Three bills regarding marijuana regulations in Denver were passed through the Finance and Governance Committee Tuesday after narrowly surviving an attempted delay.

If approved by the City Council, the bills will allow marijuana delivery and marijuana hospitality businesses within Denver and provide $350,000 to the Department of Excise and Licenses for the implementation of the new marijuana business licenses.

Molly Duplechian, policy analyst at the Department of Excise and Licenses, called the bills the “biggest changes that have happened in marijuana regulation since 2014” when the retail sale of marijuana was legalized in Colorado.

Delivery licenses would only be available to social equity applicants until 2024. Licenses for stores, transporters, cultivations, manufacturing and the new hospitality establishments would be limited to social equity applicants until 2027.

Social equity applicants are defined as Colorado residents who have never had a marijuana license revoked and meet one of the following social equity criteria:

• Applicant lived in an opportunity zone or a disproportionately impacted area between 1980 and 2010
• Applicant or immediate family was arrested, convicted or suffered civil asset forfeiture due to a marijuana offense
• Applicant’s household income didn’t exceed 50% of the state median income

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“We give (them) a fighting chance to get a real foothold in this industry without being edged out by more established, well-funded competitors,” said Abbey Borchers with the Department Excise and Licenses.

Though the bills were generally supported by the Finance and Governance Committee, Councilwoman Robin Kniech requested that the committee delay voting on the bills until April 20 to make edits and discuss distancing requirements.

The delay was shot down in a 4-3 vote, with Kniech, Councilwoman Candi CdeBaca and Councilman Chris Hinds voting yes.

Current regulations in Denver require marijuana businesses to be at least 1,000 feet away from schools, childcare facilities, city pools, recreation centers, alcohol or drug treatment facilities and other similar license types.

Kniech said under these restrictions, only 10 square miles of land are available for new businesses. She suggested removing childcare facilities and recreation centers from the restriction list (which are not required by federal law), adding approximately four square miles of available land.

“I don’t want to say we’re doing something for social equity applicants … and then, in reality, it’s virtually impossible to open that business because there’s nowhere to do it,” Kniech said.

Other council members were concerned that changing Denver’s distancing requirements would take too long and indefinitely delay the social equity program.

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“I spent about a year looking very closely into distance requirements,” Councilwoman Kendra Black said. “I do think it continues to be a problem and I think it’s an important discussion to have but … there’s no way we’re going to get it done by April 20.”

“I don’t want to delay it further for our equity partners. I want to give them the opportunity to start applying for these licenses.”

Councilwoman Deborah Ortega argued that removing the childcare and recreation center restrictions could lead to more land availability in neighborhoods that are already over-saturated with marijuana businesses.

On Tuesday, the Department of Excise and Licenses also announced adjustments to the bills that had been made following the committee discussion two weeks ago.

The first change modifies the language used in the requirement that marijuana businesses secure products and money in a safe overnight. With the change, other security features including vaults and strong rooms would also work.

The second change gets rid of the prohibition of drive-up, walk-up and curbside delivery for marijuana stores outside after the COVID-19 pandemic ends. Businesses may now use these services as long as they follow rules set by the director and state licensing authority.

These rules, which have not yet been established, are expected to include additional requirements for outdoor lighting and security cameras.

Hinds spoke against these rules, pointing out that they’re not required for alcohol businesses. 

“I’m not sure I’m excited about different rules for cannabis as alcohol, food and other drive-up or pedestrian options, especially since the state law doesn’t have those specific requirements,” Hinds said. “It seemed like the voters’ intent was to regulate cannabis like alcohol.”

In addition to establishing these rules, the Department of Excise and Licenses is also still working on changes to the bills that would modify and clarify the restrictions on advertising for marijuana.

During the meeting, the department clarified drive-thrus in marijuana businesses would have to be approved by the city and owners would have to file for a modification of premises after the emergency rules implemented during the COVID-19 pandemic have expired.

The expiration is currently set for May but it can be extended depending on the status of the pandemic.

Other issues discussed included health concerns for houses next to marijuana drive-thrus due to vehicle fumes, marijuana businesses not needing to provide demographic information and the department having too much discretion on requirements for drive-up, walk-up and curbside delivery services.

The Department of Excise and Licenses is expected to confer with the committee and make further adjustments to the three bills before they are submitted to the full City Council.

The bills will be discussed at the Mayor-Council meeting on March 23 before being filed at the City Attorney’s Office. The bills will then have a first reading in front of the City Council on March 30 and a final vote on April 5.