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REQUEST FOR COUNCIL ACTION Date: January 23, 2023 Item No.: 7.c Department Approval City Manager Approval Item Description: Consider an ordinance rescinding Ordinance #1616 and lifting the moratorium on the sales of edibles and beverages infused with Tetrahydrocannabinol (THC) Products 1 B ACKGROUND 2 A new law (Minnestoa Statutes 151.72) was enacted at the end of the 2022 Minnesota legislative 3 session that allows certain edible and beverage products infused with tetrahydrocannabinol (THC) to 4 be sold. The new law expandedthe authoity to include nonintoxicating cannabinoids, including 5 edible cannabinoid products, provided they do not contain more than 0.3% of any THC. Local 6 governments are delegated authority from the state to protect the public health, safety and general 7 welfare of their residents. 8 9 On August 8, 2022, the Roseville City Council passed an ordinance implementing a moratorium on 10 the sale of edibles and beverages infused with THC determining finding that the moratorium was 11 was necessary to protect the planning process regarding regulation on the sale of THC products and 12 toprotect the health, welfare, and safety of its citizens. 13 14 On November 7, 2022, the City of Roseville adopted Ordinance No. 1621 establishing a licensing 15 process and other regulations for the sale of THC which made the moratorium no longer necessary. 16 Under the ordinance, it would expire after 365 days after passage and publication or unless lawfully 17 terminated or extended pursuant to state law. In order to officially end the THC sales moratorium, 18 the City Council is asked to approve an ordinance (Attachment B) to rescind Ordinance #1616 and 19 lift the moratorium on the sale of edibles and beverages infused with THC. 20 P OLICY OBJECTIVE 21 Local governments are delegated authority from the state to protect the public health, safety and 22 general welfare of their residents. Imposing and rescinding moratoriums are part of that authority. 23 B UDGET I MPLICATIONS 24 There is no direct budget impact on rescinding Ordinance #1616. A licensing framework for retail 25 sales of edibles and beverages infused with THC was passed by the Ciy Council on November 7, 26 2022. The new licesing framework will create revenue from license fees. 27 R ACIAL E QUITY I MPACT S UMMARY 28 Studies have shown that there are some communities that have experienced a disproportionate, 29 negative impact from cannabis regulation enforcement. For example, Black Americans are arrested 1 30 for cannbis offenses at a rate of nearly 4:1, compared to whites. With the creation of a legal 1 ACLU. (2020, April 17). A Tale of Two Countries: Racially Targed Arrests in the Era of Marijuana Reform. Retrieved from ACLU.org: https://www.aclu.org/news/criminal-law-reform/a-tale-of-two-countries-racially-targeted-arrests-in-the-era-of-marijuana-reform Page 1 of 2