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B. THE COUNCIL CAN ADOPT BUSINESS REGULATIONS GOVERNING <br />CANNABIS SALES <br />PROS: Business regulation can govern existing cannabis vendors and all future cannabis sales. <br />CONS: Business regulation cannot completely ban cannabis sales. <br />NOTE: If the Council desires to regulate cannabis sales, we suggest that the initial version of <br />business regulations should strictly control cannabis sales. The reason to start with strict <br />controls is because it is easier to lighten the controls over time than to do the opposite. It <br />can be an illegal "taking" if a City adopts `loose' business regulations but later imposes <br />stricter regulation. <br />C. SUGGESTIONS FOR `INTERIM' CANNABIS REGULATIONS: <br />City to issue a license to sell cannabis products. <br />Limit cannabis sales to bars with liquor licenses. <br />o Sales can only be conducted by trained individuals, or people who follow strict <br />guidelines. <br />o For each sale, the Seller must: <br />■ Receive a State -issued ID from the Buyer. <br />Record the identifying information from the Buyer (Name, D.O.B., etc. <br />Seller must use a commercially available verification system which <br />verifies the ID. <br />■ The cannabis product must leave the business premises in a child -proof <br />package. <br />o For cannabis product held for sale: <br />■ All cannabis products must be certified for sale in the State of Minnesota. <br />• (i.e., Product weight, product portion size, individual servings, <br />THC concentration, etc.) <br />■ All packaging and labeling must be approved by the City or the Police <br />Department for sale in the City. <br />o Violations of these rules are a civil infraction to the licensee and a criminal <br />misdemeanor to the person who commits a violation of the City sales ordinance. <br />■ Notably, some violations for illegal cannabis sales or possession can be a <br />felony. <br />Currently, the Liquor Control Board believes that most liquor stores do not qualify to sell <br />cannabis products. <br />Since this product can intoxicate the user, the City may not want tobacco shops to sell <br />cannabis. Alternatively, tobacco shop may be an appropriate business for cannabis sale <br />because they already have a system in place to verify the age of a buyer. <br />2 <br />