With Denver City Council’s passage last week of Bill 16-0291 many changes affecting the local marijuana industry are now in place:

CAPS ON SALES & CULTIVATION LOCATIONS

• The total number of available marijuana sales and cultivation locations will be capped at no more than 467.
  • This number is based on the total number of licensed marijuana sales and cultivation facilities in existence as of May 1, 2016, plus the number of new locations that could potentially be added upon approval of applications that were pending on May 1, 2016.
  • Once all of the pending applications are processed, a permanent cap number will be established.
• The total number of available marijuana sales locations will be capped at no more than 226, based upon the total number locations where licensed marijuana sales were occurring as of May 1, 2016, plus the number of new locations that could potentially be added upon approval of applications that were pending on May 1, 2016.
• The total number of available marijuana cultivation locations will be capped at no more than 311, based upon the total number of locations where licensed marijuana cultivation was occurring as of May 1, 2016, plus the number of new locations that could potentially be added upon approval of applications that were pending on May 1, 2016.

RETAIL MARIJUANA LICENSES

• Any application for a new retail license of any type or renewal of an existing retail license of any type must be accompanied by a Community Engagement Planwhich must include, among other things:
  • Plans to create positive impacts in the neighborhood where the business is located.
  • Procedures for addressing neighborhood concerns about the business.
  • Policies to promote community engagement and involvement in the marijuana industry in a positive way.

Retail Marijuana Stores

• Holders of medical marijuana center licenses who have not already done so can still apply to add or convert to a retail marijuana store license in their current location.
• For now, the city will not receive or act upon any applications for licensing of newretail marijuana stores in new locations in Denver.
• The first opportunity for licensing new retail marijuana stores in new locations will occur no sooner than 2017, and only if and when capacity for new locations is available under the citywide cap.
  • In the first open application process and lottery, new store licenses will be prohibited in the five statistical neighborhoods where the highest number of licensed store locations already exist.
• An existing retail marijuana store license can only be transferred to another location in the city if:
  • All other marijuana sales and cultivation licenses at the original location either move to the same new location or are surrendered.
    • This applies to all the retail and medical licenses at the original location, regardless of license owner or business entity.
    • “Location” is defined as a particular parcel of land that is identified by a distinct street address assigned by the city. Therefore, even licenses in different units at the same address would have to move to the new location or be surrendered, even if those licenses are under separate ownership.
• A retail marijuana store license can still be transferred to a new owner at any time, subject to existing restrictions already in ordinance.

Retail Marijuana Cultivation Facilities

• Holders of medical marijuana cultivation facility licenses who have not already done so can still apply to add or convert to a retail marijuana cultivation facility license in their current location.
• For now, the city will not receive or act upon any applications for licensing of newretail marijuana cultivation facilities in new locations in Denver.
• The first opportunity for licensing new retail marijuana cultivation facilities in new locations will occur no sooner than 2017, and only if and when capacity for new locations is available under the citywide cap.
  • In the first open application process and lottery, new cultivation licenses will be prohibited in the five statistical neighborhoods where the highest number of licensed cultivation locations already exist.
• In any open application process and lottery, new applications and applications for transfer of location to new locations for retail marijuana cultivation licenses will be subject to a 1,000-foot spacing requirement from residential zone districts and schools.
  • New applications and applications for transfer of location for retail marijuana cultivation licenses to locations with an existing cultivation license will not be subject to the 1,000-foot spacing requirement.
• A retail marijuana cultivation license may be issued at any time in a location where the applicant already owns one or more medical marijuana cultivation licenses.
  • Any retail marijuana cultivation license that is co-located with an existingcultivation license will not be subject to the 1,000-foot spacing requirement from residential zone districts and schools.
  • However, multiple retail marijuana cultivation licenses which share the same licensed premises must be “collapsed” into one license.
• An existing retail marijuana cultivation facility license can only be transferred to another location in the city if:
  • It is transferred to a location where licensed marijuana cultivation is already currently occurring.
    • OR
  • All other marijuana sales and cultivation licenses at the original location either move to the same new location or are surrendered.
    • This applies to all the retail and medical licenses at the original location, regardless of license owner or business entity.
    • “Location” is defined as a particular parcel of land that is identified by a distinct street address assigned by the city. Therefore, even licenses in different units at the same address would have to move to the new location or be surrendered.
• A retail marijuana cultivation facility license can still be transferred to a new owner at any time, subject to existing restrictions already in ordinance.

Retail Marijuana Infused Products Manufacturers & Testing Facilities

• The ordinance will allow new applicants for retail marijuana infused products manufacturing licenses.
  • These licenses were previously limited to only those facilities that had a medical marijuana MIP license by Oct. 1, 2013.
• The ordinance will have no effect on licensing for retail testing facilities.

MEDICAL MARIJUANA LICENSES
Medical Marijuana Centers

• The city will no longer issue new licenses for medical marijuana centers.
  • Holders of existing medical marijuana center licenses who have not already done so can still apply to add or convert to a retail marijuana store license in their current location.

• An existing medical marijuana center license can only be transferred to another location in the city if:
  • All other marijuana sales and cultivation licenses at the original location either move to the same new location or are surrendered.
    • This applies to all the retail and medical licenses at the original location, regardless of license owner or business entity.
    • Location is defined by unique address. Therefore, even licenses in different units at the same address would have to move to the new location or be surrendered.

• A medical marijuana center license can still be transferred to a new owner at any time, subject to existing restrictions already in ordinance.

Medical Marijuana Optional Premises Cultivation

• The city will no longer issue new licenses for medical marijuana optional premises cultivation.
  • Holders of medical marijuana cultivation facility licenses who have not already done so can still apply to add or convert to a retail marijuana cultivation facility license in their current location.
• An existing medical marijuana cultivation facility license can only be transferred to another location in the city if:
  • It is transferred to a location where licensed marijuana cultivation is already currently occurring.
    • OR
  • All other marijuana sales and cultivation licenses at the original location either move to the same new location or are surrendered.
    • This applies to all the retail and medical licenses at the original location, regardless of license owner or business entity.
    • “Location” is defined as a particular parcel of land that is identified by a distinct street address assigned by the city. Therefore, even licenses in different units at the same address would have to move to the new location or be surrendered.
• Any transfer of location will be subject to existing restrictions already in ordinance along with the new 1,000-foot spacing requirement from residential zone districts and schools in the new location.
• A medical marijuana optional premises cultivation license can still be transferred to a new owner at any time, subject to existing restrictions already in ordinance.

Medical Marijuana Infused Products and Testing Facilities

• The ordinance will have no effect on these two categories of licensing, and the city has resumed accepting applications for these types of licenses.

For more information, visit the city’s Retail Marijuana and Medical Marijuana business licenses webpages.