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Meeting #4
June 25, 2020
1:00 – 3:30 p.m.
Topic: Marijuana Equity Program
Marijuana Licensing Work Group
(MLWG)
Agenda
I. IntroductionsII. MLWG Purpose and Ground RulesIII. MLWG Meeting Format IV. Continue Topic #3: Marijuana Equity ProgramV. Public CommentVI. Next Steps
Marijuana Licensing Work Group Members
Ashley Kilroy Co-Chair, Denver Excise and Licenses
Molly Duplechian Co-Chair, Denver Excise and Licenses
Councilwoman Kendra Black City Council District 4
Councilwoman Candi CdeBaca City Council District 9
Councilman Chris Hinds City Council District 10
Kenneth Allison All About Hemp, LLC
Anshul Bagga Denver City Attorney’s Office
John Bailey Black Cannabis Equity Initiative
Sarah Belstock Denver Health and Hospital Authority
Truman Bradley Marijuana Industry Group
Diane Cooks Montbello Resident
Shawn Coleman 36 Solutions
Jaqueline Flug Drizly, LLC
Michelle Garcia Mayor’s Office of Social Equity and Innovation
Michel Holien Denver Public Schools
Andrew Howard Denver Policy Department
Clarissa Krieck National Cannabis Industry Association
Henny Lasley Smart Colorado
Jason Moore Denver City Attorney’s Office
Dan Pabon Medicine Man Technologies
Jessica Scardina Vicente Sederberg LLP
Ean Seeb Governor Polis’ Office
Ryan Tatum Cultivated Synergy
Art Way Equitable Consulting
Sarah Woodson The Color of Cannabis
Viewers: Please email [email protected] to confirm attendance and receive future updates, minutes, or other communications.
MLWG Purpose and Ground Rules
• The purpose of the MLWG is to review, discuss, and make recommendations on policy direction and possible marijuana licensing laws, rules and regulations.
• The MLWG is advisory in nature. Work Group members will review and discuss options for specific regulatory topics, and provide comments and recommendations to the City. The City may then incorporate that input into a future proposal for adoption.• Any ordinance changes will require approval by the Denver City Council.
• Each member of the MLWG is an equal participant in the process and has equal opportunity to voice opinions and contribute ideas. • As with all other advisory work groups, the work group will not necessarily be working towards consensus, but
rather we will use everyone’s input to develop a proposal to bring to the Mayor and City Council. • MLWG members accept the responsibility to come to the meetings prepared for the discussions. • MLWG members must commit to treating each other with respect, civility, and courtesy, whether or not they agree
with one another's interests and concerns.
MLWG Meeting FormatWork Group Members• The MLWG meetings will present information for background and pose questions for discussion (denoted in this presentation by ).
➢ Any suggestions provided by the City are for the purposes of initiating and guiding the discussion. ➢ The MLWG members may make suggestions in addition to what is being provided.
• MLWG members will be provided with a list of topics to be discussed in advance of each meeting. • MLWG members will also be able to submit additional comments in writing.• Minutes from each meeting will be available within one week of the meeting date.• If a Work Group member has a question or would like to make a comment relevant to the discussion occurring, they are welcome to speak up but should avoid
interrupting the presenters or another Work Group member. • For the experience of the viewing audience, please announce your name at the beginning of your statement/question.• If you do not feel as though you are given an opportunity to speak, please send a message in the “chat” stating “I have a question.” • Please do not use the chat for any other purposes to avoid distraction of the presenters and Work Group members.
Public Input• MLWG meetings are open to the public and can be viewed via Microsoft Teams Live. The links for viewing the MLWG meetings will be posted at least one day
prior to the meeting on the Marijuana Laws, Rules and Regulations website. • Attendees and members of the public viewing the Work Group meetings are able to send written comments to [email protected]. All written
comments will be shared with the Work Group members via email. • A separate public process will also be a part of the legislative process with City Council.
Topic #3 –
Marijuana Equity Program
Jurisdiction Financial Assistance
(Fees, Loans)
TechnicalAssistance/ Education
Priority Application Processing/Scoring
Priority/ ExclusiveAccess to Licenses
Incubator Program
Equity Applicant Criteria Includes Legal Challenges
Missouri Applicant located certain area Sarcoxie Nursery Cultivation Center, LLC vs. Dept. Health & Senior Services; More than 500 license denial appeals.
Oakland, CA Income, residency in a certain area, convictions
Los Angeles, CA Income, residency in a certain area, convictions Audit; Social Equity Owners & Workers Assn. v. City of Los Angeles(Phase 3 licensing on hold since Sept. 2019)
San Francisco, CA
Income, arrests/convictions, residency in certain area, attended certain school district, lost housing
Long Beach, CA Income, residency in a certain area, arrests/convictions, receiving unemployment
Sacramento, CA Income, residency in a certain area, arrests
Ohio Belonging to an “economically disadvantaged” group including Blacks or African Americans, American Indians, Hispanics or Latinos, and Asians
Program not active due to the legal challenges.
Massachusetts Income, residency in a certain area, convictions
Cambridge, MA Uses MA’s eligibility criteria Revolutionary Clinics II, LLC v. City of Cambridge (Equity licensing delayed Sept. 2019 – Apr. 2020)
Illinois Residency in a certain area, arrests/convictions
Cannabis Equity Program Comparison
Developing Denver’s Cannabis Equity Program
Define Social Equity Applicant
Develop services and benefits for
Social Equity Applicants
Identify licenses to be included in a
Social Equity Program
HB20-1424-Social Equity Licensees In Regulated Marijuana (Link to the Bill)
Changes the term “accelerator licensee” to “social equity licensee” in the Colorado Marijuana Code and alters the qualifications to the following:
• Colorado resident
• Not subjected to an action against their license
• Demonstrates one of the following:
o Resided 15+ years, from 1980 to 2010 in an opportunity zone or disproportionally impacted area;o Applicant or immediate family was arrested, convicted or suffered civil asset forfeiture due to a MJ offense;o Does not exceed household income to be defined by MED.
• Social Equity licensee(s) must hold 51% or more ownership of the license
• A late amendment to the bill grants the governor the power to expedite pardons without consulting prosecutors and judges involved in prior marijuana possession convictions.
Define Social Equity ApplicantDevelop services and benefits
for Social Equity ApplicantsIdentify Licenses Available to
Social Equity Applicants
Should Denver adopt this same language for a “social equity applicant”?
Social Equity Applicant
Equity Program Services and Benefits
What tools, services, and benefits would be valuable to individuals who qualify for Denver’s cannabis social equity program?
Prioritized License Distribution or
Processing
• New license types and licenses released under lottery
Modified Application Requirements
• Possession of property, proof of financial capability, location
requirements, etc.
Workforce Development
• Training/mentorship programs
Technical Assistance
• Legal clinics, business plan development, accounting
Financial Assistance
• Low-interest Loans
Business Resources
• B2B networking events, seminars
Development of Ancillary Businesses
Others?
Define Social Equity ApplicantDevelop services and benefits
for Social Equity ApplicantsIdentify Licenses Available to
Social Equity Applicants
Eligible Social Equity License Types
Which cannabis licenses should be included in the Cannabis Social Equity program?
New Hospitality Licenses
New Delivery Licenses , including
Transporters
Store and Grow licenses released
under lottery
All other types of cannabis licenses
(MIPS & Labs)
Define Social Equity ApplicantDevelop services and benefits
for Social Equity ApplicantsIdentify Licenses Available to
Social Equity Applicants
Social Equity Implementation
How does the existing licensing framework affect implementation of a successful equity program?
Caps on Storefronts and
Cultivation Locations
Lottery Requirements
Zoning Requirements
Application Requirements,
including proximity restrictions
Community Engagement Plans
Other?
Additional information on each of these are provided in the following slides
The Location Cap
• The issuance of any new retail marijuana store or cultivationlicense in the city shall be subject to a cap on the number of such locations
• The formula for calculating the caps is in ordinance
The Location Lottery
• Once the caps are calculated, the Director of EXL shall hold a lottery to distribute new retail marijuana store or cultivation licenses to eligible locations
• Protection is given to the most saturated neighborhoods
Cultivation Licenses
299Storefront Licenses
220Cumulative
451
Caps on Storefronts and Cultivation Locations
First lottery & open application process will be held in 2021, to the extent the total number of then-current licensed locationsfalls below the cap.
Lottery Prequalification Requirements
• Proof of prior approval by state licensing authority for the establishment in question
• Complete application for the local license, along with applicable fees
• Proof of possession of the premises for the proposed establishment
• Proof of financial capability to open and operate a retail marijuana establishment
• No previous marijuana licensing violations in the preceding year affecting public safety
Scale back Provision: DRMC Sec. 6-203 (c) (1)
• If the capacity for cultivation locations is under 30, the director is authorized to issue new cultivation licenses not to exceed one-half of the number of locations falling below the cap.
• If the capacity for cultivation locations is above 30, the director is authorized to issue new cultivation licenses in a number equal to the number of available locations in excess of 30.
Undue Concentration Provision: DRMC Sec. 6-203 (c) (6)
• Director shall determine the number of licensed locations in each statistical neighborhood of the city and shall identify the 5 statistical neighborhoods where the highest number of locations exist.
• The statistical neighborhoods identified shall be considered neighborhoods of undue concentration and shall be prohibited from further licensing as a part of the annual open application process.
Lottery Requirements
Zoning Requirements-Storefronts
Zoning Requirements-StorefrontsZoning Requirements-
Cultivation
Marijuana: Medical Centers & Retail
Stores
Marijuana: Designated
Consumption Areas
Marijuana:Cultivation
Schools 1,000 ft. 1,000 ft. 1000 ft.
Childcare Facilities 1,000 ft. 1,000 ft.
City Pools and Rec Centers 1,000 ft.
Alcohol or Drug Treatment Facility 1,000 ft. 1,000 ft.
Similar Establishments 1,000 ft.
Residential Zone District 1000 ft.
Application Requirements, including proximity restrictions
Other requirements include:• Compliance with the advertising restrictions• Public Hearing for storefronts and Designated Consumption Area licenses• Evidence of Community Support required for Designated Consumption Area licenses
Zoning Requirements-Storefronts
Zoning & Proximity Requirements-Storefronts
Zoning Requirements-Storefronts
Zoning & Proximity Requirements-Cultivation
Community Engagement Plan Requirements for all Retail Licenses
• Name, telephone number and email address of the person responsible for neighborhood outreach and engagement
• Names of all registered neighborhood organizations whose boundaries encompass the location of the proposed licensed premise, and a statement that the applicant shall contact them prior to commencing operations
• An outreach plan to contact and engage residents and businesses in the local neighborhoods of the licensed location
• A detailed plan to create positive impacts in the neighborhoods where the licensed premise is located
• Written policies and procedures to timely address concerns or complaints against the licensed premise
• Written polices and procedures to promote and encourage full participation in the regulated marijuana industry by people from communities that have previously been disproportionately hared by marijuana prohibition and enforcement
Social Impact Plan Requirements for Medical R&D License
• Name, telephone number and email address of the person responsible for implementation of the plan
• Description of the procedures that will be used to timely address concerns within the neighborhood surrounding the licensed premise
• Names of all registered neighborhood organizations whose boundaries encompass the location of the proposed licensed premise, and a description of how the business will engage with them
• A description of the diversity and inclusion practices in hiring and employment
• A description of the applicant’s sustainability practices
• A description of the plan to foster participation in the regulated marijuana industry by people that have previously been disproportionately harmed by marijuana prohibition and enforcement
• A description of how members of the public can access the applicant’s social impact plan
Community Engagement Plans
Social Equity Program Funding
Given the current economic climate, what are possible ideas for funding a cannabis social equity program in Denver?
Considerations
$226 million projected budget gap for 2020
Current cannabis-related revenue sources: licensing fees, sales tax (medical and retail), special sales tax (retail), state shareback
-Currently 2% of retail special sales tax is dedicated to affordable housing programs
Possible new revenue sources: Delivery surcharge
Support from Established Businesses
What resources could established marijuana businesses provide to equity applicants to help them enter and be successful in the industry?
What incentives would make it worthwhile for established cannabis businesses to participate in an equity program established by the city? (e.g. through a mentorship program, as an
endorsement/incubator licensee, etc.)
Public CommentAttendees and members of the public viewing the Work Group meetings are able to send written comments
to [email protected]. All written comments will be shared with the Work Group members via
email.
Next StepsWe will be taking the provided feedback into consideration as we develop a proposal. We’d like
to reconvene this group when that proposal is ready and provide an additional opportunity to
hear your thoughts and reactions.
Please stay tuned for information about an additional meeting.
In the meantime, please submit written comments can be submitted to [email protected].