City Council Study Session Agenda and Packet 2011 01 10

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COUNCIL COMMUNICATION TO: MAYOR AND CITY COUNCIL FROM: MALCOLM FLEMING, CITY MANAGER DATE: JANUARY 10, 2011 SUBJECT: UPDATE /DISCUSSION — REGULATION OF MEDICAL MARIJUANA ORIGINATING DEPARTMENT: BACKGROUND: Amendment 20 to the Colorado Constitution was approved by Colorado voters in 2000. The passage of the amendment resulted in legalizing the "medical use of marijuana for persons suffering from debilitating medical conditions." Colo. Const. Art. XVIII, § 14. Amendment 20 created an exception to the state's criminal laws for any "patient" or "primary caregiver" in lawful possession of a registry identification card to engage or assist in the medical use of marijuana. Id. at § 14(2)(b). The law also permits physicians to authorize medical marijuana use for patients who have been diagnosed with debilitating medical conditions. Id. at § 14(2)(c). A patient is prohibited, however, from engaging in the medical use of marijuana in a way that endangers the health or well -being of any person or in the plain view of, or in a place open to, the general public. Id. at § 14(5)(a). The State did not establish complementary guidelines to regulate the medical marijuana industry until July, 2010. Previous City Action In July 2009, the City granted business license applications for two (2) medical marijuana dispensaries. At the time, neither the state nor the Louisville Municipal Code (LMC) provided guidance to regulating this new industry and staff concluded that this type of activity is a permitted principal use at the proposed location and at that time there was no legal basis to deny the applications. The City classified the proposed uses as "medical clinics" and permitted them to locate in the Colony Square Shops, near McCaslin Boulevard and US 36. Colony Square is currently zoned Commercial Business (C -B). The C -B District is defined as a district comprised of areas to provide for a full range of retail sales and services including opportunities for a complete variety of comparative shoppers' goods. The C -B District allows the widest variety of Commercial /Retail land uses. "Medical clinics" are a use by right in the C -B zone district. In October 2009, the City adopted Ordinance #1557, Series 2009 which amended Title 17 of the LMC to add a definition of "medical marijuana dispensary" in Section 17.08.321 and to SUBJECT UPDATE /DISCUSSION — REGULATION AGENDA ITEM OF MEDICAL MARIJUANA 11 2