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REQUEST FOR COUNCIL ACTION Date: 9/9/2024 Item No.: 7.a. Department Approval City Manager Approval Item Description: Discuss Cannabis Regulatory Decisions that will Inform Future Draft Ordinance 1 2 Background 3 The State legislature established Chapter 342 of Minnesota state law, known as the "adult- 4 use cannabis law" during the 2023 legislative session. These regulations were revised 5 during the 2024 legislative session. Since that time, Minnesota's Office of Cannabis 6 Management (OCM) has been established to oversee the implementation and regulation of 7 adult-use cannabis. Included in OCM's duties were the creation of model ordinances, 8 which cities can use to formulate local adult-use cannabis regulations. This document was 9 released in July and is provided as Attachment 1. The legalization of adult-use cannabis 10 followed the 2022 legalization of lower-potency hemp. Locally, Roseville has implemented 11 licensing for lower-potency hemp, limited retailers of lower-potency hemp to eight, 12 prohibited smoking in public places, and enacted a moratorium on the operation of 13 cannabis businesses. 14 15 Under state law, cannabis business licenses will begin to be issued on January 1, 2025 and 16 any locally-enacted moratoria will expire. As such, the City needs to draft and enact local 17 ordinances by that date to ensure regulation of such businesses is done in a manner that 18 meets our local needs. However, the state law is fairly prescriptive, limiting the City's role 19 in both the regulation of adult-use cannabis and lower-potency hemp. Before drafting 20 ordinances, feedback is sought on specific issues. Also, the Planning Commission will 21 have a role given there are zoning impacts in terms of where certain cannabis businesses 22 can locate. The City Attorney has drafted a memo (Attachment 2) outlining broader 23 cannabis regulatory decisions that need to be made in order to draft zoning and 24 registration-related ordinances. Staff is seeking Council feedback and direction on a few 25 questions that are outlined within the memo. The Planning Commission discussed the 26 zoning-related matters at their meeting on September 4th and their comments and 27 recommendations are included in the below paragraph. 28 29 The City Attorney has provided a presentation (Attachment 4) outlining several areas for 30 Council discussion, including: 31 1. What cannabis business should be allowed in what zoning districts. Staff has 32 provided a draft Licensed Activities table as Attachment 3, suggesting where various 33 licensed cannabis activities should locate within the City. The suggestions offered 34 by staff are informed by the City Attorney memo, guidance from the OCM, and Page 1 of 3 Qbhf!8!pg!26: