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SCC Item 3.a. Joint Powers Agreement for Cannabis Licensing and Regulations1 Adam Flaherty From:Greg T. Kryzer <Greg.Kryzer@co.wright.mn.us> Sent:Monday, July 17, 2023 12:25 PM To:Lee Kelly; Commissioners; Sean Deringer; Matthew Treichler; Shawna H. Athman; Annita Smythe; Brian Lutes; Adam Nafstad; jhendrickson@ci.albertville.mn.us; alawrence@clearwatercity.com; Brad Potter; charju@cokato.mn.us; Phil Kern; hschrupp@delano.mn.us; jennifern@ci.hanover.mn.us; chrisk@ci.hanover.mn.us; renee.eckerly@ci.maple-lake.mn.us; lynn.kissock@ci.maple-lake.mn.us; Rachel Leonard; lloyd.hilgart@ci.monticello.mn.us; jbonniwell@montrose-mn.com; kmoynagh@montrose-mn.com; Adam Flaherty; Jessica Stockamp; Dan Madsen; reneeh@cityofrockford.org; sohavenc@windstream.net; norm.bodeker@yahoo.com; Steven Bot; keithw@stmichaelmn.gov; Connie Holmes; Connie Holmes; waverlymn@gmail.com; Kelly Hinnenkamp; Taylor Gronau; Nick Haggenmiller Cc:Marc Mattice; Clay T. Wilfahrt; John V. Holler; Caitlin E. Chovan; Jeanne M. Holland; shrupcake@gmail.com; Darek J. Vetsch; Nadine M. Schoen; Sue Ferbuyt; Tina Diedrick; David Paradeise; Sabrina Hille; Lee R. Martie; Jami Goodrum; Sarah L. Grosshuesch; Jon Young Subject:Proposed Cannabis Joint Power Agreement Attachments:PROPOSED JOINT POWERS AGREEMENT.docx Dear City Administrators – The County Attorney’s Office along with the Sheriff’s Office and the Public Health Division in the Health and Human Services Department has been reviewing and discussing the implications of the recent legalization of cannabis in Minnesota. I am writing to you at the request of the County Board to let you know the County is willing to partner with you on Cannabis enforcement. The cannabis legislation was drafted in such a way that the County can only exercise enforcement over cannabis if your municipality provides consent. As we proceed down the route of cannabis becoming legal in Minnesota the County is interested in finding out which local jurisdictions are interested in partnering with the County and providing their consent. To that extent attached is a proposed joint powers agreement (JPA) which would permit the County to enforce and regulate cannabis in your municipality. One thing I want to point out with this JPA is that the County will assume the full cost of enforcement and will not seek any reimbursement from the Cities. With that said the County will keep any fees from license holders but the Cities will retain any Local Cannabis Government Aid allocated to them. Aside from the permitted setbacks which could be adopted under the cannabis legislation, the County has no interest in superseding any local zoning regulations. The Cities would still retain all their authority under Minn. Chapter 462. Our Office along with Public Health would anticipate this new area of regulation to look very similar to the County’s regulation of tobacco products. We would appreciate if you could review the attached JPA and let the County know in the next month if your city councils are interested in consenting to the County regulating cannabis in your municipality. As always, please feel free to email or call if you have any questions or concerns. Respectfully yours, SCC Item 3.a. 2 Greg T. Kryzer • Civil Division Chief WRIGHT COUNTY, MINNESOTA: ATTORNEY'S OFFICE direct: 763-682-7344 • fax: (763) 682-7700 Justice Center, 3700 Braddock Ave NE, Room 2100, Buffalo, MN 55313 www.co.wright.mn.us NOTICE: This E-mail (including attachments) is covered by the Electronic Communications Privacy Act, 18 U.S.C. 2510-2521. This E- mail may be confidential and may be legally privileged. If you are not the intended recipient, you are hereby notified that any retention, dissemination, distribution, or copying of this communication is strictly prohibited. Please reply back to the sender that you have received this message in error, then delete it. Thank you. 1 JOINT POWERS AGREEMENT BETWEEN THE COUNTY OF WRIGHT AND [INSERT CITY OR TOWN] FOR THE ENFORCEMENT AND REGULATION OF CANNABIS This agreement is made between the County of Wright and the [INSERT CITY OR TOWN] for administration and regulation of cannabis as regulated under Minnesota Chapter 342 and the rules and regulations promulgated thereunder. This agreement is authorized by Minnesota Statutes § 342.22, subdivision 1 and Minn. Stat. § 471.59. The County of Wright and the [INSERT CITY OR TOWN] agree that: 1. The County of Wright will act in place of the [INSERT CITY OR TOWN] as the local government unit for the regulation and enforcement of cannabis under Minnesota Chapter 342 and any rules or regulations adopted under Minnesota Chapter 342 by the State of Minnesota or the Office of Cannabis Management. 2. The County of Wright is authorized to adopt, administer, and enforce within the jurisdictional limits of [INSERT CITY OR TOWN] any ordinances, laws, regulations, or registration requirements concerning cannabis including, but not limited to, the adoption of a moratorium. 3. The County of Wright is authorized and has the consent of the [INSERT CITY OR TOWN] to register and enforce all registration requirements under Minnesota Statute §342.22. Any fees or penalties collected for registration and enforcement will remain entirely with the County of Wright. The parties will retain any Local Government Cannabis Aid allocated to them by the State of Minnesota. 4. The County of Wright will annually provide sufficient funding for the administration, enforcement and registration of the possession, sale and use of cannabis within the jurisdiction limits of [INSERT CITY OR TOWN]. Source of funds shall be through State grant funds, County cannabis aid funds, general revenue funds and the collection of fees and penalties as established by the County of Wright. 5. The [INSERT NAME OF CITY OR TOWN] shall retain all authority granted to it under Minnesota Chapter 462. 6. Any ordinance adopted by the County of Wright with regards to cannabis shall be construed to supersede any local municipal regulation or ordinance to the extent the local municipal regulation is less restrictive. Where the 2 conditions imposed by any ordinance provision are either more restrictive or less restrictive than comparable conditions imposed by any other law, ordinance, statute, resolution or regulation of any kind, the regulations which are more restrictive, or which impose higher standards or requirements shall prevail. 7. The parties to this agreement will be subject to and follow the terms of the Minnesota Government Data Practice Act as provided under Minnesota Statutes Chapter 13 for all requests for access to data. The County of Wright shall maintain all records, accounts and reports for the regulation and registration of cannabis. 8. The County of Wright shall account for any funds and the County of Wright shall provide a report of all receipts and disbursements upon request. If any surplus property or funds are obtained through this joint powers agreement they shall be distributed to the County of Wright in the event this agreement is terminated. 9. Wright County shall be solely responsible for the compensation of its employees and elected members, including specifically but not exclusively worker’s compensation insurance and all taxes, while performing their duties under this agreement. [INSERT NAME OF CITY OR TOWN] shall be solely responsible for the compensation of its employees and elected members, including specifically but not exclusively worker’s compensation insurance and all taxes, while performing their duties under this agreement. No employee of Wright County shall become an employee of [INSERT NAME OF CITY OR TOWN], and no employee of [INSERT NAME OF CITY OR TOWN] shall become an employee of Wright County, by virtue of this agreement. 10. All responsibilities not specifically set out to be jointly exercised by the Parties under this Agreement are hereby reserved to the Parties individually. Nothing in this Agreement shall act as a waiver by a participating Party of its individual power and legal authority to provide services. 11. Indemnification and Hold Harmless: To the full extent permitted by law, actions by the Parties pursuant to this Agreement are intended to be and shall be construed as a “cooperative activity” and it is the intent of the Parties that they shall be deemed a “single governmental unit” for the purpose of liability, as set forth in Minnesota Statutes, Section 471.59, subd. 1a(a); provided further that for purposes of that statute, each Party to this Agreement expressly declines responsibility for the acts or omissions of the other Party. 3 The Parties of this Agreement are not liable for the acts or omissions of the other participants to this Agreement except to the extent to which they have agreed in writing to be responsible for acts or omissions of the other Parties. This agreement may be amended by mutual agreement of the County of Wright and the [INSERT NAME OF CITY OR TOWN]by resolutions of their respective boards. This agreement shall become effective upon signature of all duly authorized signatures, and shall remain in effect until terminated by agreement of the parties or thirty days after written notice of termination by either party. _________________________________________ __________________ County of Wright Date Board Chair _________________________________________ __________________ [INSERT NAME OF CITY OR TOWN] Date [Mayor or Town Board Chair]