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• Beverages must have a maximum of 5 mg delta-9 THC per serving and the container cannot contain more than 2 servings, with 10 mg total THC. • If it is an edible, the package of edibles cannot contain more than 5 mg delta-8 or delta-9 THC per serving and 50 mg total THC. • Each serving must be scored, wrapped, or another indicator which clearly distinguishes each serving. • The edible products cannot contain synthetic cannabinoids or artificially derived cannabinoids (other than delta-8 or delta-9 THC). • Edibles must be in a child-resistant, tamper-evident, and opaque package or container. The product cannot contain any ingredient not approved by the U.S. Food and Drug Administration (FDA) for use in food. • The product cannot be a commercially available candy or snack food item where CBD or hemp-THC has been applied to or added. • The product must not be packaged in a container that includes a statement, artwork, or design that could reasonably mislead any person to believe that the package contains anything other than an edible cannabinoid product. • The product cannot be contaminated or have more than trace amounts of mold, residual solvents or other catalysts from processing,pesticides, fertilizers, or heavy metals. Batch testing of the product by an accredited lab must be completed to ensure the product is safe for consumption. • Products containing nonintoxicating cannabinoids intended to be smoked or vaped are not allowed in Minnesota. Nonintoxicating cannabinoid means substances extracted from certified hemp plants that do not produce intoxicating effects when consumed by any route of administration. • Edible cannabinoid products must not be in a shape that bears the likeness or contain cartoon-like characteristics of real or fictional person, animal, or fruit that appeals to children. • All edible cannabinoid products must be displayed behind a checkout counter where the general public is not permitted or in a locked case, with the exception of beverages. With the current moratorium expiring on August 22, 2023, staff is requesting Council provide direction in order to give staff to prepare for any necessary licensing or other regulations. Options to consider include the following: • Letting the current moratorium expire on August 22, 2023. The new law requires sellers of lower-potency hemp products (edible cannabinoid products) to register with the State of Minnesota by Oct. 1, 2023. This would mean that until the Office of Cannabis Management begins issuing licenses, all businesses, including the city's exclusive liquor store and any business holding an on-sale liquor license, can sell the edible cannabinoid products. The City could implement a license regarding the sale of THC products (currently this would be classified as a "retail"license for $53.00); however, this would only be applicable through December 31, 2023, following that date we can no longer license THC sales as it will be done by the State. • Enacting a new moratorium for both THC edibles and adult use cannabis products. The new law gives cities the ability to adopt a new moratorium that provides for both edible THC cannabinoid products as well as adult use cannabis that could be in effect through January 1, 2025. A public hearing must be held should Council decide to go this direction. Page 2 of 3