10-09-2024 Council Packet - Laserfiche WebLink

Home Browse Search

STAFF REPORT TO: Mayor Fischer and Members of the City Council FROM: Heidi Heller, City Clerk/HR Manager DATE: October 9, 2024 RE: Updated Ordinance 899, Adding New City Code Section 826 Cannabinoid Products ACTION TO BE CONSIDERED Adopt Ordinance 899, Cannabinoid Products. BACKGROUND In 2018, hemp and products of hemp were legalized in Minnesota. This was the beginning of many stores selling cannabidiol, or CBD, products. CBD is derived directly from the hemp plant, a cousin of marijuana, or manufactured in a laboratory. CBD does not contain THC and does not cause a high by itself. On July 1, 2022, Minnesota legalized edibles and beverages containing small amounts of hemp-derived THC. Delta-9-tetrahydrocannabinol (THC) is the main psychoactive molecule in the cannabis plant. When hemp was legalized, since there is no “high” from hemp or CBD, there was little concern from cities and no real reason to put any restrictions or licensing rules in place. Now that THC is legal and is a product that gives a “high”, many cities consider THC to be in the same category as tobacco and liquor and are requiring licensing for retail sales of THC products. The State of Minnesota requires businesses that sell hemp-derived cannabinoid products directly to consumers must register with the Minnesota Office of Cannabis Management. At the September 25, 2024 Council meeting, Ordinance 899 was discussed and the public hearing was held with no comments from the public. The Council had a few questions so action on the ordinance was postponed until staff could bring back additional information. Staff has updated the proposed ordinance with the following changes (highlighted in the ordinance): 1. Ch. 826.20n - Definitions and Interpretations: Added a definition for “Loosies” since that term is used in 826.45d 2. Ch. 826.25k – License: Updated “Consuming” to match what is allowed per Minn. § 151.72 3. Ch. 826.100 Violations, Suspension, Revocation, Fines: instead of referring to the city code chapter for administrative fines, this gives a clear list of each violation and the correlating fines and suspensions. This is the same way violations are listed in the tobacco chapter of the city code.