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The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community <br />engagement that encourages and inspires prosperity <br /> <br /> <br />Request for Action <br /> <br />To <br />City Council <br />Item Number <br />10.5 <br /> <br />Meeting Date <br />November 18, 2024 <br />Prepared By <br />Tina Allard, City Clerk <br /> <br />Item Description <br />Cannabis and Hemp Registration Ordinance <br />Reviewed by <br />Zack Carlton <br />Cal Portner <br /> <br />Action Requested <br />Review the draft ordinance and provide feedback. <br /> <br />Background/Discussion <br />The State Office of Cannabis Management (OCM) will begin issuing various types of cannabis and hemp <br />licenses in early 2025. While the city's role is limited in regulation, we can create reasonable regulations <br />regarding time, manner, and place for business operations. The city is required to issue a retail registration for <br />state licensed hemp and cannabis retailers after verifying the following: <br />▪ The business has a valid license or license pre-approval issued by OCM. <br />▪ The business has paid a registration fee or renewal fee to the city. <br />▪ The business is found to be in compliance with Chapter 342 and local ordinances, including zoning. <br />▪ The business is current on all property taxes and assessments for the proposed retail location. <br /> <br />Registration Fees <br />Imposing fees is optional. It should be noted staff will be responsible for the registration and zoning <br />certification process to determine compliance with ordinances. There may also be some fire and building code <br />compliance items. We will be required to perform annual compliance checks at least once per year. <br />Compliance checks typically involve law enforcement personnel in partnership with the county health and <br />human services division. It is recommended to capture the maximum amount of fees allowed by state law. <br />The city is prohibited from charging an additional application fee. <br /> <br />Here are the maximum fees the city could charge for initial registration and renewal fees. Collection of fees <br />by the state are shown as well. <br /> <br />Business City Initial Fee <br />(max allowed) <br />State Initial Fee City Renewal Fee <br />(max allowed) <br />State Renewal <br />Fee <br />Low Potency Hemp Retailer $125 $250 $125 $250 <br />Cannabis Retailer $500 $2,500 $1,000 $5,000 <br />Page 194 of 204