6-6-118 General operating requirements | Telluride Municipal Code

Sec. 6-6-118. General operating requirements.

(a) Pursuant to Colorado law found at § 9-7-113, C.R.S., Use of flammable gases in home marijuana cultivation - prohibited, which provides that “A local government may ban the use of a compressed, flammable gas as a solvent in the extraction of THC or other cannabinoids in a residential setting,” and the provisions of Section 16 of Article XVIII of the Colorado Constitution, it is unlawful and a violation of this Article for any person to manufacture hash oil anywhere within the Town of Telluride or to operate a retail marijuana products manufacturing facility producing solvent-based retail marijuana concentrate, by use of solvents containing compressed flammable gases, which are regulated under Colorado Department of Revenue, Marijuana Enforcement Division, Retail Marijuana Code Rule 605 (1 CCR 212-2).

(1) An applicant may apply for a retail marijuana store license and retain the medical marijuana license. At the time the retail marijuana store license is granted, the applicant shall identify the medical marijuana inventory that will become retail marijuana inventory upon receiving the retail marijuana store license.

(2) An applicant who retains a medical marijuana license and obtains a retail marijuana store license for the two (2) licensed premises must maintain actual physical separation between the two (2) facilities or certify by affidavit and as a condition of the retail marijuana store license that it will only sell to individuals at least twenty-one (21) years of age.

(3) Cultivation operations shall maintain either physical or virtual separation of the plants and inventory of the two (2) facilities in compliance with the Rules.

(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) The proposed licensed premises have a suitable limited access area where the cultivation, display, storage, processing, weighing, handling, and packaging of retail marijuana 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.

(3) 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, functioning commercial-grade locks;

b. A locking safe or enclosed secured storage located inside the proposed licensed premises in which any retail marijuana and retail marijuana 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 installed and continuously monitored burglar alarm system that detects unauthorized entry at all doors, windows, and other points of entry to the licensed premises; and

e. Windows facing 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.

(1) Every licensee shall maintain on the licensed premises accurate and up-to-date books and records of the business operations, 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, 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, and weight, that account for, reconcile and evidence all inventory activity for retail marijuana from either seed or immature plant stage until the retail marijuana or retail marijuana product is sold to a customer and any additional relevant information for proper recordkeeping for tax purposes;

b. An inventory of all marijuana products presently on the licensed premises;

c. Sales and use taxes collected and remitted;

d. Excise tax collected and remitted if approved by voters in the 2013 general election; and

e. The name, address, and copy of the retail marijuana license of any other retail marijuana establishment 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 retail marijuana products.

(2) Inspection of Books and Records; Audits. The Authority may require a retail marijuana store licensee to undergo an audit by an accountant that is independent of the licensee, when it deems an audit necessary. The audit scope may include, but not be limited to, financial transactions, inventory control measures, or other agreed-upon procedures. The licensee will be responsible for all direct costs associated with the independent audit.

a. The Authority and any Town employee enforcing any Town ordinance, state law, or regulation may submit a written request for information relevant to the licensee by certified mail, return receipt requested at the address of the licensed premises.

b. The licensee shall provide complete written answers to such questions, signed by the registered manager, within twenty (20) days of the date the request was mailed or delivered.

c. The licensee, principals, registered manager, and employees shall have no expectation of privacy in any information or document pertaining to the operation of the retail marijuana store, licensed premises, and adjacent grounds as to the state or Town, but the Town shall not release the information and records as public records.

(1) 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, or advertising. Nothing contained in this Subsection shall prevent the Town from taking civil, administrative or criminal action against any person or license, logo, trademark, trade name, or advertising.

(2) It shall be unlawful for any licensee to use advertising material that is misleading, deceptive, or false, or that is designed to appeal to minors. It shall be unlawful for any licensee to refer to infused marijuana products by solely referencing the method of transmitting such infused products such as, but not limited to, ice cream, yogurt, truffles, candy, soda, caramels, juice or brownies. Any reference to such infused marijuana products each and every time must also include the word “marijuana” or phrase commonly understood as referring to marijuana.

(3) These restrictions are intended to apply to any and all signage associated with the licensed premises, any and all advertising, in whatever format, for the licensed premises and any and all representations of the licensed premises to the public.

(1) Every licensed premises and adjacent grounds shall be open to inspection by police officers, building officials, firefighters, zoning officials, sales, use, and excise tax officials, and health department officials during regular business hours; and provided, that the registered manager or principal 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.

(2) The licensees, principals, registered managers, and employees shall have no reasonable expectation of privacy as to the buildings, rooms, areas, vehicles, furniture, safes, lockers, or containers on the licensed premises and adjacent grounds, except as provided in this Section. 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.

(1) It is unlawful under State and local law to cultivate, manufacture, distribute, or sell retail marijuana, except in compliance with the terms, conditions, limitations, and restrictions in Section 16 of Article XVIII of the Colorado Constitution and Article 43.4 of Title 12, C.R.S, the Rules and this Article.

(2) There shall be no consumption of marijuana that is conducted openly and publicly or in a manner that endangers the public health, safety, or welfare.

(3) It is unlawful to sell, to distribute to, or allow any person under the age of twenty-one (21) years old to possess retail marijuana or retail marijuana products.

(4) It is unlawful for any licensee, principal, registered manager, or employee of a licensee to commit any of the following acts:

a. To violate or to fail, neglect, or refuse to comply with any requirement of this Article, Article 43.4 of Title 12, C.R.S., or any state regulation pertaining to retail or medical marijuana;

b. To permit any violation of this Article or any law or regulation on the licensed premises or the adjacent grounds;

c. To operate a retail marijuana center at any time that any of the requirements or conditions contained in this Article are not satisfied;

d. To sell, dispense, or give away any retail marijuana, marijuana plants, or marijuana product to any person except another retail marijuana licensee, except to the extent and in a manner permitted by law;

e. To fail, neglect, or refuse to collect sales tax on any transaction or to promptly pay any tax, fee, or charge required under this Article or other Chapters of the Telluride Municipal Code;

f. To fail, neglect, or refuse to promptly provide any books, reports, information, documents, or answers to requests for information required under this Article;

g. To violate any ordinance, statute, or regulation on the licensed premises or adjacent grounds;

h. To violate any condition or to permit the violation of any condition placed on a license under this Article;

i. To permit anyone under the age of twenty-one (21) to be present on the licensed premises;

j. To permit any unauthorized person to enter a limited access area;

k. To permit any employee to enter a limited access area without a visible duly issued occupational license badge;

l. To conduct any processing, packaging, display, sale, or exchange of marijuana plants, harvested retail marijuana, or marijuana product outside the licensed premises except in compliance with the Rules and the Colorado Retail Marijuana Code;

m. To fail, neglect, or refuse to package and label any retail marijuana plant or harvested marijuana sold or exchanged on the licensed premises in compliance with state law;

(5) A retail marijuana store may not sell any retail marijuana product that contains nicotine or alcohol. (Ord. 1394, 2013; Ord. 1407, 2014; Ord. 1463 §5, 2018. Formerly 6-6-107(c)(xv) through 6-6-107(j))