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Page 2 of 2 <br /> <br /> <br /> <br /> <br />sold, what business should be allowed to sell, the age of the person selling the product, location of <br />product within the retail establishment, pop up sales, online or delivery, hours, background checks, <br />age verification and limiting the number of establishments within a city. There is no guidance <br />provided for licensing fees; however, guidance states the fee “must approximate the direct and <br />indirect costs associated with issuing the license and policing the licensed activities” (per LMC <br />guidance). <br /> <br />Should the Council wish to not adopt additional regulations, the sale and production of these <br />products would be governed by the City’s existing zoning regulations. It is important to note the <br />new law does provide for enforcement of violations as a misdemeanor. <br /> <br />Staff has been keeping an eye on the information and guidance provided by the LMC as well as <br />staying apprised of what other metro cities may be doing, and right now it is a mix. <br /> <br />At this time, staff is requesting guidance from the City Council regarding this matter. City Council <br />may choose to do nothing at this time and instead wait and watch for further developments and <br />guidance form the LMC and other cities (some cities are continuing to watch the situation evolve, <br />some have chosen to pursue restrictions and some have chosen to impose a moratorium in order to <br />have more time to collect information (and the city must follow a certain procedure set forth in <br />Minn. Stat. Section 462.352, Subd. 4 for moratoriums)), or the Council may wish to move forward <br />with some type of regulation. <br /> <br />Another important factor of this topic relates to the City’s policies. It is important to note that this <br />new law will require updates to the City’s policy language pertaining to drug testing and drug-free <br />workplace. Because Federal law preempts state law related to CBD use, the LMC recommends that <br />cities continue to follow their current drug testing procedures related to CDL holders and enforce <br />prohibitions against any use of cannabis for CDL holders. For non-CDL drivers (such as seasonal <br />Public Works staff), the new law provides no allowance for an employee to use or be impaired by <br />cannabis while on duty. The LMC continues to research this aspect of the law and staff will bring <br />forward language modification in the future. <br /> <br />More comprehensive guidance information from the LMC, including FAQs, can be found at <br />https://www.lmc.org/resources/cities-and-regulation-of-edible-cannabinoid-products/ <br />Budget Impact <br /> <br />N/A <br /> <br />Attachment <br /> <br />N/A