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09.f1 Scandia City Attorney Report - Cannabis LegislationPage 1 of 3 ECKBERG LAMMERS MEMORANDUM Date: June 15, 2023 To: Mayor and City Council From: Eric Larson, City Attorney Subject: New Cannabis Law – Summary Analysis and Municipal Issues BACKGROUND The 2023 Minnesota legislature passed cannabis legislation legalizing the use and possession of cannabis in the State of Minnesota effective August 1, 2023. The following is a summary introduction of the cannabis law and some of the issues municipalities, such as the City of Scandia, should address as a result.1 This Memorandum is focused on the cannabis legislation’s civil impacts for cities and does not address criminal/prosecution issues, which are being addressed by law enforcement and prosecutors. Cannabis Use and Possession Legalized. The new Cannabis legislation legalizes the possession, use, manufacturing, and sale of certain cannabis products within the state. It establishes the Office of Cannabis Management (OCM), which is charged with, among other things, enforcing an organized system of regulation for the cannabis industry and the hemp consumer industry. Possession, use, and home growth under this new law will be legal beginning Aug. 1, 2023, and legal sales are expected to begin sometime in January of 2025. This law allows a person of 21 years of age or older to: • Use, possess, or transport cannabis paraphernalia. • Possess 2 ounces or less of cannabis flower in a public place. • Possess 2 pounds or less of cannabis flower in a person’s residence. • Possess or transport 8 grams or less of adult-use cannabis concentrate. • Possess or transport edible products infused with a total of 800 milligrams or less of tetrahydrocannabinol. 1 Much of this Memorandum’s materials are pulled from the League of Minnesota Cities materials, which the League is regularly updating and is a good source for more detailed information as well as updated information. Page 2 of 3 • Give away cannabis flower and products in an amount that is legal for a person to possess in public. The law authorizes an individual to use adult-use cannabis flower and adult-use cannabis products: • In a private residence including the individual’s curtilage or yard. • On private property, unless the owner of the property prohibits the use of the products. • On the premises of an establishment or event licensed to permit on-site consumption. Cannabis Cannot Be Sold Now, Projected Retail Licensing - Approximately January 2025. Cannabis will not be able to be sold until the Office of Cannabis Management is established and able to issue licenses, projected timeline is January 2025 for when sales will be live to the public. Before beginning sales, a cannabis retailer must obtain a local retail registration. However, the OCM will forward applications to cities for them to certify whether the proposed cannabis business complies with local zoning ordinance and, if applicable, whether the proposed business complies with the state fire and building code. The OCM may not issue a license to a cannabis business that does not meet local zoning and land use laws. Municipal Local Zoning and Land Use. Importantly, a city possesses zoning and land use controls through which the city may limit the cannabis business’ location and the number of cannabis businesses in the city. In short, cities are allowed to adopt reasonable restrictions on the time, place, and manner of the operations of a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses. Cities may prohibit the operations of a cannabis business within 1,000 feet of a school, or 500 feet of a day care, residential treatment facility, or an attraction within a public park that is regularly used by minors, including a playground or athletic field. The OCM will develop model ordinances for reasonable restrictions on the time, place, and manner of a cannabis business. City Interim Moratorium. Accordingly, as the State and cities are evaluating the impacts and how to administrate given the new cannabis law, cities may adopt an interim moratorium prohibiting the sale, manufacturing, or distribution of adult-use cannabis. The interim moratorium may not extend beyond January 1, 2025. Page 3 of 3 The interim moratorium ordinance would authorize: • A zoning and land use study to be conducted; and • At the completion of the study that the city schedule a public hearing for the purpose of considering adoption or amendment of reasonable restriction on the time, place, and manner of the operation of a cannabis business as defined in the new law. Before adopting an interim ordinance, the city must hold a public hearing on the moratorium ordinance. The interim moratorium ordinance may be in place until Jan. 1, 2025. The authority for an extended moratorium does not apply to the sale or production of low-potency hemp edible products. RECOMMENDATION The City Attorney recommends that the City of Scandia authorize staff to begin the process of implementing an Interim Moratorium Ordinance as soon as practical in order to assess and thereafter adopt reasonable time, place, and manner city ordinances that are reasonable for the City of Scandia pertaining the operations of cannabis businesses.