OCEAN CITY – Officials in Ocean City voted this week to establish a moratorium on businesses that grow, process or sell cannabis.
After voting Tuesday to prohibit the issuance of on-site cannabis licenses, the Mayor and Council had before them a resolution establishing a moratorium on the acceptance or processing of applications or site plans or the issuance of other zoning approvals or business licenses for businesses that grow, process or sell cannabis. City Solicitor Heather Stansbury said the temporary ban will allow officials to study and consider zoning and other regulations permitted under the new Cannabis Reform Act.
“Our new governor signed that act into law on May 3 of this year and subsequently towns, municipalities, counties are permitted to adopt certain zoning regulations that work in conjunction with that act,” she said. “This council, I believe, was very diligent in its efforts and direction in having staff look into that. But the reality is this is a new horizon. This is not a matter without tentacles and of course this council’s primary concern is for the safety, welfare and health of not only its residents but its visitors.”
In the November election, two-thirds of voters supported a statewide referendum to legalize recreational marijuana. And in May, Gov. Wes Moore signed Maryland’s cannabis reform bill into law, paving the way for recreational sales beginning July 1. The legislation essentially establishes an adult-use cannabis industry through the creation of tax rates and licensing framework.
“Within the act, there are various committees and administrations formed, primarily the Maryland Cannabis Administration,” Stansbury told the council this week. “Amongst other things, that administration is tasked to adopt various regulations. As that administration is working through those regulations, as are we. And we simply believe there is not enough time for you all to make informed, meaningful decisions about cannabis and the cannabis zoning that you are permitted to consider.”
To that end, town staff on Tuesday presented council members with a resolution establishing a moratorium on cannabis businesses.
“As you know, this law goes into effect July 1,” City Manager Terry McGean said. “However, there is a long period of time – I believe until January – for the state to actually promulgate the regulations that further refine what can and cannot happen under this law. Once we know that, then we are able to work on zoning regulations and business license regulations.”
He continued, “I think here, it’s important we proceed with caution. There are many unknowns. I believe this moratorium is a prudent thing to do right now. Right now, it is a nine-month moratorium, or until such time the planning commission and council produces the appropriate zoning regulations.”
Stansbury noted that the town would need time to produce zoning regulations, as they must be referred to the town’s planning commission for consideration, public hearing and recommendations.
“At the conclusion of a public hearing, it would come back on a separate planning commission meeting, and then the planning commission would make recommendations to this council,” she said. “So those are steps that still need to be undertaken. And a careful study and review of all the tentacles that come along with the Cannabis Reform Act should be considered by this council before making any zoning decisions. That’s our recommendation.”
With no further discussion, the council voted 5-0, with Council President Matt James and Councilman John Gehrig absent, to approve the moratorium on cannabis businesses.
For his part, Mayor Rick Meehan said he fully supported the moratorium.
“I think it’s the right thing to do,” he said. “Every jurisdiction is a little different, but in Ocean City I think we really need to walk before we run with this and be very diligent in how we do this and waiting until all the loose ends are tied up. There are so many unknowns out there right now with regard to this legislation and potential regulations that it would be premature for us to even move forward at this time. I think the moratorium gives us some time.”
Meehan added that other jurisdictions had taken similar action.
“I think there’s concern throughout the state and about this law altogether and there’s a lot of unknown by the general public about exactly what’s going to take place …,” he said. “So hopefully we’ll be able to clarify some of that and get the message out to our residents and potential visitors.”
The council also voted this week to approve code amendments on second reading that prohibit the issuance of on-site cannabis consumption licenses within city limits.
The changes also feature a companion ordinance establishing fines of no less than $25 and no more than $1,000 for any violation.
“Ocean City finds that in order to promote and protect the public’s health, safety and welfare, a prohibition of the operation of on-site consumption establishments and the prohibition to the issuance of any license that would permit on-site consumption of Cannabis is just and proper,” the amendment reads. “Ocean City finds that it is within its right, as a political subdivision, to prohibit the operation and licensing of on-site consumption establishments.”
