The City Legal and Planning Departments have been directed by the City Council to present multiple interim ordinance alternatives that restrict the location of medical marijuana businesses, including the option of a moratorium.  Existing zoning regulations classify medical marijuana businesses as agriculture, manufacturing, or retail, depending on whether the business emphasizes growing, manufacturing or retail sales of medical marijuana. Consequently, the City of Billings zoning code allows these uses to be located in any number of commercial or industrial zoning districts and adjacent to residential neighborhoods, churches, schools and parks.

Staff has reviewed and considered information related to regulating or prohibiting medical marijuana businesses, including interim zoning ordinances from other communities within the state. Two alternative interim zoning ordinances were presented to the Medical Marijuana Ad Hoc Committee meeting on April 28. The alternatives included 1) a zoning ordinance that defines Medical Marijuana Businesses, prohibits those businesses from operating within 1,000 feet of schools, churches, playgrounds, and residential areas, and limits the zoning districts where these businesses could locate; and 2) a moratorium on any business that grows, sells or distributes medical marijuana. The latter ordinance is modeled after the ones adopted by the cities of Great Falls and Belgrade, Montana. Copies of the proposed interim zoning ordinances are attached. The committee is forwarding a recommendation of a moratorium but would prefer to include a retroactive provision to prohibit medical marijuana businesses within 1,000 feet of a school. In this case, existing businesses would not be “grandfathered”.  Staff is researching the legalities of this provision and has no recommendation to this modification to the moratorium ordinance as yet. The committee also raised concerns about including any language protecting the “moral” of the general public as expressed in the moratorium ordinance language.

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. Interim zoning regulations may only be in effect for six (6) months from the date of enactment. The City Council may:
1. Approve the interim zoning regulation
2. Deny the interim zoning regulation
3. Delay action for up to thirty (30) days

The City Council is being asked to allocate resources to retain a consultant to develop and submit a permanent zoning regulation related to medical marijuana retail businesses. The City Attorney and Planning Division do not have staff or resources to develop and implement this type of ordinance.

The Medical Marijuana Ad Hoc Committee is recommending the City Council adopt an interim zoning ordinance pursuant to 76-2-306, MCA that places a moratorium on any businesses that grow, sell or distribute medical marijuana in the City and consider prohibiting both existing and future medical marijuana businesses within 1,000 feet of schools.