3.3 Cannabis JPA
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration City Administrator/Finance Director Flaherty August 26, 2024
PRESENTER(s) REVIEWED BY: ITEM #:
Consent City Attorney Kendall 3.3 – Cannabis JPA
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
X Is a strong organization that is committed to leading the community through innovative communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and expectations in a
cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending that the City Council approve a Joint Powers Agreement.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
Yes No
BACKGROUND/JUSTIFICATION:
The State of Minnesota has established Minnesota Statute §342, Cannabis, which includes 82 sections within. Amongst
many other cannabis related topics, legalizes the sale of cannabis products through retail locations.
Statute §342.22 outlines local registration and enforcement for cannabis retail operations. Subd. 1 requires that a retailer
must register with the City in which the retail establishment is located, or this registration can be issued through the
County upon municipal consent to issue the registration for the City.
Wright County has developed a Joint Powers Agreement for administration and regulation of cannabis under Minnesota
Statute §342. Under this agreement, Wright County would act on the City’s behalf to administer and enforce all
registration requirements, and to complete necessary compliance checks outlined in Statute §342.22. In exchange for the
respective services provided by Wright County, they would retain any registration fees ($500 per license), renewal fees
($1,000 per license), and penalties collected.
The City would retain any local government cannabis aid allocated by the State. The City would retain all authority
granted to it under Minnesota Statute §462, which is for zoning ordinances pertaining to time, place, and manner
regulations. These regulations will be incorporated into the City’s Zoning Ordinance subject to review by the Planning
Commission and approval of the City Council.
The Administrative Subcommittee was presented with this information at their August 14, 2024, meeting and provided
direction for City Council consideration of approval.
SUPPORTING DOCUMENTS ATTACHED:
• Joint Powers Agreement
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve a Joint Powers Agreement between Wright County and the City of Otsego for the enforcement and
regulation of cannabis.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
N/A
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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 City of Otsego
(the City) 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 City agree that:
1. The County of Wright will act in place of the City 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 the City 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 City 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 the City. 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 City 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
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
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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. The City 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 the City, and no employee of the City 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.
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
City by resolutions of their respective boards.
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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
_________________________________________ __________________
City of Otsego Date
Mayor