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MEMORANDUM <br />To:St. Anthony Village City Council <br />From:Charlie Yunker, City Manager and Mike Larson, Liquor Operation Manager <br />Date:June 13, 2023 City Council Work Session <br />Request:City Regulation of THC & Cannabis Products and Availability in the Liquor Stores <br />BACKGROUND <br />In the 2022 Minnesota Session Laws, Chapter 98, Article 13, the Minnesota Legislature amended Minn. Stat. § <br />151.72 to allow the sale of certain cannabinoids derived from hemp, effective July 1, 2022 On July 26, 2022 the <br />City Council adopted a an interim ordinance temporarily prohibiting the use of any land, and prohibiting the City <br />from accepting any application, or issuing any City permit, for the sale of any edible cannabinoid products as <br />defined in Minn. Stat. § 151.72, as amended, or any related or similar activity, as a principal or accessory use <br />within any portion of the City of St. Anthony, Minnesota. <br />Part of the legislation passed in the 2023 Minnesota Session, HF 100 was signed into law on May 31, 2023 <br />legalizing adult-use cannabis. This included a provision for liquor stores to be legally allowed to sell all low <br />potency hemp derived THC products, which do not contain alcohol, effective upon signing the legislation. A <br />summary from the Minnesota Licensed Beverage Association (MLBA) describes: <br />For THC Products <br />All beverages can be sold from the customer accessible reach in coolers, floor displays or any place you <br />wish to put them. <br />All products that are not beverages must be sold from behind a counter or in a locked case. <br />All customers that are purchasing these products must show a proper and approved ID. <br />Retailers will be responsible for collecting a 10% sales tax on these new products plus local sales tax as <br />well. This will begin on July 1, 2023. <br />The legislation did not preempt any existing moratoriums that cities have in place. <br />Chapter 63 of the legislation legalizes adult-use cannabis and creates a statewide regulatory framework, as <br />summarized by the League of Minnesota Cities: <br />For Cannabis Products <br />Legalization of possession and home growth, decriminalization effective August 1, 2023.Can possess 2oz <br />in public, 2lbs at home, can grow 8 plants at home (4 mature) <br />Legal sales expected to begin by January 2025. <br />Cities may place an interim ordinance prohibiting cannabis businesses until January 1, 2025. <br />License limits – one for every 12,500 <br />Authorizes municipal dispensaries.