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<br />REQUEST FOR COUNCIL ACTION <br />Date: October 24, 2022 <br />Item No.:7.b <br />Department Approval City Manager Approval <br />Item Description: Discussion of Tetrahydrocannabinol (THC) Products Regulations <br />1 B ACKGROUND <br />2 A new law (Minnestoa Statutes 151.72) was enacted at the end of the 2022 Minnesota legislative <br />3 session that allows certain edible and beverage products infused with tetrahydrocannabinol (THC) to <br />4 be sold. The new law expands the authoity to include nonintoxicating cannabinoids, including edible <br />5 cannabinoid products, provided they do not contain more than 0.3% of any THC. Local governments <br />6 are delegated authority from the state to protect the public health, safety and general welfare of their <br />7 residents. <br />8 <br />9 In addition, the new law limits the saleof CBD and THC products to persons over the age of 21. The <br />10 sale of CBD and THC products to a person under the age of 21 is a misdemeanor-level crime which <br />11 is to be prosecuted by the county attorney where the offense took place. <br />12 <br />13 The City Council adopted a one year moratorium on August 8, 2022. Staff has been researching <br />14 other cities’ regulations, (Attachment C) and are requesting direction from Council on the following: <br />15 <br />16 Should there be parameters for where a license may be issued (Age-restricted tobaccostores, <br />17 grocery store, gas station, stand alone CBD/THC store..)? <br />18 Should there be a limit on the total number of licenses issued? <br />19 Should administrative fines be equal to tobacco and liquor violations? <br />20 <br />21 B UDGET I MPLICATIONS <br />22 There would be revenue from annual license fees. <br />23 <br />24 S TAFF R ECOMMENDATION <br />25 Discuss regulationsto include in a THC Product Sales Ordinance. <br />26 R EQUESTED C OUNCIL A CTION <br />27 Direct staff to prepare an ordinance based on the recommendations from this discussion, and to bring <br />28 the ordinance for review at a future meeting. <br />Prepared by: Katie Bruno., Deputy City Clerk <br />Attachments: A. Minutes from August 8, 2022 City Council Meeting <br />B. Minnesota Statute, 151.72 <br />C. Comparison to other cities <br />D. Letter from C. Moss, Hellmuth & Johnson <br />Page 1 of 1 <br /> <br />