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MU210\317\977365.v1-9/19/24 <br /> Joseph L. Sathe <br />Fifth Street Towers <br />150 South Fifth Street, Suite 700 <br />Minneapolis, MN 55402 <br /> <br />(612) 337-9255 direct <br />email: jsathe@kennedy-graven.com <br /> <br />MEMORANDUM <br /> TO: Mayor and City Council <br /> Nyle Zikmund, City Administrator <br /> <br />FROM: Joseph L. Sathe, Assistant City Attorney <br /> <br />DATE: September 19, 2024 <br /> <br />RE: Initial Cannabis Regulatory Decisions <br /> <br /> <br />The purpose of this memo is to provide a high-level overview of the options cities will have <br />regarding adult-use cannabis and to obtain preliminary input on some questions that will be used <br />to draft the City’s ordinance(s) related to cannabis and hemp. <br />This memo is based on the information available at this time. The Office of Cannabis Management <br />(“OCM”) has released a draft of its administrative rules which will go through a comment period <br />and are subject to change over the next few months. <br />Enclosed is the OCM’s Guide for Local Government on Adult-Use Cannabis without any of the <br />exhibits (which can still be found online, including the OCM’s “model” ordinacne). This is a <br />document includes additional information on cannabis businesses. I have also included a separate <br />document that contains the outline of what the City’s cannabis regulations could look like based <br />on the answers to the questions in this memo. This model is mainly provided for reference at this <br />point and it is not necessary to review with specificity. <br />Answering these questions will guide staff in drafting language specifically for the city ordinances. <br />I. DECISIONS – GENERALLY <br />Under the Cannabis Act, cities generally maintain their ability to enact regulations with two <br />primary limitations: (1) the City may not prohibit the establishment or operation of a cannabis or <br />hemp business licensed by the OCM; and (2) the Legislature has established a maximum buffer <br />from certain uses. Cities will retain the ability to enact certain ordinances even if it consents to <br />have the county issue registrations, as discussed in Section IV. <br />II. ZONING DECISIONS – DESIGNATING ZONING DISTRICTS