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PUBLIC HEARING — IOC <br />,-ARZEN HILLS <br />MEMORANDUM <br />DATE: August 28, 2023 <br />TO: Honorable Mayor and City Councilmembers <br />Dave Perrault, City Administrator <br />FROM: Julie Hanson, Assistant to the City Administrator/City Clerk <br />SUBJECT: Interim Ordinance 2023-010 Establishing a Moratorium related to Adult Use <br />Cannabis Products <br />Budgeted Amount: Actual Amount: Funding Source: <br />N/A N/A N/A <br />Council Should Consider <br />Holding a public hearing regarding a proposed Interim Ordinance Prohibiting the Operation of <br />Cannabis Businesses and Authorization to Publish Summary Ordinance. <br />Background/Discussion <br />Earlier this spring, the Minnesota State Legislature legalized adult -use cannabis. This law, <br />effective August 1, 2023, permits the operation of cannabis businesses and the sale of cannabis <br />products for consumption but provides little guidance on how cities are to regulate, leaving <br />zoning and compliance to local control. <br />The law also created a new agency, the Office of Cannabis Management (OCM), that will <br />license businesses regarding sales of cannabis products, but the OCB will not be operational until <br />approximately January 1, 2025. <br />The City Council previously discussed this topic and directed staff to draft an interim ordinance <br />that would establish a moratorium in effect until January 1, 2025, allowing the Council and staff <br />adequate time to further study the matter, or until such time it is apparent the OCM has its <br />department operational. Staff has worked with the City Attorney regarding ordinance language <br />(Attachment A) as well as a summary ordinance (Attachment B). <br />It is important to note that this moratorium does not apply to the selling, testing, manufacturing, or <br />distributing of products related to the Medical Cannabis Program as administered by the Minnesota <br />Department of Health, provided that such activity is done in accordance with the regulations and <br />laws of Minnesota regarding Medical Cannabis. <br />A Notice of Public Hearing was published in the August 18, 2023 Pioneer Press in conformance <br />with State statute. No comments have been received to date. <br />Page 1 of 2 <br />