State law at MCA 76-2-306 allows the adoption of an interim zoning regulation as a matter of urgency without the review of the City Zoning Commission or the publication of several legal ads in advance of the City Council public hearing. Initial Interim zoning regulations may only be in effect for six (6) months from the date of enactment.The City Council passed Interim Ordinance 10-5512 on May 11, 2010, imposing an immediate moratorium on the licensing and opening of any new medical marijuana businesses in the City of Billings. This interim legislation allows the City to study and to consider within a reasonable amount of time more permanent zoning proposals. This temporary ordinance is set to expire on November 11, 2010. Pursuant to MCA §76-2-306, the City Council may extend the moratorium for a period of one year from november 11. 2010,  by a two-thirds vote of the present and voting Council . Such an extension would allow the City to continue to study the effects of medical marijuana businesses and to develop more permanent zoning restrictions. Such an extension would also allow the City to evaluate any legislation enacted by the upcoming 2011 State Legislature addressing medical marijuana businesses and related issues.

The City Council may:
1. Approve the medical marijuana moratorium extension.  The interim ordinance would continue the moratorium for one(1) additional year upon two-thirds (2/3) vote of the City Council. 
2. Deny the medical marijuana moratorium extension.  Because Interim Ordinance 10-5512 is set to expire on November 11, 2010, new medical marijuana businesses could open in the City of Billings after that date.

There is no anticipated cost to the City to extend the medical marijuana moratorium for an additional one (1) year period except for the loss of revenue that would potentially be gained from licensing new medical marijuana businesses. This revenue would not be significant.

Staff recommends the Council approve the moratorium extension.