Review Draft Ordinance #24-12, Cannabis Business Regulations

Staff recommends City Council review and provide comments on the attached draft of Ordinance #24-12, To Regulate Cannabis Businesses.

Chapter 342 of Minnesota Law was established by the State Legislature in 2023 and was updated in 2024. Minnesota's Office of Cannabis Management (OCM) is the state regulatory office created to oversee the implementation and regulation of the adult-use cannabis market, the medical cannabis market and the consumer hemp industry. Chapter 342 establishes rules, policies, and regulates the Minnesota cannabis industry. OCM governs the application and licensing processes, conducts enforcement and inspection activities.

The local government may impose certain retail timing restrictions, may limit the number of retail locations, and provide buffer and zoning guidelines; all of which are addressed in Chapter 342. City Council discussed these items at the February 13, 2024 work session. The meeting minutes are attached for your review. At the meeting, City Council discussed and provided staff with direction on time restrictions, number of retail locations, buffers and zoning guidelines. This information was then added to the model ordinance drafted by the OCM.  The language in the ordinance remains the same as the draft provided by OCM, the text highlighted in yellow is the infilled information by staff as it pertains to the City of Ramsey.  Per direction by the City Council, the following information was added to the draft ordinance:

Retail Sales Timing: 
Number of Retail Locations: 2 locations. Chapter 342 requires at least 1 retailer and microbusiness/mezzobusiness with retail endorsements per 12,500 residents.
Buffers: Prohibit the operation of a cannabis business within 1,000 feet of a school or 500 feet of a daycare, residential treatment facility or public park that is regularly used by minors, including playgrounds and athletic fields.
Zoning: Retailers will be allowed in the B2 Commercial and B3 Regional business districts. Micro business with/without retail and Mezzo business with/without retail will be allowed in the I-1 Light Industrial and I-2 General Industrial districts.

City Attorney is in the process of reviewing the draft ordinance.

 

Introduction/1st Reading: October 8, 2024 City Council 
Final Adoption: October 22, 2024 City Council
30-Day Publication: October 25 - November 25, 2024
Effective Date: January 1, 2025

During this time frame, the Zoning code will be amended to redefine the definition of manufacturing to allow for state-regulated cannabis cultivation:

Sec. 106-105. - Definitions.
Manufacturing means the processing or assembly of raw materials or parts into finished goods through the use of tools, human labor, machinery, and chemical processing. This definition includes hydroponics as well as state-regulated cannabis cultivation.

Public Hearing: September 26, 2024
Introduction/1st Reading: October 8, 2024 City Council 
Final Adoption: October 22, 2024 City Council
30-Day Publication: October 25 - November 25, 2024
Effective Date: November 26, 2024

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Community Development Department

Review and discuss Ordinance #24-12 and provide staff with directions to either move forward with the adoption process or continue by making revisions to the ordinance for further review.