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November 26, 2024 St. Anthony Council Work Session - 2 Licenses for commercial sales will likely not be issued until 2025, with the exception of tribal nations, in order for the Office of Cannabis Management (OCM) to establish regulatory frameworks. The law established criteria for social equity applicants to be preapproved for cannabis business licenses sometime in 2024. Social equity applicants include people or family members of individuals who were previously convicted of marijuana offenses, military veterans, residents of high-poverty areas, and “emerging farmers” who have provided the majority of labor and management for a small farm for at least three years. Legislation signed into law in 2024 that modified the 2023 legislation established quantity limits on types of licenses, and a lottery system to distribute cannabis business licenses in 2025. Applicants meeting minimum requirements that include location selection and business plans will be entered into the lottery and recipients chosen at random. Another change in 2024 allows for licenses to be issued to cities to open municipal cannabis stores independent of the lottery process. These licenses will not count against the OCM’s license caps or any limits on retail licenses that local governments may impose. The legislation signed into law over the past two sessions presents an opportunity for cities to establish a retail municipal operation like the municipal liquor operation the City has operated since 1948, if the Council should determine that it is in the best interest of the City to do so. To make that determination, staff has been monitoring the legislative developments and coordinating with industry resources to learn about the law and the cannabis industry. A proposal from Voyageur Cannabis Services was provided for Council review. This provides the City with a detailed report on operating a municipal dispensary. Staff will continue to provide additional research to inform a Council decision. At the June 11, 2024, Work Session, the City Council discussed if a municipal cannabis dispensary fit in the City’s and liquor stores' mission and vision statement, and the possible benefits to the community by controlling the sale and generating revenue to reduce the property tax burden on residents as the liquor operation does. The Council’s consensus was to pursue a municipal dispensary and begin the lengthy due diligence process to come to a final decision. The proposal from Voyageur Cannabis to perform a market analysis to help inform that decision was reviewed and approved, and that analysis was provided to Council. The presentation from Voyageur Cannabis will provide further discussion for the process of opening a municipal cannabis dispensary. The next steps such as the license application would be defined as more guidelines and requirements are released from the OCM. Though initially expected by the end of 2024, applications for municipal operations are expected to be opened by Office of Cannabis Management in the first part of 2025. Further discussion, planning, and education are required to continue the process if the City Council feels it is beneficial and leads to a decision on opening a municipal dispensary. Staff will continue, at the direction of the Council, to proceed with the further due diligence involved in progressing towards the operation of a cannabis dispensary. 3