O-14. Authorizing the Establishment of Retail Marijuana Stores, Retail Cultivation Facilities, Retail M...

Palisade Board of Trustees
Date of Vote: Tue, May 23rd 2017
Polls (closed):
Yay (0)    Nay (0)

Summary

                    An Ordinance of the Town of Palisade, Colorado, Authorizing the Establishment of Retail Marijuana Stores, Retail Cultivation Facilities, Retail Manufacturing Facilities, and Retail Testing Facilities; Providing for the Licensing of such Marijuana Business Establishments; and Setting Forth the Operational Requirements of such Retail Marijuana Business Facilities.

ORDINANCE FULL TEXT
WHEREAS, Section 16 of Article XVIII of the Colorado Constitution (the “Recreational Marijuana Amendment” also known as Amendment 64) permits the personal use of marijuana by persons age twenty-one (21) years and older under Colorado law; and
                
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                    WHEREAS, to enact and enforce the provisions of Article XVIII of the Colorado Constitution, the General Assembly enacted the Colorado Retail Marijuana Code, Article 43.4 of Title 12, C.R.S. (“the Colorado Retail Marijuana Code”); and

WHEREAS, in addition, the Colorado Department of Revenue adopted retail marijuana rules (“Retail Marijuana Rules”) and the Colorado Retail Marijuana Code and the Retail Marijuana Rules authorize counties and municipalities to determine whether to permit, as a matter of State law, certain retail marijuana business establishments within their jurisdictions; and

WHEREAS, as permitted under the Recreational Marijuana Amendment, the Town of Palisade’s electors voting at the November 8, 2016 general election authorized the establishment and operation of retail marijuana stores, retail cultivation facilities, retail marijuana manufacturing facilities, and retail marijuana testing facilities subject to regulations and requirements adopted by the Palisade Board of Trustees as necessary for the proper licensing and administration of such retail marijuana business facilities; and

WHEREAS, the Palisade Board of Trustees hereby adopts licensing procedures, rules and regulations governing retail marijuana business establishments; and 

WHEREAS, by enacting this Ordinance, the Town 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 this Ordinance, the use, possession, distribution, and sale of marijuana remains illegal under federal law and those who engage in such activities do so at their own risk of criminal prosecution.

NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF PALISADE, COLORADO:
Section 1. That a new Article V of Chapter 6 of the Palisade Municipal Code
concerning the licensing and regulation of recreational marijuana businesses is hereby enacted to
read as follows:
ARTICLE V Licensing and Regulation of Recreational Marijuana Businesses
Sec. 6-100 Purpose
Sec. 6-101 Definitions
Sec. 6-102 License Required for Retail Marijuana Establishments
Sec. 6-103 Composition of Local Licensing Authority
Sec. 6-104 Functions and Powers of Local Licensing Authority
Sec. 6-105 Limitation on the Number of Licenses That May Be Issued Within the Town
Sec. 6-106 Conversions of Licenses and Co-Locations of Marijuana Businesses
Sec. 6-107 Issuance of Initial Licenses-General
Sec. 6-108 Issuance of Initial Licenses-Retail Marijuana Stores and Retail Marijuana
Cultivation Facilities
Sec. 6-109 Permitted Locations
Sec. 6-110 Distance Requirements from Schools
Sec. 6-111 General Licensing Conditions
Sec. 6-112 License Application Requirements
Sec. 6-113 Inspection Required
Sec. 6-114 Issuance of License
Sec. 6-115 Release of Information
Sec. 6-116 License Fees and Charges
Sec. 6-117 Persons Prohibited as Licensees and Business Managers
Sec. 6-118 Issuance of Denial of Approval
Sec. 6-119 Contents and Display of Approval
Sec. 6-120 Transfer/Changes in Ownership Structure
Sec. 6-121 Change of Location
Sec. 6-122 Suspension or Revocation of a License
Sec. 6-123 Operational Requirements-General
Sec. 6-124 Operational Requirements-Retail Marijuana Stores
Sec. 6-125 Operational Requirements-Retail Marijuana Cultivation Facilities
Sec. 6-126 Operational Requirements-Retail Marijuana Products Manufacturing
Sec. 6-127 Operational Requirements-Retail Marijuana Testing Facilities
Sec. 6-128 Requirements Relating to Monitoring and Security of Restricted Areas
Sec. 6-129 Signage and Advertising
Sec. 6-130 Right of Entry-Records to be Maintained and Inspection Procedures
Sec. 6-131 Compliance with Other Applicable Laws
Sec. 6-132 Violations; Penalties
Sec. 6-100 Purpose.
The Board of Trustees intends to regulate the use, acquisition, production and distribution
of recreational marijuana in a manner consistent with the Section 16 of Article XVIII of the
Colorado Constitution (“Retail Marijuana Amendment”) and in accordance with the Colorado
Retail Marijuana Code, Article 43.4 of Title 12, C.R.S. (the “Colorado Retail Marijuana Code”)
and regulations adopted by the State of Colorado thereunder.
(a) The Colorado Retail Marijuana Code, Article 43.4 of Title 12, C.R.S., imposes
statewide regulations pertaining to the cultivation, manufacture, distribution and
sale of retail marijuana and for the licensing of retail marijuana business
establishments. Such legislation also permits local licensing of such
establishments. However, the State law is not intended to, and does not, address
the local impacts of marijuana operations, making it appropriate for local
regulation of marijuana establishments.
(b) The use, distribution, cultivation, production, possession and transportation of
marijuana remains illegal under federal law, and marijuana is still classified as a
“Level 1 Controlled Substance” under federal law. Nothing within this Article is
intended to promote or condone the production, use, sale or distribution of retail
or recreational marijuana other than in compliance with applicable local and State
law and the Colorado Constitution.
(c) This Article is not intended to regulate medical marijuana businesses which are
governed by Article IV of the Palisade Municipal Code.
(d) This Article is to be construed to protect the interests of the public over marijuana
business interests. Operation of a retail marijuana business establishment is a
revocable privilege and not a right within the Town. There is no property right
for an individual to have a business to sell marijuana within the Town of Palisade.
(e) The purpose of this Article V is to implement the Recreational Marijuana
Amendment in a manner consistent with the Colorado Retail Marijuana Code to
protect the health, safety and welfare of the residents of the Town by prescribing
the time, place and manner in which retail marijuana businesses may be operated
within the Town. In addition, the purpose of this Article is to:
(1) Provide for the safe sale of retail and recreational marijuana to persons
legally permitted to obtain, possess and use marijuana for recreational
purposes in accordance with the Recreational Marijuana Amendment.
(2) Protect public health and safety through reasonable limitations on business
operations as they relate to noise, air quality, food safety, public safety,
security for the businesses and their personnel, and other health and safety
concerns.
(3) Impose fees in an amount sufficient to cover the direct and indirect cost to
the Town of licensing and regulating retail marijuana establishments.
(4) Allow retail marijuana stores, retail marijuana cultivation facilities, retail
marijuana product manufacturing facilities and retail marijuana testing
facilities to operate in compliance with this Article V.
(5) Facilitate the implementation of the Recreational Marijuana Amendment
without going beyond the authority granted by such Amendment.
Sec. 6-101 Definitions.
The following words and phrases used in this Article shall have the following meanings
unless the context clearly indicates otherwise:
Applicant means a person who has submitted an application to the Palisade Local
Licensing Authority pursuant to this Article to operate a retail marijuana establishment, which
application has not been approved or denied by the Authority.
Advertised, Advertising or Advertisement means the act of drawing the public’s attention,
whether through print, signs, telephonic, electronic, wireless or digital means, to a retail
marijuana establishment or retail marijuana testing facility in order to promote the sale,
cultivation, or testing of marijuana by the business.
Business Manager means the individual(s) designated by the owner of a retail marijuana
store, retail marijuana cultivation facility, retail marijuana product manufacturing facility, or
retail marijuana testing facility who are registered with the Town as the person(s) responsible for
all operations of the business during the owner’s absence from the business premises.
Character and Record includes all aspects of a person’s character and record, including
but not limited to, moral character; criminal record including serious traffic offenses; record of
previous sanctions against liquor licenses, gambling licenses, retail marijuana licenses, or
medical marijuana licenses, which the person owns, in whole or in part, and which the person
serves as a principal, manager or employee; education, training, experience; civil judgments
entered against the person; truthfulness, honesty; and financial responsibility. The conviction of
any person for any offense, shall not, in itself, be grounds for a finding of a bad character and
record if such person demonstrates that he/she has been rehabilitated in accordance with Section
24-5-101, C.R.S. In the event the Local Licensing Authority considers information concerning
the criminal history of a person, the Local Licensing Authority shall also consider any
information provided by an applicant regarding such criminal history records, including but not
limited to, evidence of rehabilitation, character references and educational achievements,
especially those items pertaining to the period of time between the last criminal conviction and
the time of consideration of a license application.
Co-Located Marijuana Business means a medical marijuana business that has a license
pursuant to Article IV of the Palisade Municipal Code that is permitted by the owner of the
building and all applicable laws, to divide the licensed medical marijuana business to allow for
both a medical marijuana center and a retail marijuana store as a separate business premises with
separate licenses from the Town within the same footprint and owned by the same person(s) or
Colorado Retail Marijuana Code shall mean Article 43.4 of Title 12, C.R.S., as the same
may be hereafter amended, and any rules or regulations promulgated thereunder.
Direct Beneficial Interest Owner means a person or closely held business entity that owns
a share or shares of stock in a licensed retail marijuana business, including the officers, directors,
managing members, or partners of the licensed retail marijuana business or closely held business
entity, or a qualified limited passive investor.
Good cause, for purpose of denial of an initial, renewal, or reinstatement of a license
application, or for the imposition of disciplinary action against an existing licensee shall mean:
(1) The licensee or applicant has violated, does not meet, or has failed to
comply with any of the terms and conditions of this Article V or
provisions of the Colorado Retail Marijuana Code, any rules promulgated
pursuant thereto, or any other supplemental relevant State or local law,
rules or regulations; or
(2) The licensee or applicant has failed to comply with any special terms or
conditions that were placed upon the license pursuant to an order of the
State Licensing Authority or the Palisade Local Licensing Authority; or
(3) The licensee or applicant has a bad character and record; or
(4) The licensee’s licensed premises has been operated in a manner that
adversely affects the public health, safety or welfare of the neighborhood
in which the establishment is located.
Good moral character means having a personal history that demonstrates honesty,
fairness, and respect for the rights of others and the law, pursuant to Colorado Marijuana
Enforcement Division regulations.
License means to grant a license pursuant to the Colorado Retail Marijuana Code and this
Article for a retail marijuana store, retail marijuana cultivation facility, retail marijuana product
manufacturing facility, or retail marijuana testing facility.
Licensed Premises means the premises specified in an application for a license pursuant
to this Article V and the Colorado Retail Marijuana Code that is owned by or in possession of the
licensee and within which the licensee is authorized to distribute, sell, cultivate, or manufacture
marijuana products, or test retail marijuana in accordance with the provisions of the Colorado
Retail Marijuana Code.
Licensee shall mean the retail marijuana establishment named on the retail marijuana
establishment license, and all individuals named in the initial retail marijuana establishment
license application, or individuals later submitted to and approved by the Town, including
without limitation, owners, business managers, financiers, and individuals owning any part of an
entity that holds a financial or other ownership interest in the retail marijuana establishment.
Local Licensing Authority shall mean the Palisade Local Licensing Authority which shall
consist of the members of the Palisade Board of Trustees or its designee(s).
Marijuana for the purposes of this Article shall have the same meaning as set forth in the
Recreational Marijuana Amendment or as may be more fully defined in any applicable State or
local law or regulation.
Marijuana Accessories shall have the same meaning as such term is defined in the
Recreational Marijuana Amendment.
Marijuana Business shall mean any medical marijuana business as defined by Article IV
of the Palisade Municipal Code or retail marijuana establishment as defined in this Article V.
Medical Marijuana shall have the same meaning as set forth in Section 14 of Article
XVIII of the Colorado Constitution.
Medical Marijuana Business shall include medical marijuana centers, medical marijuana
infused products manufacturers, and medical marijuana optional premises cultivation operations
as defined in the Colorado Medical Marijuana Code, Article 43.3 of Title 12, C.R.S.
Operating Fees means fees that may be charged by the Town for costs including but not
limited to inspection, administration, and enforcement of regulations governing retail marijuana
establishments authorized pursuant to subsection 16(5)(f) of Article XVIII of the Colorado
Constitution, the Colorado Retail Marijuana Code, the rules adopted pursuant thereto, and this
Article V.
Place Open to the General Public shall mean any property owned, leased or used by a
public entity, any place of private property open to the public, common areas of buildings, public
parks, vehicles, streets, sidewalks, trails, those portions of any public or private property upon
which the public has an expressed or implied license to enter or remain, and any place visible
from such places. Places open to the general public shall not include any private residential
property regardless of whether it can be seen from a place open to the public.
Preschool means a facility that provides preschool programs and services to a school
district under the Colorado Preschool Program Act to a majority of the children who attend or are
enrolled in that facility.
Recreational Marijuana means any marijuana intended for recreational use which meets
all of the requirements for recreational marijuana contained in this Article, the Recreational
Marijuana Amendment, and any other applicable State or local law.
Retail Marijuana means all parts of the plant of the genus cannabis (hereafter the plant)
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 including marijuana concentrate, that is cultivated, manufactured, distributed, or sold by
a licensed retail marijuana store. Retail marijuana does not include industrial hemp, nor does it
include fiber produced from stalks, oil or cake made from the seeds of the plant, sterilized seed
of the plant which is incapable of germination, or the weight of any other ingredient combined
with marijuana to prepare topical or oral administrations, food, drink, or other products.
Retail Marijuana Cultivation Facility has the same meaning as “marijuana cultivation
facility” as defined in Section 16(2)(h) of Article XVIII of the State Constitution.
Retail Marijuana Establishment means a retail marijuana store, a retail marijuana
cultivation facility, a retail marijuana products manufacturer, or a retail marijuana testing facility.
Retail Marijuana Products Manufacturer has the same meaning as “marijuana product
manufacturing facility” as defined in Section 16(2)(j) of Article XVIII of the State Constitution.
Retail Marijuana Store has the same meaning as defined in Section 16(2)(n) of Article
XVIII of the State Constitution.
Retail Marijuana Testing Facility means “marijuana testing facility” as defined in
Section 16(2)(l) of Article XVIII of the State Constitution that is licensed pursuant to the
Colorado Retail Marijuana Code.
School means a public or private licensed preschool, or a public, private or charter
elementary, middle, junior high or high school, vocational school, secondary school, community
college, college or other institution of higher education.
State Licensing Authority means the authority created for the purpose of regulating and
controlling the licensing of the cultivation, manufacture, distribution, and sale of retail marijuana
in Colorado, pursuant to Section 12-43.4-201, C.R.S. of the Colorado Retail Marijuana Code.
Sec. 6-102 License Required for Retail Marijuana Establishments.
It shall be unlawful to operate a retail marijuana store, a retail marijuana cultivation
facility, a retail marijuana product manufacturing facility, or a retail marijuana testing facility
within the Town of Palisade without first obtaining a Town license to operate pursuant to this
Article, and having a validly issued license in good standing from the State of Colorado, and
having paid all applicable fees. Any person violating this Section shall be punished by a fine of
up to three hundred dollars ($300.00), or by imprisonment in the Mesa County jail for a period of
up to ninety (90) days, or by both such fine and imprisonment. Each day that a violation
continues shall be considered a separate and distinct offense.
Sec. 6-103 Composition of Local Licensing Authority.
The Board of Trustees is hereby designated as the Palisade Local Licensing Authority.
The Board of Trustees, may by resolution, delegate its authority or part of its authority set forth
in this Article to an individual or group of individuals to act as the Local Licensing Authority.
Sec. 6-104 Functions and Powers of Local Licensing Authority.
(a) The Local Licensing Authority shall have the duty and authority pursuant to the
Colorado Retail Marijuana Code and this Article to grant or deny an application
described in this Article and to levy penalties against a licensee in the manner
provided by law.
(b) The Local Licensing Authority shall consider applications for new business
premises, transfer of ownership, change of location, licensed premises
modification, changes in tradename and any other appropriate application.
(c) The Local Licensing Authority shall have the power to promulgate rules and
regulations concerning the procedure for hearings before the Local Licensing
Authority.
(d) The Local Licensing Authority shall have the power to require any applicant or
licensee to furnish such information to the Authority as may be reasonably
necessary in order for the Authority to perform the duties and functions
authorized by this Article V.
(e) The Local Licensing Authority shall have the power to administer oaths and issue
subpoenas to require the presence of persons and the production of papers, books
and records at any hearing which the Authority is authorized to conduct. Any
subpoena shall be served in the same manner as a subpoena issued by a district
court of the State. The Municipal Judge shall have the power and authority to
enforce such subpoena.
Sec. 6-105 Limitation on the Number of Licenses That May Be Issued Within the
Town.
A maximum of two (2) retail marijuana store licenses not including a co-located medical
and retail marijuana business shall be issued by the Local Licensing Authority. Said limitation is
based on a maximum of one (1) retail marijuana store per 1,000 residents or a fraction thereof.
A maximum of six (6) retail marijuana cultivation licenses shall be issued by the Local Licensing
Authority. Said limitation is based on a maximum of three (3) retail marijuana cultivation
facilities per 1,000 residents or a fraction thereof. Population shall be based on the most recent
data available from the U.S. Census Bureau and the State of Colorado Demographer’s office.
There shall be no limitation on the number of retail marijuana manufacturing facilities and retail
marijuana testing facilities that may receive licenses from the Local Licensing Authority. An
application for renewal of an existing retail marijuana store license or retail marijuana cultivation
facility license shall receive a preference over an application for a new retail marijuana store
license or new retail marijuana cultivation facility license if the existing business has
substantially met all of the requirements of this Article V and the Colorado Retail Marijuana
Code during the previous license term and is in good standing.
Sec. 6-106 Conversions of Licenses and Co-Locations of Marijuana Businesses.
(a) A licensee of a medical marijuana business that was licensed, open and lawfully
operating on the effective date of this Article pursuant to Article IV of the
Palisade Municipal Code may submit an application to convert the license to a
retail marijuana store license by submitting an application for a retail marijuana
store or an application to be co-located with the existing medical marijuana
business, paying all applicable fees, and complying with all other requirements of
this Article V applicable to retail marijuana stores. However, an application to
convert an existing medical marijuana business license to a retail marijuana store
license or an application to be co-located with an existing medical marijuana
business is not required to go through the two (2) stage review process described
in Section 6-109 and shall not be subject to the limitation on the number of retail
marijuana store licenses described in Section 6-105 above. In the case of a
conversion, the previously issued license for the medical marijuana business must
be surrendered to the Town before the retail marijuana store license will be
issued. The term of the new license shall be the same as the existing medical
marijuana business license.
(b) A person who holds a medical marijuana center license pursuant to Article IV of
the Palisade Municipal Code and Article 43.3 of Title 12, C.R.S. and a retail
marijuana store license may operate both licenses within the same premises (“colocated
operation”), provided they can satisfy the requirements applicable to each
business or each premises under the Colorado Medical Marijuana Code, Article
43.3 of Title 12, C.R.S., Colorado Retail Marijuana Code, Article IV of the
Palisade Municipal Code and this Article V.
(c) No co-located license shall be issued for a retail marijuana store in a retail
marijuana testing facility, or for a medical marijuana business in a retail
marijuana testing facility.
(d) No co-located license shall be issued for a location in any zone where either of the
proposed co-located operations are prohibited by the Town’s Land Development
Code.
(e) In the event a medical marijuana center authorizes medical patients under twentyone
(21) years of age on the premises, then there shall be a complete separation of
the medical marijuana center and the retail marijuana store operated under colocated
licenses. Specifically the operation of a co-located business premises
shall include the following:
(1) Separate sales and storage areas;
(2) Separate entrances and exits;
(3) Separate inventories and inventory tracking processes;
(4) Separate point of sales operations;
(5) Separate record keeping systems; and
(6) Each operation shall otherwise meet all requirements imposed herein or in
any State law for the operation of a retail marijuana establishment and a
medical marijuana business.
(f) Licensees operating a medical marijuana center that prohibits the admittance of
patients under the age of twenty-one (21) years and a retail marijuana store may
share their licensed premises as a co-location. Such a medical marijuana center
licensee must post signage that clearly conveys that persons under the age of
twenty-one (21) years may not enter the premises. Under these circumstances,
and upon approval of the State Licensing Authority and the Palisade Local
Licensing Authority, the medical marijuana and retail marijuana and medical
marijuana-infused products and retail marijuana products must be separately
displayed on the same sales floor. Record keeping for the business operation of
both must enable the State and the Town to clearly distinguish the inventories and
business transactions of medical marijuana and medical marijuana-infused
products from retail marijuana and retail marijuana products.
Sec. 6-107 Issuance of Initial Licenses-General.
On or before _____________, 2017, the Town Clerk shall publish a notice that the Town
of Palisade is accepting applications for retail marijuana establishment licenses. Said notice shall
establish a deadline for the Town’s acceptance of such applications. The Town Clerk shall
initially review such applications for completeness. In the event the Town Clerk finds that an
application is incomplete, the Town Clerk shall notify the applicant in writing of the application
deficiencies and allow the applicant to correct such deficiencies within fifteen (15) days from the
date of receiving such notice. The Town Clerk shall then forward the applications to the Local
Licensing Authority for processing and review. The Local Licensing Authority shall then finally
determine the sufficiency of the license applications and the eligibility of the applicants to hold a
retail marijuana establishment license.
Sec. 6-108 Issuance of Initial Licenses-Retail Marijuana Stores and Retail
Marijuana Cultivation Facilities.
If more sufficient license applications for retail marijuana stores and/or retail marijuana
cultivation facilities are received by the Local Licensing Authority than the maximum number
allowed pursuant to Sec. 6-105 and the Local Licensing Authority is not permitted to approve all
of the sufficient applications received because of the limitations set forth in Sec. 6-105, the Local
Licensing Authority shall establish a date and time for selecting by lot the priority of the
sufficient license applications. The Local Licensing Authority shall then proceed to approve one
(1) retail marijuana store license to the highest priority applicant who has been a bonafide
resident of Mesa County, Colorado for at least one (1) year prior to the date of the application, or
if a business entity, all of its direct beneficial interest owners have been bonafide residents of
Mesa County for at least one (1) year prior to the date of the application. The Local Licensing
Authority shall also approve one (1) retail marijuana store license to the highest priority
applicant as determined by lot of all sufficient applications received, that have paid the
applicable license and operational fees and that comply with the requirements of this Article.
The Local Licensing Authority shall also approve six (6) retail marijuana cultivation facility
licenses for the six (6) highest priority applicants, as determined by lot, that have paid the
applicable license and operational fees and that comply with the requirements of this Article.
(a) Initial Review. In addition to other requirements contained in this Article V the
initial criteria considered for review by the Local Licensing Authority for an
application for a retail marijuana store license and retail marijuana cultivation
facility license must be satisfied in full before the applicant will be assigned a
priority number. The initial review standards are as follows:
(1) The applicant has fully completed a State Licensing Authority application
including all subparts thereof, and also received approval from the State
Licensing Authority for a retail marijuana store license or retail marijuana
cultivation facility license;
(2) The applicant has no felony convictions for ten (10) years, no drug related
misdemeanor convictions for five (5) years, and no drug related felony
convictions;
(3) The applicant’s proposed facility location satisfies the buffering
requirements of at least one thousand feet (1000’) from any school; and
(4) The business must certify that it has satisfied or will meet the minimum
security requirements of this Article V prior to opening.
(b) Award of Retail Marijuana Store and Retail Marijuana Cultivation Facility
Licenses. The Local Licensing Authority shall issue a retail marijuana store
license to the two (2) applicants with the highest priority as determined by lot that
have paid all applicable fees and that comply with the requirements of this
Article. The Local Licensing Authority shall issue a retail marijuana cultivation
license to the six (6) applicants with the highest priority as determined by lot that
have paid all applicable fees and that comply with the requirements of this
Article.
(c) Limitation on Number of Licenses per Person. No person or business entity or
any person associated with a business entity may hold an ownership interest in
more than one retail marijuana store located in the Town.
Sec. 6-109 Permitted Locations.
All retail marijuana establishment licenses shall be issued for a specific location which
shall be designated as the licensed premises. Retail marijuana establishment licenses shall only
be issued for locations permitted as shown in the Principle Uses by Zoning District Table
contained in the Town’s Land Use and Development Code. No retail marijuana establishment
shall be located in the designated Retail Marijuana Free Zone in the downtown core of Palisade
as identified in the Retail Marijuana Free Zone Map contained in the Town’s Land Use and
Development Code.
Sec. 6-110 Distance Requirements from Schools.
(a) Retail marijuana establishments, except retail marijuana testing facilities, shall be
located a minimum of one thousand feet (1,000’) from schools, as measured from
the nearest property boundary of such school use to the boundaries of the
proposed licensed premises. Prior to issuing a retail marijuana establishment
license, the Local Licensing Authority shall confirm that the proposed licensed
premises boundaries meet such requirements.
(b) Once the retail marijuana establishment license is issued, the Town will not
preclude a school from locating within the above described buffer zone. A retail
marijuana establishment may then continue to operate at its present location. If a
school 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 the operation of a retail marijuana establishment near a school.
Sec. 6-111 General Licensing Conditions.
(a) Except as specifically provided herein, the issuance of a license for a retail
marijuana establishment by the Town shall be subject to compliance with all
provisions of Section 12-43.4-309, C.R.S. concerning licensing requirements.
(b) The license requirements set forth in this Article 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, including by way of example, a retail sales license, an
occupation tax license, an excise tax license, a retail food establishment license,
or any applicable zoning, land use or building permits.
(c) The issuance of a license pursuant to this Article does not create a defense,
exception or provide immunity to any person in regard to any potential criminal
liability a person may have for the production, distribution or possession of
marijuana.
(d) A separate license shall be required for each location from which a retail
marijuana establishment is operated. A separate license shall be required for each
specific business or business entity, for each geographical location and for each
co-located retail marijuana store. No person or entity may hold an ownership
interest in more than one (1) retail marijuana store within the Town of Palisade.
(e) The submission of an application for the issuance of a license under this Article
from the Town shall act as acknowledgement and agreement by the applicant or
the licensee that the sale of marijuana continues to be subject to the control and
jurisdiction of the federal government and actions taken by the federal
government under the federal laws and regulations may limit or invalidate any
license issued by the Town or the licensee’s ability to own or operate a retail
marijuana establishment in the Town.
Sec. 6-112 License Application Requirements.
(a) Start Date. The Local Licensing Authority shall receive and process all
applications for retail marijuana establishment licenses beginning on
_____________, 2017.
(b) Application Materials. An application for a retail marijuana establishment license
shall be made on forms provided by the Town Clerk for such purposes. The
applicant shall use the application to demonstrate its compliance with the
provisions of this Article V and other applicable laws, rules or regulations. In
addition to general information required of standard applications, the application
shall require the following information:
(1) Name and address of the owner or owners of the proposed retail marijuana
establishment and in whose name the license is proposed to be issued.
a. If the proposed owner is a corporation, then the application shall
include the name and address of all officers and directors of the
corporation, and of any person holding any financial interest in the
corporation, whether as a result of the issuance of stock,
instruments of indebtedness, or otherwise, including disclosure
information pertaining to bank, savings and loan associations or
other commercial lender which has loaned funds to the applicant.
b. If the proposed owner is a partnership, association or limited
liability company, the application shall include the name and
address of all partners, members, managers or persons holding any
financial interest in the partnership, association or limited liability
company, including those holding an interest as the result of
instruments of indebtedness or otherwise including disclosure of
information pertaining to a bank, savings and loan association, or
other commercial lender which has loaned funds to the applicant.
c. If the owner is not a natural person, the application shall include
copies of the organizational documents for all entities identified in
the application and the contact information for the person that is
authorized to represent the entity or entities.
(2) A statement as to whether the owner, owners, or direct beneficial interest
owners of the proposed retail marijuana establishment have been residents
of Mesa County, Colorado for at least one (1) year prior to the date of the
application. Proof of residency in Mesa County based on voter
registration information or motor vehicle registration shall be provided.
(3) Name and address of the proposed business manager(s) of the retail
marijuana establishment, if the business manager is proposed to be
someone other than the owner, or if the owner is an entity rather than a
natural person.
(4) A statement indicating whether any of the named owners, members,
business managers, parties with a financial interest, or persons named on
the application have been:
a. Denied an application for a medical marijuana business license or a
retail marijuana establishment license pursuant to any state or local
licensing law, rule or regulation, or had such license suspended or
revoked.
b. Denied an application for a liquor license pursuant to Article 46 or
47 of Title 12, C.R.S., or by any similar state or local licensing
law, rule, regulation or had such license suspended or revoked.
c. Convicted, entered a plea nolo contendere, or entered a plea of
guilty in conjunction with a deferred judgment and sentence
pertaining to any charge related to possession, use, or possession
with intent to distribute narcotics, drugs or controlled substances.
d. Convicted, entered a plea of nolo contendere, or entered a plea of
guilty in conjunction with a deferred judgment and sentence
pertaining to any charge related to driving or operating a motor
vehicle while under the influence or while impaired by alcohol or
controlled substances.
e. Convicted, entered a plea of nolo contendere, or entered a plea of
guilty in conjunction with a deferred judgment and sentence
pertaining to any felony.
f. Convicted, entered a plea of nolo contendere, or entered a plea of
guilty in conjunction with a deferred judgment and sentence
pertaining to a serious traffic offense which means any driving
offense carrying eight (8) points or greater under Section 42-2-127,
C.R.S. or the substantial equivalent of such events in any other
state.
(5) Proof that the applicant will have ownership or legal possession of the
premises proposed for the retail marijuana establishment for the term of
the proposed license. If the premises is not owned by the applicant, such
proof of possession shall include a signed statement from the landlord or
owner of the premises consenting to the use of the property for the
purposes of operating a retail marijuana establishment. If the property is
subject to a declaration of covenants and restrictions and an owners’
association, a signed statement from the owners’ association consenting to
the use of the property for a retail marijuana establishment.
(6) Proof of Insurance as follows:
a. Workers compensation insurance to cover obligations imposed by
the Workers Compensation Act of Colorado and any other
applicable laws for any employee engaged in the performance of
work related to the operation of the retail marijuana establishment;
and
b. Comprehensive general liability insurance with minimum single
limits of one million dollars ($1,000,000.00) each occurrence and
two million dollars ($2,000,000.00) aggregate, applicable to all
premises and operations.
(7) An operating plan for the proposed retail marijuana establishment
including the following information:
a. A description of the products and services to be sold or provided
by the retail marijuana establishment.
b. A dimensioned floor plan of the proposed premises clearly labeled,
showing:
i. the layout of the structure and the floorplan in which the
retail marijuana establishment will be located including
information sufficient to prove compliance with ventilation,
security and other structural requirements contained
therein;
ii. the principle uses of the floor area depicted on the floorplan
including but not limited to storage areas, retail sales areas
and restricted areas where marijuana will be stored and
located; and
iii. areas where any services other than the cultivation,
distribution or sale of retail marijuana is proposed to occur
on the licensed premises.
(8) For a retail marijuana testing facility or retail marijuana products
manufacturing facility, a plan that specifies all means to be used for
extraction, heating, washing, or otherwise changing the form of the
marijuana plant, or the testing of any marijuana, and verification of
compliance with all applicable State and local laws for ventilation and
safety measures for each process.
(9) The maximum amount of retail marijuana or retail marijuana products that
may be on the business premises at any one time expressed in grams of
marijuana and units of marijuana-infused products.
(10) A security plan indicating how the applicant will comply with the
requirements of this Article including Section 6-123 and any other
applicable law, rule or regulation. The applicant may submit the portions
of such security plan which include trade secrets or specialized security
arrangements confidentially. The Town will not disclose the documents
appropriately submitted under the Colorado Open Records Act, Sections
24-72-201 et. seq., C.R.S. if they constitute confidential trade secrets or
specialized security arrangements to any party other than law enforcement
agencies, unless compelled to do so by court order. 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 on the document.
(11) A business plan demonstrating applicant’s ability to successfully operate
in a highly regulated industry over an extended period of time. The plan
shall indicate necessary capital improvements and the estimated cost
thereof, an estimate of first year revenues and operating expenses, and
evidence that the applicant will have the resources necessary to pay for
such expenses.
(12) A lighting plan showing the illumination of the outside area of the retail
marijuana establishment for security purposes.
(13) A vicinity map drawn to scale, indicating within a radius of one-quarter
(1/4) mile from the boundaries of the property upon which the retail
marijuana establishment is to be located, the proximity of the property to
any school.
(14) Fingerprints and personal histories for all owners and parties having a
financial interest in the proposed retail marijuana establishment as defined
in this Article. All such individuals shall be subject to a criminal
background check in conjunction with the license application and review
conducted by the Colorado Bureau of Investigation pursuant to Section
12-43.4-306(2), C.R.S.
(15) A plan for disposal of any retail marijuana or product that is not sold or is
contaminated in a manner that protects any potion thereof from being
possessed or ingested by a person or animal.
(16) A plan for ventilation that describes the ventilating systems that will be
used to prevent any odor of marijuana from extending beyond the
premises of the business. A best available filtration system shall be
required and carbon filtration is strongly encouraged by the Town.
(17) A description of all toxic, flammable or other materials regulated by
federal or State government that would have authority over the business if
it was not a retail marijuana establishment, that will be used, kept or
created at the retail marijuana establishment and the location where such
materials will be stored.
(18) An application for a retail marijuana establishment license shall be
accompanied by the application fee, operational fee, criminal background
fee, if any, together with any other applicable fees that may be established
by resolution of the Board of Trustees.
Sec. 6-113 Inspection Required.
An inspection of the proposed retail marijuana establishment by the Town’s Police
Department and Fire Department, as well as the Mesa County Building Department shall be
required prior to actual issuance of a license. Such inspection shall occur after the premises are
ready for operation, but prior to the stocking of the business with any retail marijuana or
marijuana products, and prior to the opening of the business to the public. The purpose of the
inspection is to verify that the business facilities are constructed and can be operated in
accordance with the application submitted, the applicable requirements of this Article, and any
other applicable law, rule or regulation such as building codes.
Sec. 6-114 Issuance of License.
The Palisade Local Licensing Authority shall not issue a retail marijuana establishment
license until the inspection, background checks, and all other information available to the Town
have been found to verify that the applicant:
(a) Has submitted a full and complete application;
(1) Has made improvements to the business premises consistent with the
application;
(2) Is prepared to operate the business with the owners and business managers
as set forth in the application, all in compliance with the provisions of this
Article and any other applicable law, rule or regulation; 
(3) Has paid all required fees; and
(4) Is otherwise in compliance with all other provisions of this Article and any
other applicable provisions of the Palisade Municipal Code and the
Colorado Retail Marijuana Code, and the regulations promulgated
thereunder.
Sec. 6-115 Release of Information.
Any signature on an application for the issuance, transfer or modification of a license for
a retail marijuana establishment or for a change in business manager or other amendment to the
license shall constitute a release for purposes of allowing the Town to conduct investigations
regarding the personal histories of all interested parties and shall constitute a consent to the
release of any information obtained by the Town through such process as a public record under
the Colorado Open Records Act, including, but not limited to, criminal history reports conducted
by the Town or any other authorized agency and all financial disclosures obtained by the Town
or any other entity.
Sec. 6-116 License Fees and Charges.
Applicants for retail marijuana establishment licenses or existing licensees shall pay the
following fees:
- New license for retail marijuana store application fee $5,000.00 (non-refundable)
- New license for retail marijuana cultivation facility application fee $5,000.00 (non-refundable)
- New license for retail marijuana manufacturing facility application fee $5,000.00 (non-refundable)
- New license for retail marijuana testing facility application fee $5,000.00 (non-refundable)
- Annual Operating Fee $5,000.00 (non-refundable)
- Renewal of existing retail marijuana establishment license application fee $1,500.00

The fees above apply to each license issued, and a business with multiple locations in the
Town must pay separate fees for each location. The appropriate fees must be paid in conjunction
with any application or request before the Town will process or act upon forms submitted.
Except as indicated above, all fees are non-refundable in the entirety. No fees previously paid by
a licensee in connection with a license shall be refunded if the licensee’s license is subsequently
suspended or revoked.
Sec. 6-117 Persons Prohibited as Licensees and Business Managers.
The criteria for determination of those persons who are not eligible to receive a retail
marijuana establishment license or to act as a business manager of such an establishment shall be
as provided in this Article V and in Section 12-43.4-306, C.R.S.
(a) No license approval provided by this Article shall be issued to or held by:
(1) Any person whose criminal history indicates the person is not of good
moral character;
(2) Any corporation, any of whose officers’, directors’ or stockholders’
criminal histories and record indicate such person is not of good moral
character;
(3) Any partnership, association, or company, any of whose officers’, or any
of whose members’, criminal histories and record indicate such person is
not of good moral character;
(4) Any person employing, assisted by, or financed in whole or in part by any
other person whose criminal history and record indicate such person is not
of good moral character;
(5) Any cooperative association, any of whose officers’, directors’, or
stockholders’ or members’ criminal histories and record indicate that such
person is not of good moral character;
(6) A person under twenty-one (21) years of age;
(7) A person approved pursuant to this Article who, during a period of
licensure or approval, or who, at the time of application, has failed to:
a. File any tax return with a taxing agency related to the operation of
a retail marijuana establishment or medical marijuana business;
b. Pay any taxes, interest, or penalties due to a taxing agency relating
to the operation of a retail marijuana establishment or medical
marijuana business.
(8) A person who:
a. Has discharged a sentence for a conviction of a felony in the five
(5) years immediately preceding his or her application date; or
b. Has 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 Local 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 a license; 
(9) A person who employs another person at a retail marijuana establishment
who has not submitted fingerprints for a criminal history record check or
whose criminal history record check reveals that the person is ineligible;
(10) A sheriff, deputy sheriff, police officer, or prosecuting officer, or an
officer or employee of the State Licensing Authority or the Local
Licensing Authority;
(11) A person applying for a license for a location that is currently licensed as a
retail food establishment or wholesale food registrant; or a publicly traded
company.
(b) In investigating the qualifications of an applicant or a licensee, the Local
Licensing Authority may have access to criminal history record information
furnished by a criminal justice agency subject to any restrictions imposed by such
agency. In the event the Local Licensing Authority considers the applicant’s
criminal history record, the Local Licensing Authority shall also consider any
information provided by the applicant regarding such criminal history record,
including but not limited to, evidence of rehabilitation, character references, and
educational achievements, especially those items pertaining to the time between
the applicant’s last criminal conviction and the consideration of the application
for a retail marijuana establishment license. As used in this Section, “criminal
justice agency” means any federal, State or municipal court or any governmental
agency or subunit of such agency that administers criminal justice pursuant to a
statute or executive order and that allocates a substantial part of its annual budget
to the administration of criminal justice.
(c) The focus of the inquiry into the character of any person associated with the
operation of a retail marijuana establishment shall be whether the person’s
character is such that violations of State law or municipal ordinances pertaining to
the possession and distribution of marijuana and/or the operation of retail
marijuana establishments would be likely to result if a license were granted.
(d) A direct beneficial interest owner who is a natural person must either:
(1) Have been a resident of Colorado for at least one (1) year prior to the date
of the application; or
(2) Be a United States citizen prior to the date of the application. A retail
marijuana business may be comprised of an unlimited number of direct
beneficial interest owners that have been residents of Colorado for at least
one (1) year prior to the date of application. A retail marijuana business
that is comprised of one (1) or more direct beneficial interest owners who
have not been Colorado residents for at least one (1) year prior to 
submittal of the application shall have at least one (1) officer who has
been a Colorado resident for at least one (1) year prior to submittal of the
application and all officers with day to day operational control over the
business must become Colorado residents for at least one (1) year prior to
the submittal of the application. A retail marijuana business is limited to
no more than fifteen (15) direct beneficial interest owners, including all
parent and subsidiary entities, all of whom are natural persons. A direct
beneficial interest owner that is a closely held business entity must consist
entirely of natural persons who are United States citizens prior to the date
of the application, including all parent and subsidiary entities.
(3) A retail marijuana business may include qualified institutional investors
that own thirty percent (30%) or less of the retail marijuana establishment.
(4) A person who intends to apply as a direct beneficial interest owner and is
not a Colorado resident for at least one (1) year prior to the date of the
application shall first submit a request to the State Licensing Authority for
a finding of suitability as a direct beneficial interest owner. The person
shall receive a finding of suitability prior to submitting an application to
the State Licensing Authority to be a direct beneficial interest owner.
Failure to receive a finding of suitability prior to application shall be
grounds for denial by the State Licensing Authority or Local Licensing
Authority.
(5) The State Licensing Authority shall perform a limited initial background
check on qualified limited passive investors. If the initial background
check provides reasonable cause for additional investigation, the State
Licensing Authority may require a full background check. The State
Licensing Authority shall review the retail marijuana establishment’s
operating documents to ensure compliance with this Section.
(6) For the purposes of this subsection, unless the context otherwise requires,
“institutional investor” means:
a. An employee benefit plan or pension fund that is subject to the
federal “Employee Retirement Income Security Act of 1974”, as
amended, excluding employee benefit plan or pension funds
sponsored by a licensee or an intermediary holding company
licensee that directly or indirectly owns five percent (5%) or more
of a licensee;
b. A State or federal government pension plan;
c. A group comprised entirely of persons specified above; or
d. Any other entity identified through rule by the State Licensing Authority.
Sec. 6-118 Issuance or Denial of Approval.
(a) In determining whether to issue an approval of an application for possible
granting of a license in accordance with Sections 6-107 and 6-108, the Local
Licensing Authority may consider the following:
(1) Whether the application is complete and signed by the applicant;
(2) Whether the applicant has paid the application fee, license fee and the
annual operating fee;
(3) Whether the application complies with all of the requirements of this
Article, the Colorado Retail Marijuana Code, and rules promulgated by the
State Licensing Authority;
(4) Whether the application contains any material misrepresentations;
(5) Whether the proposed retail marijuana establishment, retail marijuana
cultivation facility or retail marijuana products manufacturing facility
complies with the Town’s Land Use and Development Code. The Local
Licensing Authority shall make specific findings of fact with respect to
whether the building in which the proposed retail marijuana store will be
located conforms to the distance requirements set forth in Section 6-110;
and
(6) The facts and evidence adduced as a result of its investigation as well as
any other facts and any other pertinent matters affecting the qualifications
of the applicant for the conduct of the type of business proposed.
(b) The Local Licensing Authority may deny the approval of an application for good
cause as defined in Colorado Retail Marijuana Code. If an application is
administratively denied, the applicant may appeal such denial to the full Local
Licensing Authority by filing a notice of appeal with the Town Clerk within
fifteen (15) days following issuance of the decision denying the application. Said
notice shall state the grounds for such appeal. Such appeal shall be heard by a
hearing officer duly appointed by the Local Licensing Authority. Following a
hearing and an opportunity for applicant to be heard, the hearing officer shall
recommend to the Local Licensing Authority that the appeal be affirmed or
denied.
(c) The Local Licensing Authority may impose reasonable conditions upon any
license approval or renewal issued pursuant to this Article.
(d) After the initial granting of a retail marijuana store license or retail marijuana 
cultivation facility license, if such license later becomes available, the Town
Clerk shall publish the availability of the license and the procedures set forth in
Section 6-108 shall be followed.
(e) No person shall own, operate, manage, control or hold a direct beneficial interest
in more than one (1) retail marijuana store within the Town of Palisade.
(f) The Local Licensing Authority shall issue its decision approving or denying the
application within thirty (30) days following completion of the application
investigation by Town staff and completion of a determination of the priority for
license applicants for retail marijuana stores and retail marijuana cultivation
facilities described in Section 6-108. The decision shall be in writing, shall state
the reasons for the decision, and a copy of the decision shall be mailed by
certified mail to the applicant at the address shown on the application.
(g) The Town Clerk shall not actually issue a license to an approved applicant until
the applicant has been issued a license by the State Licensing Authority.
Sec. 6-119 Contents and Display of Approval.
The approved licensee shall post the certificate of approval by the Local Licensing
Authority in a conspicuous location on the premises. A retail marijuana establishment approval
shall contain the following information:
(a) Type of approval;
(b) The name of the licensee;
(c) The date of issuance of the approval;
(d) The street address at which the licensee is authorized to operate the retail
marijuana establishment;
(e) Any conditions of approval imposed upon the license by the Local Licensing
Authority;
(f) The date of expiration of the approval; and
(g) The signature of the Town Clerk.
Sec. 6-120 Transfer/Changes in Ownership Structure.
(a) License approvals held by natural persons may not be transferred. In the event a
natural person or persons holding a license sell the associated retail marijuana
establishment, the purchaser shall be entitled to apply for a new retail marijuana
establishment license for the purchased business notwithstanding the provisions
of Section 6-105. The purchaser shall be required to pay a new license
application fee as set forth in Section 6-116. If the proposed sale or conveyance
of a partial interest in a retail marijuana establishment to a person who previously
did not own ten percent (10%) or more of the retail marijuana establishment will,
after the sale, result in the person owning ten percent (10%) or more of the retail
marijuana establishment, the licensee shall apply for a change in ownership
structure, which the Local Licensing Authority shall process as a new license
approval application by the new owner. A State license for a retail marijuana
establishment is not transferrable except as provided in Section 12-43.4-308,
C.R.S., as contained in the Colorado Retail Marijuana Code.
(b) License approvals held by partnerships, corporations, limited liability companies,
or other business entities are not transferrable and terminate automatically upon
dissolution of the entity. If the proposed sale or conveyance of any interest in the
entity to a person who previously did not own ten percent (10%) or more of the
business will, after the sale, result in the person owning ten percent (10%) or more
of the entity, the licensee shall apply for a change in ownership structure, which
the Local Licensing Authority shall process as a new license approval application
by the new owner notwithstanding the limitation for retail marijuana stores
contained in Section 6-105.
(c) Changes in ownership structure that do not result in a person increasing that
persons interest from less than ten percent (10%) to more than ten percent (10%)
shall be reported to the Local Licensing Authority and may be approved
administratively by the Town Clerk.
Sec. 6-121 Change of Location.
(a) A licensee may move its permanent location to another location in the Town, but
it shall be unlawful to cultivate, manufacture, distribute, or sell retail marijuana at
any such place until permission to do so is granted by the Local Licensing
Authority and the State Licensing Authority.
(b) In permitting a change of location, the Local Licensing Authority shall consider
all reasonable restrictions that are or may be placed on the new location and any
such new location shall comply with all requirements of this Article V, the
Town’s Land Use and Development Code, the Colorado Retail Marijuana Code,
and rules promulgated by the State Licensing Authority.
(c) The Local Licensing Authority shall not authorize a change of location until the
applicant produces a license issued and granted by the State Licensing Authority
covering the period for which the change of location is sought.
Sec. 6-122 Suspension or Revocation of a License. 
(a) A license approval pursuant to this Article may be suspended or revoked by the
Local Licensing Authority or a hearing officer appointed by the Local Licensing
Authority after a hearing for the following reasons:
(1) Fraud, misrepresentation, or a false statement of material fact contained in
the license application;
(2) Any violation of the Palisade Municipal Code or State law pertaining to
the operation of a retail marijuana establishment including regulations
adopted by the State Licensing Authority, for the possession or
distribution of marijuana or manufacturing of retail marijuana products;
(3) A violation of any of the terms and conditions of its license;
(4) A violation of any of the provisions of this Article.
(b) In deciding whether a retail marijuana establishment license should be suspended
or revoked, and in deciding whether to impose conditions in the event of a
suspension, the Local Licensing Authority shall consider:
(1) The nature and severity of the violation;
(2) Corrective action, if any, taken by the licensee;
(3) Prior violation(s), if any, by the licensee;
(4) The likelihood of a reoccurrence of the violation;
(5) The circumstances of the violation;
(6) Whether the violation was willful; and
(7) Previous sanctions if any imposed on the licensee.
(c) The provisions of Part 6 of the Colorado Retail Marijuana Code shall govern
proceedings for the suspension or revocation of a license granted pursuant to this
Article. The Local Licensing Authority may not impose a fine in lieu of a
suspension as authorized under the provisions of the Colorado Retail Marijuana
Code.
Sec. 6-123 Operational Requirements-General
(a) A retail marijuana establishment shall be operated and maintained strictly in
accordance with the license application.
(b) All retail marijuana establishments shall collect and remit all applicable State, 
County and Town sales taxes, occupation taxes, excise taxes or other lawfully
imposed tax in a timely manner.
(c) No marijuana or products containing marijuana shall be smoked, eaten or
otherwise consumed or ingested within the retail marijuana establishment.
(d) No person under twenty-one (21) years of age shall be allowed within the
business premises of a retail marijuana establishment. No person shall be allowed
entry into the business premises without showing a valid picture identification in
accordance with the requirements of the Colorado Retail Marijuana Code.
(e) Any and all possession, storage, display or sales or other distribution of marijuana
and testing of marijuana shall occur only within the restricted area of a retail
marijuana establishment or retail marijuana testing facility and shall not be visible
from the exterior of the business.
(f) Each licensee shall manage the licensed premises himself or herself or employ a
separate business manager on the premises. The licensee shall report any change
in business manager to the Town within seven (7) days after the change.
(g) The retail marijuana establishment shall not maintain any quantity of marijuana
within the licensed premises in excess of the amount stated on the license
application to the Town.
(h) It shall be unlawful for any retail marijuana establishment to employ any person
who is not at least twenty-one (21) years of age. All business managers and
employees of any licensee shall possess a valid occupational license and
identification badge issued by the State of Colorado.
(i) Retail marijuana establishments shall provide adequate security on the business
premises, which shall include the following:
(1) Twenty-four (24) hour security surveillance color cameras to facilitate the
investigation of crimes, with a redundant power supply and circuitry to
monitor entrances/exits and the parking lot, if applicable, with the interior
and exterior of the premises. Security video and audio shall be preserved
for a minimum of forty (40) days in a secure off-site location in the Town
or through a service over a network that provides on-demand access,
commonly referred to as the “cloud”. The owner shall provide segments
of surveillance footage upon request to law enforcement officers
investigating crimes committed against the establishment or its customers.
The owner shall be required to produce surveillance footage disclosing the
identity of customers and shall not edit surveillance footage to protect
customer privacy. The resolution of these color cameras shall be of
sufficient quality to allow for the identification of the subjects’ facial
features, in all lighting conditions, in the event of a crime;
(2) A burglar/fire alarm system that is professional monitored and maintained
in good working order; a locking safe permanently affixed to the premises
suitable for storage of inventory and cash, all to be stored during nonbusiness
hours. Live plants being cultivated shall not be deemed
inventory requiring storage in a locked safe;
(3) Exterior lighting that illuminates the exterior walls of the establishment
shall comply with any requirements of the Town of Palisade;
(4) No firearms, knives, or other weapons shall be permitted in a retail
marijuana store except those carried by sworn peace officers, those carried
by persons having concealed weapons permits, and those carried by
security personnel employed by the retail marijuana store or its contractor.
(5) The Palisade Chief of Police or other appropriate Town employee shall
report to the Town Clerk all violations of this Article and other applicable
State and local laws and the Town Clerk shall maintain a record of each
license issued and record the reports of the violations in such records.
Sec. 6-124 Operational Requirements-Retail Marijuana Stores.
(a) 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 licensed cultivation facility in
Palisade or its contracted agent may deliver marijuana and marijuana products to
retail marijuana stores on any day of the week and at any time except between the
hours of 9:00 p.m. and 4:00 a.m.
(b) For retail marijuana stores, the odor of marijuana must not be perceptible at the
exterior of the building, the exterior of the licensed premises, or at any adjoining
use of the property. Retail marijuana stores must use the best available filtration
system such as carbon air filter scrubbers or charcoal filtration systems.
(c) A retail marijuana store may not sell more than one (1) ounce of retail marijuana
or its equivalent in retail marijuana products, including retail marijuana
concentrate, except for non-edible, non-psychoactive retail marijuana products,
including ointments, lotions, balms, and other non-transdermal topical products
during a single transaction to a person.
(d) Prior to initiating a sale, the employee of a retail marijuana store making the sale
shall verify that the purchaser has a valid identification card showing the
purchaser is twenty-one (21) years of age or older. If a person under twenty-one
(21) years of age presents a fraudulent proof of age, any action relying on the
fraudulent proof of age shall not be grounds for the revocation or suspension of
any license issued under this Article. If a retail marijuana store licensee or
employee has reasonable cause to believe that a person is under twenty-one (21)
years of age and is exhibiting fraudulent proof of age in an attempt to obtain any
retail marijuana or marijuana infused products, the licensee or employees are
authorized to confiscate such fraudulent proof of age, if possible, and shall, within
seventy-two (72) hours after the confiscation, remit the same to a State or local
law enforcement agency. The failure to confiscate such fraudulent proof of age or
to remit the same to a State or local law enforcement agency within seventy-two
(72) hours after the confiscation does not constitute a criminal offense. If a retail
marijuana store licensee or employee believes that a person is under twenty-one
(21) years of age and is exhibiting fraudulent proof of age in an attempt to obtain
any retail marijuana or retail marijuana infused products, the licensee or
employee, or any peace officer, acting in good faith and upon probable cause
based upon reasonable grounds therefor, may detain and question such person in a
reasonable manner for the purpose of ascertaining whether a person is guilty of
any unlawful act regarding the purchase of retail marijuana. The questioning of a
person by the licensee or an employee does not render the licensee or the
employee civilly or criminally liable for slander, false arrest, false imprisonment,
malicious prosecution, or unlawful detention.
(e) Any sale of retail marijuana by a retail marijuana store shall be made in person,
directly to the purchaser, within the restricted area of the retail marijuana store.
No sale shall be made by a telephone, internet or other means of remote purchase.
Delivery shall occur only in person to the purchaser at the time of purchase within
the restricted area of the retail marijuana store.
(f) Drive in or drive through retail marijuana store facilities shall not be permitted.
(g) All retail marijuana sold or otherwise distributed by the licensee shall be
packaged and labeled in a manner that advises the purchaser that it contains
marijuana, specifies the amount of marijuana in the product, and that the
marijuana is intended for use solely by a person lawfully possessing retail
marijuana. The label shall be in compliance with all applicable requirements of
the State of Colorado.
(h) Retail marijuana stores shall provide customers with the contact information for
local drug abuse treatment centers as well as educational materials regarding the
hazards of substance abuse.
(i) Marijuana shall not be consumed or used on the premises of a retail marijuana
store and it shall be unlawful for a retail marijuana store licensee to allow
marijuana to be consumed upon its licensed premises. In the case of a retail
marijuana store located in a structure with a legal secondary unit or other legal
dwelling unit, the secondary unit or dwelling unit shall not be considered part of
the retail marijuana store premises if access to such unit is prohibited to the retail
marijuana store customers.
Sec. 6-125 Operational Requirements-Retail Marijuana Cultivation Facilities.
(a) Retail marijuana cultivation facilities may conduct business operations on the
licensed premises at any time. However, shipping and receiving of products and
supplies at the retail marijuana cultivation facility shall only occur between the
hours of 4:00 a.m. and 10:00 p.m. on any day of the week.
(b) A ventilation and filtration system shall be installed in every retail marijuana
cultivation facility. A best available filtration system, such as carbon air filter
scrubbers or a charcoal filtration system shall be used.
(c) Only indoor retail marijuana cultivation facilities shall be permitted.
Sec. 6-126 Operational Requirements-Retail Marijuana Products
Manufacturing.
(a) Retail marijuana product manufacturing facilities may conduct business
operations on the licensed premises at any time. However, shipping and receiving
of products and supplies shall only occur between the hours of 4:00 a.m. and
10:00 p.m. daily.
(b) A retail marijuana products manufacturing facility shall have a best available
filtration system, such as carbon air filter scrubbers or charcoal filtration system.
(c) A retail marijuana product manufacturing facility shall include appropriate
ventilation systems to mitigate noxious gases or other fumes used or created as a
part of production.
Sec. 6-127 Operational Requirements-Retail Marijuana Testing Facilities.
(a) Retail marijuana testing facilities may conduct business operations on the licensed
premises at any time. However, shipping and receiving of materials, supplies and
retail marijuana or retail marijuana products shall only occur between the hours of
4:00 a.m. and 10:00 p.m. daily.
(b) A retail marijuana testing facility shall contain a best available filtration system,
such as carbon air filter scrubbers or a charcoal filtration system.
(c) A retail marijuana testing facility shall contain appropriate ventilation systems to
mitigate noxious gases or other fumes used or created as a part of testing
procedures.
(d) All retail marijuana testing facilities shall operate in compliance with all
applicable State laws and regulations adopted pursuant to such laws including, but
not limited to, Section 12-43.4-105, C.R.S.
Sec. 6-128 Requirements Relating to Monitoring and Security of Restricted
Areas and Inventory.
(a) All components of the security plan submitted with the application, as it may be
amended, shall be in good working order, monitored and secured twenty-four (24)
hours per day. A separate security system is required for each business. A
security plan must include, at a minimum, the following security measures:
(1) Cameras. Retail marijuana establishments shall include and use security
color cameras to monitor and record all areas of the premises (excluding
restrooms), including all areas where persons may gain or attempt to gain
access to marijuana or cash maintained by the retail marijuana
establishment. Cameras shall record operations of the business to an offsite
location, and shall record all potential areas of ingress or egress to the
business with sufficient detail to identify facial features and clothing.
Recordings from security cameras shall be maintained by the licensee for
a minimum of forty (40) days in a secure off-site location in the Town or
through a service over a network that provides on-demand access,
commonly referred to as a “cloud”.
(2) Storage. The retail marijuana establishment shall install and use a safe or
safe room for storage of any inventory, processed marijuana and cash on
the premises when the business is closed to the public. Safe rooms shall
be incorporated into the building structure and shall have solid core doors
with commercial grade locks and shall be visible through the surveillance
camera system. For retail marijuana products that must be kept
refrigerated or frozen, the business may lock the refrigerated container or
freezer in a manner authorized by the Town in place of the use of a safe or
safe room so long as the container is affixed to the building structure and
visible through the surveillance camera system.
(3) Alarm system. The retail marijuana establishment shall install and use an
alarm system that is monitored by a company that is staffed twenty-four
(24) hours a day, seven (7) days a week. The security plan submitted to
the Town shall identify the company monitoring the alarm system,
including contact information. Any modification relative to the company
monitoring the alarm system shall be reported to the Town within seventytwo
(72) hours.
Sec. 6-129 Signage and Advertising.
(a) All exterior signage associated with the retail marijuana establishment must meet
the standards established in Town’s Land Use and Development Code. In
addition, no exterior signage shall use the word “marijuana”, “cannabis” or any
other word, phrase or symbol commonly understood to refer to marijuana.
(b) A retail marijuana establishment may not advertise in a manner that is misleading,
deceptive, false or is designed to appeal to minors.
(c) Except as otherwise provided in this Section, it shall be unlawful for any person
licensed under this Article or any other person to advertise any retail marijuana
establishment or any retail marijuana infused product anywhere within the Town
where the advertisement is in plain view of, or in, a place open to the general
public, including advertising and using any of the following media: any billboard
or other outdoor general advertising device; any sign mounted on a vehicle; any
handheld or other portable sign; or any hand bill, leaflet or flyer directly handed
to any person in a public place, left upon a motor vehicle, or posted upon any
public or private property. The prohibition set forth in this Section shall not apply
to:
(1) Any sign located on the licensed premises of a retail marijuana
establishment which exists solely for the purpose of identifying the
location of the premises and which otherwise complies with this Article,
the Town’s Land Use and Development Code and any other applicable
Town laws and regulations; or
(2) Any advertisement contained within a newspaper, magazine, or other
periodical of general circulation within the Town or on the internet.
(d) No retail marijuana establishments shall distribute or allow the distribution of any
marijuana without charge within a retail marijuana establishment or at any other
place in the Town for purposes of promotion, advertising, or any other similar
purpose.
Sec. 6-130 Right of Entry-Records to be Maintained and Inspection Procedures.
(a) Each licensee of a retail marijuana establishment shall keep and maintain a
complete set of books of accounting, invoices, copies of orders and sales,
shipping receipts, bills of lading, correspondence, and all other records necessary
to fully document the business transactions of such licensee. The licensee shall
also maintain records which verify that the amount of marijuana within the retail
marijuana establishment does not exceed the amount allowed. All such records
shall be open at all times during business hours for inspection and examination by
the Town Manger, the Town’s police officers, or their duly authorized
representatives. The Town may require the licensee to furnish such information
as it considers necessary for the proper administration of this Article. The records
shall clearly show the source, amount, price and dates of all retail marijuana
received or purchased, and the amount, price, and dates for all retail marijuana
sold.
(b) By accepting the retail marijuana establishment license, licensee consents to the
disclosure of the information required by this Section.
(c) The Town may require an audit of the books of account and records of the retail
marijuana establishment as it may deem necessary. Such audit shall be made by
an auditor selected by the Town, who shall have access to all books and records of
such licensee. The expense of any audit determined to be necessary by the Town
shall be paid by the Town; provided, however, should the audit reflect a failure of
the licensee, in whole or in part, to timely remit all sales taxes, occupation taxes
or excise taxes due to the Town, the expense of the audit shall be paid by the
licensee.
(d) The acceptance of a retail marijuana establishment license from the Town
constitutes consent by the licensee, owners, business managers and employees of
such business to permit the Town Administrator, Town police officers, or their
representatives to conduct routine inspections of the licensed retail marijuana
establishment to assure that the retail marijuana establishment and the premises
are being operated and maintained in accordance with the terms set forth in the
application and that all operations in the premises remain in compliance with this
Article, the Colorado Retail Marijuana Code, and any rules or regulations
promulgated thereunder.
(e) All retail marijuana establishments shall be required to obtain applicable State and
Town licenses and shall collect and remit all applicable State, County and Town
sales taxes, occupation taxes and excise taxes in a timely manner. The retail
marijuana business license and sales tax license for the business shall be
conspicuously posted in the business.
Sec. 6-131 Compliance with Other Applicable Laws.
Except as may be otherwise provided in this Article, or rules or interpretations adopted
by the Town, any law or regulation adopted by the State of Colorado governing the cultivation,
production, possession, distribution or testing of marijuana for retail or recreational use shall also
apply to retail marijuana establishments licensed within the Town. Provided, however, if a State
law or regulation permits what this Article prohibits, this Article shall control.
Sec. 6-132 Violations; Penalty.
(a) Any person, other than a licensee of a retail marijuana establishment, who violates
any provision of this Article shall be deemed guilty of a municipal offense and
may be punished by a fine not to exceed three hundred dollars ($300.00),
imprisonment for a period not to exceed ninety (90) days, or by both such fine and
imprisonment.
(b) Any licensee of a retail marijuana establishment who violates any provisions of
this Article shall be subject to civil penalties of up to one thousand dollars
($1,000.00) for each day during which such violation occurs or continues. Each
day on which a violation shall occur or continue shall be deemed a separate and
distinct offense. Following notice and hearing, the Local Licensing Authority
may impose such civil penalties.
Section 2. Conflicting Ordinances Repealed. All ordinances or parts of ordinances of
the Town of Palisade in conflict herewith are expressly repealed.
Section 3. Renumbering of Existing Article V. That the current Article V of Chapter
6 of the Palisade Municipal Code, entitled Medical Marijuana Center Occupation Tax, shall be
renumbered accordingly.
Section 4. Severability. If any part, term, or provision of this Ordinance is held by a
court of competent jurisdiction to be illegal or otherwise unenforceable, such illegality or
unenforceability shall not affect the validity of any other part, term, or provision of this
Ordinance.
                

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