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moratorium on the sale of full strength products until January 1, 2025 in order to allow further review and future discussions as the new law continues to be interpreted. The Office of Cannabis Management (OCM) is still taking shape and they will license retailers. Cities will be required to register local adult cannabis retailers and conduct compliance checks. Eventually, the OCM will have sample language and forms to provide to cities. The City Council directed city staff at their work session on July 17, 2023, to work with the City Attorney's Office to prepare the ordinance language for a moratorium prohibiting the sale of Adult Use Cannabis products as allowed under the state law. Staff anticipates this discussion will be reviewed by the City Council at their second regular meeting in August. For this discussion, the City Council is being asked to review and consider ordinance language as it relates solely to lower -potency THC products. 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. Without any changes to the city code after August 22, 2023, a business could begin selling lower -potency hemp products as part of their retail operations. The following explains lower -potency edible cannabinoid products (per the Minnesota Department of Health): • Beverages can have up to 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. o Each serving must be scored, wrapped, or another indicator which clearly distinguishes each serving. o 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. Page 2 of 6