12.3.18- Updated Suggestion Form to change city penalty schedule as to prior violations- J. KurishName: John Kurish
Company: JTR Caregivers LLC
Phone: 719-641-7778
Title: General Manager
Date: 12/3/2018
Email: johnny.k@helpinghandsherbals.com
Mailing Address: 1021 Pearl St Unit B
Boulder CO 80302
Boulder Revised Code or City Manager Rule suggested amendment with Legal
Citation/Chapter/Subsection:
City of Boulder Marijuana License Penalty Schedule Guidelines – February, 2017
Suggested Wording for Change:
In Paragraph 3, following the first sentence, add a sentence to read as follows:
“Prior offenses occurring more than three years prior to a current offense will not be
considered as additional offenses for purposes of the penalty schedule below. Such prior
offenses will be considered as aggravating factors for the City’s analysis and application of
penalties.”
Basic justification for suggested change:
Encouraging licensees to maintain clean disciplinary records is an effective way for licensees to
better serve the needs and safety of the general public in Boulder. By reducing the impact of
old infractions, licensees are incentivized to rectify operational issues that caused the
infractions to begin with.
This change would also encourage investment into the industry by removing strikes after a
reasonable time frame passes, in order to offer a clean slate to new companies wishing to
purchase licenses from current owners. We are now at a turning point in the industry as the
stigma of doing business in this category disappears, where investors and big business owners
from around the country are interested in purchasing licenses from the original entrepreneurs
that started here in Boulder. This type of investment can be a positive for all stakeholders
involved.
Examples of when the current Code or Rule has caused a problem (please provide real world
examples):
In the case of JTR Caregivers, LLC, a current sale of licenses is at risk from potential
repercussions from a November 2018 sale-to-minor sting operation, in light of a 2015 infraction
for sale to a minor. The licensee has had no infractions in the interim period between 2015 and
2018 but nevertheless is unable to avoid consequences of past violations, no matter how old.
Explain how the change would affect/benefit the Industry:
This change would incentivize marijuana licensees to focus on compliance and fixing
organizational processes to avoid further infractions, in order to re-attain a clean operational
slate in the future. It would also encourage investment into the industry by making current
licenses that have had past infractions more attractive to potential buyers.
Explain how the change would affect/benefit the City organization:
The City would benefit by incentivizing its marijuana licensees to maintain more compliant
operations, lessening the workload on City police and the City licensing authority. It would also
make investment into licenses with past infractions more attractive to new ownership. With
increased attractiveness to purchase these licenses, the city would enjoy less infractions overall
by allowing more investment to be put into the operating companies. With a new wave of
investment from more established sources, the entrepreneurs that started the businesses in
Boulder will exit over time, and the operations left will have more resources to put into the
compliance and training categories under new ownership.
Explain how the change would affect/benefit members of the Public who are not related to the
marijuana industry or marijuana customers:
The Public would benefit due to having fewer health and safety operational violations by
marijuana licensees.
List any documents you have provided which would support the proposed change:
City of Boulder Marijuana License Penalty Schedule Guidelines – February, 2017
City of Boulder Marijuana License
Penalty Schedule Guidelines - February, 2017
The following is the Penalty Schedule that is used for guidance by the Boulder Marijuana Licensing
Authority when proposing penalties. This schedule includes the most frequently occurring violations,
but it is not an all-inclusive list of all possible violations of the Boulder Marijuana Codes.
The city Marijuana Enforcement team members are always available to answer questions beforehand
about compliance from Boulder Marijuana businesses to ensure that their business operations remain
compliant with our local law. Additionally, the City of Boulder offers MJ sales and service training for
stores, key-holder training about city inspection requirements and enforcement trends, and MJ city tax
requirement trainings so that Boulder Marijuana businesses can acquaint themselves with local laws and
operating requirements and notices for these city trainings will be posted on the City of Boulder
licensing office website.
Actual penalties may vary depending on a variety of factors such as mitigating or aggravating
circumstances, efforts of business to correct the violation, or time between violations. Boulder
marijuana businesses have a right of appeal for fine, suspension, and revocation recommended
penalties, and if an appeal is timely filed a quasi-judicial hearing before a city municipal court judge will
be held.
Oeerational Infractions First Second Third Fourth Fifth
Offense Offense Offense Offense Offense
Unsealed MJ possession by $1,000 $2,500 fine $3,000 $5,000 Revocation
employees at licensed premise or fine fine fine
acceptance of samples by employees
MJ product or plants not properly $1,000 $2,500 fine $3,000 $5,000 Revocation
packaged for removal/transport or fine fine fine
MIP products not properly labeled
Unapproved goods sold at licensed $1,000 $2,500 fine $3,000 $5,000 Revocation
premise fine fine fine
ID scanner not utilized and/or failure $1,000 $2,500 fine $3,000 $5,000 Revocation
to properly verify ID for fine fine fine
determination of age
Refusing to remove key-holder from $1,000 $2,500 fine $3,000 $5,000 Revocation
management when background is fine fine fine
unapproved by city
Failure to obstruct view MJ of sales or $1,000 $2,500 fine $3,000 $5,000 Revocation
storage of MJ from public view fine fine fine
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First Second Third Fourth
lmeact on Communit)l or Safet)l Violations Offense Offense Offense Offense
Illegal Advertising $2,000 fine $3,500 fine $5,000 fine Revocation
For Medical Marijuana wellness centers only,
not having a private consultation room or not $2,000 fine $3,500 fine $5,000 fine Revocation
offering other holistic offerings at licensed
location
No city approved key-holder or owner on-site $2,000 fine $3,500 fine $5,000 fine Revocation
Uncooperative with PD with inspections or $2,000 fine $3,500 fine $5,000 fine Revocation
investigations or misrepresentation to
regulators
Refusal to allow city inspections or premise $2,000 fine $3,500 $5,000 fine Revocation
access fine
Sale of LLC shares or corporate stock in $2,000 fine $3,500 fine $5,000 fine Revocation
Boulder business or adding officers/managing
members without proper and complete 30-day
pre-file with the city
Secure dispensing area not locked or restricted $2,000 fine $3,500 fine $5,000 fine Revocation
licensed location unlocked
MJ product transport details not emailed to
BPD and email bounce back not printed for $2,000 fine $3,500 fine $5,000 fine Revocation
transportation by licensee
Processing of MJ in violation of the Code (e.g. $2,000 fine $3,500 fine $5,000 fine Revocation at store, at a grow or illegal processing at a
MIP)
Failure to abide by neighborhood responsibility $2,000 fine plan $3,500 fine $5,000 fine Revocation
Failure to address odor per recommendation $2,000 fine $3,500 fine $5,000 fine Revocation
On-premise consumption by customers $2,000 fine $3,500 fine $5,000 fine Revocation
Failure to operate business in compliance with $2,000 fine $3,500 fine $5,000 fine Revocation the license or its operating plan or security plan
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