Consent 1.K.2.
Regular City Council Meeting
- Meeting Date:
- 09/11/2017
- TITLE
- Second/Final Reading Ordinance Amending Section 7-1700, BMCC, relating to medical marijuana dispensaries and storefronts
- PRESENTED BY:
- Tina Volek
- Department:
- City Hall Administration
Presentation:
No
PROBLEM/ISSUE STATEMENT
This is an amendment to Sections 7-1701, 7-1702, 7-1703, and 13-438 of the City Code to insert a definition of "dispensaries" and to delete unnecessary or outdated language which was revised upon the passage of I-182 in November 2016 and amendments to the Montana Marijuana Act during the 2017 legislative session. In March 2017, the City Council directed staff to develop appropriate amendments to the City Code to clarify that medical marijuana dispensaries and storefronts are not permitted within the city limits. This amendment is a companion to the zoning amendment to BMCC, Section 27-304 prepared by Planning & Community Services. A First Reading and Public hearing was held on August 28, 2017, and the Council approved the amendments on a 7-4 vote.These amendments are now before the Council for Second Reading and final approval.
ALTERNATIVES ANALYZED
City Council may:
- Approve the proposed amendments to Sections 7-1701, 7-1702, 7-1703, and 13-438, BMCC on Second Reading;
- Postpone action on the proposed amendments; or,
- Disapprove the proposed amendments and provide staff with additional direction to address the inconsistencies in the City Code.
FINANCIAL IMPACT
Currently, medical marijuana dispensaries and storefronts are not issued business licenses and therefore the financial impact should be limited. However, there may be some business activity which is constrained for any providers who may have obtained a business license in error or in violation of the current City Code. It is unknown how many medical marijuana providers currently exist within the city limits.
BACKGROUND
In 2004, Montana voters passed Initiative I-148 which legalized the medical use of marijuana which was later codified as §50-46-101, MCA, et. seq. known as the Medical Marijuana Act. This was later amended in 2011 by the Montana Legislature. These amendments prohibited advertising, limited providers to three patients, and did not allow providers to charge for their product. After much litigation, the Montana Supreme Court, in February 2016, upheld the 3 provider limit and the ban on advertising. However, the MT Supreme Court found that the provision prohibiting remuneration for marijuana products to providers violated due process.
Citizen initiative I-182 was passed in November 2016. This initiative repealed the three patient limit for providers (effective immediately upon passage) and allows providers to hire employees to cultivate, dispense, and transport medical marijuana (effective June 30, 2017). During the 2017 legislative session, the legislature amended MCA Section 50-46-328, which allows local governments to regulate medical marijuana dispensaries in addition to storefronts, which became effective on May 19, 2017.
Citizen initiative I-182 was passed in November 2016. This initiative repealed the three patient limit for providers (effective immediately upon passage) and allows providers to hire employees to cultivate, dispense, and transport medical marijuana (effective June 30, 2017). During the 2017 legislative session, the legislature amended MCA Section 50-46-328, which allows local governments to regulate medical marijuana dispensaries in addition to storefronts, which became effective on May 19, 2017.
In May 2010, the City of Billings enacted a 6-month interim zoning ordinance which established a moratorium on medical marijuana establishments. In September 2010, the City enacted a 12-month extension to this ordinance to take effect November 2010. In November 2011, the City of Billings again extended the moratorium on medical marijuana establishments and also enacted Article 7-1700, “Medical Marijuana,” into its city code. The provisions of this Article prohibited any medical marijuana providers from operating “storefront businesses” within city limits. Section 7-1702(a), allowed a provider who was in full compliance with state law and the requirements of the Act to dispense marijuana within the city limits. However, this conflicted with other provisions of the BMCC, specifically §13-438, which does not allow a business license to be issued for any business, occupation, or profession that violates city, state, or federal law. Therefore, since the distribution of marijuana in any context is a violation of federal law, business licenses have not been issued for the operation of dispensaries or storefronts within City limits.
The amendments to the Montana Medical Marijuana Act have made certain provisions of the City Code outdated. Additionally, during a Work Session in March 2017, the City Council requested staff proceed with drafting amendments to clarify the City's position on operating dispensaries and storefronts. These amendments clarify that storefronts and dispensaries are not permitted within City limits as well as update any language that has been superseded by state law amendments.
CONSISTENCY WITH ADOPTED POLICIES OR PLANS
This amendment will bring Sections 7-1701, 7-1702, and 7-1703 up to date with current state law and consistent with other sections of BMCC, specifically §13-438 (which does not allow a business license to be issued for any business, occupation, or profession that violates city, state, or federal law) and the proposed zoning amendment to Section 27-304, BMCC.
SUMMARY
The amendments to Chapter 7-1700 and section 13-438 are recommended to bring consistency with the proposed zoning amendment (section 27-304) and to update the City Code to reflect the changes made in state law.