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CITY COUNCIL <br />WORK SESSION STAFF <br />REPORT ITEM NO. 5 <br />STAFF ORIGINATOR: Michael Grochala, Community Development Director <br />Roberta Colotti, City Clerk <br />William Owens, Public Safety Captain <br />WORK SESSION DATE: January 6, 2025 <br />TOPIC: Cannabis Regulations <br />BACKGROUND <br />As discussed at the December 2, 2024, work session, Minnesota Statutes, Chapter 342, adopted <br />in 2023 and amended in 2024 authorizes the cultivation, manufacturing and sale of cannabis <br />products. Minnesota's new Office of Cannabis Management (OCM) will be responsible for the <br />licensing of cannabis businesses. The State is currently completing the rulemaking process which will <br />likely be completed after the first of the year (2025). <br />There are 13 different types of business licenses. These include: <br />Microbusiness <br />Mezzobusiness <br />Cultivator <br />Manufacturer <br />Retailer <br />Wholesaler <br />Transporter <br />Testing Facility <br />Event Organizer <br />Delivery Service <br />Medical Cannabis Combo Bus. <br />Lower -Potency Hemp Manuf. <br />Lower -Potency Hemp Retailer <br />Definitions for each business type are include in the attachments. <br />ANALYSIS <br />The law provides certain means of oversight by local units of government. However, the city cannot <br />outright ban a cannabis business, or limit operations in a manner beyond those provided in state law. <br />The City's oversight includes: <br />Retail Restrictions. The city may limit the number of retailers and businesses with retail endorsements <br />allowed within the community provided there is at least one retail location per 12,500 residents. Lino <br />