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CITY COUNCIL <br />AGENDA ITEM 4A <br />STAFF ORIGINATOR: John Swenson, Public Safety Director <br />MEETING DATE: August 22, 2022 <br />TOPIC: Consider Approval of Ordinance No. 02-22, Enacting an Interim <br />Ordinance Creating a Moratorium on the Sale, Testing, <br />Manufacture and Distribution of THC Products Within the City of <br />Lino Lakes. <br />VOTE REQUIRED: 3/5 <br />INTRODUCTION <br />The City Council is being asked to approve Ordinance No. 02-22 enacting an interim ordinance <br />which would temporarily prohibit the sale, testing, manufacturing and distribution of THC <br />products within the City of Lino Lakes as authorized in Minnesota Statute 462.355, Subd 4. <br />BACKGROUND <br />During the 2022 Minnesota Legislative Session, Minnesota Statute 151.72 was changed <br />regarding the sale of certain cannabinoid (CBD) products. This law took effect on July 1, 2022. <br />The new law amends the scope of sale of any product that contains cannabinoids extracted from <br />hemp and that is an edible cannabinoid product or is intended for human or animal consumption. <br />Previously adopted MN law authorized a product containing non -intoxicating cannabinoids to be <br />sold, but the authority to sell edible CBD products was unclear. The new law expands the <br />authority to include non -intoxicating cannabinoids, including edible cannabinoid products, <br />provided they do not contain more than 0.3% of any THC. An edible cannabinoid product also <br />cannot exceed more than five milligrams of any THC in a single serving, or more than a total of <br />50 milligrams of any THC per package. <br />Given the significances of this law change and the lack of stakeholder involvement in the <br />legislative process resulting in this law change, staff has not had an opportunity to properly <br />research this topic, gather stakeholder input, and develop potential licensing or zoning <br />requirements; therefore, staff recommends placing a temporary moratorium on the sale, testing, <br />manufacturing, and distribution of THC products for no more than one year. This will enable <br />staff to completely examine all issues related the recently enacted law change. <br />RECOMMENDATION <br />Staff recommends approval of the Ordinance 02-22 enacting an interim ordinance which has the <br />effect of creating a moratorium on the sale, testing, manufacturing, and distribution of THC <br />products in the City of Lino Lakes. <br />