ORDINANCE REGULATING MEDICAL MARIJUANA DEBATED

A committee charged with recommending ways to regulate the medical
marijuana industry in Billings presented its findings to the City
Council on Monday night - immediately drawing threats to sue from
caregivers and growers.

In a work session at which no official action could be taken, the
council listened to members of the Medical Marijuana Ad Hoc Committee
outline a proposed ordinance, then heard from nearly 25 people
speaking for and against provisions of the ordinance.

The committee's recommendations mostly dealt with zoning
issues.

The proposed ordinance would restrict most growing and processing
operations to a strip of allowable areas along the interstate and in
the industrial east end of the downtown. Retail businesses dispensing
medical marijuana would be allowed in the same areas, plus a few spots
along Main Street in the Heights.

The provision that drew the strongest opposition was a proposal to
give existing businesses located outside those allowable areas four
years to move into them or close.

Several growers said they would be forced to sue the city if the
proposed ordinance were adopted and noted the high costs of starting
their businesses.

Sheri Walsh said she invested more than $70,000 in her business after
doing everything she could "to try to do it the right way." She said
she went to city officials for advice, but received none.

"There were people trying to do things the right way, and we got no
guidance," she said.

Attorney Brandon Hartford said that, if the ordinance didn't
grandfather-in existing businesses, allowing them to stay where they
were, the city would be hit with multiple lawsuits. He said he spoke
with at least 25 people involved in medical marijuana businesses, and
all of them said they would sue the city if forced to move.

The ordinance proposed by the ad hoc committee would create separate
zoning rules for businesses that grow, process and distribute medical
marijuana.

All three types of businesses would have to be separated by at least
1,000 feet from schools, parks, day-care centers, churches,
playgrounds, cemeteries and similar places. Growing operations would
have to be separated from areas residentially zoned by 300 feet and
would be allowed only in areas zoned controlled industrial and heavy
industrial.

Businesses that process medical marijuana would have to be separated
by 1,000 feet from residential zones and would be allowed only in
highway commercial, controlled industrial and heavy industrial zones.

Retail businesses would have the same separation requirements as
growing operations but would be allowed in more zoning jurisdictions -
community commercial, central business district, highway commercial
and industrial. However, retail businesses would have to apply for
special review, meaning the council could impose additional
restrictions on them.

The ordinance would also prohibit signs that use the word "marijuana"
or symbols like marijuana leaves.

Councilman Denis Pitman, who chaired the ad hoc committee, said the
ordinance would not affect people licensed to grow medical marijuana
in their homes for personal use, and nothing would prohibit businesses
from delivering marijuana to patients unable to get to the new locations.

Opponents of medical marijuana urged the council to scrap the
ordinance and simply ban medical marijuana from the city, or at least
to extend an existing moratorium on new medical marijuana businesses.

Councilman Mark Astle recommended extending the moratorium, set to
expire early in November, until the 2011 Legislature has had a chance
to overhaul state laws on medical marijuana.

Other council members, though, spoke in favor of putting the proposed
ordinance on a City Council agenda as soon as possible - apparently
Aug. 9 is the earliest that could happen - to get the process rolling.
Councilman Ed Ulledalen said there is a good chance that the
Legislature will do little or nothing, so the city needs to act now.

The council's options are to consider the ordinance or to enact a
citywide ban - both of which proposals would have to go to the Zoning
Commission before final council action - or to extend the moratorium.
The council could also send the ordinance back to the ad hoc committee
for additional work.