City Council Study Session Agenda and Packet 2011 01 10

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PAGE TWO SUBJECT: UPDATE /DISCUSSION — REGULATION OF MEDICAL MARIJUANA DATE: JANUARY 10, 2011 prohibit medical marijuana dispensaries as home occupations in Section 17.16.040. The City Council approved Ordinance #1561, Series 2009, and Ordinance #1574, Series 2010, establishing and subsequently extending a temporary moratorium on any new medical marijuana operations in the City of Louisville until March 31, 2011. The moratorium and its extension were established to allow time for the City and State to develop more comprehensive regulations for the medical marijuana industry. State Guidelines House Bill (HB) 10 -1284, concerning the regulation of medical marijuana, was signed into law by the Governor in July 2010 and provides guidance on local governments' ability to regulate such operations. HB 10 -1284 outlines multiple options for local municipalities from outright banning of medical marijuana operations to establishing detailed regulation and licensing requirements no later than July 1, 2011. Louisville City Council Direction On November 16, 2010 the Louisville City Council directed staff to prepare recommendations for medical marijuana operations licensing standards and location requirements beyond those in HB 10 -1284, including provisions concerning such things as additional or different distance restrictions, restrictions on the size of operation, minimum security measures, hours of operation, restrictions or requirements pertaining to deliveries, restrictions on signage, standards that facility owners and employees must satisfy, or other measures. Staff Action City staff studied model municipal ordinances from throughout the Front Range. A table summarizing the regulations adopted by other Front Range cities and staff's recommendations for Louisville is attached. Using this information as a reference, staff prepared for Planning Commission and City Council consideration two ordinances that would amend Titles 5 and 17 of the LMC regulating medical marijuana businesses. Second Reading of these ordinances is scheduled for February 15, 2011. The overall purpose of the regulations imposed by the ordinances is to establish zoning, licensing and operating requirements for medical marijuana businesses without impacting the protections afforded to patients and primary caregivers by Amendment 20 and to also protect the public health, safety, and welfare of the community. The uniqueness and newness of this industry sets it apart from other licensed business models, therefore these regulations focus on serving the community as a whole, and not only protecting particular business models. The moratorium on the issuance of new licenses to medical marijuana businesses went into effect on October 20, 2009. The moratorium was extended on April 20, 2010 and is scheduled to expire on March 31, 2011. If approved on Second Reading as scheduled, the ordinances would take effect prior to the expiration of the moratorium. 3