01-08-2025 Workshop Packet - Laserfiche WebLink

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GG-26 ADULT-USE CANNABIS In response to the COVID-19 pandemic, cities successfully pivoted to working remotely while maintaining and even increasing transparency and accessibility. Metro Cities supports amending the Open Meeting Law to allow city councilmembers and non-elected city board and/or commission members the ability to participate remotely in up to fifty percent of scheduled meetings each year without making their location open and accessible to the public as otherwise required under Minn. Stat. § 13D.02, subd. 1. Metro Cities also supports amending the Open Meeting Law to remove the three-times-per-year cap for medical and military exceptions. The Minnesota Legislature legalized adult-use cannabis in 2023. The law establishes the Office of Cannabis Management, which will be responsible for licensing cannabis businesses and regulating the industry. The law includes a local registration process for cannabis business license holders where local governments are authorized to charge a registration and renewal fee. Responsible local governments are required to conduct compliance checks for age verification and the enforcement of local ordinances at cannabis businesses. Cities are authorized to establish, own, and operate a municipal cannabis store. The law also includes an optional, population- based limit on the number of retail locations in each city or county. It is vital that local governments retain the ability to suspend retail registrations for businesses that pose an immediate threat to public health or safety. The law permits local units of government to establish reasonable restrictions on the time, place, and manner of cannabis business operations and includes a zoning compliance requirement for businesses where a local jurisdiction certifies that a business’ plans are appropriate and in line with local requirements. The law establishes a Local Cannabis Aid Account to provide aid to cities and counties. The account will receive 20% of the of the revenue from the 10% gross receipts tax on cannabis products. Half of the local cannabis aid will go to counties and half will be distributed to cities based on the number of businesses located in each city. Metro Cities opposes any efforts to reduce cities’ local control and zoning authority related to cannabis. Metro Cities supports legislation providing cities the ability to prohibit cannabis businesses within their jurisdiction. Metro Cities expects the Office of Cannabis Management to work closely with cities as this legislation is fully implemented. This includes working with local governments to create model ordinances and providing technical assistance on cannabis-related issues. Metro Cities supports the ongoing evaluation of costs associated with the legalization of adult-use cannabis. Funding should be made available to cities without cannabis businesses if such studies show that those communities face additional budgetary pressures because of cannabis legalization. 26