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IV.2. Second Reading Extension of Interim Ordinance Authorizing a Study and Imposing a Moratorium on the Establishment and Operation of Cannabis Businesses in the City of Hopkins; Domei CITY OF HOPKINS City Council Report 2023-129 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Amy Domeier, City Clerk Date: November 21, 2023 Subject: Second Reading: Extension of an Interim Ordinance Authorizing a Study and Imposing a Moratorium on the Operations of Cannabis Businesses within the City of Hopkins until January 1, 2025 _____________________________________________________________________ RECOMMENDED ACTION MOTION TO Adopt Extension of an Interim Ordinance Authorizing a Study and Imposing a Moratorium on the Operations of Cannabis Businesses within the City of Hopkins until January 1, 2025. OVERVIEW No changes have been made to the ordinance since the first reading held on November 14. SUPPORTING INFORMATION • Draft Ordinance 2023-1195 Administration 1 HP145\1\910403.v1 CITY OF HOPKINS COUNTY OF HENNEPIN ORDINANCE NO. 2023-1203 EXTENSION OF AN INTERIM ORDINANCE AUTHORIZING A STUDY AND IMPOSING A MORATORIUM ON THE OPERATION OF CANNABIS BUSINESSES WITHIN THE CITY OF HOPKINS UNTIL JANUARY 1, 2025 THE CITY COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS AS FOLLOWS: Section 1. Legislative Findings and Authority. (A) The Minnesota Legislature recently enacted, and the Governor signed, 2023 Minnesota Session Laws, Chapter 63 – H.F. No. 100 (the “Act”), which is comprehensive legislation relating to cannabis including, but not limited to, the establishment of the Office of Cannabis Management (“OCM”), legalizing and limiting the possession and use of cannabis and certain hemp products by adults, providing for the licensing, inspection, and regulation of cannabis and hemp businesses, taxing the sale of cannabis flower, cannabis products, and certain hemp products, establishing grant and loan programs, amending criminal penalties, providing for expungement of certain convictions, and providing for the temporary regulation of Edible Cannabinoid Products. (B) The Act provides local units of government certain authority related to Cannabis Businesses, including the authority to (i) require local registration of certain Cannabis Businesses operating retail establishments, (ii) adopt reasonable restrictions on the time, place, and manner of the operation of Cannabis Businesses, provided that such restrictions do not prohibit the establishment or operation of a Cannabis Business, (iii) limit the number of certain Cannabis Businesses based on the population of the community, and (iv) prohibit the operation of a Cannabis Business within 1,000 feet of a school, or 500 feet of a day care, residential treatment facility, or an attraction within a public park that is regularly used by minors, including a playground or athletic field. (C) The Act requires the OCM, which was established effective July 1, 2023, to work with local governments to develop model ordinances for reasonable restrictions on the time, place, and manner of the operation of Cannabis Businesses. The Act also requires the OCM to establish additional rules and regulations relating to the operation of Cannabis Businesses. It is anticipated that the city of Hopkins (the “City”) will benefit from reviewing and analyzing the OCM’s model ordinances, rules and regulations before making any decisions related to the regulation of Cannabis Businesses in the City. (D) The Act (Minnesota Statutes, section 342.13(e)) expressly allows a local unit of government that is conducting studies or has authorized a study to be conducted or has held or scheduled a hearing for the purpose of considering adoption or amendment of reasonable restrictions on the time, place and 2 HP145\1\910403.v1 manner of the operation of Cannabis Businesses to adopt an interim ordinance applicable to all or part of its jurisdiction for the purpose of protecting the planning process and the health, safety, and welfare of its citizens. The interim ordinance may regulate, restrict, or prohibit the operation of Cannabis Businesses within the jurisdiction or a portion thereof until November 24, 2023. (E) Given the uncertainty regarding the model ordinances to be developed by the OCM and the broad scope of the changes to Minnesota law brought about by the Act, the City desires to adopt an interim ordinance for the purpose of protecting the planning process and the health, safety, and welfare of its citizens. (F) The City desires to conduct a study for the purpose of considering the adoption or amendment of reasonable restrictions on the time, place and manner of the operation of Cannabis Businesses as well as the other regulations local units of government may adopt under the Act. (G) The city council adopted an interim ordinance (“Ord. No 2023-1195”) regarding the operations and establishment of Cannabis Businesses effective July 27, 2023. Given the unknown timeline for establishing the OCM and administrative rulemaking process, the city council decided to enact Ord. No. 2023-1195 for an initial period to last until November 24, 2023, which could be extended until January 1, 2025, by express city council action. (H) Since that time, the OCM has not hired a permanent executive director to oversee its operations, has not begun the administrative rulemaking process, and estimates that licenses may not be issued until late 2024 or early 2025. (I) The city council desires to extend Ord. No. 2023-1195 by passing this ordinance restating Ord. No. 2023-1195, providing additional findings in Section 1(G-J), and amending Section 8. Effective Date and Term to extend the effective date of the moratorium until January 1, 2025. (J) On November 14, 2023, after providing at least 10 days published notice, the city council held a public hearing regarding the consideration and extension of an interim ordinance prohibiting the operation of Cannabis Businesses within the City until January 1, 2025. Section 2. Definitions. For purposes of this Ordinance, the following terms shall have the meaning given them in this section. (A) “Act” means 2023 Minnesota Session Laws, Chapter 63 (H.F. No. 100). (B) “Cannabis Business” has the meaning given the term in Minnesota Statutes, section 342.01, subdivision 14. 3 HP145\1\910403.v1 (C) “City” means the city of Hopkins, a Minnesota municipal corporation. (D) “Edible Cannabinoid Product” has the meaning given the term in Minnesota Statutes, section 151.72, subdivision 1(f). (E) “OCM” means the Office of Cannabis Management, established as set forth in Minnesota Statutes, section 342.02, subd. 1. (F) “Ordinance” means this interim ordinance, which is adopted pursuant to Minnesota Statutes, section 342.13(e). Section 3. Study Authorized. The city council hereby authorizes and directs City staff to conduct a study regarding the adoption or amendment of reasonable restrictions on the time, place, and manner of the operation of Cannabis Businesses, as well as other potential local regulations allowed under the Act, and report to the city council on the potential regulation of Cannabis Businesses. The study may include a review of any model ordinances that OCM is directed to draft under Minnesota Statutes, section 342.13(d), an analysis of potential setback regulations allowed under Minnesota Statues, section 342.13(c), and such other matters as staff may determine are relevant to the city council’s consideration of this matter. The report may also include City staff’s recommendations on whether the city council should adopt regulations and, if so, the recommended types of regulations. Section 4. Moratorium. A moratorium is hereby imposed on the operation of any Cannabis Business within the City. During the term of this Ordinance, no business, person, or entity may establish or operate a Cannabis Business within the jurisdictional boundaries of the City. Accordingly, during the period that this Ordinance is in effect, the City shall not accept, process, or act on any application, site plan, building permit, zoning request, or other approval, including any requested confirmation, certification, approval, or other request from the OCM or other governmental entity requesting City review of any application or proposal for a business proposing to engage in the operation of a Cannabis Business. During the term of the moratorium, it is a violation of this Ordinance for any business, person, or entity to establish or operate a Cannabis Business within the City. Section 5. Exceptions. The moratorium imposed by this Ordinance does not apply to: (i) the continued operation of a duly established business as part of the Medical Cannabis Program administered by the Minnesota Department of Health that was lawfully operating within the City prior to the effective date of this Ordinance; or (ii) the sale of Edible Cannabinoid Products, provided, however, that nothing in this Ordinance exempts a business, person, or entity from complying with all other requirements and prohibitions of applicable laws and ordinances related to such exceptions. Section 6. Enforcement. Violation of this Ordinance is a misdemeanor. The City may also enforce this Ordinance by mandamus, injunction, or other appropriate civil remedy in any court of competent jurisdiction. A violation of this Ordinance is also subject to the City’s general penalties prescribed in the city code and may further result in the City 4 HP145\1\910403.v1 reporting violations to the OCM, if relevant to OCM licensing. The city council hereby authorizes City staff and consultants to initiate any legal action deemed necessary to secure compliance with this Ordinance. Section 7. Severability. Every section, provision, and part of this Ordinance is declared severable from every other section, provision, and part. If any section, provision, or part of this Ordinance is held to be invalid by a court of competent jurisdiction, such judgment shall not invalidate any other section, provision, or part of this Ordinance. Section 8. Effective Date and Term. This Ordinance shall become effective on November 23, 2023. Unless earlier rescinded by express City Council action, this Ordinance shall remain in effect until January 1, 2025. First Reading: November 14, 2023 Second Reading: November 21, 2023 Date of Publication: November 23, 2023 Date Ordinance Takes Effect: November 23, 2023 ______________________________ Patrick Hanlon, Mayor ATTEST: _________________________________ Amy Domeier, City Clerk