City Council Study Session Agenda and Packet 2010 10 26

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COUNCIL COMMUNICATION TO: MAYOR AND CITY COUNCIL FROM: MALCOLM FLEMING CITY MANAGER DATE: OCTOBER 26, 2010 SUBJECT: UPDATE /DISCUSSION — REGULATION OF MEDICAL MARIJUANA ORIGINATING DEPARTMENT: CITY MANAGER'S OFFICE SUMMARY: Previous action the City has taken on medical marijuana includes Ordinance #1557, Series 2009 which amended Title 17 of the Louisville Municipal Code to add a definition of "medical marijuana dispensary" in Section 17.08.321 and to prohibit medical marijuana dispensaries (MMDs) as home occupations in Section 17.16.040 (attached). Additionally, Ordinance # 1574, Series 2010, extended the City's MMD moratorium until March 31, 2011 (attached). Also attached is a May 25 memorandum from City Attorney Sam Light on House Bill (HB) 1284, concerning the regulation of medical marijuana, so as to reacquaint City Council with the provisions of that bill. Based on HB 1284 there are a number of options available to the City going forward as it relates to the regulation of medical marijuana centers (previously known as MMDs), optional premises cultivation operations (a.k.a. grow houses), and medical marijuana - infused products manufacturers (collectively, medical marijuana operations or MMOs). They are as follows: 1) Ban MMOs by either a vote of the majority of the members of the City Council or by a vote of a majority of the registered electors of the City. A ban would not prohibit primary caregivers from providing medical marijuana to persons with debilitating medical conditions; however, a primary caregiver would be limited to serving only five patients. For example, Superior and Westminster banned MMOs by ordinance. Aurora, Broomfield and Jamestown have this issue on the ballot in November of this year. 2) Allow MMOs (permitted land use) and license them — HB 1284 requires MMOs to obtain local licenses from a local licensing authority; therefore, the City could choose to implement local licensing based on the minimum licensing standards and location requirements set forth in HB 1284 and amend the zoning code to designate in which zoning districts MMOs will be allowed or to make MMOs a special review use. 3) Allow MMOs (permitted land use) and license them with additional local licensing standards and regulations. This is similar to Option 2 but, in addition, the City could adopt licensing standards and location requirements beyond those set forth in HB 1284 including provisions concerning such things as additional or different distance restrictions, restrictions on the size of MMOs, limits on the total number of licenses issued, minimum security measures, hours of operation, restrictions or requirements is SUBJECT AGENDA ITEM UPDATE /DISCUSSION REGULATION OF MEDICAL MARIJUANA 11 2