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September 10, 2024 Page 2 PROPOSED ORDINANCE The ordinance has a few areas of local choice, but generally, the State will handle all licensing, with local governments reviewing the suitability of a location per its zoning district and building code compliance. Sections (A) through (G) in the attached draft ordinance are largely administrative function or process requirements. There are a few areas of additional consideration, including the following: 1.Number of licensed retail establishments. The state requires that all jurisdictions allow at least one license for every 12,500 residents – the second license kicking in at a population of 12,501. This draft ordinance anticipates the City limiting its licensees to the one required, although the City can choose to allow more if it wishes to do so. This limitation is found in Section (K) in the attached version. 2.Location Change. In Section (H), the City can choose to require a licensed retailer to restart the full registration application process, or allow a new location simply by notification from OCM. The Planning Commission’s discussion was mixed, landing with a recommendation of the notification option only, rather than the more extensive re- registration. The Commission’s consensus was “Option b” (highlighted in yellow). 3.Mixed Industrial/Retail Operations. The statute creates a class of retail licensees identified as “Microbusinesses” and “Mezzobusinesses”. These are essentially industrial operations (growers, processors, etc.) distinguished from each other by size of operation. However, they are distinguished from other industrial operations in that they are permitted to obtain a “Retail Endorsement”, permitting them to both process cannabis products and sell products at retail. The comparable use would be a brewer- taproom in which the brewer is producing alcoholic beverages and operating an on-site drinking establishment. Any retailers (including these) are subject to the buffer requirements in Note 1. above. However, this draft is written to exclude retail operations from the City’s industrial areas – such that any micro- or mezzo-business would not be permitted to offer on-sale products at locations in the industrial districts. This language is included in Section (M)(1) and (2). If on-site consumption similar to a taproom is preferred, this section would require revision. 4.Hours of Operation. As a general rule, it is expected that a retail cannabis facility will maintain typical retail hours. The state legislation allows the City to set more restrictive hours; however, staff is not recommending this level of regulation. The legislation establishes maximum retailing hours requiring closure of any retail operation between 2:00am and 8:00am, Monday through Saturday, and 2:00am and 10:00am on Sundays. The legislation permits the City to limit hours to 10:00am and 9:00pm. The Planning Commission discussed this aspect of the code, and also recommended no additional limits on hours of operation. Since the zoning ordinance sites a retail facility in a standard commercial retail district, it is expected that standard commercial hours 42