06-20-23-WS - Laserfiche WebLink

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PRESENTATION ITEM— 5E ,'iAZEN HILLS MEMORANDUM DATE: June 20, 2023 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Julie Hanson, Assistant to the City Administrator/City Clerk SUBJECT: THC Moratorium and Cannabis Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A For Council Consideration Council should consider providing direction regarding the City's current THC moratorium, which expires on August 22, 2023. Background At a special worksession on August 8, 2022, the City Council discussed the July 2022 change in state law that allowed for the sale of THC products (see Attachment A). Based on that discussion, Council had directed staff to prepare, with the City Attorney's guidance, a moratorium for consideration at its next regular meeting (see Attachments B and C). Ordinance 2022-006 was adopted by the City Council on August 22, 2022 that provided for an interim ordinance prohibiting the sale, testing, manufacturing, and distribution within the City of products containing THC and businesses were notified. The moratorium is set to expire on August 22, 2023. While recent state law has changed relating to adult use marijuana/cannabis that will impact the city from a registration and zoning standpoint, in the short term the City Council must address the current moratorium as it relates to THC products. As of May 31, 2023, under new State law lower-potency THC hemp products in the form of edibles or beverages could be sold anywhere in the city, including exclusive liquor stores. While the city cannot regulate where the lower-potency products can be sold, all establishments that sell lower-potency edible hemp products containing THC, CBD or both must register with the State of Minnesota by October 1, 2023. The following explains lower-potency edible cannabinoid products (per the Minnesota Department of Health): Page 1 of 3