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AGENDA ITEM <br />Prepared By: LLO Reviewed By: Approved By: <br />1.Purpose. <br />The purpose of this action item is to adopt a City-wide moratorium, until January 1, 2025, on cannabis <br />businesses within the city. <br />2.Background. During the 2022 legislative session, the Minnesota Legislature amended Minn. Stat. <br />§151.72 and permitted the sale of edible and nonedible cannabinoid products that contain no more than <br />0.3 % of Tetrahydrocannabinol, commonly known as THC (“THC Products”). Chapter 342 also <br />establishes new regulations for the sale of lower-potency hemp products containing THC. The city enacted a <br />moratorium on THC products that has now expired. <br />The new law establishes that the sale of cannabis and THC containing products are still subject to local <br />planning and zoning restrictions and must comply with local zoning code. The new law provides no guidance <br />on how cities are to zone the new businesses, leaving it to local control. <br />Pursuant to Minn. Stat. § 342.13(e), a unit of local government may adopt an interim ordinance to protect <br />the planning process and the health, safety, and welfare of its citizens. Prior to adopting the interim <br />ordinance, the governing body must hold a public hearing on the topic. The interim ordinance may <br />regulate, restrict, or prohibit the operation of any cannabis business within the local government’s <br />jurisdiction until January 1, 2025 <br />A moratorium on this new type of business will allow staff time to develop potential parameters and <br />recommendations for future text amendments to the City Code regarding zoning including setbacks, district <br />requirements, and any licensing standards. It is anticipated the new state agency, the Office of Cannabis <br />Management, will provide some guidance for municipal guidance for regulations and licensing programs. <br />3.Staff Recommendation. Staff recommends approval of an interim ordinance prohibiting the <br />operation of Cannabis Businesses. <br />COUNCIL ACTION REQUESTED <br />1. Hold a public hearing for the property Interim Ordinance. <br />2.Motion to approve an interim ordinance prohibiting the operation of cannabis businesses-Ordinance <br />285, Third Series. <br />Exhibits <br />A. Ordinance 285, Third Series. <br />Item No.: 13 Date: November 27, 2023 <br />Item Description: An Interim Ordinance Prohibiting the Operation of Cannabis <br />Businesses- Ordinance 285, Third Series. <br />Presenter: Laura Oakden <br />Community Development Director <br />Agenda <br />Section: <br />Public Hearing <br />Orono City Council | Monday, November 27, 2023 | Page 73 of 79