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PAGE THREE <br />SUBJECT: UPDATE /DISCUSSION — REGULATION OF MEDICAL MARIJUANA <br />DATE: JANUARY 10, 2011 <br />AMENDMENTS TO TITLE 17 <br />Ordinance # , Series 2011 amends Title 17 of the LMC to define medical marijuana <br />operations that may receive licenses consistent with definitions in HB 10 -1284 and to specify <br />the permitted and non - permitted uses associated with medical marijuana businesses. While <br />HB 10 -1284 recognizes at a state level a license for cultivation activities on identified optional <br />premises, the City ordinance expressly prohibits cultivation within the City. <br />HB 10 -1284 established the State's regulatory framework and established medical marijuana <br />industry definitions, including use of the term "medical marijuana center" instead of "medical <br />marijuana dispensary ". As a result, staff is recommending the current Section 17.08.321 of the <br />Louisville Municipal Code be repealed in its entirety and Chapter 17.08 of the Louisville <br />Municipal Code be amended by the addition of new Sections to provide definitions that are <br />consistent with those in State Law for the following: <br />Definitions <br />Sec. 17.08.321.A.(1) Medical marijuana business. <br />Sec. 17.08.321.A.(2) Medical marijuana center. <br />Sec. 17.08.321.A.(3) Medical marijuana- infused products manufacturer. <br />Sec. 17.08.356.A.(1) Optional premises. <br />Sec. 17.08.356.A.(2) Optional premises cultivation operation. <br />Sec. 17.08.367. Person. <br />Other provisions of the ordinance state that only medical marijuana centers and manufacturers <br />have the opportunity to apply for licensing within the City, and that all other types of medical <br />marijuana businesses are prohibited. Activities of patients and caregivers that are recognized <br />under Amendment 20 do not require licensing but are subject to certain limits. <br />Permitted Use <br />In this LMC revision, staff recommends that medical marijuana operations be allowed as a <br />permitted use only in the Commercial Business (C -B) District. The cultivation of medical <br />marijuana is prohibited. <br />The proposed revisions to the Use Group Table do not permit medical marijuana operations in <br />any Residential; Mixed Use (MU -R), Commercial Neighborhood (C -N), or Commercial <br />Community (C -C) zoned district. Retail and residential compatibility concerns emerge in each <br />of these districts. Residential is a use by right, or allowance through special review, in each of <br />these districts. Retail activity is more restricted and community based in the C -N and C -C <br />districts rather than the C -B District. <br />The proposed revisions also do not permit medical marijuana operations in any office zone <br />district. Medical marijuana operations are classified as "medical /retail" and as a result <br />determined incompatible with Administrative Office (AO), Business Office (BO), Administrative <br />4 <br />