Rowan County advances medical cannabis licensing ordinance and adds workplace ban for county employees

Rowan County Fiscal Court held first readings on Jan. 21 for an ordinance that would charge medical cannabis businesses a $500 annual license fee and for amendments to the county administrative code that include a workplace prohibition on medical cannabis use by county employees.

The licensing ordinance introduced by Mike Smacken, Finance Director, would charge a $500 annual fee for each license type — including cultivator, processor, producer, safety/compliance facility and dispenser — and applies even if multiple licenses are co-located under one roof, Smacken said. "It's gonna be a $500 fee per license," he said.

The measure also reflects state restrictions: licenses cannot be established within 1,000 feet of an elementary or secondary school or a licensed daycare, the court heard. Court members said the county will not assess the $500 fee for dispensaries located inside city limits if the city handles regulation. The court held the first reading; the second reading is scheduled for Feb. 18, 2025.

Why it matters: The ordinances set local regulatory and enforcement tools ahead of anticipated retail openings in the region. County leaders said the licensing fee gives the county a mechanism to track operators and to revoke local licenses if businesses fail to follow local rules.

County leaders also moved to amend the county' administrative code on procurement and workplace policy. The procurement change removes a hard-coded $40,000 threshold from county code so the county will instead follow the state procurement threshold set in Kentucky Revised Statutes (KRS). That change is intended to keep the county aligned with state law if KRS thresholds change.

The administrative-code update also refreshes local ADA (Americans with Disabilities Act) references and adds language concerning medical cannabis in the workplace. "Employees who consume medical cannabis in the workplace, work while under the influence of medical cannabis, or who, if drug tested, test positive for medical cannabis, are subject to discipline up to and including termination," the County Judge/Executive read when the change was presented to the court.

Court members discussed legal and practical issues raised by the state-level change. One magistrate noted federal law still classifies marijuana as a Schedule I substance; county officials and the county attorney said federal and state law do not align and that, for now, local policy focuses on ensuring a drug-free workplace and protecting public-safety-sensitive positions such as CDL holders and first responders.

The court voted to advance the ordinances on first reading by roll call (members recorded in the transcript voted in favor). The clerk's office has copies of the proposed ordinances on file.

Provisions and clarifications noted at the meeting: - Fee: $500 per license, per year, even when multiple licenses are co-located. - License types listed in the ordinance: cultivator, processor, producer, safety/compliance facility, dispenser (and related medical cannabis business categories cited in the text). - Zoning and buffers: state law referenced in the ordinance prohibits locations within 1,000 feet of K-12 schools or licensed daycares; no county zoning rules specific to cannabis were on file at the time of the meeting. - Procurement change: the county will remove the dollar figure ($40,000) in county code and default to the threshold set by KRS to avoid repeated local code changes.

The court's action on these items was limited to first readings and administrative amendments; no final adoption occurred at the Jan. 21 meeting. The second reading and final vote for the licensing and procurement ordinances is set for Feb. 18, 2025.

Ending: County staff and the county attorney said they will monitor state guidance and other counties' policies and may bring additional amendments if the state issues further direction. A copy of the draft ordinances is on file with the county clerk.