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<br />REQUEST FOR COUNCIL ACTION <br />Date: 7/24/2023 <br />Item No.: 7.b. <br />Department Approval City Manager Approval <br /> <br /> <br />Item Description: Receive Presentation regarding Minnesota Adult-Use Cannabis Law <br />1 <br />2 Background <br />3 A new law was recently passed by the Minnesota Legislature that legalizes adult-use <br />4 cannabis in Minnesota. The new law creates a statewide regulatory framework for <br />5 manufacturers, distributors, and retailers of cannabis products, establishes taxes on <br />6 cannabis products, amends criminal penalties and expunges certain prior convictions <br />7 related to cannabis. Although the law is technically in place, there is a considerable amount <br />8 of work that needs to be done at the state level, including the creation of the State Office of <br />9 Cannabis Management, to allow for the manufacture, distribution, and sales of cannabis <br />10 products. Currently, the state has indicated that it is not expected that retail sales of <br />11 cannabis will start until at least January 1, 2025. <br />12 <br />13 Under the new law, there are some things local governments will have to decide on and put <br />14 regulations in place. These include zoning controls, limits on the amount cannabis retailers <br />15 to be allowed, review of cannabis licenses submitted to the state, and compliance checks <br />16 on cannabis retailers. It is expected that the state will provide guidance on many of these <br />17 issues at some point in the future. <br />18 <br />19 In order to be aware of the work that will need to be done as well to provide a broader <br />20 understanding of the law, the City Attorney will provide a presentation to the City Council. <br />21(Attachment 1). Staff has also provided a detailed summary of the cannabis law provided <br />22 by the League of Minnesota Cities for additional information. (Attachment 2). <br />23 <br />24 Policy Objectives <br />25 Local governments are delegated authority from the state to protect the public health, <br />26 safety and general welfare of their residents. Implementing proper controls over the sale <br />27 and use of adult-use cannabis will ensure that these goals are met. <br />28 <br />29 Racial Equity Impact Summary <br />30 A major reason that the Minnesota Legislature legalized adult-use cannabis centered <br />31 around racial equity. Studies have shown that there are some communities that have <br />32 experienced a disproportionate, negative impact from cannabis regulation enforcement. For <br />33 example, Black Americans are arrested for cannabis offenses at a rate of nearly 4:1 <br />34 compared with whites. \[ACLU. (2020, April 17). A Tale of Two Countries: Racially Targeted <br />35 Arrests in the Era of Marijuana Reform. Retrieved from ACLU.org <br />36 https://www.aclu.org/news/criminal-law-reform/a-tale-of two-countries-racially-targated- <br />Page 1 of 2 <br />Qbhf!219!pg!377 <br /> <br />