DEPARTMENT: Public Services and Revenue Administration
FILE TYPE: Regular Information
TITLE
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Discussion On Policy Direction For New Cannabis Ordinance
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PURPOSE/ACTION REQUESTED
Discuss the need for and purpose of the Ordinance to implement Minnesota Statutes, Chapter 342, that authorize the retail registration and sale of cannabis products to protect the public health, safety, welfare of Dakota County residents by regulating retail cannabis businesses within the unincorporated areas of Dakota County and cities within the boundaries of Dakota County that have consented to Dakota County administering retail registration and the County has agreed to take on that authority.
SUMMARY
In 2023, Minnesota passed Minn. Stat. § 342, legalizing the sale of adult-use cannabis products and low-potency hemp edibles. This law provides a regulatory framework for the cannabis industry, including licensing, regulations, and requirements for retail establishments to register with a local government entity. The statute authorizes local jurisdictions to regulate businesses operating within their jurisdiction and those jurisdictions may consent to Dakota County administering retail licensing, registration, and enforcement. By Minnesota statute, the local retail registration and licensing authority is granted to the city or organized township where the retail establishment is located. All large cities in the county have adopted cannabis retail regulations. Some small cities or townships may choose to consent and grant this authority to Dakota County. Dakota County has limited zoning or land use control authority in the County, so that authority remains reserved to the city or township.
Staff from Public Services and Revenue Division Administration, County Attorney’s Office, Sheriff’s Office and Public Health have been closely monitoring the guidance from the Minnesota Office of Cannabis Management (OCM) and the state rulemaking process. The County Board may adopt reasonable restrictions of the time, place, and manner of the operation of a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses and may implement local registration and annual compliance checks and enforcement requirements of state-licensed cannabis retail businesses and lower-potency hemp edible retail businesses.
Staff are seeking County Board policy direction on recommendations for retail registration responsibilities including:
• the decision to regulate lower-potency hemp edibles,
• options to limit the number of adult-use cannabis retails registrations in the townships,
• placement of reasonable time, place, and manner restrictions on retail sales,
• licensing of temporary cannabis events,
• establishment of fee structures and penalties for non-compliance,
• and the retail registration process.
County Board direction will form the basis for drafting a Cannabis Ordinance for adoption at a future County Board meeting subject to required public hearing.
RECOMMENDATION
recommendation
Staff seek policy direction.
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EXPLANATION OF FISCAL/FTE IMPACTS
Applicable registration fees will be implemented as part of the regulatory administration.
☐ None ☐ Current budget ☐ Other
☒ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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Information only; no action requested.
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PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: Presentation Slides
BOARD GOALS
☐ A Great Place to Live ☐ A Healthy Environment
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
CONTACT
Department Head: Teresa Mitchell
Author: Teresa Mitchell