Lexington sprints to get zoning rules in place before medical marijuana is legal

Beth Musgrave
·3 min read

Lexington is under the gun to get zoning regulations for medical marijuana operators in place before the new law takes effect Jan. 1.

The 2023 Kentucky law gave local governments the authority to set zoning regulations for medical cannabis operators. Lexington’s Urban County Planning Commission recently started a zoning text amendment that will determine what types of medical cannabis operations can go where.

A public meeting on the proposed regulations in front of the planning commission has been set for May 9, according to city officials. It will then go to the Lexington-Fayette Urban County Council for final approval.

Those potential changes will be sent to the council by late May, city officials told the council during a Tuesday work session.

The goal is to have the new zoning regulations approved by the council in June before the group goes on its summer break, said Jim Duncan, the city’s planning director.

“This is a brand new industry in Kentucky and there are a lot of components to it,” said Susan Speckert, the city’s law commissioner.

Cabinet for Health and Family Services and a separate medical marijuana office will largely be in charge of oversight and licensing, Speckert said.

There are multiple bills currently pending in the Kentucky General Assembly that could change some of the starting and licensing dates for medical marijuana, she said.

There are a host of regulations also moving through state government that will address several questions, including how those businesses will be licensed, she said.

“Local government authority is limited,” Speckert said.

Local governments can prohibit all medical cannabis operations. It can also set fees and zoning regulations, she said.

The city is working on a fee structure right now, said Wes Holbrook, the city’s director of revenue. They are looking at other cities’ regulations to determine a fee structure that is in compliance with state law.

The state licensing of those medical cannabis operators will likely start this summer, Speckert said. If those licenses are granted before zoning is in place, those businesses will still be allowed to operate, according to the state law.

“That puts us under a very short timeline to put these regulations in place,” Speckert said.

What types of medical cannabis businesses are regulated

Those medical cannabis business entities outlined under the law include:

  • Cultivators (growers)

  • Processor

  • Producer

  • Safety Compliance Facility

  • Dispensary.

State law says no cannabis operation can be within 1,000 feet of a school or day care.

The city has drafted an initial proposal of what types of operations can be allowed in what types of zones. It is only a draft proposal.

Here’s what the proposal says:

  • Cultivators or growers would be allowed in industrial and economic development zones. It would be a prohibited use in all residential, business and mixed use zones. Depending on the size of the growing operation, it would be allowed as a conditional use — meaning it would have to get special approval — in some agricultural zones. Those growing operations have to be in an enclosed, locked facility, according to the law.

  • Processors, which take the raw materials and turn it into a product, would be allowed in industrial and economic development zones but would be prohibited in all other zones.

  • Producers, which can process and market the product, also would be allowed in industrial and economic development zones but would be prohibited in all other residential and business zones.

  • Safety compliance facilities, which test medical cannabis among other activities, would be allowed in some business zones including professional office space, the two primary business zones, industrial and economic development zones. It would be prohibited in residential areas.

  • Dispensaries, where medical marijuana can be given to the public, would be allowed in many of the city’s business zones and mixed use zones. They will be prohibited in residential zones, industrial and economic development zones.