The first of Denver’s marijuana social consumption permit applications are expected this summer, after proposed rules and regulations called for under Denver’s Initiative 300 are adopted.

Ashley Kilroy, executive director of the city’s Department of Excise & Licenses, discussed the main provisions of the ordinance establishing the four-year pilot program and the proposed timeline for implementation at a recent City Council Special Issues Committee meeting.

In November 2016, Denver voters approved Initiative 300, allowing business owners and others to apply for a permit to operate a “designated consumption area,” or DCA, at any type of business or event. Participants would be allowed to privately consume marijuana, under conditions spelled out in the city’s rules and regulations. The pilot program is also subject to City Council renewal.

Kilroy explained a 22-member advisory committee, including backers and opponents of the initiative, helped develop the proposed rules. The draft rules were published the week of May 8 and will be adopted in June, when a public hearing will be held. Applications are expected to begin to be accepted in July.

“We’re right on target,” Kilroy said.

The initiative allows the holder of a consumption permit to operate a DCA between 7 a.m. and 2 a.m., under certain conditions outlined in the rules. Those include ensuring outdoor smoking occurring at ground level is not visible to the public or from a place where children congregate. The ordinance lists a $1,000 annual fee and the application fee is $1,000 for a total of $2,000 in up front costs to the applicant. Permit and application fees can be changed by City Council.

Each application must show evidence of community support or “non-opposition,” mainly from a city-registered neighborhood organization. Applicants must pass a criminal background check and submit a responsible operations plan. The events may be permanent or temporary, indoors or outdoors, and do not require additional zoning permits.

The rules shall not “frustrate the intent” of the initiative, Kilroy said, and be balanced with: State and local laws that prohibit open and public consumption of marijuana; state law that prohibits consumption of marijuana on liquor-licensed premises; the Colorado Clean Indoor Act, which prohibits smoking indoors but does not prohibit vaping (the practice of using pre-filled disposable cartridges that contain concentrated marijuana that is vaporized with a battery-powered device) or consuming edibles. The rules do not apply if there are fewer than three employees and/or volunteers.

Many more rules and conditions apply

All DCAs are restricted to ages 21 years and older, must have constant entrance monitoring to ensure no one under 21 enters, requires patrons to sign a waiver upon entry — which was suggested by a backer of the measure, Kilroy added — and have restrictions or requirements on advertising, visibility and signage.

Several types of facilities, such as yoga studios, event centers, churches, restaurants and bars, were among those identified as possible hosts of consumption events.

No alcohol can be consumed within a DCA; marijuana consumption cannot occur at a business that holds a liquor license, unless that business “de-licenses” for the day and locks all alcohol in storage while the DCA occurs.

Councilman Wayne New felt it would be better to require a restaurant holding a DCA to close to the public during the event, to avoid possible violations and customers upset over the presence of marijuana. Kilroy said that could be the likely outcome of the process.

A DCA special event permit cannot be issued for an event that also has a special event liquor permit. Businesses will be required to have a standard sign or placard indicating that marijuana consumption may be occurring on site.

Consumption events cannot be located within 1,000 feet of childcare establishments, drug or alcohol facilities, city-owned recreation center and outdoor pools, or within a residential zone district. But consumption events could be held within 1,000 feet of each other, Kilroy noted. She also said special event permits could be granted for a site 1,000 feet from popular annual events, such as the Taste of Colorado at Civic Center Park.

Councilman Kevin Flynn questioned whether citywide neighborhood groups should comment on proposed DCAs for neighborhoods that do not have a registered neighborhood organization.

“I don’t think a citywide group can possibly be in touch with the needs and desires of an individual community,” he said.

Councilwoman Stacie Gilmore had fire and safety concerns for small businesses that hold smoking events in warehouses without three or fewer employees. Kilroy thought the event’s safety and operations plan would address some of those concerns.

“It’s a good thing this is a four-year pilot project, because there are a lot of things we don’t really know for sure” since the consumption permits are unique in Colorado, Kilroy stated. “We don’t know all the possible situations that could occur. A $2,000 fee is pretty steep and these are bring-your-own-marijuana, it’s illegal to sell marijuana at these events.”

According to Kilroy, sharing marijuana, while also illegal, is likely to be very difficult to enforce.

Councilwoman Kendra Black said a business that holds such events “is likely one that wants to be a good neighbor and would only hold one for the benefit of its customers and the business itself. So, I think they’ll be good at self-policing and making the right decisions.”