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Based on the guidance available to date, the city’s role in licensing and regulation of THC products will be <br />distinct from the role in Cannabis products. Both classifications of products appear to be allowed to be sold in <br />municipal liquor operations. More particulars will be made available as staff receives additional, specific <br />guidance in the coming weeks and months. <br />THC Moratorium <br />Now that the legislative session has ended with no new or modified legislation relating to THC products, the <br />City’s existing moratorium set to expire in late July can be revisited with clarity. The Council has the option to <br />extend the moratorium for up to an additional 18 months if desired. This can also include a discussion on the <br />Council’s desire to put a moratorium in place for Cannabis products. <br />Product Availability at the Municipal Liquor Stores <br />Municipal liquor operations can be a good fit for controlling the sale as the proper procedures in place to <br />effectively include THC beverages and/or Cannabis products as part of our mission statement of controlling the <br />sale while simultaneously generating revenue. We may also be at a competitive disadvantage if we elect not to <br />sell these items. <br />•There is a robust market for these product right now. The future of sales is unpredictable but that is true <br />for many new products that are introduced to the market. Customer demand is high (no pun intended) <br />right now and we are fielding many calls and visits asking if we are carrying these items currently. <br />•The City and our Stores have the appropriate personnel policies and procedures in place to deal with the <br />legalization of these beverages. <br />•The MMBA, is researching ways to increase or modify our server training knowledge to accommodate <br />controlling the sale of these products, and identifying THC intoxicated consumers. While our current <br />level of training is adequate for the time being, the MMBA is working with other markets in the USA to <br />learn from their experiences retailing THC beverages. <br />To date, we have a number of unanswered questions such as; The League of Minnesota Cities recommendation <br />on stocking these products, liability insurance, limitations of payment processors to allow payments through <br />their systems, among others. These would all need to be carefully examined before knowing definitively if these <br />products can or should be on municipal store shelves. <br />DISCUSSION ITEMS FOR COUNCIL FEEDBACK <br />Below are the specific items for discussion and feedback for the City Council: <br />Does the Council feel controlling the sale of THC and Cannabis falls under the City’s mission? <br />If so, what is the desired level of regulation? <br />Based on the above positions: <br />What is the Council’s position on having THC products for sale at the liquor stores? <br />If comfortable, what is the Council’s position on having THC products for sale in the liquor stores while a <br />moratorium is in place for private businesses? <br />What is the Councils position on having Cannabis products for sale at the liquor stores? <br />Any other aspects of the issue the Council wishes to discuss? <br />NEXT STEPS <br />Staff will utilize the City Council feedback from this discussion to determine what steps the liquor operation <br />should take regarding inventory, and planning/administration will work on ordinance language regarding THC <br />and Cannabis; including addressing the existing moratorium. <br />Future work session discussions will be scheduled to discuss this topic and proposed ordinance language.