Planning Commission Memo
MEETING DATE: May 28, 2025
REPORT DATE: May 21, 2025
RESPONSIBLE STAFF: Jim Wasilak
SUBJECT:
title
Zoning Text Amendment TXT2025-00270, to Regulate Establishments that Include the Retail Sale of Cannabis for Personal Use: Mayor and Council of Rockville, Applicants
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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 2 - ppt for PC recommendation) 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. Note that the separation distances shown from the existing dispensaries represent the state-mandated minimum of 1,000 feet and the optional ½ mile.
In 2024, the Maryland General Assembly adopted clarifying changes to the law that provide some flexibility for municipalities (see Attachment 3 - 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.
The Mayor and Council authorized the filing of the attached ZTA with cannabis regulations that mirror those of state law for separation distances only
DISCUSSION:
The intent of the proposed Zoning Text Amendment (ZTA) is to align the city’s Zoning Ordinance regulations for cannabis dispensaries with state law regarding the sale of cannabis for recreational or personal use.
The proposed definition for a “cannabis dispensary” is “any retail establishment that is licensed by the state of Maryland to sell cannabis to patients or consumers.”
The proposed ZTA would add “cannabis dispensary” as a conditional use where retail use is permitted generally. This use would be a conditional use in the zones where retail use is permitted, which are the mixed-use (MXTD, MXCD, MXE, MXCT, MXB, MXT, and MXC) and Light Industrial (I-L) zones.
The use would be subject to two conditions: 1) that no onsite consumption is permitted; and 2) that the use complies with the requirements of State law and regulations, including, but not limited to, any distance requirements in § 36-410 of the Alcoholic Beverages and Cannabis Article of the Maryland Annotated Code, as may be amended.
The distance requirements in the state code are: that standard dispensaries may not be located within 500 feet of the following pre-existing sensitive uses: primary and secondary schools, child care centers, playgrounds, recreation centers, libraries, places of worship, and public parks. In addition, standard dispensaries may not be located within 1,000 feet of another dispensary.
State code also forbids jurisdictions from adopting requirements for dispensaries that are more restrictive than the requirements for licensed alcoholic beverage retailers. Currently, the city does not have zoning restrictions on alcoholic beverage retailers, so the city is limited in enacting more stringent requirements without also imposing such requirements on alcoholic beverage retailers. This would potentially impact such retailers significantly, and staff does not recommend imposing such requirements on alcoholic beverage retailers.
The proposed zoning text amendment includes a prohibition on establishments that allow onsite consumption of cannabis, which is allowed by the 2025 cannabis reform bill.
RECOMMENDATION:
Staff recommends approval of the proposed zoning text amendment, which will ensure that any dispensary will meet the minimum separation distances required by the state.
NEXT STEPS:
The Mayor and Council will hold a public hearing in advance of their decision on June 9, 2025.