With the legalization of medicinal cannabis on the horizon in Kentucky, Boone County leaders are exploring the possibility of prohibiting cannabis-related businesses in the county, instead volleying the decision to the cities of Florence, Union and Walton.
The legislation, which Gov. Andy Beshear signed into law on March 31, 2023, legalizes medicinal cannabis in the commonwealth effective Jan. 1, 2025. As such, the new law requires individual cities and counties to craft legislation that regulates cannabis-related businesses within their jurisdictions.
The state of Kentucky can begin issuing cannabis-related business licenses by June 30. Counties and cities in Kentucky can pass ordinances prohibiting cannabis operations in their jurisdiction by Dec. 31, 2024.
If a local government passes an ordinance prohibiting the substance by that date, then any businesses issued before would be required by law to cease operations. If a city or county enacts its prohibition after Dec. 31, any licensed medical cannabis businesses would be allowed to continue operations.
During a fiscal court meeting on May 21, Boone County Administrator Matthew Webster explained that the county has a bevy of options but must begin to act to comply with the state’s regulatory timeline.
“The (fiscal) court can choose to prohibit the substance in its entirety in terms of cultivation, dispensary, etc.,” Webster said. “We can choose to allow it, and if we do nothing, we are allowing it, and we can look to enact regulations through zoning and our regulatory scheme, or the court could decide ultimately to place it on the ballot and let the voters decide.”
Webster said Boone County was advised to take action by June 30 to prevent confusion.
“What we have been advised in terms of a best practice if the (fiscal) court so chooses, and they want to prohibit it and opt-out, that it would be advisable to do that by June 30 just so, for the business community, there’s no confusion about where the court stands,” he said.
Boone County staff recommended presenting an ordinance that would opt out and prohibit cannabis-related businesses in Boone County. This way, the cities of Florence, Union and Walton would have more time to opt in on their own accord and then create their own cannabis-related business regulations.
“Understanding that cities may opt back in — that’s a local control issue,” Webster said. “The county and your (fiscal court) action can opt-out; any of our three cities could choose to pass an ordinance and opt back in within the incorporated city limits.”
Boone County has two fiscal court meetings slated for the first week of June. The first reading of the opt-out ordinance will take place at the meeting on June 4. The fiscal court has a caucus meeting scheduled for June 6. They can then decide whether to conduct a second reading, table or remove the prospective ordinance. Webster said the county invited representatives from Florence, Union and Walton to the caucus meeting.
If Boone County chooses to opt out in June, it can still opt-in at a future date, he said.
“It would preserve your ability to think this through, do your due diligence, and keep all options on the table,” Webster said.
Boone County Attorney Jordan Dallas Turner noted that the state of Kentucky is “only issuing so many licenses,” so not every county will have medical cannabis businesses.
Commissioner Chet Hand followed Turner’s point by concluding that it’s “highly likely” that Boone County would be awarded a license if the fiscal court hypothetically votes to allow medical cannabis businesses due to its large population. Boone County is the fourth-most populous county in Kentucky.
Campbell County took a similar approach earlier this month when its fiscal court conducted a first reading of an ordinance prohibiting medical cannabis businesses in the county. A second reading is slated for the county’s upcoming fiscal court meeting on June 5.
Campbell County Administrator Matt Elberfeld said the county prefers to give its cities more time to decide on regulations.
“I would characterize this ordinance here as an administrative maneuver, not necessarily a grand policy statement, because all of our cities have the option to opt in at a future date,” Elberfeld said during a May 15 meeting.
