09-25-2024 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: September 25, 2024 RE: Ordinance 899, Adding New City Code Section 826 Cannabinoid Products ACTION TO BE CONSIDERED Hold a public hearing and 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. In August 2023, Minnesota legalized cannabis, with the anticipated date of January 2025 for retail sales and manufacturing to begin. 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. There are currently four businesses in Little Canada registered, but there could be others selling THC products that have not registered. At the May 8, 2024 Workshop, Council discussed adding annual licensing requirements for businesses that sell cannabinoid (THC) products. After discussion there was Council consensus to require an annual city business license for retail sales of cannabinoid products, not have any restrictions on locations or a minimum distance from certain uses such as schools or parks, and limit the number of licenses issued to eight (8). Staff has drafted Ordinance 899 which adds new Section 826, Cannabinoid Products, to the city code. The license period would be January 1 – December 31 each year and staff is proposing an annual license fee of $300. Staff published a public hearing notice in the Pioneer Press and notified the four registered businesses and a few other businesses that could potentially be selling THC products of the proposed change to add a licensing requirement. Staff has received two responses from Little Canada businesses, and neither were against this proposal.