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REQUEST FOR COUNCIL ACTION Date: 10/21/2024 Item No.: 7.b. Department Approval City Manager Approval Item Description: Discuss Draft Ordinances Related to Adult-use Cannabis Regulations 1 2 Background 3 The state legislature established Chapter 342 of Minnesota state law, known as the "adult-use cannabis 4 law" during the 2023 legislative session. These regulations were revised during the 2024 legislative 5 session. Since that time, Minnesota's Office of Cannabis Management (OCM) has been established to 6 oversee the implementation and regulation of adult-use cannabis. Included in OCM's duties were the 7 creation of model ordinances, which cities can use to formulate local adult-use cannabis 8 regulations. This document was released in July and is provided as Attachment 1. The legalization of 9 adult-use cannabis followed the 2022 legalization of lower-potency hemp. Locally, Roseville has 10 implemented licensing for lower-potency hemp, limited retailers of lower potency hemp to eight, 11 prohibited smoking in public places, and enacted a moratorium on the operation of cannabis businesses. 12 13 On January 1, 2025, the City's moratorium will expire and the City may start receiving zoning compliance 14 requests from the state regarding applications for cannabis business licenses. There is no current 15 estimated timeline of when this will actually occur. In preparation, the City needs to draft and enact local 16 ordinances by that date to ensure regulation of such businesses is done in a manner that meets local 17 needs. However, state law is fairly prescriptive, limiting the City's role in both the regulation of adult-use 18 cannabis and lower-potency hemp. 19 20 To date, the following meeting discussions have occurred surrounding this topic: 21 September 4, 2024 Planning Commission 22 September 9, 2024 City Council 23 October 2, 2024 Planning Commission 24 Since the Council's discussion on September 9, 2024, draft ordinances have been prepared by the City 25 Attorney's office and a City webpage has been created in an attempt to inform the public about the City's 26 past and upcoming discussions surrounding adult-use cannabis regulations. 27 28 Three draft ordinances are provided and are summarized below. Items in bold italics reflect topics the 29 City Attorney has highlighted as needing direction. 30 Title 3, Chapter 318: Cannabis and Hemp Business Regulations (Attachment 2) 31 o Establishes a registration requirement for cannabis and lower-potency hemp retailers. 32 o Caps the number of cannabis retailers at one registration per 12,500 residents (be 33 advised lower-potency hemp retailers or medical cannabis businesses cannot be 34 included in the cap). The City Attorney has highlighted an item for discussion 35 surrounding two types of licenses/registrations that are currently drafted to be 36 excluded from this cap but could be included in this cap (see lines 142-143). 37 o Registrations will be processed on a first-come, first-served basis Page 1 of 4 Qbhf!4:!pg!286