Loading...
HomeMy WebLinkAbout#16 - Cannibis Products MoratoriumSTAFF REPORT DATE: 08/16/2022 TO: City Council FROM: Julie Johnson, City Clerk AGENDA ITEM: Cannibis Products Moratorium REVIEWED BY: Kristina Handt, City Administrator INTRODUCTION: The Minnesota Legislature recently enacted a new law allowing the sale of certain edible and beverage products infused with tetrahydrocannabinol (THC). Some cities have enacted a temporary moratorium banning sale of these products while the city drafts an ordinance regulating these products. ISSUE BEFORE THE CITY COUNCIL: Should the City consider a moratorium on the sale of cannabis products to allow time for an ordinance amendment to be drafted regulating the sale of THC products through zoning and/or licensing? DETAILS/ANALYSIS: The new law expands the authority to include nonintoxicating cannabinoids, including edible cannabinoid products, provided they do not contain more than 0.3% of any THC. An edible cannabinoid product also cannot exceed more than five milligrams of any THC in a single serving, or more than a total of 50 milligrams of any THC per package. The new law does not restrict where these products can be sold, but state liquor licensing laws would prohibit sale of these products at a liquor store. A memo from the City Attorney regarding regulation of THC edibles along with a draft ordinance imposing a moratorium in Lake Elmo and ordinances enacted by other Minnesota communities are attached. Imposing a moratorium would allow time for staff to research issues such licensing, enforcement, license fees and restrictions such as only allowing sales to occur in certain zoning districts. FISCAL IMPACT: Potential licensing fees for sale of THC products. ATTACHMENTS: • July 15, 2022 Memo from Kennedy & Graven • Draft Moratorium Ordinance 2022-13 • City of Edina Interim Ordinance • City of Robbinsdale Interim Ordinance • City of Stillwater Interim Ordinance • City of White Bear Lake Interim Ordinance CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA ORDINANCE 2022-13 AN INTERIM ORDINANCE IMPOSING A MORATORIUM ON THE SALE OF CANNABIS PRODUCTS AND AUTHORIZING STUDIES REGARDING SUCH PRODUCTS THE CITY OF LAKE ELMO ORDAINS: Section 1. Legislative Findings and Authority (A) There is a great deal of uncertainty regarding the effect of Minnesota Laws 2022, Chapter 98 amending Minnesota Statutes, section 151.72 (the “Act”) to allow the sale of edible cannabinoid products (“Cannabis Products”). (B) Because the proposal to allow the sale of Cannabis Products received little publicity until the Act went into effect on July 1, 2022, the City of Lake Elmo did not have an opportunity to study and consider the potential impacts of the Act or to engage in policy discussions regarding the potential regulation of the sale of Cannabis Products in the City. (C) The Act authorizes the Minnesota Board of Pharmacy to enforce the Act, but the Act does not provide for any licensing of businesses that manufacture Cannabis Products or of businesses that sell Cannabis Products and is also silent regarding the enactment of local regulations related to Cannabis Products. (D) The Act does not expressly prohibit or limit local regulations, but the regulations established in the Act clearly do not constitute the Legislature having occupied the field of regulation regarding the sale of Cannabis Products. (E) The City Council finds the uncertainties associated with the sale of Cannabis Products, as well as the options of local regulation, strongly suggests the need for a study to develop information the City Council may use related to potential regulation of the sale of Cannabis Products through the adoption of licensing and zoning controls. (F) Pursuant to Minnesota Statutes, section 462.355, subdivision 4(a), the City Council is authorized to adopt an interim ordinance “to regulate, restrict, or prohibit any use . . . within the jurisdiction or a portion thereof for a period not to exceed one year from the date it is effective.” (G) The City Council is also authorized as part of its general police powers to adopt business licensing requirements related to the sale of Cannabis Products. (H) The Minnesota Supreme Court in Almquist v. Town of Marshan, 245 N.W.2d 819 (Minn. 1976) upheld the enactment of a moratorium despite the lack of express statutory authority as being a power inherent in a broad grant of power to municipalities. The enactment of business licensing requirements is based on a city’s police powers, which is the broadest grant of power to cities. Inherent in that broad grant of authority is the power to place a temporary moratorium on a business to study and potentially implement licensing regulations on that business. (I) There are both licensing and zoning issues associated with the sale of Cannabis Products. The City Council determines that it needs time to study the matter and to consider the development and adoption of appropriate local regulations. To protect the planning process and the health, safety, and welfare of the residents while the City conducts its study and the City Council engages in policy discussions regarding possible regulations, the City Council determines it is in the best interests of the City to impose a temporary moratorium on the sale of Cannabis Products. Section 2. Definitions. For the purposes of this Ordinance, the following words, terms, and phrases shall have the meanings given them in this section. (A) “Act” means 2022 Minnesota Session Laws, Chapter 98 (H.F. No. 4065), amending Minnesota Statutes, section 151.72. (B) “Cannabis Products” means Edible Cannabinoid Product and any other product regulated by the Act. (C) “Edible Cannabinoid Product” has the same meaning given the term in Minnesota Statutes, section 151.72, subdivision 1(c). Section 3. Study. The City Council authorizes and directs the city administrator to conduct a study regarding Cannabis Products and provide a report to the City Council on the potential regulations relating to the sale of such products. The report shall include recommendations on whether the City Council should adopt regulations and, if so, the recommended types of regulations. The study shall consider, but is not limited to, the following: (A) The potential impacts of the sale of Cannabis Products within the City; (B) Licensing the sale of Cannabis Products and related regulations; and (C) Zoning regulations related to the sale and distribution of Cannabis Products. Section 4. Moratorium. A moratorium is imposed within the City regarding the sale of Cannabis Products. No business, person, or entity may sell Cannabis Products to the public within the jurisdictional boundaries of the City during the period that this Ordinance is in effect. The City shall not accept, process, or act on any application, site plan, building permit, or zoning or other approval for a business proposing to engage in the sale of Cannabis Products during the period that this Ordinance is in effect. Section 5. Exceptions. The moratorium imposed by this Ordinance does not apply to the sale of medical cannabis or hemp products that were lawful to sell prior to the effective date of the Act. Section 6. Enforcement. Violation of this Ordinance is a misdemeanor. In addition, the City may enforce this Ordinance by mandamus, injunction, or other appropriate civil remedy in any court of competent jurisdiction. Section 7. Severability. Every section, provision, and part of this Ordinance is declared severable from every other section, provision, and part of this Ordinance. If any section, provision, or part of this Ordinance is held to be invalid by a court of competent jurisdiction, such judgment shall not invalidate any other section, provision, or part of this Ordinance. Section 8. Effective Date and Term. This Ordinance shall take effect and be in full force from and after its adoption and publication, as provided by law. This Ordinance shall remain in effect for one year after its effective date, or until the City Council expressly repeals it or until the effective date of an ordinance amending the City Code to address Cannabis Products, whichever occurs first. SECTION 9. Adoption Date. This Ordinance 2022-13 was adopted on this 16th day of August, 2022, by a vote of ___Ayes and ___ Nays. LAKE ELMO CITY COUNCIL ____________________________ Charles Cadenhead, Mayor Attest: ________________________ Julie Johnson, City Clerk 222594v1 ORDINANCE NO. 2022-06 AN INTERIM ORDINANCE PROHIBITING THE SALE, TESTING, MANUFACTUR ING, AND DISTRIBUTION OF THC PRODUCTS NOW, THEREFORE , the City Council of the City of Edina does ordain: SECTION 1.BACKGROUND. 1.By enacting 2022 Session Law Chapter 98,Article 13,the Minnesota Legislature amended Minn.Stat.§151.72 and permitted the sale of edible and nonedible cannabinoid products that contain no more than 0.3 %of Tetrahydrocannabinol, commonly known as THC (“THC Products”). 2.The new law does enact some requirements for labeling and testing,but the law provides no parameters regulating production,compliance checks,or sales of THC Products. The new law does not prohibit local regulation. 3.Pursuant to Minn.Stat.§462.355,subd.4,the City is authorized to enact by ordinance a moratorium to regulate,restrict or prohibit any use within the jurisdiction to protect the public health,safety,and welfare.Specifically,the City is authorized to enact a moratorium ordinance to allow it to undertake a study to determine whether to adopt any regulations or restrictions,including siting and location of uses,related to the sales, testing, manufacturing, and distribution of THC Products. 4.Pursuant to its general police powers,including but not limited to,Minn. Stat. § 421.221,subd.32,the City may enact and enforce regulations or restrictions on THC Products within the City to protect the public safety,health,and welfare, including restrictions and a moratorium on the use of sales,testing,manufacturing, and distribution,during the pendency of a study to determine the need for police power regulations, including but not necessarily limited to licensing and permitting. SECTION 2.FINDINGS. 1.The City Council finds there is a need to study THC Products and uses and businesses related thereto,in order to assess the necessity for and efficacy of regulation and restrictions relating to the sales,testing,manufacturing,and distribution of THC Products,including through licensing or zoning ordinances,in order to protect the public health, safety, and welfares of its residents. 2.The study will allow the City Council to determine the appropriate changes,if any, that that it should make to City ordinances. 3.The City Council,therefore,finds that there is a need to adopt a City-wide moratorium of the sale,testing,manufacturing,and distribution of THC Products within the City while City staff studies the issue. SECTION 3. MORATORIUM . 1.No individual,establishment,organization,or business may sell,test,manufacture, or distribute THC Products for twelve (12)months from the effective date of this ordinance. 222594v1 2.The City shall not issue any license or permit related to THC Products or twelve (12) months from the effective date of this ordinance.No license or permit application,of any kind,by any individual,establishment,organization,or businesses involved in the proposed sale,testing,manufacturing,or distribution of THC Products within the City of Edina shall be accepted or considered for twelve (12)months from the effective date of this ordinance. 3.Planning or zoning applications related to THC Products or applications from individuals,establishments,organizations,or businesses involved in the proposed sale,testing,manufacturing,or distribution of THC Products within the City of Edina shall not be accepted or considered for twelve (12)months from the effective date of this ordinance. SECTION 4.STUDY.The City Council directs City staff to study the need for local regulation regarding the sale,testing,manufacturing,or distribution of THC Products within the City of Edina.Staff must also study the need for creating or amending zoning ordinances,licensing ordinances,or any other ordinances to protect the citizens of Edina from any potential negative impacts of THC Products.Upon completion of the study,the City Council,together with such commission as the City Council deems appropriate,or as may be required by law,will consider the advisability of adopting new ordinances or amending its current ordinances. SECTION 5.ENFORCEMENT.The City may enforce this Ordinance by mandamus, injunctive relief,or other appropriate civil remedy in any court of competent jurisdiction.The City Council hereby authorizes the City Manager,in consultation with the City Attorney,to initiate any legal action deemed necessary to secure compliance with this Ordinance.A violation of this Ordinance is also subject to the City’s general penalty in City Code § Sec. 1-18 subd. (b). SECTION 6.TERM.Unless earlier rescinded by the City Council,the moratorium established under this Ordinance shall remain in effect until twelve (12)months from its effective date,at which point, it will automatically expire. SECTION 7.EFFECTIVE DATE.This Ordinance shall be in full force and effect from and after its passage by the City Council. This ordinance is effective upon adoption. First reading: July 19, 2022 Second reading: August 3, 2022 ATTEST: _______________________________________________________________ Sharon Allison, City Clerk James B. Hovland, Mayor Please publish in the Edina Sun Current on: Send two affidavits of publication Bill to Edina City Clerk ORDINANCE NO. _______ CITY OF STILLWATER WASHINGTON COUNTY, MINNESOTA AN INTERIM ORDINANCE PROHIBITING ACCEPTANCE OR CONSIDERATION OF APPLICATIONS FOR NEW CANNABIS AND CANNABIDIOL SALES, TESTING, MANUFACTURING AND DISTRIBUTION FOR ONE YEAR WHEREAS, many cities have adopted interim ordinances or regulations on aspects of planning and zoning regulations to study their impacts and determine whether the regulations are appropriate in order to protect the public health, safety and welfare of their citizens; and WHEREAS, the City is undertaking a study to effectuate changes to the Zoning Ordinance and City Code that would regulate the sales, testing, manufacturing and distribution of cannabis and cannabidiol (CBD) for medical, recreational and other purposes and may implement many of the suggestions from the study. NOW, THEREFORE, pursuant to Minnesota Statutes, Section 462.355 subdivision 4, the City Council of Stillwater does ordain: SECTION 1. No applications related to the license, use, development, variances, conditional use permits or any other planning or licensing applications that involves the sales, testing, manufacturing or distribution of cannabis, medical or recreational, in any way, and cannabidiol products shall be accepted or considered for twelve (12) months from the effective date of this ordinance or until ordinances regulating such uses become effective, whichever occurs first. SECTION 2. City Staff is directed to conduct a study to gather information and make a recommendation to determine how the Zoning Ordinance and City Code need to be amended regarding this use to better protect the citizens of Stillwater. SECTION 3. SUMMARY PUBLICATION. Pursuant to Minnesota Statutes Section 412.191, in the case of a lengthy ordinance, a summary may be published. While a copy of the entire ordinance is available without cost at the office of the City Clerk, the following summary is approved by the City Council and shall be published in lieu of publishing the entire ordinance: The City will be undergoing a study regarding CBD and cannabis uses. No zoning or licensing applications will be accepted until the City adopts regulations regarding these uses, or for a period of one year, whichever occurs first.  SECTION 4. EFFECTIVE DATE AND EXPIRATION DATE. This ordinance shall be in full force and effect from and after its passage and publication according to law and shall expire upon adoption of ordinances regulating such uses or 12 months from its effective date, whichever comes first. Approved this ____________day of __________________, 2021. Ted Kozlowski, Mayor ATTEST: Beth Wolf, City Clerk