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HomeMy WebLinkAbout2023-07-24 City Council Workshop PacketAGENDA MAPLEWOOD CITY COUNCIL MANAGER WORKSHOP 6:00 P.M. Monday, July 24, 2023 City Hall, Council Chambers A. CALL TO ORDER B. ROLL CALL C. APPROVAL OF AGENDA D. UNFINISHED BUSINESS None E. NEW BUSINESS 1. Cannabis Regulations F. ADJOURNMENT RULES OF CIVILITY FOR THE CITY COUNCIL, BOARDS, COMMISSIONS AND OUR COMMUNITY Following are rules of civility the City of Maplewood expects of everyone appearing at Council Meetings - elected officials, staff and citizens. It is hoped that by following these simple rules, everyone's opinions can be heard and understood in a reasonable manner. We appreciate the fact that when appearing at Council meetings, it is understood that everyone will follow these principles: Speak only for yourself, not for other council members or citizens - unless specifically tasked by your colleagues to speak for the group or for citizens in the form of a petition. Show respect during comments and/or discussions, listen actively and do not interrupt or talk amongst each other. Be respectful of the process, keeping order and decorum. Do not be critical of council members, staff or others in public. Be respectful of each other's time keeping remarks brief, to the point and non -repetitive. THIS PAGE IS INTENTIONALLY LEFT BLANK E1 CITY COUNCIL WORKSHOP STAFF REPORT Meeting Date July 24, 2023 REPORT TO: Melinda Coleman, City Manager REPORT FROM: Ron Batty, City Attorney PRESENTER: Ron Batty, City Attorney AGENDA ITEM: Cannabis Regulations Action Requested: ❑ Motion ✓ Discussion ❑ Public Hearing Form of Action: ❑ Resolution ❑ Ordinance ❑ Contract/Agreement ❑ Proclamation Policy Issue: The newly enacted legislation regarding the possession, use and sale of cannabis presents a number of policy questions for local governments. This memorandum is intended to prompt a discussion about such matters among the city council and staff. Recommended Action: After the presentation and discussion, direct staff regarding actions the city should take. Fiscal Impact: Is There a Fiscal Impact? ✓ No ❑ Yes, the true or estimated cost is $0.00 Financing source(s): ❑ Adopted Budget ❑ Budget Modification ❑ New Revenue Source ❑ Use of Reserves ❑ Other: n/a Strategic Plan Relevance: ❑ Community Inclusiveness ❑ Financial & Asset Mgmt ❑ Environmental Stewardship ❑ Integrated Communication ✓ Operational Effectiveness ❑ Targeted Redevelopment Background: The recently adopted cannabis legislation, codified in Minnesota Statutes, chapter 342, is a comprehensive statute which legalizes the use, possess and sale of certain cannabis products. While much of the legislation is technical, it also raises numerous policy implications for local governments. There are three related but distinct issues, which are discussed below. A. Sale of newly authorized cannabis products. The new cannabis legislation authorizes the possession and use of cannabis products starting August 1 although sales will not be permitted until cannabis businesses are licensed. The state will be Workshop Packet Page Number 1 of 3 E1 responsible for licensing cannabis businesses but much has to happen prior to the implementation of licensing. The Office of Cannabis Management (OCM) has technically been established but it needs to be staffed and operational. It needs to draft rules which, among other things, will hopefully clarify some of the ambiguities in the statute. OCM is also required to draft sample ordinances and policies for cities to adopt. Although the state will have primary responsibility, cities will have a limited role to play in regulating cannabis businesses. Cities are authorized to have reasonable time, place and manner restrictions but cannot prohibit the location of cannabis businesses in the community. Cities may restrict the location of businesses through zoning and may establish setbacks from other uses, including schools, day cares, areas of parks used by children such as playgrounds and athletic fields. Cities may restrict the hours of operation of businesses and limit the number of businesses within the community, subject to the statutory minimum of 1 per 12,500 population. Once the state issues a license, the city will be given notice and asked to comment on whether the location meets city requirements. Cities may register businesses and must then conduct compliance checks. Cities may also opt out of registration and avoid having to conduct compliance checks but then will not participate in the distribution of the tax imposed by the state on such businesses. Cities will also be able to suspend local registrations (not the license) and will need to establish procedures for that. Until the OCM is up and running and the above steps have been accomplished, it will be virtually impossible for a city to draft thoughtful ordinances to address these issues. The statute recognizes this and authorizes cities to adopt an interim ordinance establishing a moratorium. The moratorium can be in place until January 1, 2025. If cannabis products cannot legally be sold until the state issues licenses, why adopt a local moratorium? The advantage of a moratorium is to prevent getting caught by surprise by learning the state is ready to issue licenses sooner than expected and having to scramble to get ordinances in place. Since the city's response is likely to involve a zoning ordinance, at least in part, that will need to go through the planning commission and will take time to go into effect. A moratorium would help prevent the city from finding itself in that position. If the city council wishes to consider an interim ordinance to establish a moratorium on cannabis sales, it will need to hold a public hearing. The hearing could be held as soon as the next city council meeting on August 14. B. Regulation of edibles. Last year's legislation, codified as Minnesota Statutes, section 151.72, authorized the sale of what are known as edibles. The legislation was adopted at the last minute in 2022 and cities were caught off guard. It was not clear who had authority to regulate such sales and many cities, including Maplewood, adopted an interim ordinance establishing a moratorium on sales. The hope was that the legislature in 2023 would clarify matters and cities could adopt appropriate regulations in response. In fact, the legislature did very little this year to clarify how edibles may be regulated. Maplewood's moratorium expires at the end of August and cannot be extended. After the current moratorium expires, the sale of edibles becomes legal. The city has several options regarding what to do prior to the expiration of the moratorium, including the following: Do nothing. The state will take over licensing these products, which are called low -potency hemp products (LPHP) under the new legislation, and section 151.72 will be repealed effective March 1, 2025. It is not clear whether the state will start licensing LPHP on the same schedule as the newly approved cannabis products or sooner. If the city is not concerned about where sales will occur (and likely are already occurring), the city can do nothing and just let the moratorium lapse. 2. Prohibit all sales. The city could ban the sale of edibles. This would have the effect of preserving the status quo from a legal perspective, i.e., no location is legal, but raises the Workshop Packet Page Number 2 of 3 E1 enforcement question again. When the city adopted the moratorium last year it was clear there would be little effort to enforce it. The city would need to address the same issue again: ignore sales a while longer or start enforcing the ban. 3. Start licensing. Some cities did adopt a licensing program last year and they will likely decide to continue with it until the state takes over. Since Maplewood decided not to license edibles, the city would have to decide whether it is worth putting a licensing program in place now which will be pre-empted once the state takes over, likely in 12-18 months. 4. Adopt zoning or other ordinances. The city could adopt ordinances it wants in place when the moratorium expires in late August. That would likely take the form of zoning restrictions which prohibit or restrict sales in certain districts or establish setbacks from other uses. The reason for treating the sales of edibles differently than the sales of other cannabis products is that the sale of edibles will be legal as soon as the moratorium expires. Anyone selling after that time will have a non -conforming use argument if the city later puts zoning restrictions in place which affect them. That's not an argument that will be available with regard to the new products since the sale of those is not legal until the state starts licensing them. If the city wants to have any zoning or other restrictions in place when the moratorium expires, that needs to occur prior to expiration of the moratorium. Time is short since zoning ordinances need to go through the planning commission before consideration by the city council. C. Criminal penalties for use in public places. Nowhere in its 300+ pages does the new legislation make the use of cannabis products by adults illegal in public places. The clean indoor air act applies and would prohibit smoking or vaping anywhere such activities involving tobacco are prohibited but use in public is not otherwise restricted. That means cannabis could be used in public parks, sidewalks, streets, parking lots, etc. The statute recognizes this omission and specifically authorizes cities to make it a petty misdemeanor to use cannabis in public places so long as the definition of public places does not include a private home, another privately owned location unless the owner prohibits use or a place or event licensed for on -site use. If the city wants to be able to restrict use in public places, it would need to adopt an ordinance defining what constitutes a public place and making use a petty misdemeanor. Use will become legal on August 1 but such an ordinance could be adopted at any time because there's no non -conforming use aspect in this context Attachments: None Workshop Packet Page Number 3 of 3 For the permanent record: Meeting Date: 7/24/2023 Agenda Item El, Additional Attachment 7/24/23, 5:41 PM With marijuana legal soon, Minnesota ciries race to enact limits on using it in public I MinnPost MINNPOSTNonprofit, independent journalism. Supported by readers. Metro With marijuana legal soon, Minnesota cities race to enact limits on using it in public The Duluth City Council is scheduled to hear a proposal to ban marijuana smoking orvaping in city parks and along the Duluth Lakewalk. Detroit Lakes, Alexandria, Lakeville and West St. Paul are also considering limits. By Kyle Stokes I Staff Writer The new legal cannabis law makes it clear that smoking or vaping marijuana isn't allowed in a vehicle, on public transportation, or anywhere where a minor would inhale the smoke or vapor. Photo by Elsa Olofsson https://www.minnpost.com/metro/2O23/07/with-marijuana-legal-soon-mnnesota-ciries-race-to-enact-limits-on-using-it-in-public/ 1/7 For the permanent record: Meeting Date: 7/24/2023 Agenda Item E1, Additional Attachment 7/24/23, 5:41 PM With marijuana legal soon, Minnesota cities race to enact limits on using it in public I Minnpost 7 hours ago Once recreational marijuana becomes legal in Minnesota on Aug. 1, will you be able to smoke it in a local park? On a public sidewalk? On a city street? Close to the entrance of a bar or restaurant? The state's new cannabis -legalization law says you can — and just about a week before legalization, leaders of some cities who want tighter restrictions on marijuana use have been rushing to update their local codes. On Monday, the Duluth City Council is scheduled to hear a proposal to ban marijuana smoking or vaping in city parks and along the Duluth Lakewalk. The Detroit Lakes City Council will also vote Monday on a proposal to ban cannabis uses in almost all public places. City leaders in Alexandria, Lakeville and West St. Paul are considering similar steps, too. Duluth council member Arik Forsman said he called for the ordinance after reading MinnPost's reporting on the new law, which pointed out that Minnesota is set to become one of the rare states to allow newly legalized pot to be smoked or vaped in public — unless local governments specifically create rules against it. "I won't make a judgment on whether [the Legislature] should've gone further on defining the standard," said Forsman, "but I will say I think folks are surprised that this is the state of it, and also surprised that we have so little time to address it. The Aug.1 legal usage date's coming up. I think there's a lot of people scrambling, us included." Here's what the law does and does not say The Minnesota Clean Indoor Air Act already bans smoking or vaping marijuana in the same indoor public places where state law says people can't smoke tobacco products, including bars, restaurants, offices, stores and health clinics. Local governments can enact tighter restrictions — for example, banning smoking within 25 feet of a https://www.minnpost.com/metro/2O23/07/with-marijuana-legal-soon-mnnesota-cites-race-to-enact-limits-on-using-it-in-public/ 2/7 For the permanent record: Meeting Date: 7/24/2023 Agenda Item E1, Additional Attachment 7/24/23, 5:41 PM With marijuana legal soon, Minnesota ciries race to enact limits on using it in public I MinnPost building entrance, as Ramsey County does — and some of these ordinances may apply to smoking marijuana, too. Piggybacking off of these restrictions, the new legal cannabis law also makes clear that smoking or vaping marijuana isn't allowed in a vehicle, on public transportation, or anywhere where a minor would inhale the smoke or vapor. So that's where you can't smoke. The law also carves out spaces where you clearly can smoke: Local governments are barred from making cannabis use illegal in private residences, including the yard or patio; in private property not accessible to the public; or — eventually — at specially -licensed cannabis festivals. (There are a few exceptions around areas like rental properties.) Between those guardrails, local governments have leeway to regulate where you can and cannot consume marijuana products: The new law empowers local governments to make cannabis use "in public" a petty misdemeanor offense. Local governments have had to navigate changing messages. As recently as late June, guidance from the state's newly formed Office of Cannabis Management had advised that "smoking cannabis is prohibited anywhere smoking commercial tobacco is prohibited." The guidance has since been revised and now no longer says this. Spokesperson Peter Raeker said in an email that the Office of Cannabis Management "will continue to update guidance on a range of topics as we work to understand the complexities and intersections of this expansive new law." Raeker also noted state officials are working with city and county organizations "to determine the best way [the office] can support local government to develop local ordinances." These cities are considering cannabis use ordinances https://www.minnpost.com/metro/2O23/07/with-marijuana-legal-soon-mnnesota-ciries-race-to-enact-limits-on-using-it-in-public/ 3/7 For the permanent record: Meeting Date: 7/24/2023 Agenda Item E1, Additional Attachment 7/24/23, 5:41 PM With marijuana legal soon, Minnesota cities race to enact limits on using it in public I MinnPost • Duluth: Forsman supported marijuana legalization, but also noted that his city was also among the first in the state to pass an indoor tobacco smoking ban and has a "progressive" track record on the issue. Interestingly, his proposed cannabis ordinance opened a new can of worms: In drafting the legislation, city attorneys discovered Duluth's smoking ordinance didn't cover all of the locations officials assumed it did — so Forsman's proposal would also ban both marijuana and tobacco smoking and vaping in all city parks, as well as in the city -owned Wade Stadium, near transit shelters and within ioo feet of medical facilities. The proposal by Forsman and his co- authors — council members Terese Tomanek and Roz Randorf — will not apply to other public areas like sidewalks or streets. • Alexandria: A proposed ordinance would cover "any and all public places," specifying public beaches, piers and trails on a long list of areas where smoking, vaping and edibles would be off-limits. • Detroit Lakes: City council members didn't list places where marijuana use would be prohibited; the ordinance simply declares cannabis use unlawful "in public places anywhere in the city." Council members are scheduled to vote on final passage of the ordinance Monday. "It's very much like prohibiting the use of a can of beer on the beach. We have that in our ordinance," Detroit Lakes Alderman Wendy Spry said at a meeting earlier this month. "To me, it's mirroring that kind of approach." • Lakeville: A new draft ordinance would bar cannabis use on government -controlled property and on private property that is "regularly and frequently" open to the public. • West St. Paul: City council members will discuss the issue during an open work session, according to the West St. Paul Reader. (Does your city or county belong on this list, too? Let us know.) Minneapolis is still weighing its next steps, but for now, marijuana use in a city park is allowed. https://www.minnpost.com/metro/2O23/07/with-marijuana-legal-soon-mnnesota-cites-race-to-enact-limits-on-using-it-in-public/ 4/7 For the permanent record: Meeting Date: 7/24/2023 Agenda Item E1, Additional Attachment 7/24/23, 5:41 PM With marijuana legal soon, Minnesota ciries race to enact limits on using it in public I MinnPost Tobacco smoking and vaping is banned in Minneapolis parks, except for use in spiritual ceremonies. Until late last week, the Minneapolis Parks & Recreation Board's website had mirrored the state guidance that the tobacco policy would carry over to cannabis use as well. But the Park Board's changed after the state guidance changed, spokesperson Dawn Sommers said. For now, there is no ordinance covering cannabis use in Minneapolis parks and rec centers. "We too are still trying to understand the legislation passed and the plans of other park systems, particularly in the metro area," Sommers said. Meanwhile, officials with the City of Minneapolis — who would be in charge of legislating use on a public sidewalk or street — say their regulatory work is "primarily geared" toward laying the groundwork for retail cannabis businesses, said spokesperson Sarah McKenzie. The city will eventually be responsible for issuing "local registrations and conducting compliance checks." To the east, the anti -smoking ordinance Ramsey County leaders enacted last year specifically bans marijuana smoking or vaping on county property — including county -controlled parks, trails, golf courses, playgrounds and pools. It also bans smoking or vaping within 25 feet of building entrances, exits, windows and ventilation intakes. In a related area, state law allows for local governments to enact "time, place and manner" limits on operating cannabis businesses — for example, restrictions against opening a dispensary within a certain distance of a school or park. The law also allows cities to enact a temporary moratorium on opening a cannabis business until it crafts these regulations. Several cities are considering or have already enacted ordinances that would temporarily bar cannabis businesses from opening, including Lakeville, Rochester, Hopkins, West St. Paul and Carver. https://www.minnpost.com/metro/2O23/07/with-marijuana-legal-soon-mnnesota-ciries-race-to-enact-limits-on-using-it-in-public/ 5/7 For the permanent record: Meeting Date: 7/24/2023 Agenda Item E1, Additional Attachment 7/24/23, 5:41 PM With marijuana legal soon, Minnesota ciries race to enact limits on using it in public I MinnPost However, state law says these moratoria can only last until Jan.1, 2025, and the League of Minnesota Cities has issued a legal opinion that says the moratoria wouldn't apply to hemp businesses. Editor's note: This story has been updated to clarify details of the Duluth City Council's proposed ordinance. Kyle Stokes Kyle Stokes is MinnPost's Twin Cities beat reporter, covering everything from local government to housing to transit. He can be reached by email at kstokes@minnpost.com or on Twitter @cystokes. Show comments or leave a comment Thanks to our major sponsors O T T O BREMER T R U S T BlueCross *'* g BlueShield Minnesota GREAT 19 RIVER ENERGY. Additional thanks to our top philanthropic supporters. is a 501(c)(3) nonprofi newsroom https://www.minnpost.com/metro/2O23/07/with-marijuana-legal-soon-minnesota-ciries-race-to-enact-limits-on-using-it-in-public/ 6/7 For the permanent record: Meeting Date: 7/24/2023 Agenda Item E1, Additional Attachment https://www.minnpost.com/metro/2023/07/with-marijuana-legal-soon-minnesota-ciries-race-to-enact-limits-on-using-it-in-public/ 7/7