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REQUEST FOR COUNCIL ACTION Date: January 23, 2023 Item No.: 10.b Department Approval City Manager Approval Item Description: Approval of 2 Tetrahydrocannabinol (THC) Licenses. 1 B ACKGROUND 2 Chapter 3 of the City Code requires all applications for business and other licenses to be submitted to the 3 City Council for approval. The following applications are submitted for consideration: 4 5 Tetrahydrocannabinol (THC) Products License 6 Roseville Smoke Shop Inc. dba Discount Smoke Shop 7 2113 Snelling Ave N 8 Roseville, MN 55113 9 10 Roseville Smoke Shop Inc. 11 1732 Lexington Ave N 12 Roseville, MN 55113 13 14 Roseville Smoke Shop Inc. have submitted application materials for a Tetrahydrocannabinol (THC) License 15 at each of their two locations. Chapter 316 of the City Code permits a maximum of 8 Tetrahydrocannabinol 16 Products Licenses within the city. If approved, the total number oflicenses issued will be 2. 17 18 P OLICY O BJECTIVE 19 Required by City Code 20 B UDGET I MPLICATIONS 21 The correct fees were paid to the City at the time the application was made. 22 R ACIAL E QUITY I MPACT S UMMARY 23 Most of the data surrounding the racial equity impact for businesses is based on data specifically associated 24 with legalizing recreational marijuana. Although the legislature legalized recreational cannabis edibles for 25 adults (containing a maximum of 5mg of THC derived from hemp), recreational marijuana is still illegal in 26 Minnesota. However, according to a surveyconducted by Marijuana Business Daily, 80% of marijuana 27 business owners and founders identify as White. Only 5.7% are Hispanic or Latino and 4.3% are Black. Some 28 point to the controversial history of marijuana prohibition, and the industry’s current legal complexities that 29 disproportionately hurt marginalize communities. Black Americans are roughly 3.6 times more likely than 30 Whites to be arrested for marijuana charges according to the ACLU. This can lead to barriers to 31 entrepreneurship such as difficulty securing loans or grants or traditional lending, as well as access to other 32 capital. 33 S TAFF R ECOMMENDATION 34 Staff has reviewed the application(s) and has determined that the applicant(s) meet all City requirements. 35 Staff recommends approval of the license(s), subject to a successful background investigation.