In partnership with High Time in the Construction Industry: Precautions for Working in the Legal Marijuana Industry Julie M. Walker Kelly & Walker LLC Denver, CO 56 th Annual Meeting of Invited Attorneys Dan Weed Chicago, Illinois Building Code Official May 25 – 26, 2017 Trinidad, CO Dave Olson PCD Engineering Services Longmont, CO
58 th Annual Meeting of Invited Attorneys
58 th Annual Meeting of Invited Attorneys
58 th Annual Meeting of Invited Attorneys
58 th Annual Meeting of Invited Attorneys
58 th Annual Meeting of Invited Attorneys
58 th Annual Meeting of Invited Attorneys
58 th Annual Meeting of Invited Attorneys
58 th Annual Meeting of Invited Attorneys
58 th Annual Meeting of Invited Attorneys
58 th Annual Meeting of Invited Attorneys
58 th Annual Meeting of Invited Attorneys
58 th Annual Meeting of Invited Attorneys
58 th Annual Meeting of Invited Attorneys
58 th Annual Meeting of Invited Attorneys
State Marijuana Laws in 2018 This map shows current state laws and recently-approved ballot measures legalizing marijuana for medical or recreational purposes as of November 7, 2018. Citation: https://www.governing.com/gov-data/safety-justice/state-marijuana-laws-map-medical-recreational.html 58 th Annual Meeting of Invited Attorneys
58 th Annual Meeting of Invited Attorneys
Denver has more: A. Starbucks B. McDonald’s C. Dispensaries 58 th Annual Meeting of Invited Attorneys
Different Marijuana Operations •Grow facilities •Processing/Extraction •Edible/nonedible production •Testing •Retail Design Professional Opportunities – AND RISKS! 58 th Annual Meeting of Invited Attorneys
Buildings/Facilities • Many grow houses constructed in older “cold dark shells” • Abandoned warehouses and manufacturing buildings. • Existing hazardous materials. • Inadequate insulation and utilities • Inadequate site area for parking, mechanical equipment, emergency generator and transformers, electrical gear. • High cost of building infrastructure upgrades often tempts Owners to “make due with what we already have.” 58 th Annual Meeting of Invited Attorneys
Attic mechanical equipment with inadequate duct and air handler support and very poor access for maintenance and replacement. 58 th Annual Meeting of Invited Attorneys
Dormant grow room with chilled water air conditioners around perimeter, insulated chilled water piping. 58 th Annual Meeting of Invited Attorneys
Attic Mounted Air Conditioners & Duct Work 58 th Annual Meeting of Invited Attorneys
Non-Effective Condensate Drainage System (Typical) 58 th Annual Meeting of Invited Attorneys
Grow Room Supplemental Air Circulation 58 th Annual Meeting of Invited Attorneys
Grow Facility: Design Issues 58 th Annual Meeting of Invited Attorneys
Grow Facility: Grow Strategy •Hydroponic •Dirt Grow •Greenhouse 58 th Annual Meeting of Invited Attorneys
Grow Facility: Grow Strategy, Varietals • Seed, cloning – wholesale. • Number of varietals. • Characteristics of varietals: – Feed at different rates. – Mature at different rates. – Exhibit different traits. • Different plants have different growth needs. 58 th Annual Meeting of Invited Attorneys
HVAC Design Factors • Lighting • Air flow • Temperature • Humidity • Oxygen • Carbon Dioxide • Controls 58 th Annual Meeting of Invited Attorneys
Which requires more energy? A. Growing two pounds of marijuana B. Driving across the country 5 times 58 th Annual Meeting of Invited Attorneys 29 May 20, 2019
HVAC Design: Impacts •Mold •Mildew •Plant failure –(Heat, light, airflow) 58 th Annual Meeting of Invited Attorneys
Architects & Engineers • Relatively new project type – lack of industry accepted design standards and codes. • HVAC engineers not trained in horticulture - uncertainty about impacts of the HVAC components (air, light, heat, humidity) on growing process for cannabis. • Poorly defined growing criteria during critical design phase. • Large quantities of lighting, air conditioning and dehumidification systems lead to high “budget busting” costs. • A/E blamed for production levels that do not achieve over- inflated Owner expectations. 58 th Annual Meeting of Invited Attorneys
Contractors • Low bid Contractors often selected, based upon previous relationship – in or outside of cannabis industry. • Inexperience with previous cannabis projects promotes misunderstanding of costs and expectations of Owners. • Typically smaller, less sophisticated Contractors. Larger Contractor stock may have corporate edicts prohibiting work on cannabis related facilities. • Often choose inappropriate equipment for demanding commercial grow facility, i.e.: residential or light commercial split systems. • Not accustomed to rigor of commercial construction project or inexperience of building officials. 58 th Annual Meeting of Invited Attorneys
Owners • Typically unsophisticated individuals/companies who remain highly involved in decision making, but lack previous construction experience or knowledge. • Cash projects, typically poorly funded. Owners often choose the least expensive first cost alternatives. • Owners typically do not know, understand or appreciate the governing codes (or lack thereof) and the impact on projects. • Owners make grow strategy decisions for process/HVAC on the fly. • Impatience to grow product and reap profits. 58 th Annual Meeting of Invited Attorneys
Building Codes: Illegal Grow Issues Illegal Grows Started in Houses: – High electric bills alerted city staff. • Past users of the product saw legalization as a way to get rich. – Odor complaints from neighbors. – Basement operations with • Inexperienced in safety aspects. extension cords, black plastic • No knowledge of codes, “dark rooms.” permits, chemicals or how to run – Dangerous and uncontrolled use a business. of propane started fires. • No knowledge of inherent – Lack of professional dangers. equipment/safety. • Simply a way to make a quick buck or support their own needs. 58 th Annual Meeting of Invited Attorneys
Building Codes: How Things Changed Products Evolved: • Highly sophisticated processes form resins, hash oils, wax and shatters. • Bag of weed leaves from yesteryear is almost gone. • Acres and acres of outside grows, greenhouses with complex computer run ventilation and hydroponic systems. • Today’s user has highly potent mixtures and it takes far less to feel much more. 58 th Annual Meeting of Invited Attorneys
Further Changes State Involvement: • Licenses for medical/recreational use. • Security cameras, fences or Smarter Growers: separation. • CO2 enrichment to speed • Requires local building dept. growth. approval. • VERY Expensive Extraction • Requires police and fire signoff. facilities. • Large amounts of forms and • Highly sophisticated process reporting. equipment. • Hiring scientists, chemists, horticulturists! 58 th Annual Meeting of Invited Attorneys
Building Code Catchup Codes Previous to Legalization: • No code requirements for a Latest Codes: substance that had been illegal. • 2018 Int’l Fire Code – written with a • No desire to change a national realization that this is here to stay, code for something that was only causing: legal in 1-2 states. – A new section 5307 on CO2. • No realization of the dangers until – A new chapter 39 on Processing fires and deaths occurred from and extraction. dangerous unskilled operations. – Special equipment to be listed or • Overall lack of training available. else designed by approved firms, engineers. – Technical reports by approved professionals. 58 th Annual Meeting of Invited Attorneys
Regulations LOCAL BUILDING JURISDICTION DEPARTMENT STATE EFFECT CONCERNS • Video surveillance & Many differences among cities: • Flame spread on reflective camera systems. surfaces. • May have disallowed it locally. • Details on proper waste • Too high a dose of CO2 is • May have own amendments. deadly. disposal. • May still not be aware or be • Mixing up carbon dioxide • Cash business. doing anything. and carbon monoxide. • Probably haven’t adopted a • Rated extraction rooms. Code that controls it! • Explosion proof wiring. • Ventilation to exterior. 58 th Annual Meeting of Invited Attorneys
Potential Malpractice Allegations/Defenses • Design error caused lack of production/lost profits • Defenses: – Owner directed limitations – Budget constraints – Grow design failed – Incompetence in managing/running facility – NO STANDARD OF CARE 58 th Annual Meeting of Invited Attorneys
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