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Sec. 6-5-308. Requirements to obtain and retain a medical marijuana license.
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In order to obtain a license the applicant shall demonstrate by a preponderance of the evidence to the Authority that the following requirements are satisfied:

(a) Requirements for Licenses.

(1) Whether or not the applicant was established on or before July 1, 2010, as defined in § 12-43.3-103(1)(a), C.R.S., the applicant has completed and submitted the forms and paid the fees to the State Department of Revenue required under § 12-43.3-103(1)(b), C.R.S., by August 1, 2010.

(2) Whether or not the applicant was established on or before July 1, 2010, as defined in § 12-43.3-103(1)(a), C.R.S., the applicant demonstrates that it has certified to the State Department of Revenue, on or before September 1, 2010, that it is cultivating at least seventy percent (70%) of the medical marijuana necessary for its operation, as required in § 12-43.3-103(2)(b), C.R.S., and that the applicant is prepared to certify to the State Department of Revenue, on a continuing yearly basis, that it is cultivating at least seventy percent (70%) of the medical marijuana necessary for its operation, as required in § 12-43.3-103(2)(b), C.R.S.

(b) General Requirements.

(1) The applicant has obtained a Town sales and use tax license;

(2) The applicant has obtained a state sales and use tax license;

(3) The applicant has obtained a Town license for any other business activity that will be operated on the licensed premises;

(4) The applicant has submitted an application for a license that the clerk to the Authority has determined is complete;

(5) The applicant has paid all fees required under this Article; and

(6) The applicant must demonstrate that the location of the proposed licensed premises is located on or within property zoned by the Town of Telluride as either Commercial or Historic Commercial in the Town of Telluride; proposed licensed premises are prohibited in all other zone districts in the Town.

(c) Personal Requirements for the Licensee, Principals, Registered Manager and Employees.

(1) The applicant, principals, registered manager, and employees meet all requirements for issuance of a state license.

(2) The applicant, principals, registered manager, and employees are all at least twenty-one (21) years of age.

(3) 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.

(4) The applicant, principals, registered manager and employees have not discharged a sentence for any felony in the five (5) years immediately preceding the application. This shall constitute a per se and complete disqualification.

(5) 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 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.

(6) 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 Article. Notwithstanding any other burden of proof stated in this Article, 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:

a. The facts of the specific crime or other act tending to show 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 character and conduct.

(7) The applicant, principals and registered manager have not held an interest in any liquor license, medical marijuana license, or other license issued by any town, county, or state that has been revoked, suspended, or fined within the preceding two (2) years.

(8) 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.

(9) The applicant, principals, and employees are not in default on any Town, 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 Town.

(10) The applicant and principals are not in default on any student loan.

(11) The applicant, principals, and employees are trained or experienced in, and able to comply with, the requirements of this Article 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:

a. The role that the individual will play in operating the facility;

b. Previous experience operating medical marijuana facilities;

c. Completion of state or industry approved courses on how to comply with Colorado laws and regulations regarding medical marijuana facilities; and

d. The individual’s understanding of state law and Town ordinances regulating medical marijuana as shown under questioning by the Authority at the hearing.

(12) The applicant, principals, registered manager, and employees all hold valid occupational licenses and registrations for medical marijuana issued by the state of Colorado.

(13) The applicant and principals do not have any orders or judgments against them for child support in default or arrears.

(14) The applicant and principals are not peace officers or prosecuting attorneys.

(15) The applicant and principals are not licensed physicians who recommend medical marijuana.

(16) The applicant and principals do not have an ownership or financial interest in more than one (1) other license issued in the Town of Telluride.

(17) If the applicant or principals already hold one (1) medical marijuana license in the Town of Telluride, 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.

(18) The applicant and principals have not previously violated provisions of Telluride Municipal Code or the Telluride Land Use Code relating to the medical marijuana business.

(d) Location and Other Licensing of Premises.

(1) The proposed licensed premises and adjacent grounds meet all requirements for issuance of a state license.

(2) The proposed licensed premises are located in a fixed, permanent, nonportable building and are not located in a movable or mobile structure or in a vehicle nor is it operated as a home occupation under Telluride Land Use Code Section 2-160.

(3) The premises are not licensed or operated as an establishment for the sale or service of alcohol beverages as defined in § 44-3-103(2), C.R.S., or as a massage parlor, a dance hall, or an amusement facility.

(4) The premises are not licensed or operated as a retail food establishment or wholesale food registrant.

(5) 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.

(6) The premises are not located within five hundred (500) feet of any public or private school as such school is defined by § 44-3-103(50), C.R.S. The distances referred to in this paragraph are to be computed by direct measurement from the nearest property line of the land used for a school or campus to the nearest portion of the lot that is the situs of the building that is proposed as a licensed premises.

(e) Control, Security, and Code Compliance of Premises.

(1) 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.

(2) All storage, dispensing, and production/cultivation activities shall be conducted indoors.

(3) Plants, products, accessories, and associated paraphernalia shall not be visible from a public sidewalk or right-of-way.

(4) 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.

(5) The applicant has submitted a security plan for the proposed licensed premises, which has been inspected and approved by the Marshal’s Department, showing at least the following security measures:

a. All doors, windows and other points of entry have secure and functioning locks;

b. A locking safe or enclosed secured storage 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;

c. 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;

d. 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

e. 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.

(6) 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 Telluride Planning Department, Telluride Fire Protection District, and county health department.

(7) 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, pursuant to applicable provisions of the Telluride Land Use Code.

(8) 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.

(f) Requirements Specific to a Medical Marijuana Center License.

(1) The applicant will cultivate at least seventy percent (70%) of the marijuana sold or exchanged on the licensed premises.

(2) The proposed licensed premises are 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, including to any public property or right-of-way within the Town. The ventilation system must be inspected and approved by the Telluride Building Department.

(g) Requirements Specific to Optional Premises Cultivation License.

(1) The applicant also holds a medical marijuana center license or a medical marijuana infused products manufacturer’s license.

(2) The proposed licensed premises are either contiguous to the licensee’s licensed premises for a licensed medical marijuana center or a medical marijuana infused products manufacturer’s operation, or are located outside the Town of Telluride.

(3) 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, including to any public property or right-of-way within the Town. The ventilation system must be inspected and approved by the Telluride Building Department.

(4) 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, including but not limited to a medical marijuana center or medical marijuana infused products manufacturing center.

(5) 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.

(6) No portion of the building in which the proposed licensed premises are located is utilized as a residence.

(h) Requirements Specific to a Marijuana Infused Product Manufacturer’s License.

(1) The applicant has a contract with a medical marijuana center, stating the type and quantity of medical marijuana infused product that the medical marijuana center will buy from the licensee;

(2) The applicant also obtains an optional premises cultivation license, which is either contiguous to the licensed premises of the medical marijuana center or located outside the Town of Telluride;

(3) The applicant cultivates at least seventy percent (70%) of the marijuana necessary for its operation; and

(4) The applicant will use marijuana from no more than five (5) marijuana providers, including its own optional premises cultivation operation to manufacture its marijuana infused products.

(i) Requirements for Premises That Are Not Completed.

(1) If the proposed licensed premises have not been completed, inspected, and approved as required in this Article 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 probably comply with the requirements of this Article when completed and inspected.

(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 this Article have been obtained and submitted to the Authority.

(3) In the event that the license is approved, but the premises are not completed, inspected and approved as required in this Article within one hundred twenty (120) days of approval, the approval shall lapse and the license shall not be issued.

(j) Requirements of this Section Also Apply to Licensees; Continuing Duty.

(1) The requirements of this Section imposed on any applicant shall also apply to any licensee. The requirements of this Section imposed on any proposed licensed premises, proposed adjacent grounds, or proposed locations shall also apply to licensed premises, adjacent grounds, and actual locations, respectively.

(2) Every 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. (Ord. 1348, 2011; Ord. 1463 §4, 2018)

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