling or abbreviation of the same, any slang term for the
same commonly understood as referring to marijuana, or any depiction of any paraphernalia or
other image commonly understood as referring to marijuana. A licensee may use images of a
cannabis leaf, which shall be considered a commercial message, not art, and which must comply
with Chapter 10 of Title XVII of the Pueblo Municipal Code. This 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, nor
be designed to appeal to minors.
(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
advertising has been used. An applicant or licensee may request the Authority 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 37.
Section 11-11-402 of Chapter 11 of Title XI of the Pueblo Municipal Code is hereby
amended to read as follows:
Sec. 11-11-402. - Sanctions.
(a) The Authority may impose any one (1) 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 11-11-312;
(2) A fine in a reasonable amount to be determined by the Authority;
(3) Suspension for up to one hundred eighty (180) days;
(4) Fine in lieu of suspension;
(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 a sanction on any
reasonable condition that the Authority deems appropriate in its discretion.
SECTION 38.
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,
Title I, Pueblo Municipal Code, Article \[12\] 10, Title 44, 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 \[authority\] 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.
. . .
SECTION 39.
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
\[12\] 10, Title 44, C.R.S.; or of any State regulation pertaining to retail marijuana.
. . .
SECTION 40.
The City of Pueblo’s Retail Marijuana Rules and Regulations dated December 28, 2018,
Edition 1, are hereby amended and replaced in their entirety with the Retail Marijuana Rules and
Regulations dated January 1, 2020, Edition 2.
SECTION 41.
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 42.
This Ordinance shall become effective thirty (30) days after the date of final action by the Mayor
and City Council.
SECTION 42.
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 January 13, 2020.
Final adoption of Ordinance by City Council on January 27, 2020.
President of City Council
Action by the Mayor:
☒ Approved on January 29, 2020 .
☐ 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
City Clerk
Rules and Regulations Pueblo Retail Marijuana 2Edition 20, 20January 1
RETAIL MARIJUANA
RULES AND REGULATIONS
12/28/16
Table of Contents
Rule 100 Series: General Applicability ........................................................................................ 5
Rule 101: Purpose and Intent. ............................................................................................... 5
Rule 102: Defined Terms. .................................................................................................... 6
Rule 103: Effective Date and Applicability. ......................................................................... 9
Rule 104: Relationship to Other Laws. ................................................................................. 9
Rule 105: Severability. ......................................................................................................... 9
Rule 200 Series: Licensure ..........................................................................................................10
Rule 201: Local Licensing Authority. ..................................................................................10
Rule 202: Licenses. .............................................................................................................13
Rule 300 Series: Application .......................................................................................................16
Rule 301: Application Procedure. ........................................................................................16
Rule 302: Fees. ...................................................................................................................18
Rule 303: Relationship to State ...........................................................................................21
Rule 400 Series: Licensing Procedures .......................................................................................23
Rule 401: Review Procedure. ..............................................................................................23
Rule 500 Series: Hearing Procedures...........................................................................................37
Rule 501: Local License Hearing Notice Requirements .......................................................37
Rule 502: Hearing Procedures. ............................................................................................38
Rule 503: License Hearing Discovery and Subpoenas. ........................................................39
Rule 504: License Hearing Burden of Proof. .......................................................................39
Rule 505: License Hearing Evidence. ..................................................................................40
Rule 506: Standing. .............................................................................................................40
Rule 600 Series: Local License Hearing .......................................................................................42
2 | Page
Edition 2
January 1, 2020
Rule 601: Local License Hearing ........................................................................................42
Rule 602: Incomplete Premises. ..........................................................................................45
Rule 603: License Issuance. ................................................................................................46
Rule 700 Series: License Requirements ......................................................................................47
Rule 701: Term of License - Renewals and Expirations. ......................................................47
Rule 702: Modification of Premises. ...................................................................................49
Rule 703: Transfer of Ownership and Changes in Business Structure. .................................50
Rule 704: Change of Location. ............................................................................................51
Rule 705: Other Changes to License. ...................................................................................53
Rule 800 Series: Requirements....................................................................................................55
Rule 801: General Requirements .........................................................................................55
Rule 802: Age Requirements. ..............................................................................................56
Rule 803: Hours of Operation and Access. ..........................................................................57
Rule 804: Personal Requirements for the licensee, principals, registered manager and
employees................................................................................................................57
Rule 805: Owner or Manager Present. .................................................................................59
Rule 806: Sales Limitations. ................................................................................................60
Rule 807: Trade Names, Trademarks, Logos, Labels, Packaging and Advertising. ..............60
Rule 808: Books and Records..............................................................................................61
Rule 809: Separation of Marijuana Establishments. .............................................................62
Rule 810: Visibility of Operations. ......................................................................................63
Rule 811: Documents to Be Displayed. ...............................................................................63
Rule 812: Security Requirements. .......................................................................................64
Rule 813: Video Surveillance. .............................................................................................68
Rule 814: Limited Access Areas..........................................................................................70
Rule 815: General Building Requirements...........................................................................71
Rule 816: Mechanical and Electrical Equipment. ................................................................72
Rule 817: Odor Management...............................................................................................72
Rule 818: Organization of Cultivation Facilities. .................................................................73
Rule 819: Exterior Requirements.........................................................................................73
3 | Page
Edition 2
January 1, 2020
Rule 900 Series: Land Use and Zoning ........................................................................................75
Rule 901: Zoning Definitions. .............................................................................................75
Rule 901: Zoning Limitations. .............................................................................................76
Rule 902: Conditional Use Permits. .....................................................................................77
Rule 903: Conditions Required for Retail Marijuana Facilities. ...........................................77
Rule 904: Buffering Requirements. .....................................................................................84
Rule 905: Fixed Location Required. ....................................................................................85
Rule 906: Prohibited Uses. ..................................................................................................85
Rule 1000 Series: Inspections ......................................................................................................86
Rule 1001: Inspection..........................................................................................................86
Rule 1002: Business Records. .............................................................................................87
Rule 1003: Requests for Information. ..................................................................................87
Rule 1100 Series: Violations and Penalties ..................................................................................89
Rule 1101: General. ............................................................................................................89
Rule 1102: Sanctions. ..........................................................................................................90
Rule 1103: Summary Suspension. .......................................................................................92
Rule 1104: Imputing Knowledge and Violations to the Licensee. ........................................93
Rule 1105: Effect of Sanctions. ...........................................................................................93
Rule 1106: Basis for Suspension, Revocation, or Denial. ....................................................94
Rule 1107: Prohibited Activity During Suspension. .............................................................96
Rule 1108: Unlawful Acts – Any Person. ............................................................................97
Rule 1109: Unlawful Acts – Licensees, Principals, Registered Managers and Employees. ...97
Rule 1110: Penalties. ...........................................................................................................99
4 | Page
Edition 2
January 1, 2020
Rule 100 Series: General Applicability
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 Marijuana Code, Article 10 of Title 44, C.R.S. (the “CMC”). In
addition, the Colorado Department of Revenue adopted 1 CCR 212-3, the state marijuana rules. The
CMC and the state marijuana rules 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.
As permitted under Amendment 64, the Pueblo City Council has determined to allow retail marijuana
establishments in the city on the condition that the establishments are operated in compliance with
all applicable state and local laws. The City Council has adopted Chapter 11 of Title XI of the Pueblo
Municipal Code (the “PMC”) related to the licensing regulation of retail marijuana establishments,
hereinafter referred to as the “Retail Marijuana Code”. The Retail Marijuana Code created the Local
Licensing Authority and vested it with authority to promulgate regulations as necessary for proper
administration and enforcement.
The purpose of these regulations is to establish specific standards and procedures for local licensing
of retail marijuana-related establishments and to protect the health, safety, and welfare of the
residents and consumers of the City of Pueblo (the “city”) by prescribing the manner in which retail
marijuana establishments can be conducted in the city. Retail marijuana establishments are a heavily
regulated industry in the state and city. The city has a zero-tolerance policy for violations of any
marijuana ordinance or the regulations contained herein.
By enacting these regulations, the city does not intend to encourage or promote the establishment of
any business or operation, or the commitment of any act, that constitutes or may constitute a violation
of state or federal law. As of the date of the enactment of these regulations, the use, possession,
distribution, and sale of marijuana is illegal under federal law and those who engage in such activities
do so at their own risk of criminal prosecution.
City Council finds that the cultivation, manufacture, distribution, testing, possession, sale and use of
retail marijuana may be harmful to public health, safety and welfare if not carefully regulated. This
Retail Marijuana Code is designed to protect public health, safety and welfare from the potential
adverse effects of retail marijuana, while permitting retail marijuana to be cultivated, manufactured,
distributed, tested, possessed, sold and used in accordance with law. City Council further finds and
5 | Page
Edition 2
January 1, 2020
declares that the subject matter of the Retail Marijuana Code is a matter of local and municipal
interest.
Rule 102: Defined Terms.
The definitions contained in Section 44-10-103 of the CMC and the state marijuana rules shall apply
equally to these regulations except where specifically defined below. In case of conflict, the
definitions found in the Pueblo Municipal Code shall apply.
Adjacent grounds means all areas that the licensee has a right to possess by virtue of his or her
ownership or lease, which are outside the enclosed licensed premises, but adjacent and contiguous
to the licensed premises, including but not limited to porches, patios, decks, entryways, lawns,
parking lots and similar areas and all fixed and portable things in those areas, including but not
limited to lights, signs, speakers and security devices.
Approve a license means to find that the requirements for a license have been met, but does not give
the applicant the right to operate a retail marijuana facility until the license is issued.
Authority means the Pueblo Retail Marijuana Licensing Authority.
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, medical marijuana licenses, retail marijuana licenses or other 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 financial
responsibility. 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 these rules and regulations declares that
the offense is a per se disqualification.
Complaint means a document filed with the Authority by the City, any of its Departments or the
Authority itself, seeking sanctions against a retail marijuana license.
Contiguous means located within the same building as the retail marijuana establishment, located in
a separate building on the same parcel of land as the retail marijuana establishment, 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 retail marijuana establishment is located.
Employee means the licensee's or proposed licensee's employees.
6 | Page
Edition 2
January 1, 2020
Financier means any person lending, paying or providing funds, directly or indirectly, to pay any
part of the costs of: operating the retail marijuana facility, including but not limited to the costs of
rent, mortgage payments, utilities, debt payments, supplies, product, equipment, advertising,
vehicles, salary and wages.
Harm or harmful to public health, safety or welfare means any matter that adversely affects the
health, safety or welfare of any person or group of persons within the City of Pueblo or any adjacent
community, including but not limited to matters related to crime, lighting, security, traffic, graffiti,
loitering, litter, parking and noise. A showing of actual harm shall not be required and a showing of
potential or threatened harm shall be sufficient. Any violation of any criminal statute or ordinance is
per se substantially harmful to public health, safety and welfare, without any showing of actual or
threatened harm. The mere possession, advertising, sale, cultivation, manufacturing, testing,
processing, smoking or ingestion of retail marijuana and retail marijuana products, when performed
lawfully, shall not in itself be considered harmful to public health, safety and welfare.
In public means any area that the public may generally enter, including any business open to the
public. The term includes the licensed premises and the adjacent grounds. The term includes persons
in motor vehicles located in a public place.
Issue a license means to finalize the license after a previous approval of the license, and may or may
not occur after approval of the license, depending on any completions, inspections, approvals or
conditions that the Authority may require to be satisfied before issuance. Issuance gives the licensee
the right to operate a retail marijuana establishment, provided that the licensee also obtains a State
license.
Licensee means the person or entity holding a retail marijuana license under Chapter 11, Title XI, of
the PMC.
Licensed premises means the area inside a building in which the cultivation, manufacture, testing,
processing, possession, weighing, display, packaging, sale and exchange of retail marijuana or
marijuana products is licensed under Chapter 11, Title XI, of the PMC.
Marijuana or retail marijuana, except where the context clearly indicates otherwise, means growing
marijuana plants, harvested marijuana in any condition and retail marijuana products of all kinds.
Operate or operation means conducting business as described in the Operating Plan per Rule 801.3
and the Security Plan per Rule 812.1.
Permit when used as a verb means to:
7 | Page
Edition 2
January 1, 2020
(a) Participate in or contribute to an act, conduct or omission;
(b) Consent to or condone an act, conduct or omission;
(c) Know or have reason to know that an act, conduct or omission is or may be occurring, or
probably will occur unless steps are taken to prevent the same, and failing to take reasonable
steps to halt, thwart or prevent the same; or
(d) Ignore, avoid knowledge or notice of, or turn a blind eye to an act, conduct or omission that
may be occurring.
Person means any natural person or any entity.
Principal means a controlling beneficial owner pursuant to C.R.S. § 44-10-103, including, but not
limited to, a natural person, business entity, publicly traded corporation, or qualified private fund
that acting alone or in concert owns or acquires beneficial ownership of ten percent (10%) or more
of an ownership interest in the licensed business, is an affiliate that controls the business, including
any manager, or that is in a position to control the business and is not a licensed Retail Marijuana
Business Operator.
Publicly traded corporation means any person other than an individual that is organized under the
laws of and for which its principal place of business is located in one of the states or territories of the
United States or District of Colombia or another Country that authorizes the sale of marijuana and
that meets the definition and qualifications of a publicly traded corporation as promulgated by the
State of Colorado.
Retail marijuana district shall mean the geographic area in which retail marijuana stores may be
located. There shall be two Retail Marijuana Districts. The North Retail Marijuana District shall be
that area of the City located north of the Arkansas River. The South Retail Marijuana District shall
be that area of the City located south of the Arkansas River.
Retail marijuana establishment means a retail marijuana cultivation facility, a retail marijuana
products manufacturer, a retail marijuana testing facility or a retail marijuana store.
Retail marijuana license means any of the licenses described in Rule 202.4.
Serious traffic offense means any driving offense carrying eight (8) points or more under Section 42-
2-127, C.R.S., or the substantial equivalent of such offense in any other State.
8 | Page
Edition 2
January 1, 2020
Rule 103: Effective Date and Applicability.
These regulations shall be effective on December 28, 2016 and shall govern all applications
submitted to the city on and after that date for licensing of any retail marijuana establishment in the
city under the CMC and the PMC.
Rule 104: Relationship to Other Laws.
The city intends to follow and incorporate all requirements and procedures set forth in the CMC and
the state marijuana rules. The provisions in these regulations that are different from the applicable
state law are consistent with the city’s responsibility to protect the public health, safety, and welfare
as authorized by applicable law, and by the home rule authority granted to the city by Article XX of
the Colorado Constitution and the charter of the city. Where these regulations conflict with the state
regulations, the more restrictive regulations shall apply.
The provisions of Chapter 1, Title IX, of the Pueblo Municipal Code, shall apply to the Retail
Marijuana Code except where they may be inconsistent with the provisions of the Retail Marijuana
Code, in which case the most restrictive regulation shall control.
Whenever possible, these regulations and any licenses issued under these regulations shall be
construed to comply with federal law, specifically including the Controlled Substances Act (21
U.S.C. 801 et seq.).
Rule 105: Severability.
If any provision of these regulations is found to be invalid by a court of competent jurisdiction, only
the provision subject to the court decision shall be repealed or amended. All other provisions shall
remain in full force and effect.
9 | Page
Edition 2
January 1, 2020
Rule 200 Series: Licensure
Rule 201: Local Licensing Authority.
201.1 Creation and Purpose. Article II of Chapter 11, Title XI, of the PMC, establishes the Retail
Marijuana Licensing Authority for the purpose of regulating and controlling the licensing
and sale of retail marijuana in the city pursuant to the local licensing provisions of the CMC.
The Authority shall serve as the primary point of contact and shall have the final authority
of review and approval on all such matters.
201.2 The Board appointed by City Council to serve as the Authority shall consist of five (5)
members, who shall be residents of the City. Five (5) members shall be initially appointed
for staggered terms expiring on the first day of July as follows: one (1) member for a one-
year term, one (1) member for a two-year term, one (1) member for a three-year term, and
two (2) members for four-year terms. Thereafter, each member shall be appointed for a
term of four (4) years. At the Board's first regular meeting and on the anniversary of the
first meeting and each year thereafter, the Board shall appoint one (1) of its members to act
as Chair of the Board. The City Council shall make an appointment for any unexpired term
in the event a vacancy arises.
201.3 Any member of the Board may be removed by the City Council for nonattendance to duty
or for cause. Any member who fails to attend three (3) consecutive meetings of the Board
shall be removed from the Board, unless the City Council excuses any such absences.
201.4 Duties. The Authority, along with the state licensing authority, shall enforce compliance
with these rules and regulations, the PMC, the state marijuana rules, and the CMC. Any
other state regulations will be enforced by the state licensing authority.
201.5 Powers. The Authority shall have the power:
(a) To issue or deny retail marijuana licenses and renewals of the same within the City.
(b) To impose sanctions on any license issued by the Authority on its own motion or on
complaint by the City for any violation by the licensee after investigation and public
hearing at which the licensee shall be afforded an opportunity to be heard.
(c) To issue approvals and disapprovals as provided in these Rules and Regulations.
(d) To conduct hearings, grant or deny motions, make findings and orders, administer
10 | Page
Edition 2
January 1, 2020
oaths, and issue subpoenas to require the presence of persons and the production of
papers, books and records necessary to the determination of any hearing which it is
authorized to conduct.
(e) To control the mode, manner and order of all proceedings and hearings.
(f) To adopt rules, procedures and policies for its own proceedings.
(g) To adopt rules and policies for filing applications and requests.
(h) To adopt application forms and submission requirements, including a requirement that
applications, complaints and other documents be filed in a digital format approved by
the Authority and to refuse applications, complaints and other documents not filed in
the approved digital format.
(i) To perform any act that the Authority is authorized to perform under these Rules and
Regulations.
(j) To perform any other act that may be implied or necessary to carry out any act that the
Authority is authorized to perform under these Rules and Regulations.
(k) To promulgate such rules and regulations deemed necessary to properly administer
and enforce Chapter 11, Title XI, of the PMC and may exercise all other powers and
duties as are set forth in Chapter 11, Title XI, of the PMC, as well as those set forth in
the Colorado Marijuana Code and Subsection 5(f) of Section 16 of Article XVIII of
the Colorado Constitution. The Authority shall provide all proposed rules and
subsequent changes thereto to City Council for approval by Resolution.
201.6 In the event that any person, in the immediate presence of the Authority or within its sight
or hearing, while the Authority is in session during a hearing, commits a direct contempt
of the Authority by speech, gesture or conduct which disobeys a lawful order of the
Authority, shows gross disrespect to the Authority tending to bring the Authority into public
ridicule, or substantially interferes with the Authority's proceedings, the Authority may
hold such person in contempt. Contemptuous conduct by any principal, registered manager
or employee shall be imputed to the licensee.
201.7 The Authority may impose the following sanctions for contempt:
(a) Removal of the person committing the contempt from the proceedings, the hearing
room and its environs;
11 | Page
Edition 2
January 1, 2020
(b) Public censure, which shall be made a matter of the licensee's record and may be used
as an aggravating factor in determining any fine, suspension or revocation;
(c) A prohibition against the individual or licensee introducing into the record testimony,
documents, exhibits or other evidence;
(d) An order striking, disregarding and refusing to consider pleadings, applications,
documents, objections, testimony, exhibits or other evidence or arguments already
introduced by such person;
(e) A fine, enforced by suspension of the license until the fine is paid;
(f) Default of any motion, complaint or other action then pending against the licensee; or
(g) Denial of any application by the licensee then pending before the Authority.
201.8 Quorum and majority vote. A majority of the Board shall constitute a quorum for the
conduct of its business. All decisions of the Board shall be by majority vote of the Board
members present at a meeting where a quorum has been established.
201.9 The requirements and procedures set forth in the Colorado Code of Ethics, C.R.S. 24-18-
101 et seq. and C.R.S. 31-4-404 are hereby incorporated. The position of Board member
creates a public trust and fiduciary duty, and the Board member shall carry out his or her
duties for the benefit of the people of the city. A member of the Board who has a personal
or private interest in any matter proposed or pending before the Board shall disclose such
interest to the Board and shall not vote thereon and shall refrain from attempting to
influence the decisions of the other members of the Board in voting on the matter. A
member of the Board may vote notwithstanding this section if his or her participation is
necessary to obtain a quorum or otherwise enable the Board to act and if he or she complies
with the voluntary disclosure procedures under C.R.S. 24-18-110.
201.10 Actions taken by the Authority are subject to review by the courts pursuant to Rule 106 of
the Colorado Rules of Civil Procedure. Review must be applied for within twenty-eight
(28) days after the date of decision. Any person applying to the Court for review shall be
required to pay the cost of preparing a transcript of proceedings before the Authority
whenever such a transcript is necessary for purposes of the appeal.
12 | Page
Edition 2
January 1, 2020
Rule 202: Licenses.
202.1 Licensure Required. It is unlawful for any person to operate a retail marijuana establishment
in the city without obtaining a local license to operate. A valid license from the State of
Colorado is also required as provided by the CMC.
202.2 Relationship to Other Laws. The license requirements in these regulations shall be in
addition to, and not in lieu of, any other licensing and permitting requirements imposed by
any other federal, state, or local law. The license does not provide any exception, defense,
or immunity to any person in regard to any potential criminal liability the person may have
for the production, distribution, or possession of marijuana. Upon denial or revocation of a
state license, any license issued under these regulations shall be null and void. If a court of
competent jurisdiction determines that the issuance of local licenses violates federal law,
all licenses issued under these regulations shall be deemed immediately revoked by
operation of law, with no ground for appeal or other redress on behalf of the licensee.
202.3 No entitlement or vested right. No person shall have any entitlement or vested right to
licensing under these regulations. Operation of a retail marijuana establishment is a
revocable privilege and not a right in the city. The applicant bears the burden of proving
that all qualifications for licensure have been satisfied.
202.4 Classes of Licensure. The Authority may issue the following types of local licenses
authorized under the CMC:
(a) Retail marijuana store license;
(b) Retail marijuana cultivation facility license;
(c) Retail marijuana product manufacturing facility license; and
(d) Retail marijuana testing facility license.
202.5 Every license issued confers only a limited and conditional privilege subject to the
requirements, conditions, limitations and qualifications of these rules 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 Chapter 11, Title XI, of the
PMC, without any compensation to the licensee.
202.6 Every license approved or issued shall be subject to the future exercise of the reserved rights
13 | Page
Edition 2
January 1, 2020
of referendum and initiative, exercise of the options described in Section 16(5)(f) of Article
XVIII of the Colorado Constitution and Section 44-10-104, 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 these Rules and Regulations grants to any licensee any vested right to continue
operating 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.
202.7 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 44-10-104, C.R.S., then every license issued or approved, 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.
202.8 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
these rules and the PMC. No licensee shall exercise the privileges of any other license or
assign the privileges of its own license.
202.9 Term of license. Every license shall be valid for one (1) year from the date it is issued
unless the license is earlier suspended or revoked. Notwithstanding anything contained in
this article, a license has no vested right to renewal of a license, and no property right in
the renewal of a license.
202.10 No person shall operate a retail marijuana establishment unless he or she has first obtained
the following and maintains the same in full force and effect:
(a) A conditional use permit, issued by the Director of Planning and Community
Development, for the location of the proposed licensed premises;
(b) The necessary City sales and use tax license and excise tax license;
(c) The necessary State sales and use tax license and excise tax license;
(d) Ownership of, or a lease in effect on, the proposed licensed premises;
14 | Page
Edition 2
January 1, 2020
(e) A City license to operate any other business that will be conducted on the licensed
premises; and
(f) A conditional State license to operate a retail marijuana establishment.
15 | Page
Edition 2
January 1, 2020
Rule 300 Series: Application
Rule 301: Application Procedure.
301.1 Start Date. The Authority, at its discretion, shall determine the dates it will accept
applications for retail marijuana establishment licenses. The Authority will give notice by
publication in a newspaper of general circulation, at least fourteen (14) days prior to the
pre-application meeting date. The pre-application meeting date shall be at least fourteen
(14) days prior to the opening of any application period. The Authority will give notice by
publication in a newspaper of general circulation, at least fourteen (14) days prior to the
start of an application period. The application period shall run for thirty (30) days, unless
otherwise stated in the notice given by the Authority.
301.2 State Application Required. Filing a local application for a retail marijuana establishment
with the city does not constitute an application with the State of Colorado. A separate state
application process must be followed through the Colorado Department of Revenue
Marijuana Enforcement Division.
301.3 Pre-Licensing Process for Retail Marijuana Stores. Prior to submitting a formal application
for a retail marijuana store license, an applicant may submit an interest card to the
Authority. All prospective applicants are encouraged to attend a pre-licensing meeting prior
to submitting an application for a retail marijuana store license.
(a) Interest Card. The purpose of the form is to notify the city that you are interested in
filing an application and want to be notified of future pre-application meetings and
application openings. These forms can be obtained from the Clerk of the Authority or
applicants may submit their interest on the City of Pueblo Notify Me online system at
www.pueblo.us/RMJStores. The City of Pueblo will make reasonable efforts to
contact anyone submitting interest cards to notify of upcoming application periods or
meeting dates; however, submitting an interest card will not guarantee that notice will
be provided by the City. Those submitting interest cards are responsible for meeting
all application deadlines and requirements regardless of whether the City provided
them with personal notice of the same.
(b) Pre-Application Meeting. The purpose of this meeting is for the applicant to inform
the city of the size, scope and feasibility of the proposed retail marijuana establishment
and for the city to provide the applicant a more complete understanding of the licensing
process. Pre-application meetings are encouraged for all applicants.
16 | Page
Edition 2
January 1, 2020
301.4 Application Materials. All applications for retail marijuana establishment licenses shall be
made upon forms provided by the Authority, which may require any information, document
or photograph relevant to any requirement for a license under State law, the Pueblo
Municipal Code, these Rules and Regulations, or relevant to any condition that may be
imposed on the license, and shall include the requirements and supplemental materials as
attachments to the application as determined by the Authority.
301.5 The entire application shall be verified under oath by each principal in the applicant's
business. The registered manager and employees shall verify under oath the portions of the
application that pertain to each of them.
301.6 The applicant shall submit to the Authority the original application and eight (8) copies of
the application. Each copy shall include color photographs. The Authority shall provide
copies to the Police Department, the City's Department of Planning and Community
Development and the City's Law Department.
301.7 Complete Application. The city will not accept an incomplete application. An application
shall not be considered complete until the Authority has:
(a) Determined that all requirements of the application and required attachments have
been provided to the city;
(b) Background check of each person received, although the Authority in its discretion
may accept a State marijuana identification card in lieu of a city background check;
(c) Received all required plan approval forms from the applicant;
(1) For retail marijuana store facilities, the plan approval forms shall be required
within one hundred twenty (120) days of the application approval by the Authority.
The applicant may submit a written request for additional time to complete plan
approvals at least thirty (30) days prior to the expiration of the one hundred twenty
(120) days. Any such written request must state the reasons for the request and the
additional time necessary to complete the plan approvals. The Authority may approve
the request if it determines there was good cause for the delay, the applicant can
reasonably complete the plan approvals within the additional time requested, and the
additional time will not defeat the competitive application process.
(d) Received the local share of the application fee from the State of Colorado;
(e) Received any applicable fees from the applicant;
17 | Page
Edition 2
January 1, 2020
(f) Obtained all other information the Authority determines necessary to make a decision
whether to approve or deny the license application, or approve it with conditions; and
(g) Been shown a Conditional Use Permit issued by the Planning and Community
Development Department for the proposed property.
301.8 Waiver or Additional Requirements. The Authority may, at its discretion, waive or provide
additional time for specific submission requirements, or require the submission of
additional materials as may be useful in making a determination under these regulations.
To the extent any of the foregoing supplemental materials have been included with the
applicant’s state license application and forwarded to the city by the state licensing
authority, the Authority may rely upon the information forwarded from the state without
requiring resubmittal of the same materials in conjunction with the local license application.
301.9 The applicant has a continuing duty to notify the Authority of changes to any information
submitted in the application during the duration of the application process and license.
301.10 Amendments to application for retail marijuana stores. After an application is accepted as
complete, it may be amended or supplemented in writing before the end of the closing date
for accepting applications. No amendments or supplements will be accepted after the
application period closes. Each amendment or supplement shall be verified under oath by
each principal, and the registered manager and employees shall verify under oath the
portions of any amendment or supplement that pertain to each of them. The applicant shall
submit to the Authority the original of each amendment or supplement and eight (8) copies.
301.11 Amendments to applications for all other types of retail marijuana licenses. After an
application is accepted as complete, it may be amended or supplemented in writing before
the application is set for hearing, but each amendment or supplement shall be verified under
oath by each principal, and the registered manager and employees shall verify under oath
the portions of any amendment or supplement that pertain to each of them. The applicant
shall submit to the Authority the original of each amendment or supplement and eight (8)
copies.
Rule 302: Fees.
302.1 Authority and Process. The city is authorized to impose fees relating to the administration
and implementation of the ordinance and these regulations. At least annually, the amount
of fees charged pursuant to this rule shall be reviewed and, if necessary, adjusted to reflect
the direct and indirect costs incurred by the city in connection with the administration,
regulation, and enforcement of the ordinance. All fees are approved by the City Council
18 | Page
Edition 2
January 1, 2020
by resolution.
302.2 Operating Fees. An applicant for a new retail marijuana establishment license and for a
renewal shall pay to the city an operating fee at the time of license issuance. Other fees
may be imposed in the future as necessary for the city to recover the costs of the retail
marijuana establishment licensing and inspection programs.
302.3 Licensing Fee Schedule. The following fees shall apply to all retail marijuana establishment
licenses:
Application Fees
Application packet for new license $25.00
New Application* $2,500.00 or $250.00 as applicable
*The applicable amount is as determined by
the CMC and is to be received from
the State before issuance of a license.
Administrative Operating Fees
Late renewal fee $5,000.00
Transfer of location $1,500.00
Change of principals or ownership $1,500.00
Modification of premises $1,000.00
Change in operational plan $300.00
Registration of manager $100.00
Report of minor change $100.00
License extension fee $150.00 per 30 day period or portion thereof
Initial and Annual Operating Fees
Retail Marijuana Store $15,000.00
19 | Page
Edition 2
January 1, 2020
Retail Marijuana Cultivation
With a plant count between 1 and 3,600: $6,500.00
With a plant count between 3,601 and 10,200: $10,000.00
With a plant count of or over 10,201: $15,000.00
Retail Marijuana Product Manufacturing $15,000.00 first year;
$10,000.00 each year thereafter
Retail Marijuana testing $5,000.00
Permit Fees
Application or renewal of a centralized $500.00
distribution permit for a retail marijuana
cultivation
302.4 Zoning Fee Schedule. The following fees shall apply to all retail marijuana establishments
zoning for a conditional use permit:
Application and Renewal Fees for Conditional Use Permit
Retail Marijuana Store $5,000.00
Retail Marijuana Cultivation $5,000.00
Retail Marijuana Product Manufacturing $5,000.00
Retail Marijuana testing $2,500.00
302.5 The application fees above apply to each license applied for, and a business with multiple
applications must pay separate fees for each application. The appropriate fees must be paid
in conjunction with any application or request before the city will process or act upon the
forms submitted. All fees are nonrefundable in the entirety.
302.6 The initial and annual operating fees above apply to each license issued, and a business
20 | Page
Edition 2
January 1, 2020
with multiple locations must pay separate fees for each location. The appropriate fees must
be paid in conjunction with any license issued.
302.7 In addition to the foregoing fees, applicants and licensees shall pay the reasonable fees of
any governmental agency conducting any investigation, inspection, other licensing,
registration, fingerprinting, approval or permitting required under the Pueblo Municipal
Code, these Rules and Regulations, State law or State regulations.
302.8 The primary purpose of the fees provided in Rule 302 is to defray the costs of the particular
municipal services provided and not to defray the costs of the general services of municipal
government or to raise general revenues. The fees provided in Rule 302.3 and Rule 302.4
shall be reasonably related and proportional to the costs of the services provided and shall
not generate additional City revenue.
302.9 If any license or application is denied, approved but not issued, lapsed, abandoned,
withdrawn, surrendered, suspended, fined, revoked or otherwise sanctioned, no part of the
fees paid therefore shall be refunded to the applicant or licensee.
Rule 303: Relationship to State
303.1 Except as otherwise specifically provided herein, the requirements and procedures set forth
in the Colorado Marijuana Code are hereby incorporated. In the event of any conflict
between the provisions of these rules and the provisions of the Colorado Retail Marijuana
Code or any other applicable state or local law, the more restrictive provision shall control.
303.2 The Authority shall inform the State Retail Marijuana Licensing Authority of its
investigations, inspections and all decisions approving new licenses, issuing new licenses,
imposing conditions on licenses, renewing licenses, approving major changes in licenses,
information regarding minor changes, and sanctions imposed on licenses.
303.3 To the extent that such coordination is reasonably feasible and efficient, the Authority shall
coordinate its investigations and actions with the State Department of Revenue, but the
Authority reserves the right to act independently and to reach its own findings of fact,
conclusions of law and administrative actions regarding approvals, issuance, denials,
conditions, renewals, major changes, sanctions of licenses and any other matter related to
licenses, without regard to the findings of fact, conclusions of law and administrative
actions that the State may reach regarding the same licenses based on the same incident or
conduct.
21 | Page
Edition 2
January 1, 2020
303.4 The approval or issuance of a license shall not constitute a representation by the Authority
that the licensee is qualified for or will receive a State retail marijuana license.
22 | Page
Edition 2
January 1, 2020
Rule 400 Series: Licensing Procedures
Rule 401: Review Procedure.
The Authority shall consider and act upon all complete local license applications as authorized by
these Rules and Regulations.
401.1 Completeness Review. The Clerk to the Authority shall review applications for
completeness.
(a) Applicants must schedule an appointment with the Clerk to the Authority to review
the application for completeness.
(b) The Clerk to the Authority shall notify the applicant of the results of its review as to
the application’s completeness or shall accept the application as complete. The Clerk
may provide a list of items missing from the application but shall not be required to do
so.
401.2 Authority’s review of application. All applications shall be reviewed by the Authority at a
public meeting for compliance with the minimum standards set forth in Rule 401.3.
Applicants must demonstrate by a preponderance of the evidence that the requirements of
the initial review set forth in Rule 401.3 are satisfied prior to the issuance of a license.
Applicants who fail to meet the minimum requirements shall be denied a license. For retail
marijuana store applications, following the initial review in Rule 401.3 and applicant’s
satisfaction of Rule 401.3, the application will also be reviewed and issued points according
to Rule 401.4. Points will be used to competitively determine the issuance of licenses. If an
applicant for a retail marijuana store license fails to meet the minimum requirements set
forth in Rule 401.3, the license shall be denied.
401.3 Initial review. Within ninety (90) days following the date that the Clerk to the Authority
accepts an application for a new retail marijuana license as complete, or, in the case of an
application for a retail marijuana store license, within thirty (30) days following the closing
of the application period, the Authority shall review the applications at a public meeting
and issue its determination and findings regarding requirements (a) through (u) below.
Failure to demonstrate compliance with these requirements shall be grounds for denial of
the license.
(a) The proposed licensed premises are located in a fixed, nonportable building;
23 | Page
Edition 2
January 1, 2020
(b) The premises are not licensed or operated as an establishment for the sale or service of
alcohol beverages as defined in Section 44-3-103, 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;
(c) The premises are not licensed or operated as a retail food establishment or wholesale
food registrant;
(d) There is sufficient parking available on the proposed adjacent grounds given the size
of the licensed premises and the number of employees and customers that can
reasonably be expected to be present at any given time;
(e) The proposed licensed premises and adjacent grounds comply with all zoning, health,
building, plumbing, mechanical, fire and other codes, statutes and ordinances, as
shown by completed inspections and plan approvals from the City's Department of
Planning and Community Development, City’s Department of Transportation, City’s
Department of Public Works, City’s Department of Stormwater, City’s Department of
Wastewater, Regional Building Department, Pueblo Fire Department and Pueblo City-
County Health Department as evidenced by submission of plan approval forms. The
applicant for a retail marijuana store license is not required to submit the inspections
and plan approvals for the initial review, but instead must submit the inspections and
plan approvals within one hundred twenty (120) days of application approval by the
Authority, pursuant to Rule 401.12;
(f) 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 storage and/or
cultivation;
(g) No portion of the building in which the proposed licensed premises are located is
utilized as a residence;
(h) The area of the proposed licensed premises is equipped with a ventilation and filtration
system that is sufficient in type and capacity to eliminate marijuana odors emanating
from the interior to the exterior discernible by a reasonable person at the property line.
For facilities which are located on the same property as another use, the ventilation
and filtration system must be sufficient to eliminate marijuana odors discernible by a
reasonable person at the exterior of the building. The ventilation system must be
inspected and approved by the Pueblo Regional Building Department;
(i) Evidence of Lawful Possession. All applicants for retail marijuana establishment
24 | Page
Edition 2
January 1, 2020
licensure must demonstrate proof of lawful possession of the premises to be licensed
at the time of application. Evidence of lawful possession consists of properly executed
deeds, leases, or other written documentation the Authority may consider satisfactory.
Lease agreements contingent upon the applicant being approved for licensure are
acceptable to show the applicant’s lawful possession of the intended premises;
(j) The applicant, principals, registered manager and employees are all over the age of
twenty one (21);
(k) The applicant, principals, registered manager and employees have not been determined
by any retail marijuana licensing authority, any other licensing board within the State,
or the Colorado Department of Revenue to not be persons of good character and record
within the preceding three (3) years;
(l) The applicant, principals, registered manager and employees have not discharged a
sentence for a conviction of a felony in the five (5) years immediately preceding the
application, nor are they currently subject to a deferred judgment or sentence for a
felony;
(m) The applicant, principals, financiers and registered manager have not held an interest
in any liquor license, medical marijuana license, retail marijuana license or other
license issued by any City, County or State that has been revoked, suspended, or fined
within the preceding two (2) years;
(n) The applicant, principals, employees, financiers and registered manager have not had
their authority, if any, to act as a medical marijuana primary caregiver revoked by the
State within the preceding two (2) years;
(o) The applicant, principals, financiers and registered manager are not in default on any
City, county, State or federal taxes, fees, fines or charges, do not have any outstanding
warrants for their arrest, and do not have any outstanding liens or judgments payable
to the City;
(p) The applicant, principals and registered manager are not in default on any student loan;
(q) The applicant, principals, registered manager and employees all hold valid
occupational licenses and registrations for retail marijuana issued by the State of
Colorado;
(r) The applicant, principals and registered manager do not have any orders or judgments
25 | Page
Edition 2
January 1, 2020
against them for child support in default or arrears;
(s) The applicant, principals and registered manager are not peace officers or prosecuting
attorneys; and
(t) The State of Colorado has issued a conditional license for a retail marijuana
establishment.
401.4 Point review. Applications for retail marijuana stores, once approved for initial review as
required in Rule 401.3 above, shall be reviewed by the Authority, at a public meeting. The
Authority shall award points according to the requirements below, as described in detail in
(a) through (l). A minimum of 50% of the total available points is required to obtain a
license (the “minimum point standard”). If the minimum points are not met, regardless of
the number of licenses available, the application will be denied. The applicant is responsible
for identifying and demonstrating the point criteria for which they are applying. The
Authority will not presume proposed qualifications without supporting documentation.
Permanency of Points. With the exception of the business plan and operating plan, retail
marijuana store applicants will be held accountable for any information submitted which
may result in points being awarded in the point system review process. Such criteria are
subject to reevaluation during the inspection and license renewal processes, and any failure
of the applicant to adhere in a timely manner to the criteria by which points were awarded
may result in penalties including, but not limited to, revocation of the store license.
26 | Page
Edition 2
January 1, 2020
Requirement Qualifier Points
(a) Experience operating a licensed Under 3 Years +1
marijuana establishment in
Colorado 3-5 Years +2
Over 5 Years +3
(b) Experience operating a licensed Under 3 Years +2
marijuana establishment in
Colorado without administrative 3-5 Years +4
penalties, suspension, fined or
license revocation Over 5 Years +6
(c) Applicant and manager criminal No felony convictions +2
background history (Cumulative)
No pending charges +2
No drug-related misdemeanor +2
convictions
(d) Marijuana Regulation Education Demonstrate education pertaining +2
to the rules and regulations of
operating a marijuana business.
(e) Demonstrates enhanced security in Deter criminal activity and +1 to +10
excess of the minimum minimize police supervision of
requirements. premises
27 | Page
Edition 2
January 1, 2020
(f) Operating Plan Ensure adequate staffing, +1 to +10
security, employee training,
consumer education, and
compliance with state and local
laws.
(g) Business Plan Define scope of planning and +1 to +10
capital improvements, estimate
revenue and expenses, and
demonstrate ability to operate in
highly regulated industry.
(h) Community Involvement Demonstrate how the business, +1 to +10
applicant, managers, and
principal will be involved in the
community
(i) Local residency in Pueblo County Applicant +2
(Cumulative)
Manager +2
(j) Local residency in the City of Applicant +2
Pueblo (in addition to local
residency in Pueblo County) Manager +2
(Cumulative)
(k) Needs and desires of the Complete neighborhood survey +1
neighborhood (Cumulative)
Majority of the neighborhood +2
responses are positive
28 | Page
Edition 2
January 1, 2020
(l) Experience operating a Medical Center located within the City of +5
Marijuana Center Pueblo
Maximum Total Score 73
(a) Experience Requirement. Points will be awarded for experience operating a marijuana
business in Colorado. In evaluating an applicant’s experience level and history as an
operator of a licensed marijuana establishment, the Authority will apply the following
standards:
(1) Operating experience is defined as an individual with an active ownership or
managerial role who made administrative decisions for the establishment.
(2) The applicant’s experience must demonstrate knowledge of the business practices
and protocols for a retail marijuana store, such as security requirements,
awareness of limited access areas, administration of the marijuana inventory
tracking system, and understanding of applicable laws and regulations for the
industry.
(3) Only the industry experience of those members of the ownership group with at
least a ten percent (10%) ownership interest in the business entity applying for
licensure will be considered.
(b) Administrative Penalties. In evaluating an applicant’s history of operating a licensed
marijuana establishment without administrative penalties, the Authority will review
property histories, police reports, and other relevant documentation to determine
whether the applicant, or an establishment the applicant has operated or managed, has
previously been:
(1) Subject to a license suspension or revocation;
(2) Fined or charged with an administrative penalty; or
(3) Received a court summons related to the operation of the licensed establishment.
(c) Applicant and manager criminal background history. All applicants and managers
must comply with the requirements set forth in Rules 401.3 (l) and (m) for criminal
29 | Page
Edition 2
January 1, 2020
background history; however, applicants and managers that have never had felony
convictions, do not have any pending charges against them, nor have any drug-related
misdemeanor convictions will receive points. These points shall require all applicants
and all managers to comply in order to obtain points.
(d) Marijuana Regulation Education. The applicant, principal or manager must
demonstrate they are trained in, and able to comply with, the requirements of State and
Local laws pertaining to retail marijuana establishments. In determining whether such
persons have shown sufficient training, the Authority may consider, among other
things, the role that the individual will play in operating the establishment, the
completion of state or industry-approved courses on how to comply with state and
local laws and regulations regarding retail marijuana establishments, and the length of
time that has passed since the training.
(e) Security Plan. All applicants must include a security plan, in compliance with Rule
812.1, as part of their application package, which will be reviewed by the Authority in
conjunction with members of the Pueblo Police Department. If the applicant’s plan is
able to sufficiently demonstrate security measures in excess of the minimum
requirements set forth in city and state regulations, the applicant shall be awarded
additional points for each instance of enhanced security, where up to ten (10) points
may be awarded.
At least a quorum of the Authority will review all security plans submitted, and shall
assign a score of between one and ten points. The final score shall be the average of
the scores from each of Authority members that reviewed the security plans, rounded
to the nearest hundredth. Such enhanced security measures shall include, but are not
limited to, steel security doors, improved video surveillance system capabilities, and
advanced alarm systems.
(f) Operating Plan. The operating plan is to enumerate the specific means through which
the applicant intends to comply with the city and state regulatory requirements and
shall comply with the requirements set forth in Rule 801.3. The applicant shall be
awarded points for fulfillment of each qualifier, where up to ten (10) points may be
awarded.
At least a quorum of the Authority will review all operating plans submitted and shall
assign a score of between one and ten points. The final score shall be the average of the
scores from each of Authority members that reviewed the operating plans, rounded to
the nearest hundredth. The content by which the Authority will evaluate the operating
plans may include, but is not limited to the following: staffing schedules to ensure
30 | Page
Edition 2
January 1, 2020
adequate coverage and experience during all business hours; employee training
programs for security, product knowledge and safety; proactive consumer education and
community outreach practices; and an operations manual demonstrating compliance
with state and city retail marijuana laws.
(g) Business Plan. The business plan is to demonstrate the applicant’s ability to
successfully operate in a highly regulated industry over an extended period of time and
shall comply with the minimum requirements set forth in Rule 801.4. The applicant
shall be awarded points for fulfillment of each qualifier, where up to ten (10) points
may be awarded.
At least a quorum of the Authority will review all business plans submitted and shall
assign a score of between one and ten points. The final score shall be the average of the
scores from each of Authority members that reviewed the business plans, rounded to
the nearest hundredth. The content by which the Authority will evaluate business plans
may include, but is not limited to the following: business goals, plans for development;
plans for capital improvements; an estimate of first-year revenues; an estimate of first-
year operating expenses and evidence that the applicant will have the resources
necessary to pay for those expenses; and a description of the applicant’s history of
compliance in a highly regulated industry.
(h) Community Involvement. The community involvement plan is to demonstrate how
the applicant, owner and manager are responsible citizens who give back to the
community. Examples include but are not limited to creation or involvement in
community drug education programs, support of community programs, support
community programs geared to eliminate marijuana use by kids and young adults, etc.
Programs geared towards deterring underage usage of marijuana, addiction, drug
rehabilitation, or other community involvement that is drug related is highly
encouraged. The applicant shall be awarded points for each instance of community
involvement, where up to ten (10) points may be awarded.
At least a quorum of the Authority will review all community involvement plans
submitted and shall assign a score of between one and ten points. The final score shall
be the average of the scores from each of Authority members that reviewed the
community involvement plans, rounded to the nearest hundredth.
(i) & (j) Local residency of employees, applicants and managers. Each applicant, and those
applicants that will be hiring employees and managers whose primary home is in
Pueblo will be granted points. When determining whether an employee is a resident,
the following factors will be considered:
31 | Page
Edition 2
January 1, 2020
(1) Pueblo Resident Defined. For the purposes of a local residence points, Pueblo
Residency is defined as living in Pueblo County and the City of Pueblo. All
residents of the City of Pueblo shall receive the points for living in Pueblo County
as well as the points for living in the City of Pueblo.
(2) Primary Home Defined. The location of an Applicant’s principal or primary home
or place of abode (“primary home”) may establish Pueblo residency. An
Applicant’s primary home is that home or place in which a person’s habitation is
fixed and to which the person, whenever absent, has the present intention of
returning after a departure or absence therefrom, regardless of the duration of such
absence. A primary home is a permanent building or part of a building and may
include, by way of example, a house, condominium, apartment, room in a house,
or manufactured housing. No rental property, vacant lot, vacant house or cabin,
or other premises used solely for business purposes shall be considered a primary
home.
(3) Reliable Indicators That an Applicant’s Primary Home is in Pueblo. The
following types of evidence to be generally reliable indicators that a person’s
primary home is in Pueblo.
a. Evidence of business pursuits, place of employment, income sources,
residence for income or other tax purposes, age, residence of parents, spouse,
and children, if any, leaseholds, sites of personal and real property, existence
of any other residences outside of Pueblo and the amount of time spent at each
such residence, and any motor vehicle or vessel registration;
b. Duly authenticated copies of the following documents may be taken into
account: A current driver’s license with address, recent property tax receipts,
copies of recent income tax returns where a Pueblo mailing address is listed
as the primary address, current voter registration cards, current motor vehicle
or vessel registrations, and other public records evidencing place of abode or
employment; and
c. Other types of reliable evidence as determined by the Authority.
(4) Other Considerations for Residency. The following circumstances may be
considered when determining Pueblo residency:
32 | Page
Edition 2
January 1, 2020
a. Members of the armed services of the United States or any nation allied with
the United States who are on active duty in Pueblo under permanent orders
and their spouses;
b. Personnel in the diplomatic service of any nation recognized by the United
States who are assigned to duty in Pueblo and their spouses; and
c. Full-time students who are enrolled in any accredited trade school, college, or
university in Pueblo. The temporary absence of such student from Pueblo,
while the student is still enrolled at any such trade school, college, or
university, shall not be deemed to terminate their residency. A student shall be
deemed “full-time” if considered full-time pursuant to the rules or policy of
the educational institution he or she is attending.
d. Entering Armed Forces Does Not Terminate Residency. An individual who is
a Pueblo resident pursuant to this rule does not terminate Pueblo residency
upon entering the armed services of the United States. A member of the armed
services on active duty who resided in Pueblo at the time the person entered
military service and the person’s spouse are presumed to retain their status as
residents of Pueblo throughout the member’s active duty in the service,
regardless of where stationed or for how long.
(k) Needs and desires of the neighborhood. Each applicant must submit a neighborhood
survey, on a form provided by the Clerk to the Authority, with the needs and desires
of the neighborhood within three hundred (300) feet of the outer boundary of the retail
marijuana store property. If the survey reveals that a majority of the neighborhood
responds favorably to the establishment of a retail marijuana store, the applicant will
be awarded additional points.
(l) Medical Marijuana Center ownership experience Requirement. Points will be awarded
for experience operating a medical marijuana center in the City of Pueblo. In
evaluating an applicant’s history as an owner of a licensed medical marijuana center
establishment, the Authority will apply the following standards:
(1) Operating experience is defined as an individual with an active ownership role for
the establishment.
(2) Only the medical marijuana store experience of an owner with at least a fifty
percent (50%) ownership interest in the business entity applying for retail
marijuana licensure will be considered.
33 | Page
Edition 2
January 1, 2020
401.5 For retail marijuana stores, the Authority’s determination and findings shall:
(a) Approve applications, with or without conditions, to the four (4) qualifying applicants
in each retail marijuana district that meet the minimum point standards and have the
four (4) highest point totals as determined by the Authority pursuant to Rule 401.4. In
the event that two or more applicants applying for licensure in the same retail
marijuana district receive the same total score, and the applicants cannot all be issued
a license, the Authority shall first review the points awarded, without rounding. If
there is still a tie after removing rounding, the Authority shall select the applicants,
by lottery, that will be awarded a retail marijuana store application approval from the
applicants that have tied for application approval.
(b) The Authority shall not issue a retail marijuana store license until the time to appeal
the application approval has expired and all conditions imposed on the application
approval, if any, have been satisfied.
(c) Failure of the applicant to meet the conditions imposed, if any, within the time frame
specified by the Authority for the application approval shall result in a forfeiture of the
application approval.
(d) The applications that meet the initial review per Rule 401.3 and the minimum point
standard per Rule 401.4, but are not chosen as one of the four (4) qualifying applicants
in each retail marijuana district, shall be recorded by the Authority and ranked based
upon point totals in each retail marijuana district. These records shall be maintained
by the Authority for six (6) months from the date of the public meeting at which
qualified applicants were selected. In the event a qualifying applicant withdraws or
forfeits the application approval, the next highest scoring applicant for that retail
marijuana district shall be approved as a qualifying applicant per the original
application. The newly qualified applicant must demonstrate that the original
application is still in full effect, but may amend certain provisions to satisfy changed
conditions subject to the Authority’s approval.
(e) Rules 401.8, 401.9 and 401.11 shall not apply to retail marijuana store license
applications.
401.6 For all licenses except retail marijuana stores, the Authority's administrative determination
and findings shall:
(a) State that the application appears to show a prima facie case for approval of a license,
34 | Page
Edition 2
January 1, 2020
state any concerns that the Authority may have, and direct the applicant to set a hearing
under Rule 601.1; or
(b) State that the application does not appear to show a prima facie case for approval of a
license, state the deficiencies, and indicate that the applicant has a right to appeal the
administrative determination to the Authority under Rule 601.1.
401.7 The Authority shall notify the applicant in writing of its administrative determination and
findings for the initial and points review by first-class U.S. mail addressed to the applicant
at the address shown on the application.
401.8 If the administrative determination provided in Rule 401.2 states that the application
appears to show a prima facie case for approval of a license, the applicant shall, within
twenty (20) days of the date the Authority mailed its administrative determination and
findings to the applicant, pursue one (1) of the following options, and failure to do so shall
constitute a withdrawal of the application:
(a) Set the application for a hearing under Rule 601.1 as provided in Rule 501; or
(b) Request from the Authority in writing a continuance of the setting of the hearing under
Rule 601.1 for no more than one hundred twenty (120) days from the date the
Authority mailed its administrative determination and findings to the applicant, in
order to satisfy any concerns stated in the administrative determination and findings,
if any. Failure of the applicant to set the application for a hearing within one hundred
twenty (120) days from the date the Authority mailed its administrative determination
and findings to the applicant, in the manner provided in Rule 501, shall constitute a
withdrawal of the application.
401.9 If the administrative determination provided in Rule 401.2 states that the application does
not appear to show a prima facie case for approval of a license, the applicant shall, within
twenty (20) days of the date the Authority mailed its administrative determination and
findings to the applicant, pursue one (1) of the following options, and failure to do so shall
constitute a withdrawal of the application:
(a) Set the application for a hearing under Rule 601.1 as provided in Rule 501; or
(b) Request from the Authority in writing a continuance of the setting of the hearing under
Rule 601.1 for no more than one hundred twenty (120) days from the date the
Authority mailed its administrative determination and findings to the applicant, in
order to satisfy any concerns stated in the administrative determination and findings,
35 | Page
Edition 2
January 1, 2020
if any. Failure of the applicant to set the application for a hearing within one hundred
twenty (120) days from the date the Authority mailed its administrative determination
and findings to the applicant, in the manner provided in Rule 501, shall constitute a
withdrawal of the application.
401.10 Withdrawal of an application during the process provided for in Rule Series 400, shall not
constitute a denial of the application, and shall not prevent the applicant from re-submitting
its application upon payment of a new application fee.
401.11 The determination and findings made on the Authority's administrative review of the
application under Rule 401.2 shall not be binding on the Authority or any person who has
standing at a hearing under Rule 601.1, and any matter that the administrative determination
and findings state has been met, has not been met, or which the determination and findings
do not address, may be addressed in full at the hearing.
401.12 For a retail marijuana store license, the applicant must submit the required plan approval
forms to the Clerk within one hundred twenty (120) days of the application approval by the
Authority, unless otherwise approved for an extension according to Rule 301.7(c)(1). Upon
Clerk’s receipt of the plan approval forms, a date for the license hearing shall be set
pursuant to Rule 501.5.
36 | Page
Edition 2
January 1, 2020
Rule 500 Series: Hearing Procedures
Rule 501: Local License Hearing Notice Requirements
501.1 Notice for hearings on applications for new licenses, denial of a new license, renewals of
licenses and approval of major changes shall be given to the public in the manner prescribed
by State law by posting the proposed premises and publishing a notice in a newspaper of
general circulation at least fifteen (15) days before the hearing, stating the name of the
applicant, the address of the proposed licensed premises and the type of license applied for.
Notice for public meeting on applications for review of retail marijuana store applications
shall be given to the public by posting the proposed premises and publishing a notice in a
newspaper of general circulation at least fifteen (15) days before the hearing, stating the
name of the applicant, the address of the proposed licensed premises and the type of license
applied for.
501.2 All notices shall state the date, time and place of the hearing, the name of the applicant or
licensee, the address of the proposed or licensed premises, the date, time and place of the
hearing, and the issue before the Authority.
501.3 In conjunction with the Clerk of the Authority, the applicant shall have the responsibility
to set the matter for a hearing, post the premises with notice provided by the Clerk of the
Authority and provide an affidavit of the posting of the premises. The Clerk of the
Authority shall have the responsibility to provide the poster that shall be published on the
premises, publish notices, and provide a publisher's affidavit of publication.
501.4 Failure of an applicant to properly post the premises with notice of the hearing as provided
in these rules and regulations, and provide proper affidavits of the same shall deprive the
Authority to hold a hearing on the application.
501.5 Applicants for a new license seeking a hearing under Rule 601.1 shall have the sole
responsibility to:
(a) Conduct the setting of the hearing with the Clerk as prescribed in Rule 601.1, except
that for retail marijuana store licenses, the setting of the hearing will be made upon
submission of plan approvals to the Clerk;
(b) Select a date for the hearing that is not less than thirty (30) and no more than ninety
(90) days from the day of the setting; and
37 | Page
Edition 2
January 1, 2020
(c) Post notice on the proposed premises as required in these rules and regulations.
501.6 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 Rule 501 shall constitute
withdrawal of the application. Withdrawal of an application under Rule 501 shall not
constitute a denial of the application and shall not prevent the applicant from resubmitting
its application upon payment of a new application fee.
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, the
procedures in Chapter 7 of Title I, Pueblo Municipal Code, Article 10 of Title 44, 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.
502.2 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 these Rules, 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.
502.3 After an application has been filed, a hearing on the application has been set and notice has
been published and posted in compliance with these rules and regulations, any withdrawal
of the application by the applicant shall constitute a denial of the license, unless the City
stipulates that the withdrawal shall not constitute such a denial.
502.4 The Authority may hear and decide motions.
502.5 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.
502.6 The Authority may join various pending matters concerning the same license in a single
hearing.
38 | Page
Edition 2
January 1, 2020
502.7 Every decision of the Authority shall be in writing, stating the reasons therefore, and shall
be made within thirty (30) days after the date of the conclusion of the public hearing. A
copy of such decision shall be sent to the applicant at the address shown in the application
or license.
Rule 503: License Hearing Discovery and Subpoenas.
503.1 Any complaint or motion for sanctions shall contain a summary of the legal and factual
grounds for the same.
503.2 Every party who has standing to be heard at a hearing shall provide a list of witnesses and
exhibits to every other party who has standing, along with copies of the exhibits, at least
ten (10) days before the hearing.
503.3 Each party shall provide the other parties who have standing with copies of any statements
or reports relevant to the matter.
503.4 Each party shall provide to other parties who have standing copies of all documents filed
with the Authority.
503.5 No party shall be entitled to any additional discovery and the Authority shall not order any
further discovery.
503.6 Subpoenas for the attendance of witnesses with or without documents and other tangible
things shall be issued as provided in Chapter 7, Title I, Pueblo Municipal Code.
Rule 504: License Hearing Burden of Proof.
504.1 In any proceeding under these rules and regulations to obtain approval or issuance of a
license, renewal of a license, concerning denial of a new license, or to obtain approval for
any new principal, registered manager or any major change, the applicant or licensee shall
have the burden to prove by a preponderance of the evidence: (1) his or her right to such
license; and (2) that there is no good cause for denial of the license or approval.
504.2 In any proceeding under these rules and regulations in which any person seeks to impose a
condition on a license, the person seeking to impose the condition shall have the burden to
prove by a preponderance of the evidence that the condition is necessary to protect public
health, safety or welfare. Notwithstanding the foregoing, the Authority may, on its own
39 | Page
Edition 2
January 1, 2020
motion, in any hearing for a new license, transfer of a license to a new location, or transfer
of a license to a new licensee, impose a condition on a license where it finds by a
preponderance of the evidence that such condition is necessary to protect public health,
safety or welfare.
504.3 In any proceeding under these rules and regulations to impose any sanction against a
license, the City shall have the burden to prove every allegation necessary to impose a
sanction by a preponderance of the evidence.
Rule 505: License Hearing Evidence.
505.1 The Colorado Rules of Evidence and the common law rules of evidence shall not apply to
hearings under these rules and regulations. The Authority may accept into evidence any
testimony or exhibit and give such evidence the weight that the Authority believes it
deserves.
505.2 The Authority may accept hearsay and multiple-hearsay testimony and may base its
decision solely on such hearsay if such hearsay is reasonably reliable and trustworthy and
has probative value accepted by reasonable and prudent persons in the conduct of their
affairs. The Authority shall not be required to make a finding that the hearsay meets this
standard. If the Authority admits the hearsay, it shall be conclusively presumed that the
hearsay met this standard unless the Authority makes findings to the contrary.
505.3 The Authority shall have the authority to exclude testimony and other evidence as
irrelevant, cumulative or on the ground that the witness or exhibit was not disclosed ten
(10) days prior to the hearing.
505.4 The Authority may take administrative notice of any matter contained in its file.
505.5 The Authority may delegate to the chair or another member of the Authority the authority
to make procedural and evidentiary rulings at any hearing, but every member of the
Authority present shall vote on the findings and conclusions at the conclusion of the
hearing.
Rule 506: Standing.
506.1 At any hearing for issuance of a new license, for denial of a new license, for renewal or for
any major change in the license, only the following parties shall have standing to be heard:
40 | Page
Edition 2
January 1, 2020
(a) The applicant or licensee;
(b) Any person who resides within a one-half (½) mile radius of the adjacent grounds of
the proposed or licensed premises;
(c) Any person who owns any real property within a one-half (½) mile radius of the
adjacent grounds of the proposed or licensed premises;
(d) Any person who owns any business within a one-half (½) mile radius of the adjacent
grounds of the proposed or licensed premises; and
(e) The City of Pueblo.
506.2 At all other hearings, only the applicant or licensee and the City of Pueblo shall have
standing.
41 | Page
Edition 2
January 1, 2020
Rule 600 Series: Local License Hearing
Rule 601: Local License Hearing
601.1 Hearing on application for new license or the denial of a new retail marijuana license.
(a) Before approving or issuing any retail marijuana license, and upon request of any
applicant whose application has been denied administratively for failure to show a
prima facie case for approval of a license, the Authority shall hold a hearing at which
it shall hear evidence relevant to:
(1) Whether the applicant already holds one retail marijuana license in the same class
in the City of Pueblo, and the application is for another retail marijuana license of
the same class. Issuance of a license in this instance shall be according to Rule
601.3.
(2) Whether the applicant has met the requirements necessary to obtain a retail
marijuana license in Rule 800 Series;
(3) The applicant, the applicant's financiers, principals, registered manager, and
employees are persons of good character and record, according to Rule 804.2;
(4) The applicant, principals registered manager and employees are trained or
experienced in, and able to comply with, the requirements of this Chapter and state
law pertaining to retail marijuana establishments, according to Rule 804.3.
(5) Whether there is good cause for denial of the license as defined in Rule 1106.1;
and
(6) Whether conditions should be imposed on the license as provided in Rule 601.4.
(b) The issues at the hearing shall be limited to the foregoing and shall not include whether
persons favor or approve of retail marijuana or favor or oppose retail marijuana
licenses in general.
(c) Approval. If the Authority finds at the hearing that the applicant has shown by a
preponderance of the evidence that it has met the requirements necessary for issuance
of a retail marijuana license and that there is no good cause to deny the license, the
Authority shall approve the license or approve the license with conditions as provided
42 | Page
Edition 2
January 1, 2020
in Rule 601.4.
(d) If the Authority finds at the hearing that the applicant has not shown by a
preponderance of the evidence that it has met the requirements for issuance of a retail
marijuana license or has failed to show by a preponderance of the evidence that there
is no good cause to deny the license, the Authority shall deny the license.
601.2 Additional rules for hearings on application for new license or the denial of a new retail
marijuana store license.
(a) The Marijuana Authority may award a retail marijuana store license with or without
conditions. Upon the award of a retail marijuana store license with conditions, the
applicant may, within seven (7) days of the notice of award, request a hearing to get
clarification on or appeal the conditions set by the Authority by submitting a written
request for hearing to the Clerk of the Marijuana Authority. If the applicant timely
submits a written request for hearing, the time to complete the conditions set forth in
the award shall be stayed until the appeal is resolved by the Authority. Failure to
request the hearing within seven (7) days shall waive the applicant’s right to a hearing.
(b) Any applicant whose application for a retail marijuana store license has been denied
shall have twenty eight (28) days after the date of the final decision of the Marijuana
Authority to file a complaint seeking review of such decision by the district court under
Rule 106 of the Colorado Rules of Civil Procedure. Failure to timely appeal the
decision is a waiver of the licensee’s or applicant’s right to contest the denial of the
license.
601.3 Limitation on Number of Licenses per Person. No person may hold an ownership interest
in more than one (1) retail marijuana store located throughout the city. While a person may
submit an unlimited number of applications for retail marijuana store licensure, only one
(1) license may be awarded to any particular owner. If the licensee or principals already
hold one retail marijuana license for cultivation, product manufacturing or testing in the
City of Pueblo, and the application is for another retail marijuana license of the same class,
issuance of a second license will not significantly restrain competition among licensees of
that class. Ownership interest shall be considered if an owner takes an active ownership
role or managerial role in the business or owns more than ten percent (10%) interest in the
business.
601.4 Conditions on licenses.
(a) At the time that an application is approved, a new license is approved, when an existing
43 | Page
Edition 2
January 1, 2020
license is renewed, at any time that a sanction other than revocation is imposed, or at
any time that the Authority approves a major change to a license, licensed premises or
adjacent grounds, the Authority may impose on the license, after a hearing, any
condition related to the license, licensed premises or adjacent grounds, that is
reasonably necessary to protect public health, safety, or welfare, including but not
limited to the following:
(1) Additional security requirements, including but not limited to security guards, steel
doors, steel window coverings and surveillance cameras;
(2) Additional record keeping requirements;
(3) Limits and requirements on parking and traffic flow;
(4) Requirements for walls, doors, windows, locks and fences on the licensed premises
and adjacent premises;
(5) Requirements and limits on ventilation and lighting;
(6) Limits or requirements on areas on the licensed premises that are closed, locked or
not open to public view;
(7) Limits on noise inside the licensed premises or on the adjacent grounds;
(8) Prohibitions on certain conduct on the premises;
(9) Sanitary requirements;
(10) Limits on hours of operation;
(11) Requirements for screening new and existing employees;
(12) A requirement that the licensee temporarily close the licensed premises until
certain changes, inspections or approvals are made; and
(13) A limit on the square footage of the licensed premises.
(b) The Authority may impose the foregoing conditions in lieu of or in addition to any
sanctions that it may impose, except where the sanction is revocation.
44 | Page
Edition 2
January 1, 2020
(c) Any condition imposed on a license shall be placed on the face of the license
certificate.
601.5 Appeal. Actions taken by the Authority are subject to review by the courts pursuant to Rule
106 of the Colorado Rules of Civil Procedure. Review must be applied for within twenty-
eight (28) days after the date of decision. Any person applying to the Court for review shall
be required to pay the cost of preparing a transcript of proceedings before the Authority
whenever such a transcript is necessary for purposes of the appeal.
601.6 The requirements of these rules and regulations imposed on any applicant shall also apply
to any licensee. The requirements of these rules and regulations imposed on any proposed
licensed premises, proposed adjacent grounds or proposed location shall also apply to the
actual licensed premises, actual adjacent grounds and actual locations, respectively.
601.7 Every licensee and its principals, registered managers and employees have a continuing
duty to ensure that the requirements of these rules and regulations continue to be met after
the license is issued and at all times that the license remains in effect.
Rule 602: Incomplete Premises.
602.1 If the proposed licensed premises have not been completed, inspected and approved as
required in these rules and regulations 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:
(a) 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
(b) Plans, specifications, drawings and other documents showing that the proposed
licensed premises and adjacent grounds will comply with the requirements of these
rules and regulations when completed and inspected.
602.2 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 these rules
and regulations have been obtained and submitted to the Authority.
602.3 In the event that the license is approved, but the premises are not completed, inspected and
approved as required in these rules and regulations within one hundred twenty (120) days
45 | Page
Edition 2
January 1, 2020
of approval, the approval shall lapse and the license shall not be issued, unless otherwise
extended by the Authority.
602.4 The applicant may submit a written request for additional time to complete the premises,
but must do so at least thirty (30) days prior to the expiration of the one hundred twenty
(120) days. Any such written request must state the reasons for the request and the
additional time necessary to complete the premises. The Authority may approve the request
if it determines there was good cause for the delay, the applicant can reasonably complete
the premises within the additional time requested, and the additional time will not defeat
the competitive application process
Rule 603: License Issuance.
603.1 Before issuing a local license for a retail marijuana establishment, the Authority shall
determine that the applicant has satisfied all of the following requirements:
(a) The applicant has satisfied all requirements in Rule 800 Series;
(b) The applicant has provided documentation for compliance with Rule 800 Series,
depending on the type of license, and the documents have been approved by the
necessary agencies (inspection forms);
(c) The application is complete, including all required and requested supplemental
documentation;
(d) The city’s portion of the application fee has been received from the state, and the
applicant has paid the operating fee and any applicable additional fees;
(e) The area where the proposed activity will take place on the licensed premises is the
same as shown on the application documents and construction plans for the associated
license; and
(f) No outstanding violations of city regulations or licensing requirements exist on the
property where the proposed establishment is located.
46 | Page
Edition 2
January 1, 2020
Rule 700 Series: License Requirements
Rule 701: Term of License - Renewals and Expirations.
701.1 Term of License. Every license shall be valid for one (1) year from the date it is issued
unless the license is earlier suspended or revoked. A license has no vested right to renewal
of a license, and no property right in the renewal of a license.
701.2 Renewal of License. Renewal of any local license is subject to the laws and regulations
effective at the time of renewal, which may be substantially different than the regulations
currently in place. Renewal of a retail marijuana establishment license is not automatic, and
it is the licensee’s responsibility to ensure that the renewal application and all supplemental
materials are submitted in a timely manner. Applications for license renewals shall be
processed in the same manner as new licenses under these regulations, with the exception
of the retail marijuana store license bonus point review described in Rule 401.4 above,
which shall not apply to renewals; however, renewals may be reviewed for compliance with
representations made on original applications, operating plans and business plans. Such
application is made in addition to, and not in lieu of the state application for license renewal.
701.3 The Authority may refuse or deny a license renewal if renewal of the license will have a
harmful or damaging impact on the public health, safety or the general welfare of the city
or the neighborhood where the establishment is located. Nothing in these regulations limits
the Authority’s consideration of behavior occurring on or about the licensed premises. It
may consider behavior that occurs in other jurisdictions in which the licensee conducts
business in determining the potential impact on the city and the surrounding neighborhood.
701.4 Renewal Timeline. The licensee shall apply for renewal of the retail marijuana
establishment license at least thirty (30) days, but no earlier than ninety (90) days prior to
the expiration of the license.
701.5 If the applicant fails to apply for renewal at least thirty (30) days before the expiration of
the license, the license shall expire.
701.6 A licensee may renew a license that has expired if:
(a) The license has been expired for less than ninety (90) days; and
(b) The licensee pays the annual operating renewal fee and an additional five thousand
dollars ($5,000.00) late fee.
47 | Page
Edition 2
January 1, 2020
701.7 In the event that an application for renewal has been filed at least thirty (30) days before
the expiration of the previous license, but the Authority does not rule on the application for
renewal before the expiration of the previous license, the previous license shall be deemed
extended until the Authority rules on the application for renewal, but in no event may the
license be extended more than ninety (90) days. The licensee shall pay a license extension
fee for any such extension after the first thirty (30) days.
701.8 The Authority may hold a hearing on any application for renewal. The Authority may
summarily grant an application for renewal without a hearing if it appears from the
application and other information that the licensee is:
(a) In compliance with these Rules;
(b) There have not been any significant changes in the licensee, the principals, the licensed
premises, the adjacent grounds or the registered manager previously approved; and
(c) There is no reason to believe that there are any grounds for sanctions or denial of the
license.
701.9 The Authority shall set a public hearing on the application for renewal if it finds that there
is probable cause to believe that the licensee:
(a) Is not in compliance with these Rules or has committed violations of these Rules; or
(b) Committed acts that are grounds for sanctions as provided in these Rules; or
(c) Failed to report any major changes described in Rule 705.1 or any unreported minor
changes described in Rule 705.5.
701.10 The fact that the Authority has granted a renewal of a license shall not constitute a waiver
of any previous violations and shall not bar the City from seeking sanctions for, or the
Authority from imposing sanctions for, any violation that occurred during any license
period before the renewal.
701.11 Renewal Application Procedure. The licensee shall apply for renewal using forms provided
by the city. The application for renewal must include the supplemental information set forth
below before the application will be considered complete and processed by the city.
(a) The yearly operating fee, and late fee if applicable, shall accompany the renewal
48 | Page
Edition 2
January 1, 2020
application.
(b) In the event there has been a change to any of the plans identified in the license
application which were submitted to and approved by the City with the application or
an earlier renewal, the renewal application shall include specifics of the changes or
proposed changes in any of such plans.
(c) In the event any person who has an interest as described in the disclosures made to the
city pursuant to these rules and regulations, or any business manager, financier, agent
as defined herein, or employee, has been charged with or accused of violations of any
law since such disclosure, the renewal application shall include the name of the
violator, the date of the violation, the court and case number where the violation was
filed, and the disposition of the violation with the renewal application.
(d) In the event the retail marijuana establishment license has been suspended or revoked
or a licensee has received any notice of violation of any law, the renewal application
shall include a copy of the notice, suspension, or revocation.
(e) The renewal application shall include verification that the retail marijuana
establishment has a valid state license and the state license is in good standing.
(f) The renewal application shall include a summary report for the previous twelve (12)
months showing the amount of marijuana purchased; the amount of marijuana sold,
the forms in which marijuana was sold; the police report numbers or case numbers of
all police calls to the retail marijuana establishment; and, for calls resulting in a charge
of a violation of any law, the charge, case number, and disposition of any of the
charges.
701.12 Procedure for Expired or Revoked Retail Marijuana Store Licenses. In the event that a
license is revoked, or a license for a retail marijuana store has been expired for ninety (90)
days and the Authority has not granted an administrative continuance for late application,
the application process shall be reopened not less than thirty (30) days after the expiration
or revocation, on a date determined by the Authority. The application process shall be in
accordance with the Rule 300 Series and these rules and regulations. The original licensee
from whom the license was revoked is ineligible to reapply for licensure.
Rule 702: Modification of Premises.
702.1 Application Required. Following issuance of a license for a retail marijuana establishment,
49 | Page
Edition 2
January 1, 2020
the licensee must secure prior approval from the Authority and the Colorado Marijuana
Enforcement Division before making any physical change or modification to the licensed
premises that materially or substantially alters the licensed premises, or use thereof, from
the plans originally approved during the licensure process. The licensee seeking the
material alteration is responsible for filing an application for approval on current forms
provided by the Authority and must pay the fee set forth in Rule 302.
702.2 Major Change Defined. Major, material or substantial changes, alterations, or
modifications requiring approval include, but are not limited to the following:
(a) Any increase or decrease in the total physical size or capacity of the licensed premises;
(b) The sealing off, creation of or relocation of a common entryway, doorway, passage or
other such means of public ingress and/or egress, when such common entryway,
doorway or passage alters or changes the limited access areas;
(c) The permanent addition of a separate sales counter or display case in a retail marijuana
store; or
(d) The installation or replacement of electric fixtures or equipment for purposes of
increasing production, the lowering of a ceiling, or electrical modifications made for
the purpose of increasing power usage to enhance cultivation activities.
702.3 General Provisions. The procedures for material changes listed above are in addition to,
and not in lieu of, other general building requirements that may apply to building structures
and land parcels in the City. Modification of any building structure where a retail marijuana
store, retail marijuana cultivation facility, retail marijuana manufacturing facility, or
marijuana testing facility is located is subject to all applicable provisions of the Building
and Zoning Code.
Rule 703: Transfer of Ownership and Changes in Business Structure.
703.1 Transfer of Ownership. A retail marijuana store license issued by the city is not transferable
except as provided in these rules and the PMC. No transfer of ownership shall be permitted
until after the Authority considers the application, and such additional information as it may
require, and issues a license to the transferee. Upon issuance of the new license in the
transferee’s name, the prior license becomes invalid and the transferor must immediately
cease operations. The transferee may not commence operations until all inspections and
approvals have been completed and the new license has been issued.
50 | Page
Edition 2
January 1, 2020
703.2 Obligations Must Be Current. No application for transfer of ownership or change in
business structure shall be approved by the Authority until all occupational taxes, sales and
excise taxes, any fines, penalties, and interest assessed against or imposed upon such
licensee in relation to the licensed business are paid in full.
703.3 One-Year Prohibition Following Licensure. For retail marijuana store licenses, one year
after the date any license is issued by the city pursuant to the ordinance, the licensee is
prohibited from transferring ownership of the license or making changes to the business
structure of the licensed entity, unless the licensee can demonstrate that a transfer of
ownership or change in structure is made necessary by death or disability of the licensee or
a similarly substantial hardship (not including financial hardship).
703.4 For retail marijuana store licenses, after the first year after the license is issued, a transfer
of ownership may be permitted by the Authority if the new licensee can demonstrate
compliance with all of the following requirements:
(a) The new licensee must comply with the limitation on the number of retail marijuana
store licenses set forth in Rule 601.3;
(b) 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;
(c) The new licensee can comply with the requirements of these Rules; and
(d) The State has approved the transfer pursuant to requirements of the CMC.
703.5 For all other retail marijuana licenses, a transfer of the license may be approved by the
Authority after a public hearing.
703.6 No application for transfer of ownership may be applied for or acted upon while any
complaint for sanctions is pending with the Authority or the State.
Rule 704: Change of Location.
704.1 Application Requirements. Any license granted under these regulations is limited to the
location specified on the license application. If a retail marijuana establishment desires to
51 | Page
Edition 2
January 1, 2020
move to another location within the city, an owner or other authorized representative must
apply to the Authority for permission to change the location of its licensed premises. Such
application shall be made upon forms prescribed by the Authority and is in addition to, and
not in lieu of the state application for changing locations.
704.2 Licensure Required. No change of location shall be permitted until after the Authority
considers the application, and such additional information as it may require, and issues to
the applicant a license for the new location. Upon issuance of the license for the new
location, the prior license becomes invalid and the licensee must cease operations at the
former location. Should a retail marijuana cultivation facility obtain a Transition Permit
from the State, the licensee may change location in accordance therewith.
704.3 One-Year Prohibition Following Licensure. For retail marijuana store licenses, one year
after the date any license is issued by the city pursuant to the ordinance, the licensee is
prohibited from transferring the location, unless the licensee can demonstrate that a transfer
is made necessary by death or disability of the licensee or a similarly substantial hardship
(not including financial hardship).
704.4 For retail marijuana store licenses, after the first year the license is issued, a transfer of
location may be permitted by the Authority if the licensee can demonstrate compliance with
all of the following requirements:
(a) The licensee has obtained a conditional use permit for the new location;
(b) The new location must comply with the limitation on the number of retail marijuana
store licenses per retail marijuana district set forth in Rule 401.5(a);
(c) 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;
(d) The new location can comply with the requirements of these Rules; and
(e) The State has approved the transfer pursuant to requirements of the CMC.
704.5 For all other retail marijuana licenses, a transfer of the license must be approved by the
Authority after a public hearing only after the licensee obtains a conditional use permit for
the new location.
704.6 No application for transfer of location may be applied for or acted upon while any complaint
52 | Page
Edition 2
January 1, 2020
for sanctions is pending with the Authority or the State.
Rule 705: Other Changes to License.
705.1 Major Changes. No licensee shall make any of the following changes without first
obtaining the prior written approval from the Authority:
(a) Any change in the licensee's principals or financiers;
(b) The hiring, substitution, or replacement of the registered manager;
(c) 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, security plan, surveillance system, doors, window coverings or security
system at the licensed premises;
(d) Any material change to the adjacent grounds, including but not limited to lighting,
parking, traffic flow, surfaces, landscaping, fences, speakers or sound; and
(e) Any material change in or deviation of the operation from the operational plan
submitted at the time that the license was approved.
705.2 The Authority may summarily approve all other proposed major changes or hold a public
hearing on the same, in the Authority's discretion, depending on how substantial the change
appears to be and whether the proposed change is likely to cause any harm to public health,
safety or welfare.
705.3 At any hearing regarding any of the foregoing changes, the Authority shall determine
whether the proposed change would probably cause substantial harm to public health,
safety or welfare or result in a violation of any law or regulation. If the Authority finds that
the change will probably not cause substantial harm to public health, safety or welfare or
result in a violation of any law or regulation, it shall approve the change. If the Authority
finds that the proposed change would, more probably than not, harm public health, safety
or welfare or result in a violation of any law or regulation, the Authority may either
disapprove the proposed change or impose conditions on the license.
705.4 No application for major change may be applied for or acted upon while any complaint for
sanctions is pending with the Authority or the State.
53 | Page
Edition 2
January 1, 2020
705.5 Minor Changes. Every licensee shall report the following to the Authority, in writing
within ten (10) days of such event:
(a) Any change in the licensee's trade name, trademark, logo or service mark used at the
licensed premises, adjacent grounds, or on any product cultivated or manufactured at
the licensed premises;
(b) Any change in the labeling or packaging of products cultivated or manufactured at the
licensed premises;
(c) Any new loans 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);
(d) 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;
(e) Any change to any sign on the licensed premises or adjacent grounds; and
(f) The hiring, dismissal or resignation of any employee.
(g) A person that becomes a principal of a publicly traded corporation that is a retail
marijuana business or that becomes a beneficial owner, through direct or indirect
ownership of a controlling beneficial owner, of ten percent (10%) or more of a retail
marijuana business that is a publicly traded corporation must disclose said change to
the Authority within ten (10) days of the State licensing authority providing a Finding
of Suitability, or exemption from such finding, for said person pursuant to C.R.S. §
44-10-312. Such a notification shall not constitute a transfer of ownership requiring a
hearing.
54 | Page
Edition 2
January 1, 2020
Rule 800 Series: Requirements
Unless otherwise specified, the following requirements apply to all retail marijuana establishments
licensed within the city.
Rule 801: General Requirements
801.1 Prohibited Materials and Processes. Retail marijuana product manufacturers are prohibited
from using metals, butane, propane, or other solvents or flammable products that produce
flammable vapors to process or test marijuana unless a certified industrial hygienist has
verified that the method used and the premises are safe and in compliance with all
applicable rules and regulations. Any retail marijuana establishment proposing to process
or test retail marijuana through the use of such chemicals or processes must present
documentation from a certified industrial hygienist confirming that the method used for
producing, extracting, or testing marijuana or marijuana products does not produce noxious
or dangerous gases or odors or otherwise create a danger to any person or entity in or near
the establishments.
801.2 Testing Facility Ownership. Pursuant to the state marijuana rules and the PMC, any person
who is an owner of a retail marijuana store, retail marijuana cultivation facility, retail
marijuana product manufacturing facility, or any medical marijuana business shall not be
permitted to have an ownership interest in a retail marijuana testing facility.
801.3 Operating Plan. The operating plan is to enumerate the specific means through which the
applicant intends to comply with the city and state regulatory requirements and shall
include, at least the following specific requirements:
(a) How and where marijuana or marijuana products will be cultivated, manufactured,
tested, advertised, processed, stored, packaged, exhibited, purchased, exchanged and
sold;
(b) How the business, licensed premises and adjacent grounds will comply with each
requirement contained in State law and city ordinance, especially these rules and
regulations;
(c) How the operation will reduce or mitigate adverse effects on the area in which it is
situated, including but not limited to any adverse effects related to crime, traffic,
parking, noise and lighting;
(d) Hours of operation;
55 | Page
Edition 2
January 1, 2020
(e) Number of employees;
(f) Parking for employees and customers on the adjacent grounds;
(g) Traffic flow into and out of the adjacent grounds;
(h) Record keeping as required under State law and these rules and regulations;
(i) Procedures for identifying purchasers when making sales; and
(j) Any additional information necessary to demonstrate the applicant’s ability to achieve
the business goals and comply with the city and state regulatory requirements.
801.4 Business Plan. The business plan is to demonstrate the applicant’s ability to successfully
operate in a highly regulated industry over an extended period of time and shall include, at
least, the following specific requirements:
(a) The ability of the applicant to successfully operate in a highly regulated industry;
(b) Clear estimates for revenues and operating costs;
(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;
(d) Any additional information necessary to demonstrate the applicant’s ability to
successfully operate in a highly regulated industry over an extended period of time;
and
(e) Business goals.
Rule 802: Age Requirements.
802.1 Age limitation. Retail marijuana establishments may not allow persons less than 21 years
of age to enter limited access areas under any circumstances. No retail marijuana store is
permitted to sell marijuana to persons younger than 21 years of age, and stores must
conspicuously post signage in the entrance area that clearly states: “You must be at least
21 years old to enter.”
56 | Page
Edition 2
January 1, 2020
802.2 Identification Scanners. For retail marijuana stores, the business shall verify the proof of
age of every person entering the business with an electronic identification scanner. An
electronic identification scanner is a device that is capable of quickly and reliably
confirming the validity of an identification using computer processes.
802.3 Receipts. All receipts for the sale of retail marijuana to consumers must contain the
statement: “It is illegal to transfer or sell retail marijuana or retail marijuana products to
anyone under the age of 21.”
Rule 803: Hours of Operation and Access.
803.1 Store Hours. Retail marijuana stores may only be open to the public between the hours of
8:00 a.m. and 10:00 p.m. daily, and no sale or other distribution of marijuana may occur
upon the premises outside of those hours. A registered cultivation facility or its contracted
agent may deliver marijuana or marijuana product to retail marijuana stores on any day and
at any time except between the hours of 9:00 p.m. and 8:00 a.m.
803.2 Other Hours. Retail marijuana cultivation facilities, retail marijuana product
manufacturing facilities and retail marijuana testing facilities, may conduct business
operations on the licensed premises at any time in accordance with state law.
803.3 Posting Required. Retail marijuana establishments must post their hours of operation at the
main entry of the store or facility.
803.4 Public Access Restricted. Retail marijuana cultivation facilities, retail marijuana product
manufacturing facilities and retail marijuana testing facilities, shall not be open to the
public, and any visitors must be tracked in an entry log identifying the visitor’s name, entry
and departure times, and the purpose of the visit. Visitors to such establishments must be
escorted by a manager or owner at all times while within the facility and required to wear
a badge identifying them as a visitor. In the event that a licensed retail marijuana store is
located in the same building as a retail marijuana cultivation facility, retail marijuana
product manufacturing or retail marijuana testing facility, only the portion of the building
occupied by the retail marijuana store shall be open to the public.
Rule 804: Personal Requirements for the licensee, principals, registered manager
and employees.
804.1 The State of Colorado has accepted the applicant’s application for a retail marijuana store
57 | Page
Edition 2
January 1, 2020
license and the applicant, principals, registered managers and employees meet all
requirements for issuance of a State license;
804.2 The applicant, the applicant's financiers, principals, registered manager, and employees are
persons of good character and record. When making any determination as to good character
and record, the Authority may consider whether an applicant, principal, registered manager
or employee has rehabilitated himself after committing a crime or other act or omission
tending to indicate that such person is not a person of good character. The burden of proof
to show that a person has been rehabilitated shall be beyond a reasonable doubt and shall
be placed on the individual whose character is at issue. When evaluating claims of
rehabilitation, the Authority shall consider the following factors:
(a) The facts of the specific crime or other act tending to show a bad character and record;
(b) Whether the specific crime or other act tending to show bad character and record
involved controlled substances, dishonesty, fraud, bad faith, moral turpitude or
violence;
(c) Whether the specific crime or other act tending to show bad character and record
involved a felony, misdemeanor, municipal offense, a civil wrong or other wrongful
conduct;
(d) Whether the specific crime or act caused injury or harm to other persons or entities and
the extent of such harm or injury;
(e) The length of time that has expired since the act or omission was committed;
(f) Whether the person has led a law abiding life and has demonstrated good character
since the act or omission was committed;
(g) Whether the person has committed other acts tending to indicate bad character since
the act or omission was committed;
(h) Restitution, damages and compensation that the person has paid to persons victimized
by the act or omission;
(i) Fines, jail sentences, probation, community service and other penalties paid or served
since the act was committed; and
(j) Any other factor tending to show that the person has or has not rehabilitated his or her
58 | Page
Edition 2
January 1, 2020
character and conduct.
804.3 The applicant, principals, registered manager and employees are trained or experienced in,
and able to comply with, the requirements of these rules and regulations and state law
pertaining to retail marijuana establishments. In determining whether such persons have
shown sufficient training or experience, the Authority shall consider, among other things,
the following factors:
(a) The role that the individual will play in operating the establishment;
(b) Previous experience operating retail marijuana establishments;
(c) Completion of state or industry-approved courses on how to comply with Colorado
laws and regulations regarding retail marijuana establishments; and
(d) The individual's understanding of State law and city ordinances regulating retail
marijuana as shown under questioning by the Authority at the hearing.
804.4 The applicant, principals, registered manager and employees all hold valid occupational
licenses and registrations for retail marijuana issued by the State of Colorado.
Rule 805: Owner or Manager Present.
805.1 Owner or Business Manager Required on Premises. No retail marijuana establishment shall
be managed by any person other than the licensee or a business manager listed on the
application for the license or a renewal thereof. Such licensee or business manager shall be
on the premises and responsible for all activities within the licensed business during all
hours of operation.
805.2 The owner or business manager on duty shall be responsible for ensuring that the licensed
premises and adjacent grounds are operated in compliance with these Rules and
Regulations.
805.3 Business Manager Changes. In the event the licensee intends to employ a business manager
that was not identified on the license or renewal application, the licensee shall report the
name of such business manager to the city, and such business manager shall submit to the
city, at least thirty (30) days prior to commencing employment, the requested contact and
background information for the business manager on a form specified by the Authority.
Licensees shall report to the city the release or removal of a business manager from
59 | Page
Edition 2
January 1, 2020
employment no later than five days after such an occurrence.
Rule 806: Sales Limitations.
806.1 Direct Sales. All retail sales of marijuana must be in person, directly to the purchaser. No
sales may be made through a drive up window, by telephone, internet, or other means of
remote purchase.
806.2 Giveaways. Retail marijuana stores may not distribute marijuana or marijuana products to
a consumer free of charge.
Rule 807: Trade Names, Trademarks, Logos, Labels, Packaging and Advertising.
807.1 General Requirements. All retail marijuana establishments are subject to the signage
requirements contained in Chapter 10, Title XVII of the Pueblo Municipal Code, and the
restrictions on advertising and marketing under the CMC.
807.2 With regards to a licensee’s building façade, signs, and other outdoor advertising, a licensee
may use a logo, trademark, trade name, sign or advertising using the word "marijuana" or
"cannabis," but not any alternative spelling or abbreviation of the same, any slang term for
the same commonly understood as referring to marijuana, or any depiction of any
paraphernalia or other image commonly understood as referring to marijuana. A licensee
may use images of a cannabis leaf, which shall be considered a commercial message, not
art, and which must comply with Chapter 10 of Title XVII of the Pueblo Municipal Code.
This 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,
infringe upon any state or federal trademark, nor be designed to appeal to minors.
807.3 Nothing contained in Rule 807 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 advertising has been used.
807.4 Any court of competent jurisdiction construing or applying this Rule 807 shall seek a saving
construction and application that makes the Rule constitutional. In the event that any court
60 | Page
Edition 2
January 1, 2020
of competent jurisdiction determines that any provision in this Rule 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 Rule only and sever the same from the remainder of
these Rules and Regulations, which shall remain valid and effective without this Rule.
807.5 No Public Advertising. No advertisement for marijuana or marijuana products is permitted
on signs mounted on vehicles, temporary signs, hand-held or other portable signs, handbills,
leaflets or other flyers directly handed to any person in a public place, left upon a motor
vehicle or posted upon any public or private property without consent of the property
owner. This prohibition shall not apply to (1) any advertisement contained within a
newspaper, magazine or other periodical of general circulation within the city or on the
Internet; and (2) advertising which is purely incidental to sponsorship of a charitable event
not geared to or for the benefit of children or youth.
Rule 808: Books and Records.
808.1 Every licensee shall maintain on the licensed premises, at any time that any person is
present on the licensed premises, accurate and up to date books and records of the business
operations of the licensee, or an authentic copy of the same, including but not limited to the
following:
(a) Lists, manifests, orders, invoices and receipts for all marijuana, marijuana plants and
marijuana products cultivated, harvested, manufactured, tested, processed, produced,
delivered, purchased, stored, sold and exchanged during the preceding two (2) years,
by each transaction or event, including the date and time of each transaction, source,
strain, type, quantity, weight and purchaser and whether each transaction involved
harvested marijuana, live plants, marijuana products or seeds;
(b) An inventory of all marijuana and marijuana products presently on the licensed
premises;
(c) Sales and use taxes and excise taxes collected and paid; and
(d) The name, address and a copy of the retail marijuana license of any retail marijuana
licensee with whom the licensee has transacted any business, including but not limited
to any purchase, sale, or exchange of marijuana plants, harvested marijuana or
marijuana products.
808.2 Disclosure of Records. By applying for a retail marijuana establishment license, the
61 | Page
Edition 2
January 1, 2020
licensee is providing consent to disclose any information required under these regulations.
Any document that the applicant considers eligible for protection under the Colorado Open
Records Act shall be clearly marked as confidential, and the reasons for such confidentiality
shall be stated. If the city finds that such documents are subject to inspection as public
records of the city, it will attempt to provide appropriate notice to the applicant prior to
such disclosure.
808.3 Separate Bank Accounts. The revenues and expenses of a retail marijuana establishment
shall not be commingled in a checking account or any other bank account with the deposits
or disbursements of any other business or individual person, except for a parent company.
808.4 Audits. The Authority may require an audit to be made of the books of account and business
records of a retail marijuana establishment when it considers it necessary.
808.5 Reporting Requirements. A retail marijuana establishment shall report to the Authority
each of the following within the time specified. If no time is specified, the report shall be
provided within seventy two (72) hours of the event.
(a) A violation of any law by any licensee or applicant, manager, or employee of a retail
marijuana establishment;
(b) A notice of potential violation of any law related to the licensee;
(c) Any report that the retail marijuana establishment is required to provide to the State of
Colorado; or
(d) Reports of all criminal activities or attempts of violation of any law at the retail
marijuana establishment or related thereto shall immediately be reported to the Pueblo
Police Department.
Rule 809: Separation of Marijuana Establishments.
Retail marijuana stores, retail marijuana cultivation facilities, retail marijuana product manufacturing
facilities and retail marijuana testing facilities, are all separate establishments requiring separate
licenses, regardless of any shared ownership or location. In addition to all other application
requirements for separate premises, each establishment shall:
(a) Have separate operations, security, and fire suppression systems, and separate access
from a public area;
62 | Page
Edition 2
January 1, 2020
(b) Be divided within a building from floor to roof. Unless higher performance is required
by applicable law, there must be a minimum of a one-hour fire separation between a
retail marijuana establishment and any adjacent business; and
(c) Obtain delivery documents and manifests for movement of any marijuana and/or
marijuana product between any of the licensed retail marijuana establishments.
Rule 810: Visibility of Operations.
Under no circumstances shall activities related to the cultivation, production, processing,
distribution, storage, display, or sales of marijuana and marijuana products be visible from the
exterior of the business.
Rule 811: Documents to Be Displayed.
811.1 Display of Licenses Required. The general business license, along with the retail marijuana
establishment license, shall be conspicuously posted inside the retail marijuana
establishment near the main entrance.
811.2 The licensee shall post the following on the licensed premises in a prominent place where
persons can easily view and read while standing in a location accessible to the public:
(a) The license certificate issued by the State, along with any conditions on the same.
(b) The license certificate issued by the Authority, along with any conditions on the same.
(c) A notice at least twenty-four (24) inches by twenty-four (24) inches in letters at least
one (1) inch in height, stating:
THIS RETAIL MARIJUANA LICENSED PREMISES IS MANAGED BY: (STATE
NAME, ADDRESS AND PHONE NUMBER FOR REGISTERED MANAGER). THE
PRINCIPALS IN THIS BUSINESS ARE AS FOLLOWS: (NAMES)
(d) A notice at least twenty-four (24) inches by twenty-four (24) inches in letters at least
one (1) inch in height, stating:
IF YOU HAVE CONCERNS ABOUT THE WAY THIS RETAIL MARIJUANA
LICENSED PREMISES IS OPERATED, OR OTHER ACTIVITY ON THESE
63 | Page
Edition 2
January 1, 2020
PREMISES, PLEASE CONTACT THE PUEBLO POLICE DEPARTMENT AT: (719)
553-2538.
811.3 The licensee shall post the following on the licensed premises in a prominent place near
other notices to employees, where the licensee, principals, registered manager and
employees can easily view the same: a notice at least twenty-four (24) inches by twenty-
four (24) inches in letters at least one (1) inch in height, stating:
NOTICE TO LICENSEE, PRINCIPALS, REGISTERED MANAGER AND
EMPLOYEES:
THESE PREMISES, THE ADJACENT GROUNDS AND EVERY ROOM, AREA,
LOCKER, SAFE AND CONTAINER ON THE LICENSED PREMISES AND
ADJACENT GROUNDS EXCEPT YOUR PERSON, THE PERSONAL EFFECTS IN
YOUR IMMEDIATE POSSESSION, AND YOUR PRIVATE VEHICLE, ARE SUBJECT
TO INSPECTION BY CITY EMPLOYEES AND POLICE OFFICERS AT ANY TIME
THAT ANY PERSON IS PRESENT ON THE LICENSED PREMISES, WITHOUT A
WARRANT, AND WITHOUT REASONABLE SUSPICION TO BELIEVE THAT ANY
OFFENSE HAS OCCURRED. YOU HAVE NO REASONABLE EXPECTATION OF
PRIVACY ON THESE PREMISES AND THE ADJACENT GROUNDS EXCEPT IN
YOUR PERSON, THE PERSONAL EFFECTS IN YOUR IMMEDIATE POSSESSION
AND YOUR PRIVATE VEHICLE.
Rule 812: Security Requirements.
812.1 Security Plan. All applicants for retail marijuana establishment licensure shall file a written
security plan with the Authority. The security plan will be protected from public
disclosure as provided under the Colorado Open Records Act, §24-72-
204(2)(a)(VIII)(A), C.R.S.
(I) The written security plan shall address, at a minimum, the following elements:
(a) Methods to prevent and protect employees and others from robberies and assaults on
the licensed premises and adjacent grounds;
(b) Methods to prevent burglaries on the licensed premises and adjacent grounds when the
premises are closed;
(c) Exterior lighting of the building and adjacent grounds;
64 | Page
Edition 2
January 1, 2020
(d) Windows from the licensed premises providing a view from inside the licensed
premises to the adjacent grounds;
(e) Locks, burglar alarms and a safe or vault as required in this Chapter;
(f) A limited access area barrier, limited access area and employee badges for entering the
limited access area as required under State law and this Chapter; and
(g) Any additional information necessary to demonstrate the security of the licensed
premises and adjacent grounds.
(II) The following list provides the specific information that must be provided on the security
plan to show compliance with Rule 812.1(I)(a) through (I)(g).
(a) Evidence that the space will comply with all security and video surveillance
requirements set forth in these rules and the state marijuana rules;
(b) A site plan showing the entire vicinity in which the retail marijuana establishment is
located, including the street(s), parking lot(s), other tenants within the facility, and any
other entities that physically border the establishment;
(c) A floor plan of the retail marijuana establishment detailing the locations of the
following:
(1) All entrances and exits to the establishment;
(2) The location of any windows, skylights, and roof hatches;
(3) The location of all cameras, and their field of view;
(4) The location of all alarm inputs (door contacts, motion detectors, duress/hold up
devices) and alarm sirens;
(5) The location of the digital video recorder and alarm control panel; and
(6) Restricted and public areas;
(d) The type of security training provided for, and completed by, establishment personnel,
including conflict resolution training and procedures for handling violent incidents;
65 | Page
Edition 2
January 1, 2020
(e) How the applicant intends to use and maintain an incident log;
(f) The establishment’s procedures for preventing the use of marijuana on the licensed
premises;
(g) Security measures taken by the applicant to prevent individuals from entering the
limited access area portion of the registered premises;
(h) The applicant’s closing procedures after the cessation of business each day;
(i) The applicant’s plan to prevent theft or the diversion of marijuana, including
maintaining all marijuana in a secure, locked room that is accessible only to authorized
persons;
(j) The type of alarm system and outdoor lighting to be used by the applicant; and
(k) The applicant’s procedures for accepting delivery of retail marijuana products at the
facility, including procedures for how it is received, where it is stored, and how the
transaction is recorded.
812.2 Minimum Standards. The applicant must demonstrate that the following security measures
are in place or will be implemented prior to opening:
(a) Installation of a safe or vault for storage of any processed marijuana or marijuana
product and cash on the premises when the business is closed to the public. The safe
or vault must be incorporated into the building structure or secured to the structure to
prevent removal. For marijuana products that must be kept refrigerated or frozen, the
establishment may lock the refrigerated container or freezer so long as the appliance
is affixed to the building structure;
(b) Any dumpster or similar trash receptacle on the premises used to discard retail
marijuana products must have a metal cover or lid that is locked at all times when the
receptacle is unattended;
(c) Cultivation and manufacturing facilities are required to have audible and visual
notification systems to alert employees of the presence of persons ringing the doorbell
to gain access to the facility;
(d) All doors, windows and other points of entry have secure and functioning locks;
66 | Page
Edition 2
January 1, 2020
(e) If the licensed premises are connected by any passage or entryway to any other
premises, there is a door between the two (2) premises that can be locked from the
licensee side and cannot be opened from the other side;
(f) A professionally monitored burglar (security) alarm system that detects unauthorized
entry of all doors, windows and other points of entry to the proposed licensed premises
and complies with Rule 812.3; and
(g) Windows facing the adjacent grounds and lighting of the adjacent grounds sufficient
to ensure that persons entering and leaving the licensed premises, entering and exiting
parked cars on the adjacent grounds, and walking across the adjacent grounds can be
observed by employees from inside the licensed premises.
812.3 Security Alarm System. All retail marijuana establishments shall install, maintain, and use
a professionally monitored security alarm system meeting the following requirements:
(a) The system shall provide coverage of all facility entrances and exits, rooms with
exterior windows, rooms with exterior walls or walls shared with other building
tenants, roof hatches, skylights, and storage rooms containing safes or vaults;
(b) The system shall include at least one silent holdup or duress alarm that can be manually
triggered in case of emergency;
(c) The alarm system must be equipped with a failure notification and a battery backup
system sufficient to support a minimum of four hours in the event of a power outage;
(d) The alarm system must be monitored by a company that is staffed twenty-four (24)
hours a day, seven days a week. The security plan submitted to the city shall identify
the company monitoring the alarm, including contact information, and shall be updated
within seventy-two (72) hours in the event the monitoring company is changed; and
(e) The licensee shall maintain for a period of three (3) years, reports of any incidents
triggering an alarm, and such reports shall be made available to the Authority and the
Pueblo Police Department during any inspection of the facility.
812.4 Greenhouse Cultivation. If allowed by zoning requirements, any greenhouse cultivation
facility is a limited access area and must meet all of the security requirements, including
alarm and video surveillance systems, described in these regulations. Greenhouse
cultivation facilities must provide sufficient security measures to demonstrate that outdoor
areas are not readily accessible by unauthorized individuals. The licensee is responsible for
67 | Page
Edition 2
January 1, 2020
maintaining physical security in a manner similar to a retail marijuana cultivation facility
located in an indoor licensed premises.
812.5 Protection from Disclosure. The security plan will be protected from public disclosure as
provided under the Colorado Open Records Act, § 24-72-204(2)(a)(VIII)(A), C.R.S. If the
applicant believes that portions of the business plan or operating plan would cause a
competitive disadvantage to the applicant if disclosed pursuant to an open records request,
the applicant should identify the specific sections of the plan that would cause the
competitive disadvantage and request that those portions be protected from disclosure. The
general policies for disclosure of application materials are described in Rule 808.2.
Rule 813: Video Surveillance.
Prior to receiving a license to operate, all retail marijuana establishments are required to install a
video surveillance system satisfying the minimum standards described below, in addition to the state
requirements set forth in Rule 306 of the state marijuana rules.
813.1 Operation. Retail marijuana establishments are responsible for ensuring that all video
surveillance equipment is properly functioning and maintained, such that the surveillance
equipment is capturing the identity of all individuals and activities in the monitored areas
with a recording quality suitable for viewing. The surveillance systems must be
continuously operational at all times, twenty-four (24) hours per day. The retail marijuana
establishment or agent overseeing the functioning of the video surveillance system must
immediately report to the Pueblo Police Department any malfunctions or technical
problems with the system.
813.2 Equipment. Video surveillance equipment shall, at a minimum, consist of digital or network
video recorders, cameras capable of meeting the recording requirements described in this
rule, video monitors, digital archiving devices, and a color printer capable of delivering still
photos. The surveillance equipment must meet the following specifications:
(a) The video cameras employed in the system must have a minimum resolution of 1.3
megapixels (1280 x 1024 pixels) and record at a minimum rate of 12 frames per
second;
(b) All video cameras employed in the system must have infrared capabilities to capture
images in low lighting conditions;
(c) The use of motion detection is authorized when a licensee can demonstrate that
68 | Page
Edition 2
January 1, 2020
monitored activities are adequately recorded;
(d) All video surveillance systems must be equipped with a failure notification system and
a battery backup system sufficient to support a minimum of four hours of recording in
the event of a power outage; and
(e) The licensee’s surveillance system or equipment must have the capabilities to produce
a color still photograph from any camera image, live or recorded, of the licensed
premises.
813.3 Camera Placement and Coverage. The retail marijuana establishment shall install and use
security cameras to monitor and record all interior areas of the premises, except in
restrooms, along with outdoor trash receptacles and all points of ingress and egress to the
exterior of the licensed premises. All entrances and exits to the facility shall be recorded
from both indoor and outdoor vantage points, with camera placement capable of identifying
activity occurring within twenty (20) feet of all such points of ingress and egress. Camera
placement in all areas shall allow for the clear and certain identification – with sufficient
detail to identify facial features and clothing – of any individual and activities present on
the licensed premises.
813.4 Location and Maintenance of Surveillance Equipment.
(a) Surveillance recording equipment must be housed in a designated, locked, and secured
room or other enclosure with access limited to authorized employees, service
personnel or contractors, state or local law enforcement agencies, and agents of the
Authority and the Colorado Marijuana Enforcement Division.
(b) Licensees must maintain a current list of all authorized employees and service personnel
who have access to the surveillance system and shall keep a surveillance equipment
maintenance activity log on the licensed premises to record all service activity
including the identity of the individual(s) performing the service, the service date and
time and the reason for service to the surveillance system.
(c) Each licensed retail establishment must have a separate surveillance room or area that
is dedicated to those specific licensed premises, regardless of any shared or adjoining
location in a common building, except as provided in subpart (d) below.
(d) Commonly-owned retail marijuana establishments located in the city may have one
central surveillance room located at one of the commonly-owned licensed premises
which simultaneously serves all of the commonly-owned retail facilities. The facility
69 | Page
Edition 2
January 1, 2020
(or facilities) that does not house the central surveillance room is required to have a
review station, printer, and map of camera placement on the premises. All minimum
requirements for equipment and security standards as set forth in this section apply to
the review station.
813.5 Video Recording and Retention Requirements.
(a) All surveillance recordings are required to be retained for a minimum of sixty (60)
days and shall be in a digital format that can be easily accessed for viewing and that
ensures authentication of the recording as being legitimately captured without
alterations.
(b) In addition to maintaining surveillance recordings in a locked area on the licensed
premises, a copy of the surveillance recordings must be stored at a secure off-site
location in the city or through a network “cloud” service that provides on-demand
access to the recordings. The off-site location or network service provider shall be
included in the security plan submitted to the city and provided to the Pueblo Police
Department upon request, and updated within seventy-two (72) hours of any change
to the location or provider.
(c) All surveillance recordings shall be embedded with the date and time without
significantly obscuring the picture.
(d) Regardless of the expiration of the sixty (60) day limit for retention of surveillance
video recordings, such recordings may not be destroyed if the licensee knows or should
have known of a pending criminal, civil or administrative investigation, or any other
proceeding for which the recording may contain relevant information.
Rule 814: Limited Access Areas.
Retail marijuana shall only be grown, cultivated, processed, stored, weighed, displayed, packaged,
sold, or possessed for sale in a limited access area under the licensee’s control. Licensees shall restrict
entrance to limited access areas only to owners and employees in possession of an occupational
license from the state Marijuana Enforcement Division, along with visitors registered as described
below.
814.1 Visitors in Limited Access Areas. Visitors must be escorted at all times by a person holding
a valid owner or occupational license. Management personnel of the licensee must take the
following actions prior to allowing any visitor to enter a limited access area:
70 | Page
Edition 2
January 1, 2020
(a) Enter the visitor’s name, address and the purpose of the visit into a log, which shall be
made available for inspection upon request;
(b) Check the identification for all visitors to verify that the name on the identification
matches the name in the visitor log and that the visitor is at least twenty one (21) years
of age; and
(c) Provide a visitor identification badge that shall remain visible at all times while in the
limited access area.
814.2 Required Signage. All areas of ingress and egress to limited access areas on the licensed
premises shall be clearly identified by the posting of a sign at least twelve (12) inches wide
and six (6) inches high, which shall state “Employees Only” in letters at least one-half (0.5)
inch in height.
814.3 Violations. A retail marijuana establishment’s failure to comply with the limited access
area restrictions and procedures described in this rule may be considered a license violation
affecting the public safety.
814.4 Enforcement Personnel Authorized. Notwithstanding the other requirements of this rule,
nothing shall prohibit investigators and employees of the Authority, the state Marijuana
Enforcement Division, or state or local law enforcement personnel from entering a limited
access area for an authorized inspection or enforcement purpose upon presentation of
official credentials.
Rule 815: General Building Requirements.
815.1 Licensed Contractors. All construction, remodeling, electrical, mechanical and plumbing
work must be performed by an appropriately licensed contractor. Once an applicant has
selected a contractor to perform a project, it is recommended that the applicant contact the
Building Division to schedule a meeting to discuss the scope of the project and specific
requirements that may apply.
815.2 Compliance with Plans. All construction, remodeling, electrical, mechanical and plumbing
work must be completed in compliance with the building plans, site plan or redevelopment
plan. A copy of the building plans, site or redevelopment plan must be retained on the
licensed premises at all times for verification during inspections.
71 | Page
Edition 2
January 1, 2020
Rule 816: Mechanical and Electrical Equipment.
816.1 Exterior Requirements. All mechanical equipment, whether mounted on the rooftop or at
ground level, must be fully screened from public view. Electrical panels on the outside of
the building must be painted to match the building or screened from public view.
816.2 Rated Equipment. All appliances shall be listed and labeled, via United Laboratories (UL)
or an equivalent organization, for the application in which they are installed and used.
816.3 Cultivation Grow Room Lighting. Areas in which marijuana is grown in cultivation
facilities shall be equipped with green lights, or an equivalent means of illumination, to
enable access and inspections during dark cycles.
Rule 817: Odor Management.
817.1 General Standard. For all retail marijuana establishments, the odor of marijuana must not
be perceptible at the exterior of the building at the licensed premises or at any adjoining
use of the property.
817.2 Ventilation and Filtration Systems. Retail marijuana cultivation facilities must implement
appropriate ventilation and filtration systems to satisfy the odor nuisance standard
described above in Rule 817.1. While the city does not mandate any particular equipment
specifications with regard to filtration, all retail marijuana establishments are strongly
encouraged to adopt best management practices with regard to implementing
state-of-the-art technologies in mitigating marijuana odor, such as air scrubbers and
charcoal filtration systems.
817.3 Noxious Gases and Fumes. Retail marijuana product manufacturing facilities and retail
marijuana testing facilities shall include appropriate ventilation systems to mitigate noxious
gases or other fumes used or created as part of the production.
817.4 Sealed Walls. Unless higher performance is required by applicable law, there must be a
minimum of a one-hour fire separation in accordance with the adopted version of the
International Building Code (IBC) between a retail marijuana establishment and any
adjacent occupancy regardless of occupancy classification. Per IBC, fire barriers shall
extend from the top of the floor/ceiling assembly below to the underside of the floor or roof
sheathing, slab or deck above and shall be securely attached thereto. Such fire barriers shall
be continuous through concealed spaces, such as the space above a suspended ceiling.
72 | Page
Edition 2
January 1, 2020
817.5 Enforcement. The odor standard described above in Rule 817.1 will be strictly enforced,
and violation thereof shall be grounds for imposition of penalties. Each day on which a
violation shall occur or continue shall be deemed a separate and distinct offense, and a
continuing violation may be grounds for license suspension or revocation.
Rule 818: Organization of Cultivation Facilities.
All cultivation facilities shall be organized in orderly rows with aisles at least forty two (42) inches
wide, and clear access to all exits, unless the Authority determines that the business has provided a
dimensioned floor plan that provides equivalent access and separation between plants and to exits.
Rule 819: Exterior Requirements.
If no site or redevelopment plan exists, one will be required before the license is issued.
819.1 Address Identification. All retail marijuana establishments shall display address or unit
numbers in such a position as to be plainly visible and legible from a location nearest to the
street or road fronting the property. The numbers used shall consist of Arabic numerals
made of a durable material sharply contrasted in color with the background material on
which they are placed, and shall be of a uniform height not less than four (4) inches.
819.2 Signage. Prior to installation of any permanent sign, a sign permit must be obtained from
the city through a licensed sign contractor. All signs must be maintained in a state of good
repair, including structural supports and any paint or lighting. Retail marijuana
establishments must comply with Chapter 10, Title XVII, of the PMC and related
regulations regarding signage, such as limitations on the number and area of signs allowed.
No advertisement for marijuana or marijuana products is permitted on signs mounted on
vehicles, temporary signs, or hand-held or other portable signs.
819.3 Exterior Maintenance. Every wall, window, roof, and door must be weatherproof and
watertight and must be kept free of holes, loose or rotting boards or timbers. Faded or
deteriorating walls, trim, siding and doors must be painted or replaced as appropriate.
Sidewalks, driveways and parking surfaces must be maintained free of weeds, potholes,
dirt, snow, ice, trash and debris. Businesses must stripe parking spaces and maintain the
pavement. Any graffiti located on licensed premises shall be removed promptly.
819.4 Trash. Each business is responsible for removing trash, litter and garbage from its property.
An active trash service contract must be maintained on file, and trash must be removed
from the property on a weekly basis, or more often if necessary. Dumpsters and trash
73 | Page
Edition 2
January 1, 2020
containers must not be overflowing, and the surrounding area must be kept free of litter and
trash. All dumpsters and containers shall be screened from public view. Per the security
regulations of Rule 812.2, all trash receptacles on the premises used to discard retail
marijuana products must have a metal cover or lid that is locked at all times when the
receptacle is unattended and security cameras must be installed to record activities in the
area of such trash receptacles.
819.5 Roof Access. All retail marijuana establishments must provide access to the roof via stairs,
ladders, or other appropriate means to permit inspection and enforcement activities. Roof
access hatches or similar portals must remain locked when unattended and must be covered
by video surveillance and security alarm systems.
74 | Page
Edition 2
January 1, 2020
Rule 900 Series: Land Use and Zoning
Please see Title XVII, Zoning Code, of the Pueblo Municipal Code (PMC) for specific requirements.
Rule 901: Zoning Definitions.
Conditional use is a use permitted only upon issuing a conditional use permit by the Administrative
Official and subject to the limitations and conditions specified in the applicable ordinances.
Marijuana means all parts of the plant of the genus cannabis whether growing or not, the seeds
thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds, or its resin.
Marijuana accessories means any equipment, products, or materials of any kind, which are used,
intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting,
composting, manufacturing, compounding, converting, producing, processing, preparing, testing,
analyzing, packaging, repackaging, storing, vaporizing, or containing marijuana, or for ingesting,
inhaling, or otherwise introducing marijuana into the human body.
Marijuana products means concentrated marijuana products and marijuana products that are
comprised of marijuana and other ingredients and are intended for use or consumption, such as, but
not limited to, edible products, ointments, and tinctures.
Retail marijuana consumer means a person twenty-one years of age or older who purchases marijuana
or marijuana products for personal use by persons age twenty-one years of age or older, but not for
resale to others.
Retail marijuana cultivation means the planting, growing, or harvesting of marijuana, including but
not limited to hydroponic cultivation and cloning.
Retail marijuana store means an entity licensed to purchase marijuana from marijuana cultivation
facilities, and marijuana products from marijuana product manufacturing facilities, and to sell
marijuana and marijuana products to retail marijuana consumers.
Retail marijuana testing facility means an entity which may analyze and certify the safety and potency
of marijuana.
75 | Page
Edition 2
January 1, 2020
Retail marijuana cultivation facility means an entity which cultivates, prepares, and packages
marijuana and sells marijuana to retail marijuana stores, to retail marijuana product manufacturing
facilities, and to other retail marijuana cultivation facilities, but not to consumers.
Retail marijuana product manufacturing facility means an entity which may purchase marijuana;
manufacture, prepare, and package marijuana products; and sell marijuana and marijuana products to
other marijuana product manufacturing facilities and to retail marijuana stores, but not to consumers.
School means an education facility and includes parochial, private, professional, college, university
and public schools.
School, parochial means an educational facility, operated by a religious body organized to sustain
public worship, which provides instruction designed to comply with the State's compulsory
educational requirements. Religious training may also be an accessory use. This definition shall apply
to primary and secondary education facilities only.
School, private means a business operation which provides education in return for payment of fees or
other consideration. Private schools shall include, but not be limited to, private elementary schools,
private secondary schools, trade and vocational schools, beauty and barber schools, and business
schools.
School, professional; college; or university means an educational facility which provides instruction
designed to secure a degree in a general field or a specialized professional field.
School, public means an educational facility, operated by a public school district having general taxing
power, which provides instruction designed to comply with the State's compulsory education
requirements. This definition shall apply to primary and secondary education facilities only.
Rule 901: Zoning Limitations.
901.1 Retail Marijuana Stores. The operation of a retail marijuana store is only permitted within
the B-3, B-4, B-P, I-2 and I-3 Zone Districts upon issuance of a Conditional Use Permit.
901.2 Retail Marijuana Cultivation, and Retail Marijuana Product Manufacturing. The operation
of a retail marijuana cultivation and retail marijuana product manufacturing is only
permitted within the B-P, I-1, I-2 and I-3 Zone Districts upon issuance of a Conditional Use
Permit.
901.3 Retail Marijuana Testing Facilities. The operation of a retail marijuana testing facility is
76 | Page
Edition 2
January 1, 2020
only permitted within the B-3, B-4, B-P, I-1, I-2 and I-3 Zone Districts upon issuance of a
Conditional Use Permit.
901.4 Land Use Verification. The Administrative Official shall verify all requirements of a
Conditional Use Permit have been met, prior to the issuance of the Conditional Use Permit.
At the time of application for a retail marijuana establishment license, the Authority will
verify that the retail marijuana establishment has been issued a Conditional Use Permit
according to Section 17-4-51, Title XVII, of the PMC.
Rule 902: Conditional Use Permits.
902.1 A use may be permitted as a conditional use if certain minimum conditions contained in
the applicable ordinances have been satisfied as determined by the Administrative Official.
The Administrative Official shall have ninety (90) days to complete the review of an
application after it has been determined to be complete. If the Administrative Official, after
reviewing the application, determines one or more of the conditions required for the permit
cannot be satisfied, the Applicant may seek approval of a Use by Review for the proposed
use in accordance with Section 17-5-33 of the Pueblo Municipal Code.
902.2 All Conditional Use Permits shall expire one (1) year after issuance. Application and
applicable fee for renewal of the Conditional Use Permit must be received thirty (30) days
prior to the expiration date of the Permit. Annual review of the Conditional Use Permit
shall be required to verify compliance with all requirements of the Permit. Failure to
comply with all requirements of the Permit, as well as any zoning violations, shall be
grounds for denial of the annual renewal.
Rule 903: Conditions Required for Retail Marijuana Facilities.
903.1 Retail marijuana cultivation facility conditions:
(a) The facility shall not be located within one thousand (1,000) feet of a legally
operational school, which holds classes, as determined by direct measurement from
the property line of the facility to the closest property line of the school. Establishing
a school within the required buffer after the Conditional Use Permit is issued shall not
be grounds to suspend, revoke or decline to renew the Permit for such facility provided
the Permit and license for the facility remains lawfully in effect. The Zoning Board of
Appeals shall have the authority to grant a variance from the one thousand (1,000) foot
school buffer only if the property line of the school, by direct measurement, is one
77 | Page
Edition 2
January 1, 2020
thousand (1,000) feet from the building of the marijuana facility.
(b) The facility shall demonstrate compliance with all ordinances, including but not
limited to drainage, detention, water quality, parking, landscaping, sewer, and public
improvements
(c) All grow operations shall be conducted in an enclosed building or greenhouse.
(d) Outdoor grow operations shall be prohibited.
(e) Grow operations shall not be located in any structure containing a residential use.
(f) Notwithstanding anything to the contrary, all facilities shall provide, at a minimum,
the following improvements:
(1) Install landscaping according to Section 17-4-7 of Title XVII, PMC, regardless of
the applicability stated in Section 17-4-7(b)(2).
(2) Compliance with architectural requirements according to the zone district.
Industrial zoned properties shall comply with Section 17-4-49. All other zoned
properties shall comply with Sections 17-4-46, 17-4-47 or 17-4-48 based on the
building size. The Administrative Official has the authority to require alternative
requirements for architecture, in cases where the zoning requirements are not
appropriate for a particular building or structure.
(3) Provide parking according to Section 17-4-43(b), Section 17-4-44, or Section 17-
4-45, PMC. All required parking spaces shall be permanent in character and
provided with a permanent driveway to a public way. The driveway and parking
spaces shall be paved with asphalt, concrete, Portland cement concrete or pavers.
(4) Provide public improvements to bring the site and adjacent rights-of-way into
compliance with applicable city standards, including but not limited to repairing
or replacing broken sidewalks, curbs and gutters, and providing an ADA driveway
“walk-around.”
(5) Provide drainage, detention, and water quality in compliance with Storm Drainage
Design Criteria and Drainage Policies for the City of Pueblo, June 9, 1997 (City
Stormwater Criteria). Provide erosion and sediment control in compliance with
City Stormwater Criteria and Colorado Department of Public Health and
Environment.
78 | Page
Edition 2
January 1, 2020
(6) Provide a maintenance plan for improvements required to be installed as part of
the Conditional Use Permit.
(7) The Administrative Official shall have the authority to modify, or substitute
additional requirements for, any of the requirements listed above when the
changes to the existing building will have a negative impact on the health, safety,
and welfare of the surrounding neighborhood.
(8) The Administrative Official has the authority to reduce the requirements listed
above for facilities which only lease a portion of an existing structure.
(g) Each licensed location is permitted one (1) “64” sign, up to ten (10) square feet.
(h) Existing windows may be screened from the interior of the building, but shall not be
removed or covered from the exterior.
903.2 Retail marijuana product manufacturing facilities.
(a) The facility shall not be located within one thousand (1,000) feet of a legally
operational school, which holds classes.
(b) The facility shall demonstrate compliance with all ordinances, including but not
limited to drainage, detention, water quality, parking, landscaping, sewer, and public
improvements
(c) All retail marijuana products shall be prepared in a building or facility that is used
exclusively for the manufacture and preparation of marijuana products.
(d) All retail marijuana products shall be prepared using equipment that is used
exclusively for the manufacture and production of marijuana products.
(e) Notwithstanding anything to the contrary, all facilities shall provide, at a minimum,
the following improvements:
(1) Install landscaping according to Section 17-4-7 of Title XVII, PMC, regardless of
the applicability stated in Section 17-4-7(b)(2).
(2) Compliance with architectural requirements according to the zone district.
Industrial zoned properties shall comply with Section 17-4-49. All other zoned
79 | Page
Edition 2
January 1, 2020
properties shall comply with Sections 17-4-46, 17-4-47 or 17-4-48 based on the
building size. The Administrative Official has the authority to require alternative
requirements for architecture, in cases where the zoning requirements are not
appropriate for a particular building or structure.
(3) Provide parking according to Section 17-4-43(b), Section 17-4-44, or Section 17-
4-45, PMC. All required parking spaces shall be permanent in character and
provided with a permanent driveway to a public way. The driveway and parking
spaces shall be paved with asphalt, concrete, Portland cement concrete or pavers.
(4) Provide public improvements to bring the site and adjacent rights-of-way into
compliance with applicable City standards, including but not limited to repairing
or replacing broken sidewalks, curbs and gutters, and providing an ADA driveway
“walk-around.”
(5) Provide drainage, detention, and water quality in compliance with Storm Drainage
Design Criteria and Drainage Policies for the City of Pueblo, June 9, 1997 (City
Stormwater Criteria). Provide erosion and sediment control in compliance with
City Stormwater Criteria and Colorado Department of Public Health and
Environment.
(6) Provide a maintenance plan for improvements required to be installed as part of
the Conditional Use Permit.
(7) The Administrative Official shall have the authority to modify, or substitute
additional requirements for, any of the requirements listed above when the
changes to the existing building will have a negative impact on the health, safety,
and welfare of the surrounding neighborhood.
(8) The Administrative Official has the authority to reduce the requirements listed
above for facilities which only lease a portion of an existing structure.
(f) Each licensed location is permitted one (1) “64” sign, up to ten (10) square feet.
(g) Existing windows may be screened from the interior of the building, but shall not be
removed or covered from the exterior.
903.3 Retail marijuana testing facilities.
(a) The facility shall not be located within one thousand (1,000) feet of a legally
80 | Page
Edition 2
January 1, 2020
operational school, which holds classes, as determined by direct measurement from
the property line of the facility to the closest property line of the school. Establishing
a school within the required buffer after the Conditional Use Permit is issued shall not
be grounds to suspend, revoke or decline to renew the Permit for such facility provided
the Permit and license for the facility remains lawfully in effect. The Zoning Board of
Appeals shall have the authority to grant a variance from the one thousand (1,000) foot
school buffer only if the property line of the school, by direct measurement, is one
thousand (1,000) feet from the building of the marijuana facility.
(b) The facility shall demonstrate compliance with all ordinances, including but not
limited to drainage, detention, water quality, parking, landscaping, sewer, and public
improvements
(c) Notwithstanding anything to the contrary, all facilities shall provide, at a minimum,
the following improvements:
(1) Install landscaping according to Section 17-4-7 of Title XVII, PMC, regardless of
the applicability stated in Section 17-4-7(b)(2).
(2) Compliance with architectural requirements according to the zone district.
Industrial zoned properties shall comply with Section 17-4-49. All other zoned
properties shall comply with Sections 17-4-46, 17-4-47 or 17-4-48 based on the
building size. The Administrative Official has the authority to require alternative
requirements for architecture, in cases where the zoning requirements are not
appropriate for a particular building or structure.
(3) Provide parking according to Sections 17-4-43(b), Section 17-4-44, or Section 17-
4-45, PMC. All required parking spaces shall be permanent in character and
provided with a permanent driveway to a public way. The driveway and parking
spaces shall be paved with asphalt, concrete, Portland cement concrete or pavers.
(4) Provide public improvements to bring the site and adjacent rights-of-way into
compliance with applicable city standards, including but not limited to repairing
or replacing broken sidewalks, curbs and gutters, and providing an ADA driveway
“walk-around.”
(5) Provide drainage, detention, and water quality in compliance with Storm Drainage
Design Criteria and Drainage Policies for the City of Pueblo, June 9, 1997 (City
Stormwater Criteria). Provide erosion and sediment control in compliance with
City Stormwater Criteria and Colorado Department of Public Health and
81 | Page
Edition 2
January 1, 2020
Environment.
(6) Provide a maintenance plan for improvements required to be installed as part of
the Conditional Use Permit.
(7) The Administrative Official shall have the authority to modify, or substitute
additional requirements for, any of the requirements listed above when the
changes to the existing building will have a negative impact on the health, safety,
and welfare of the surrounding neighborhood.
(8) The Administrative Official has the authority to reduce the requirements listed
above for facilities which only lease a portion of an existing structure.
(d) Existing windows may be screened from the interior of the building, but shall not be
removed or covered from the exterior.
903.4 Retail marijuana store facilities.
(a) The facility shall not be located within the buffer areas of the sensitive uses listed
below, as determined by direct measurement from the property line of the facility to
the closest property line of the area listed.
(1) One thousand (1,000) feet of a legally operational school, which holds classes;
(2) Five hundred (500) feet of a hospital or substance abuse treatment center; and
(3) Three hundred (300) feet of a residential use or residential zone district.
(4) In the event these location restrictions do not appear reasonable when applied to
a specific location, the applicant may apply to the Zoning Board of Appeals for a
variance, but the variance may not reduce the separation distance requirements by
more than ten percent (10%). The Zoning Board of Appeals shall have the
authority to grant a variance from the one thousand (1,000) foot school buffer if
the property line of the school, by direct measurement, is one thousand (1,000)
feet from the building of the marijuana facility.
(b) Notwithstanding anything to the contrary, all facilities shall provide, at a minimum,
the following improvements:
(1) Install landscaping according to Section 17-4-7 of Title XVII, PMC, regardless of
82 | Page
Edition 2
January 1, 2020
the applicability stated in Section 17-4-7(b)(2).
(2) Compliance with architectural requirements according to the zone district.
Industrial zoned properties shall comply with Section 17-4-49. All other zoned
properties shall comply with Sections 17-4-46, 17-4-47 or 17-4-48 based on the
building size. The Administrative Official has the authority to require alternative
requirements for architecture, in cases where the zoning requirements are not
appropriate for a particular building or structure.
(3) Provide parking according to Section 17-4-43(b), Section 17-4-44, or Section 17-
4-45. All required parking spaces shall be permanent in character and provided
with a permanent driveway to a public way. The driveway and parking spaces
shall be paved with asphalt, concrete, Portland cement concrete or pavers.
(4) Provide public improvements to bring the site and adjacent rights-of-way into
compliance with applicable city standards, including but not limited to repairing
or replacing broken sidewalks, curbs and gutters, and providing an ADA driveway
“walk-around.”
(5) Provide drainage, detention, and water quality in compliance with Storm Drainage
Design Criteria and Drainage Policies for the City of Pueblo, June 9, 1997 (City
Stormwater Criteria). Provide erosion and sediment control in compliance with
City Stormwater Criteria and Colorado Department of Public Health and
Environment.
(6) Provide a maintenance plan for improvements required to be installed as part of
the Conditional Use Permit.
(7) The Administrative Official shall have the authority to modify, or substitute
additional requirements for, any of the requirements listed above when the
changes to the existing building will have a negative impact on the health, safety,
and welfare of the surrounding neighborhood.
(8) The Administrative Official has the authority to reduce the requirements listed
above for facilities which only lease a portion of an existing structure.
(c) Each licensed location is permitted one (1) “64” sign, up to ten (10) square feet.
(d) Existing windows may be screened from the interior of the building, but shall not be
removed or covered from the exterior.
83 | Page
Edition 2
January 1, 2020
(e) It shall be unlawful for any retail marijuana store to remain open to the public at any
time other than between the hours of 8:00 a.m. and 10:00 p.m. daily.
Rule 904: Buffering Requirements.
Prior to issuing a Conditional Use Permit, the Administrative Official will confirm that the address
or property boundaries of the proposed licensed premises, meets the buffering requirements listed in
Rule 903 above.
904.1 The buffer requirements are determined by direct measurement from the property line of
the facility to the closest property line of the sensitive use. Establishing a sensitive use
within the required buffer after the Conditional Use Permit is issued shall not be grounds
to suspend, revoke or decline to renew the Permit for such facility provided the Permit and
license for the facility remains lawfully in effect.
904.2 Daycare facilities are not considered sensitive uses and the one thousand (1,000) foot
minimum distance does not apply.
904.3 The Administrative Official will only verify distance of the proposed licensed premises
from existing sensitive uses. Once the retail marijuana store license is issued, the city will
not preclude a school, hospital, or substance abuse treatment center from opening at a
location within the applicable buffer zones.
904.4 A retail marijuana facility may continue to operate in its present location as a preexisting
use if a sensitive use later locates within the applicable buffer zone; however, the licensee
does so at its own risk, and the issued license provides no protection or indemnification
against enforcement of federal or other applicable laws prohibiting operation of a retail
marijuana facility near a school, hospital, or substance abuse treatment center.
904.5 The Zoning Board of Appeals shall have the authority to grant the following variance in
accordance with Section 17-5-34 of the Pueblo Municipal Code:
(a) Retail marijuana store facilities – a variance to the buffer requirements in Rule 903
may be granted by the Zoning Board of Appeals by no more than ten percent (10%) of
the required buffer. The Zoning Board of Appeals shall have the authority to grant a
variance from the one thousand (1,000) foot school buffer if the property line of the
school, by direct measurement, is one thousand (1,000) feet from the building of the
marijuana facility.
84 | Page
Edition 2
January 1, 2020
(b) Retail marijuana grow facilities, product manufacturing facilities and testing facilities
– a variance to the school buffer requirement in Rule 903 may be granted by the
Zoning Board of Appeals, only if the property line of the school, by direct
measurement, is one thousand (1,000) feet from the building of the marijuana facility.
Rule 905: Fixed Location Required.
It shall be unlawful to operate any retail marijuana establishment, including the cultivation of retail
marijuana, outside of an enclosed space within a building that can be locked.
Rule 906: Prohibited Uses.
The following activities are prohibited anywhere within the city:
(a) Storage of marijuana or marijuana-related products off the site of the licensed
premises;
(b) Marijuana membership clubs;
(c) Vapor lounges; and
(d) Outdoor cultivation, preparation, or packaging of marijuana or marijuana products.
85 | Page
Edition 2
January 1, 2020
Rule 1000 Series: Inspections
Rule 1001: Inspection.
1001.1 Grant of Authorization. By signing and submitting a license application, the owner of the
premises certifies that the applicant has received permission from the property owner to
allow inspections as may be required under state or local licensing law. In addition, the
owner of the premises authorizes the Authority, its designee, and the city’s building official
or the official’s designee, to enter upon and inspect the premises upon presentation of
official credentials. These inspections are part of the routine policy of inspection and
enforcement of these regulations for the purpose of protecting the public safety, individuals
operating and using the services of the retail marijuana establishment, and the adjoining
properties and neighborhood. This rule shall not limit any inspection authority authorized
under any other provision of law or regulation, including those of police, fire, building and
code enforcement officials.
1001.2 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
believe that any violation or criminal offense has occurred.
1001.3 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 Rule
1001.4.
1001.4 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.
1001.5 Initial Inspection. The Authority or the Authority’s designees will inspect all retail
marijuana establishments prior to issuance of a license, to verify that the facilities are
constructed and can be operated in accordance with the application submitted and the
requirements of these regulations and the ordinances. The initial inspection shall occur after
the retail marijuana establishment is ready for operation, but no marijuana or marijuana
86 | Page
Edition 2
January 1, 2020
products will be allowed on the premises until the inspection is complete and a license is
issued.
1001.6 Regular Inspections. At a minimum, the Authority or the Authority’s designees shall
perform regular inspections on a yearly basis prior to license renewal.
1001.7 Random Inspections. The regular licensing inspection procedures described shall not
prevent the Authority from inspecting retail marijuana establishments at random intervals
and without advance notice.
1001.8 Building Plans. A copy of the building plans must be retained on the licensed premises at
all times. The licensee must also maintain a floor plan, including depictions of limited
access areas and security camera placement.
1001.9 Food Production Inspections. Any food related portion of a retail marijuana product
manufacturing facility must be inspected by a third party contracted by the city. The
licensee is responsible for any related inspection costs.
Rule 1002: Business Records.
1002.1 Inspection of Records.
(a) Any law enforcement officer may, without a warrant and without reasonable suspicion,
inspect the books and records described in Rule 808.1, at any time that anyone is
present inside the licensed premises. Upon request, the licensee or business manager
on duty shall retrieve and provide any relevant business records pertaining to the
inspection, including but not limited to, security camera recordings, marijuana
inventory manifests, and copies of invoices and receipts. The city may require any
licensee to furnish such information as it considers necessary for the proper
administration of these regulations.
(b) Upon five (5) days written notice, the licensee shall provide its books and records for
inspection and auditing by the city.
Rule 1003: Requests for Information.
1003.1 The Authority and any city employee enforcing any city ordinance, State law or regulation
may submit a written request for information relevant to such enforcement to the licensee
87 | Page
Edition 2
January 1, 2020
by first class mail, at the address of the licensed premises.
1003.2 The licensee shall provide complete written answers to such questions, signed by the
registered manager, within twenty (20) days of the date that the request was mailed or hand
delivered to the licensee or registered manager.
1003.3 The licensee, principals, registered manager and employees shall have no expectation of
privacy in any information or document pertaining to the operation of the licensed business,
licensed premises and adjacent grounds as to the State or city, but the city shall not release
the information and records as public records.
1003.4 In the event that the licensee refuses to provide answers on the grounds that the answer may
tend to incriminate him or her for some criminal offense, or on advice of legal counsel, the
city and Authority may draw the inference that the answer to the question would have been
adverse to the licensee's position regarding the investigation or other matter then pending,
and may afford the inference whatever weight it deems appropriate, and institute a
complaint and proceedings for sanctions based on such inference.
1003.5 The licensee may not refuse to answer a question submitted to it on the grounds that:
(a) The answer may incriminate its principals, financiers, registered manager or
employees;
(b) The answer might place his or her license in jeopardy; or
(c) The question is not relevant.
88 | Page
Edition 2
January 1, 2020
Rule 1100 Series: Violations and Penalties
Rule 1101: General.
1101.1 Administrative actions to impose sanctions against a licensee may be initiated only by
complaint filed by the city or by the Authority on its own motion.
1101.2 The Authority shall review the complaint administratively and determine whether the
complaint and any documents or exhibits submitted therewith show probable cause to
believe that grounds for sanctions exist. If the Authority finds that the complaint along with
any documents or exhibits submitted therewith do not show probable cause to believe that
a violation of these rules and regulations, State law or State regulations has occurred, the
Authority shall dismiss the complaint without prejudice to refile the complaint with
additional information showing probable cause. If the Authority finds that the complaint
along with the documents or exhibits submitted therewith show probable cause to believe
that a violation of these rules and regulations, State law or State regulations has occurred,
the Authority shall issue an order to show cause to the licensee requiring the licensee to
appear before the Authority on a specific date and at a specific time to answer the complaint.
1101.3 Sanctions may be imposed in a hearing for sanctions, renewal, denial or for approval of
major changes, but the city or Authority shall place the licensee on notice that sanctions
may be sought and the grounds for the same by filing a complaint and obtaining an order
to show cause from the Authority.
1101.4 The Authority may impose sanctions against a licensee based on any of the grounds stated
in Rule 1102.
1101.5 In the event that a license expires while proceedings for sanctions are pending, the license
may be temporarily extended until the Authority's final decision. The licensee shall pay a
license extension fee for each thirty (30) day period or portion thereof that the license is
temporarily extended. If the fee is not paid, the license shall expire. After the Authority
renders its final decision, and said decision does not revoke or suspend the license, the
licensee shall submit an application for renewal within fifteen (15) days of the Authority's
final decision.
1101.6 A licensee shall have no right to surrender its license while an investigation, complaint or
proceeding for sanctions is pending, but the Authority may permit the same if the city
consents to the surrender.
89 | Page
Edition 2
January 1, 2020
1101.7 No complaint or action for the sanctions provided in these rules and regulations shall be
instituted or based upon any conduct or omission by a licensee, principal, registered
manager or employee that occurred more than three (3) years before the complaint for
sanctions was filed, but such conduct or omissions may be admitted in evidence if relevant
to other violations that have occurred within the three (3) year limitation period.
Rule 1102: Sanctions.
1102.1 The Authority may impose any one or more of the following sanctions against a license, in
whatever combination the Authority finds appropriate:
(a) Additional conditions as described in Rule 601.4;
(b) A fine in a reasonable amount to be determined by the Authority;
(c) Suspension for up to one hundred eighty (180) days;
(d) Fine in lieu of suspension;
(e) 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/or
(f) Revocation.
1102.2 The Authority may suspend any sanction or portion of a sanction on any reasonable
condition that the Authority deems appropriate in its discretion.
1102.3 In determining the appropriate sanction and whether any sanction or portion of a sanction
should be suspended, the Authority shall consider the following factors:
(a) The severity of the violation;
(b) Whether the violation was committed deliberately, willfully, intentionally, knowingly,
recklessly, wantonly, negligently or accidentally;
(c) Whether the licensee profited or gained some competitive advantage from the violation
or attempted to do so;
90 | Page
Edition 2
January 1, 2020
(d) Potential and actual harm to persons or businesses and the reputation of the retail
marijuana industry;
(e) Harm to public health, safety and welfare;
(f) Warnings given to the licensee, principals, registered manager or employees by the
Authority or any State or city employee before the violation occurred;
(g) The deterrent effect of the sanction on the licensee and other licensees;
(h) Whether the violation was committed or permitted by a principal, registered manager
or employee;
(i) Previous violations by the licensee, principals, registered manager or employees of the
same or different nature and at the same or different licensed premises, including
contempt;
(j) Previous sanctions imposed on the licensee, including sanctions for contempt;
(k) Steps taken by the licensee before the violation occurred to prevent the violation from
occurring;
(l) Whether the violation occurred on the licensee's licensed premises or its adjacent
grounds, or the licensed premises or adjacent grounds of another licensee;
(m) Any plans that the licensee may present showing how it intends to remedy the problem
and prevent the same and similar violations in the future; and
(n) Any other aggravating or mitigating factors, except those that the Authority may not
consider.
1102.4 In determining the appropriate sanction, the Authority shall not consider the following
factors:
(a) Gender, race, ethnicity, ancestry, religion or sexual orientation;
(b) The licensee's business income at the licensed premises;
(c) The probable effect of the sanction on the licensee's finances;
91 | Page
Edition 2
January 1, 2020
(d) Any criminal sanction imposed on any person as a result of the same or related
conduct;
(e) Any administrative penalty imposed by the State as a result of the same or related
conduct; or
(f) Any civil judgment imposed as a result of the same or related conduct.
1102.5 The administrative sanctions provided in Rule 1102 are intended to be in addition to any
administrative, civil or criminal penalty, or judgment imposed by any court or other
licensing authority.
Rule 1103: Summary Suspension.
1103.1 The Authority may summarily suspend any license without notice or hearing if the
Authority finds, administratively, that there is probable cause to believe that:
(a) The licensee or its principals, registered manager or employees have committed a
willful or deliberate violation of these rules and regulations; and
(b) The continued operation of the retail marijuana license poses an immediate and
substantial threat to public health, safety and welfare, such that waiting the time
required to hold a regular disciplinary hearing would probably result in substantial
harm to public health, safety and welfare.
1103.2 If the Authority imposes a summary suspension administratively, it shall notify the licensee
in writing as soon as is practical that it has been summarily suspended, that it must close
its licensed premises, and the date, time and place of the three (3) day hearing to follow.
1103.3 The Authority shall hold a hearing within three (3) business days, at which the licensee
may be present, to determine whether the summary suspension should continue pending a
full hearing on the alleged violation.
1103.4 The Authority shall set a full hearing on the sanctions to be imposed for the violation that
led to summary suspension to be held within fifteen (15) days from the date the licensee
was first informed of the summary suspension and required to close the licensed premises,
unless the Authority finds at the three (3) day hearing or upon the City's motion that there
no longer is probable cause to believe that a violation occurred.
92 | Page
Edition 2
January 1, 2020
1103.5 The licensee may waive the fifteen (15) day hearing requirement and request a later hearing,
but such waiver shall operate as consent to continue the summary suspension until the later
date.
Rule 1104: Imputing Knowledge and Violations to the Licensee.
1104.1 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
known, shall be imputed to the licensee for purposes finding whether a violation occurred
and imposing sanctions.
1104.2 Any fact that occurs in the licensed premises or adjacent grounds that a 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.
1104.3 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. Knowledge of the applicable state law, state regulations, city
ordinances and these rules and regulations shall be imputed to the licensee.
Rule 1105: Effect of Sanctions.
1105.1 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 period
as the Authority may specify in its order. Failure to do so may be grounds for further
sanctions.
1105.2 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:
(a) Pay the fine and costs imposed within the time specified in the Authority's 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.
(b) Post signs at least thirty six (36) inches by thirty six (36) inches on every entrance to
93 | Page
Edition 2
January 1, 2020
the licensed premises with letters at least one (1) inch in height for a period of ten (10)
continuous days which shall be specified in the Authority's order, stating:
THE RETAIL MARIJUANA LICENSE FOR THESE PREMISES HAS BEEN FINED
AND ADJUDGED COSTS BY THE PUEBLO RETAIL MARIJUANA LICENSING
AUTHORITY IN THE AMOUNT OF $______ FOR VIOLATING THE FOLLOWING
PROVISIONS OF THE PUEBLO MUNICIPAL CODE RELATING TO RETAIL
MARIJUANA: (STATE NATURE OF VIOLATION AND SECTION VIOLATED)
1105.3 Suspension of license. A licensee whose license has been suspended shall:
(a) Close the licensed premises to all persons except the registered manager and
employees during the term of the suspension.
(b) Post signs at least thirty six (36) inches by thirty six (36) inches on every entrance to
the licensed premises with letters at least one (1) inch in height during the period that
the suspension is imposed, stating:
THE RETAIL MARIJUANA LICENSE FOR THESE PREMISES HAS BEEN
SUSPENDED BY ORDER OF THE PUEBLO RETAIL MARIJUANA LICENSING
AUTHORITY FOR ____ DAYS FROM ______________ THROUGH ________________
FOR VIOLATING THE FOLLOWING PROVISIONS OF THE PUEBLO MUNICIPAL
CODE RELATING TO RETAIL MARIJUANA: (STATE NATURE OF VIOLATION
AND SECTION VIOLATED)
1105.4 Revocation of license. A licensee whose license is revoked shall:
(a) Close the licensed premises and dispose of all retail marijuana on the licensed premises
through legal means within such time and by such means as the Authority may order.
(b) Not be eligible to apply for a new license for a period of two (2) years.
Rule 1106: Basis for Suspension, Revocation, or Denial.
1106.1 The Authority may deny a new application, deny renewal of a license or impose sanctions
on a retail marijuana license previously approved or issued if the Authority finds, by a
preponderance of the evidence at a hearing, or upon the admission or stipulation of the
applicant or licensee, that any of the following have occurred:
94 | Page
Edition 2
January 1, 2020
(a) The licensee, principals, registered manager, employees, the licensed premises or the
adjacent grounds do not meet or no longer meet one (1) or more of the requirements
of Rule 202.10, these Rules and Regulations, or any other provision of Pueblo
Municipal Code, State law or State regulations;
(b) The licensee has failed to obtain any State license, certification, registration or
approval, or meet any other requirement imposed by State law or regulations;
(c) The licensee, principals, registered manager or employees have committed or
attempted to commit any violation of any city ordinance, State statute or State
regulation or have permitted others to violate the same on the licensed premises or
adjacent grounds or on other licensed premises or adjacent grounds;
(d) The licensed premises have been operated in a way that substantially deviates from the
operational plan approved by the Authority;
(e) The licensed premises or adjacent grounds will have, or have a had a harmful or
damaging impact on the public health, safety, or the general welfare of the City or the
neighborhood where the retail marijuana establishment is located;
(f) A check, credit card, debit card or other payment for any tax, fee, fine, fine in lieu or
other sum due to the city from the licensee has been stopped or rejected for insufficient
funds, closed account or similar reasons;
(g) Any tax, fee, fine, fine in lieu of suspension or other sum due to the city from the
licensee is unpaid and more than thirty (30) days in default;
(h) The licensed premises have not been operated for more than one (1) year;
(i) The licensee has failed to pay the city all required fees, fines, taxes, and penalties, or
is overdue on his or her payment to the city of fees, fines, taxes, or penalties assessed
against or imposed upon such licensee in relation to the licensed premises;
(j) The licensee has made any false statement in the license or renewal application as to
any of the facts required to be stated in such application;
(k) The licensee has failed to file any reports or furnish any information as required by the
provisions of these rules and regulations and the Pueblo Municipal Code relating to
the operation of a retail marijuana establishment;
95 | Page
Edition 2
January 1, 2020
(l) The licensee has refused to allow an inspection of the licensed premises as authorized
by these rules and regulations and the Pueblo Municipal Code;
(m) The licensee has failed to appear upon a municipal court summons for a violation of
the Pueblo Municipal Code; or
(n) The licensee has failed to comply with these Rules and Regulations.
Rule 1107: Prohibited Activity During Suspension.
During the term of any license suspension, whether summary in nature or following a hearing, a
retail marijuana establishment may not conduct any operations on the licensed premises except as
described below.
1107.1 Retail Store Licensee. Unless otherwise ordered, during any period of active license
suspension the licensee shall not engage in the selling, serving, giving away, distribution,
transfer, or transport of any product – including retail marijuana, retail marijuana product,
or paraphernalia and accessories – on the licensed premises, nor allow customers to enter
the licensed premises.
1107.2 Retail Cultivation Facility Licensee. Unless otherwise ordered, during any period of active
license suspension the licensee shall not sell, distribute, transfer, transport, or otherwise
remove any retail marijuana or retail marijuana product from the licensed premises.
However, the licensee may maintain inventory and otherwise care for its retail marijuana
product and plant inventories during the period of suspension.
1107.3 Retail Product Manufacturing Facility Licensee. Unless otherwise ordered, during any
period of active license suspension the licensee shall not manufacture any retail marijuana
product or concentrates, nor permit the selling, distribution, transfer, or transport of retail
marijuana or retail marijuana product on or from the licensed premises.
1107.4 Retail Testing Facility Licensee. Unless otherwise ordered, during any period of active
license suspension the licensee shall not receive any marijuana for testing, perform any
testing on marijuana, or otherwise transfer or transport any retail marijuana or retail
marijuana product on or from the licensed premises.
1107.5 Removal or Destruction Prohibited. During any period of active license suspension, retail
marijuana and retail marijuana product shall not be removed from the licensed premises or
96 | Page
Edition 2
January 1, 2020
destroyed except under the supervision of the Pueblo Police Department as ordered by the
Authority.
Rule 1108: Unlawful Acts – Any Person.
1108.1 It shall be unlawful for any person to:
(a) Make any false statement, written or verbal, to the Authority or to any city employee,
in any investigation, inquiry, hearing, testimony, application, report or document
related in any way to retail marijuana or the licensing thereof; and
(b) Smoke or consume any marijuana, marijuana plant or marijuana product on a licensed
premises or the adjacent grounds.
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 Pueblo Municipal Code; Article 10, Title 44, C.R.S.; or any State regulation
pertaining to retail marijuana.
(b) To permit any violation of these rules and regulations or any law or regulation on the
licensed premises or the adjacent grounds.
(c) To operate a retail marijuana establishment at any time that any of the requirements or
conditions contained in Rule 202.10 and these rules and regulations, are not satisfied.
(d) To fail, neglect or refuse to collect sales taxes on any transaction or to promptly pay
any sales and use tax, excise tax, fee or charge required under these rules and
regulations or under the Pueblo Municipal Code.
(e) To fail, neglect or refuse to promptly provide any books, records, reports, information,
documents or answers to requests for information required under these rules and
regulations.
97 | Page
Edition 2
January 1, 2020
(f) To refuse to provide signed answers to requests for information, except as provided in
these rules and regulations, or to refuse to answer any request for information on any
grounds prohibited under these rules and regulations.
(g) To violate any ordinance, statute or regulation on the licensed premises or on the
adjacent grounds.
(h) To violate any condition or to permit the violation of any condition placed on a license
issued under these rules and regulations or by the State.
(i) To permit anyone under the age of twenty one (21) to be present on the licensed
premises.
(j) To permit anyone who is not an employee to enter the limited access area.
(k) To permit any employee to enter the limited access area without a visible employee
badge.
(l) To conduct any cultivation, manufacturing, testing, processing, packaging, display,
sale or exchange of marijuana plants, harvested marijuana or marijuana products
outside the licensed premises.
(m) To transport any quantity of marijuana or marijuana products without carrying with
the marijuana or marijuana products, a written manifest showing the following
information, or to refuse to provide to any law enforcement officer upon demand a
written manifest showing the following information:
(1) The type or name of marijuana or marijuana products, and the weight or volume of
each carried;
(2) A description of the make, model and VIN number of the vehicle carrying the
marijuana or marijuana products;
(3) The name and address of the driver of the vehicle;
(4) The name and address of the licensed retail marijuana establishment from which
the retail marijuana originated;
98 | Page
Edition 2
January 1, 2020
(5) The name and address of the licensed marijuana establishment to which the
marijuana or marijuana products is being delivered; and
(6) The date and time that the marijuana or marijuana products departed the licensed
marijuana establishment where the marijuana originated.
(n) To allow anyone who does not possess a current and valid Owner and Occupational
License to transport retail marijuana or retail marijuana product between licensed
premises.
(o) To transfer, distribute, sell, give away, or dispose of any marijuana or any marijuana
product by any other means than a face-to-face transaction within the licensed
premises. Transfer, distribution, sale, gift, or disposition of marijuana or marijuana
via the internet or any on-line service is prohibited and unlawful.
(p) To display, transfer, distribute, serve, sell, give away, or dispose of any marijuana or
marijuana product in any public place other than the licensed premises.
(q) For any licensee or any manger, employee, or agent of such licensee to fail to
immediately report to the Pueblo Police Department any disturbance, unlawful or
disorderly conduct, or criminal activity occurring at the location, on the premises, or
within the licensed premises set forth on the license.
Rule 1110: Penalties.
Any person who violates any provision of these rules and regulations or fails, neglects or refuses to
perform any act required under these rules and regulations shall, upon conviction thereof, be guilty of
a Class 1 municipal offense and shall be punished by a fine of not more than one thousand dollars
($1,000.00) or imprisonment for not more than one (1) year, or both such fine and imprisonment.
99 | Page
Edition 2
January 1, 2020