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CONSENT ITEM - 8I -ARVE_-HILLS MEMORANDUM DATE: December 9, 2024 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, Interim City Administrator FROM: Julie Hanson, Assistant to the City Administrator/City Clerk SUBJECT: Ordinance 2024-017 Amending Chapter 3 Related to Adult Cannabis Registration Budgeted Amount: Actual Amount: Funding Source: Council Should Consider Motions to approve, table, or deny the following: • Adoption of Ordinance 2024-017 and authorization to publish a Summary Ordinance of 2024- 017. Approval for authorization to publish summary ordinance requires an affirmative vote of four councilmembers Back2round/Discussion Chapter 342.22 of Minnesota law requires local governments to register a cannabis business following verification of a valid license or license preapproval by the Office of Cannabis Management (OCM), that is in compliance with Chapter 342 as well as local ordinances, is current on all property taxes and assessment for the proposed retail location (if applicable), and that has paid the registration and renewal fees to the local government for such. At the November 25, 2024 work session, Council discussed adult use cannabis retail business registrations and reviewed an initial draft ordinance amending Chapter 3 related to such. Following Council discussion and direction, Staff made the requested changes to that initial draft. These revisions include the following and are denoted in red type on Attachment A: • Requiring that a Certificate of Insurance be provided with the application to conduct a Cannabis Event • A tiered system for violation fees as follows: $1,000 (first violation), $2,000 (second violation), $2,000 (third violation) and $2,000 and revocation of City registration (fourth violation) It was also requested that links to Chapter 342 be inserted throughout the ordinance document and this update was made as well. Page 1 of 2