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<br />REQUEST FOR COUNCIL ACTION <br />Date: November 7, 2022 <br />Item No.:7.a <br />Department Approval City Manager Approval <br />Item Description: Consider an ordinance adding Chapter 316 to the City Code, regulating <br />Tetrahydrocannabinol (THC) Products and approve a summary ordinance <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 At the October 24, 2022 City Council meeting Council directed staff to draft an ordinance regulating <br />10 the retail sale of THC products including: <br />11 <br />12 THC sales permitted in age-restricted retail establishments only. <br />13 Prohibiting sampling. <br />14 Annual license fee in-line with tobacco sales and off-sale liquor licenses. <br />15 Administrative penaltiesequivalent to liquor and tobacco. <br />16 B UDGET I MPLICATIONS <br />17 There would be revenue from annual license fees. <br />18 <br />19 S TAFF R ECOMMENDATION <br />20 Adopt the Ordinance provided in Attachment A. <br />21 R EQUESTED C OUNCIL A CTION <br />22 Adopt the Ordinance provided in Attachment A, and approve the ordinance summary as provided in <br />23 Attachment B. <br />Prepared by: Katie Bruno., Deputy City Clerk <br />Attachments: A. Ordinance <br /> B. Ordinance Summary <br /> C. Draft minutes from October 24, 2022 City Council meeting <br /> D. MN Statute 151.72 <br />Page 1 of 1 <br /> <br />