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The Harlan County Fiscal Court addressed the upcoming legalization of medical cannabis in Kentucky during the panel’s regular July meeting, performing a first reading of an ordinance prohibiting the sale of the substance in Harlan County, pushing a final decision until a later meeting when a second reading and discussion will take place.

Harlan County Judge-Executive Dan Mosley addressed the matter about an hour into the meeting.

“The state has passed the statute regarding medical cannabis,” Mosley said. “It kicks the can down to local governments to decide a number of things.”

Harlan County Attorney Fred Busroe went over some specifics contained in the legislation. He explained whatever action the county takes will encompass the entire county including the six cities unless individual cities decide to enact their own ordinances regarding the matter.

“There are essentially four options,” Mosley said. “The county can one: take no action and medical cannabis businesses will be allowed to operate (in Harlan County)…two: pass an ordinance to prohibit cannabis operations, three: pass a resolution to put the matter of cannabis operations to a public vote, and four: place restrictions and/or collect fees related to cannabis businesses operating within the county.”

Mosley reminded the magistrate state legislation legalizing medical cannabis was passed in 2023 and is set to take effect on Jan. 1, 2025. The statute addresses the growing, production, and sale of medical cannabis.

“The way the statue was adopted, you can’t say I’m fine with a grower being located in my county, but I’m not ok with a dispensary,” Mosley said. “It’s an all or nothing approach.”

Magistrate Paul Browning inquired about possible licensing fees should the county allow sales.

“The licensing fees, is there a limit on that as far as an amount or dollar figure?” Browning asked.

Mosley noted the statute does address local fees, but does not give a specific dollar amount.

“’Reasonable local fees’ is how they put it,” Mosley said.

Busroe mentioned he interpreted the statute to intend any fees must be related to increased costs to the county brought on by having a medical cannabis business operating in the county.

“There is a fee at the state level that the licensee has to pay that I think is about $30,000,” Mosley said. “A $30,000 fee is an extremely large investment that someone would have to make. Then, you think about the local fees…there’s no clear guidance.”

Busroe noted there will be a limited number of state licenses issued and should the county allow medical cannabis businesses, there is no guarantee the state would grant a license in Harlan.

“There may not be a license granted for anybody in Harlan County to operate,” Busroe said. “It’s so many per region, and we’re grouped in the Cumberland Valley region which goes all the way to Adair County and Somerset…we may be doing all this for our people just to drive to (another) county anyway.”

Mosley offered some thoughts on cannabis in general.

“I feel like marijuana is a gateway drug,” Mosley said. “Obviously, they have legalized it for medical purposes, it is not legalized for recreational purposes, nor do I think the state will ever legalize it for recreational purposes and I certainly hope they never legalize it for recreational purposes. But, from the standpoint of medical purposes, there have been a lot of studies and data that suggest it is good for people that have epilepsy, people that have some forms of incurable cancer or Parkinsons. There’s a lot of data that it is helpful to people with terminal illnesses, so although I feel like it is a gateway drug…I do recognize that from a medical perspective there is data that suggests it can help some people.”

Mosley noted the six cities within Harlan County are free to make their own decisions on the issue regardless of the county’s decision.

“If a city wants to pass it and they want to police it, they’re more well equipped to do that than we are out in an unincorporated area,” Mosley said. “From a fiscal perspective, I’m against it…I don’t see why we would want to add additional costs to allow that.”  

Following further discussion, the magistrates agreed to a first reading of an ordinance prohibiting medical cannabis businesses in the county.

“I do have a draft (of an) ordinance,” Mosley told the magistrates. “You could have a first reading on it today, then give it some thought. You don’t have to come back and approve a second reading and adoption next month unless you wanted to, but if you have a first reading you can talk to some people and see what they think, get some thoughts on it, and at least start the process of doing something. That would also give us time to see what the individual cities will do.”

The ordinance states in part “all cannabis businesses are hereby prohibited from operating within Harlan County limits.”

The ordinance requires a second reading and adoption at a future meeting before it can take effect.