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October 8, 2024 Page 2 Subp. (3): An internal City Code reference is added here. Subp. (P)(5) and (6): The Council agreed that these optional limitations on Cannabis Event locations or hours were not necessary given other restrictions in the City’s regulations. As a final note, the Council observed the use of the terms “license” and “registration”, often coupled with process or fee requirements throughout the ordinance. In rechecking the draft ordinance, the “license” term is intended to be used in the context of the State’s licensing function for business enterprises through the Office of Cannabis Management, while the “registration” term is the local City-level review. Fees for the City’s licensing role are capped in the statute. In other follow-up on process, it is expected that OCM will provide a “pre-application” process to potential licensees, who will then be tasked with seeking local registration approval. The city’s registration will be comprised primarily of checking zoning compliance with the requirements imposed this ordinance, as well as confirmation that building and fire codes will reviewed for compliance. The City will have 30 days to report back to OCM on approval or denial of a local registration request, along with the reasons for any denial. OCM will then complete the licensing process with the applicant. REQUESTED COUNCIL ACTION The updated draft ordinance regulating cannabis business is attached for review and consideration as a second reading. As noted below, the Planning Commission recommended approval of the general regulations with comment, and the City Council incorporated many of those comments in its discussion of the first reading. With any further requested edits of the various sections, staff requests approval of the second reading of this ordinance. The original staff report material is provided below for reference only. 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