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Page 1 of 2 <br />AGENDA ITEM – 1B <br />MEMORANDUM <br />DATE: August 8, 2022 <br />TO: Honorable Mayor and City Councilmembers <br />Dave Perrault, City Administrator <br />FROM: Julie Hanson, Assistant to the City Administrator/City Clerk <br />SUBJECT: THC Edibles Discussion <br />Budgeted Amount: Actual Amount: Funding Source: <br />N/A N/A N/A <br />For Council Consideration <br />Council should consider providing direction on whether or not it wants to update the City’s <br />ordinance to address the recent law allowing for certain tetrahydrocannabinol (THC) edible <br />products. <br />Background <br />A new law (Minn. Stat. Section 151.72) was enacted effective July 1, 2022 making it legal to sell <br />certain edibles and beverages infused with THC, the cannabis ingredient extracted from hemp for <br />human or animal consumption. This law provides for the sale of non-intoxicating cannabinoids, <br />including edible products, provided they do not contain more than 0.3% of any THC. An edible <br />cannabinoid product also cannot exceed more than five milligrams of any THC in a single serving, <br />or more than a total of 50 milligrams of any THC per package. <br />This new law does not limit where edible cannabinoids products can be sold with the exception of <br />exclusive liquor stores. Minn. Stat. 340A.412, subd.14 limits exclusive liquor stores’ ability to sell <br />certain products. Based on this, the Alcohol and Gambling Enforcement Division (AGED) has <br />confirmed with the League of Minnesota Cities (LMC) that products containing CBD, hemp, or <br />THC are not allowed for sale at an exclusive liquor store. This means any business in Arden Hills, <br />with the exception of Cub Discount Liquor, legally can sell THC products right now. <br />While cities cannot prohibit the sale of edible cannabinoids entirely, they can adopt certain <br />regulations and/or create a new license for sale of these products, similar to tobacco and other <br />business licenses. It is important to note that should a city wish to require a license for the sale of <br />THC products, the LMC recommends that this license be completely separate from tobacco as the <br />regulations are quite different and unique to each. The LMC does also provide for various <br />considerations when drafting regulations for licensing such as the areas where the products can be