The City Council created the Medical Marijuana Ad-Hoc Advisory Committee on February 8, 2010 and tasked it with developing recommendation on how to deal with medical marijuana businesses in the city.  The committee recommended and the City Council adopted an interim zoning ordinance (moratorium) on May 11, 2010.  The committee continued its work and at the July 19 work session, presented a draft ordinance that would restrict medical marijuana businesses to certain zones, require special reviews in some cases and require existing businesses to comply within four years.  The City Council advised staff that it wants to also consider two other options; 1) an ordinance prohibiting illegal land uses and 2) an ordinance to extend the moratorium past its scheduled termination date of November 11, 2010.  The Ad-Hoc Committee considered the same options and recommends that the Council approve the "restrictive" approach to regulating medical marijuana businesses.   A public hearing is not required at this time because the Council will be initiating a zoning text amendment for either "restrictive" or "prohibition" or it will direct staff to prepare a moratorium extension.  All three of the proposed ordinances require a public hearing prior to adoption, which could occur anytime between this date and November 9, 2010.   

The City Council may:

• Initiate a zoning text amendment and refer to the Zoning Commission a proposal to limit medical marijuana businesses to a few commercial and industrial zones, provide separation from residential zones, schools and public places, require special reviews for some businesses, amortize legal non-conforming uses over four years and limit signage.  The Zoning commission would conduct a public hearing on the proposal in September and return a recommendation to the Council for action on September 27, second reading on October 11 and an effective date of November 11.  November 11 is the date that the present moratorium expires. 
• Initiate a zoning text amendment and refer to the Zoning Commission a proposal to prohibit land uses that violate federal, state or local laws.  The Zoning Commission and City Council would follow the same procedure and time line as previously described.
• Direct staff to prepare an interim zoning ordinance that extends the present moratorium for one year beyond the present expiration date of November 11, 2010.  That ordinance requires a single reading and is immediately effective, so the Council could consider that ordinance at any regular meeting up to and including November 9, 2010.  
• Do nothing and the moratorium expires on November 11th.  If the Council does not extend the termination date or does not replace it with a permanent zoning text amendment, the situation returns to the same one that existed prior to the Council adopting the moratorium.  That condition permits businesses in almost all commercial and industrial zones and in residential zones as long as the business is conducted under the home occupation rules.    

The financial impact of adopting any of the alternatives is unknown. 

The Medical Marijuana Act was a citizen initiative that Montana voters approved in 2004.  The number of registered patients and caregivers was low until late 2009 when the U.S. Justice Dept. issued a directive to US Marshalls and US Attorneys that marijuana possession and use should not be prosecuted in states that permit the use of medical marijuana and as long as individuals comply with those laws.  Soon thereafter, Councilmembers began receiving constituent contacts, expressing concerns about medical marijuana businesses being established across the city.  The Act does not specify if or how cities may regulate these businesses but the most common approach taken by other Montana cities is to establish zoning rules that limit the impacts these businesses may have on their surroundings.  In February 2010, the Council created the Medical Marijuana Ad-Hoc Committee to develop proposals for how the City should zone for these businesses.

By May, the City had issued approximately 80 business licenses for medical marijuana businesses and at least one opened near a public school.  That prompted the City Council to ask the committee to consider and propose an interim zoning ordinance that would stop further business development while the City works on more permanent rules.  The Council adopted the moratorium on May 11.  The committee met five additional times and developed a zoning text amendment that it recommended to the Council at its work session on July 19th. 

The recommended ordinance separates medical marijuana businesses into three categories; growing, manufacturing and retailing and treats each one slightly different from the others.  Grow operations could be located in either industrial zones but not in or within 300 feet of a residential zone.  Manufacturing could occur in the two industrial zones and in the highway commercial zone but not in or within 1000 feet of a residential zone.  Retail operations could be permitted in community commercial, central business district, highway commercial and controlled industrial zones by Special Review but not in or within 300 feet of residential zones.  Special reviews allow the Council to place conditions of approval on the property that will help to mitigate adverse impacts on surrounding properties.  All medical marijuana businesses would have to be at least 1000 feet away from schools, churches, playgrounds and parks, cemeteries, libraries or licensed group care homes.  Businesses that are operating legally under the moratorium and which violate any of the new provisions are considered legal but non-conforming and would have four years to relocate to a permitted zone.  Signs would be permitted but could not display words, symbols or other indicators of any Schedule 1 controlled substance. 

The prohibition ordinance is modeled after ones that have been adopted by Great Falls, Kalispell, Belgrad and perhaps other Montana cities.  It is a zoning text amendment that has broad application because it prohibits all land uses that do not comply with federal, state or local laws.  Recognizing that medical marijuana business owners who are operating legally under the moratorium have committed time and resources to their businesses, the ordinance allows four years to comply. 

Montana Code 76-2-306 allows cities to adopt interim zoning ordinances that prohibit land uses that are the subject of rules that the city is preparing or will consider soon.  The maximum term is six (6) months but cities may extend the term for a year and no more than two extensions are permitted.  Staff did not prepare an extension ordinance for this meeting and an extension requires 15 days notice of public hearing, so if Council wants to pursue this option, staff will prepare the extension, advertise a public hearing and put the item on a Council agenda no later than November 9, 2010  

The Council and the committee heard from many interested parties through email, phone calls and meeting attendance.  At the meetings, the Council and committee heard public comments for a combined total of at least five hours.  The committee representatives include a caregiver, patient, pharmacist, a state legislator, a property owner/manager and a physician.  Those writing to the Council and attending the meetings include all of these categories as well as people not affiliated with any particular business or profession.