Subject
title
Discussion on Zoning Regulations for Standard Dispensaries of Cannabis
end
Department
CPDS - Zoning Review & Other
Recommendation
Staff recommends that the Mayor and Council conduct a work session on the potential regulations of the retail sale of cannabis for personal use. Staff further recommends that the Mayor and Council authorize the filing of a zoning text amendment as described in the following agenda item.
Discussion
Background
The Maryland General Assembly passed legislation allowing for the retail sale of cannabis for personal or recreational use in 2023. Prior to that time, the sale of cannabis had been permitted for medical purposes only for eight years and was limited to two medical cannabis dispensaries per legislative district. Two medical cannabis dispensaries were eventually located in the city (GLeaf at 808 Hungerford Drive and Peake Releaf at 2001 Chapman Avenue) within District 17.
The 2023 law allowed the sale of cannabis for personal use from standard dispensaries, which have physical storefronts and are authorized to sell cannabis or cannabis products to patients or consumers. The Maryland Cannabis Authority limited the number of standard dispensaries by county, with a maximum of 11 authorized in Montgomery County.
The law was adopted with separation requirements between dispensaries and sensitive uses, as well as between dispensaries. The law also included limitations on how municipalities may regulate the location of standard dispensaries via zoning and did not permit municipalities to adopt zoning regulations that would be more stringent than the requirements of the state law. The 2023 law required that Standard Dispensaries not locate within 500 feet of any of the following pre-existing sensitive locations:
• Primary school
• Secondary school
• Childcare center
• Playground
• Recreation Center
• Library
• Place of worship and
• Public Park
The staff has produced a map (see Attachment 1 - Map of State of Maryland Cannabis Buffers) that illustrates the impact of the separation distances on where standard dispensaries can be located. In addition, a standard dispensary may not be located within 1,000 feet of another dispensary.
In 2024, the Maryland General Assembly adopted clarifying changes to the law that provide some flexibility for municipalities (see Attachment 2 - MCA Zoning Update). The 2024 law allows local jurisdictions to:
• Increase the distance between dispensaries to a half mile;
• Establish a 100 feet distance requirement between standard dispensaries and areas zoned for residential use only;
• Apply distance limitations used for licensed alcoholic beverage retailers from an area zoned exclusively for residential use;
• Reduce the required distance between a licensed dispensary and any sensitive locations as listed;
• Reduce the required distance between dispensaries to less than 1,000 feet; and
• enforce the distance restrictions when making zoning decisions for licensed dispensaries.
However, the same legislation does not allow municipalities to adopt zoning requirements that are more stringent than the requirements for the sale of alcoholic beverages. Currently, the city does not have restrictions on the location of alcoholic beverage retailers, other than specifying in which zones the sale of alcoholic beverages is permitted. To enact the more stringent limitations described above, the Mayor and Council would have to enact similar restrictions on the sale of alcoholic beverages that do not currently exist.
In the most recent legislative session, further clarification of the law regulating standard dispensaries and cannabis use was enacted. This includes allowing municipalities to prohibit establishments that permit onsite consumption of cannabis and requires that municipalities that wish to enact a more stringent separation distance between standard dispensaries must do so before July 1, 2025.
Based on the results of the most recent legislative session, if the Mayor and Council wish to enact zoning requirements that are more stringent than the requirements of state law, then such requirements would also have to apply to the sale of alcoholic beverages, which would negatively impact existing businesses significantly. In addition, if the Mayor and Council wish to increase the separation distance between standard dispensaries from 1,000 feet to up to .5 miles, this would need to be adopted prior to July 1, with resulting impacts on retailers of alcoholic beverages.
Alternatively, the Mayor and Council may enact cannabis regulations that mirror those of state law to ensure the application of state requirements.
Staff Recommendation:
Staff recommends that the Mayor and Council consider the following options and provide direction:
• Direct staff to authorize the filing of a zoning text amendment to mirror the state regulations for the retail sale of cannabis, as drafted for the following agenda item; or
• Direct staff to authorize the filing of a zoning text amendment that includes more stringent requirements for the retail sale of cannabis as permitted by state law, including increasing the separation between dispensaries from 1,000 feet to one-half mile and prohibiting dispensaries within 100 feet from residentially zoned properties. These changes would require that the same requirements also apply to the sale of alcoholic beverages, which do not currently exist;
• Direct staff to not proceed with a zoning text amendment. Dispensaries would be required to comply with state law only.
Mayor and Council History
This is the first time the topic has been discussed by the Mayor and Council.
Public Notification and Engagement
Staff will undertake notification and engagement if a zoning text amendment is filed.
Boards and Commissions Review
If the Mayor and Council authorize the proposed zoning text amendment, it will be referred to the Planning Commission for their recommendation.
Next Steps
If the Mayor and Council wish to proceed with the draft zoning text amendment, a vote to authorize its filing must occur.