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2 <br /> <br /> <br />REGISTRATION VS. LICENSING: <br />The OCM will issue and manage licenses for cannabis businesses. Retail operations for cannabis <br />must register with local units of government before making retail sales to customers or patients. <br />Currently, local government units are required to allow for one registration for every 12,500 <br />residents. The statute specifies these registrants as cannabis retailers, cannabis mezzobusinesses <br />with a retail operations endorsement, and cannabis microbusinesses with a retail operations <br />endorsement. This minimum of one applies only to cannabis retailer registration. It is currently <br />unclear if the City will be able to limit non-retailer uses to any capacity, however, staff believes <br />uses that are not required to register cannot be prohibited. <br /> <br />The pros and cons of registering locally vs with Washington County are generally laid out below: <br /> <br />Pros: <br />1. Local control on the number of registrants, Lake Elmo can limit to up to two retail <br />businesses. <br />2. Local control on process of registration such as background checks, enforcement, etc. <br /> <br />Cons: <br />1. Use of limited staff resources for processing registrations. <br />2. County registration process or potentially the number of retail registrants in Lake Elmo <br />are out of the City’s control. <br /> <br />PROPOSED ORDINANCE UPDATES: <br />All cannabis businesses are required to comply with local zoning ordinances. Upon receipt of an <br />application for a license, the OCM will reach out to local governments to certify zoning <br />compliance during their application process. Cities without zoning controls in place will have a <br />difficult time responding that uses do or do not comply with their ordinance. <br /> <br />Per State law, cities may place reasonable restrictions on the time, place, and manner of a <br />cannabis business but may not outright ban one. A city is required to issue a retail registration to a <br />cannabis retailer and/or any cannabis business seeking a retail endorsement if complaint with the <br />City’s rules. <br /> <br />Cannabis Businesses and Uses <br />Minnesota State Statute defines the term “cannabis business.” This term means the following uses: <br />1. cannabis microbusiness; <br />2. cannabis mezzobusiness; <br />3. cannabis cultivator; <br />4. cannabis manufacturer; <br />5. cannabis retailer; <br />6. cannabis wholesaler; <br />7. cannabis transporter; <br />8. cannabis testing facility; <br />9. cannabis event organizer; <br />10. cannabis delivery service;