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City Council Regular Meeting Minutes July 25, 2023 Page 4 2 Motion carried 4-0. 3 4 B. Ordinance 2023-03 Regulating the Sale and Distribution of Hemn-Based Cannabinoid 5 Products. 6 7 City Planner Steve Grittman reviewed the proposed ordinance for the regulation of commercial 8 sales of THC/Hemp products (or "cannabinoids"). The information reflect the discussion held by 9 the Council at the first reading. The ordinance is essentially the same as that presented during the 10 first reading, with updates to internal language and references noted by Council. 11 12 The moratorium ordinance related to THC/Hemp products expires on July 26, 2023. Because the 13 moratorium expires a day after the Council's second reading, the Council may wish to exercise 14 its authority to waive the third reading if desired, to avoid a gap between the expiration of the 15 moratorium and adoption of the ordinance. 16 17 Mayor Stille noted the Planning Commission suggested one of the reasons for not providing the 18 license if there was a conviction for illegal selling of cannabis products and they questioned why 19 not expanding that to other illicit drugs. Mr. Grittman stated with discussions with the City 20 Manager they felt the existing language was most appropriate. 21 22 Motion by Councilmember Jenson, seconded by Councilmember Walker, to approve Second 23 Reading of Ordinance 2023-03 Regulating the Sale and Distribution of Hemp -Based 24 Cannabinoid Products, waiving Third Reading and adopting the ordinance. 25 26 Motion carried 4-0. 27 28 Mayor Stille stated at the last meeting the cannabinoid issue was discussed but Council was not 29 able to move forward on a moratorium due to timing. Mr. Grittman clarified it is the cannabis 30 material that the League of Minnesota Cities has advised Cities to adopt a moratorium to avoid 31 the establishment of a cannabis related business that could last until 1-1-2025 but because there 32 is no state office yet, no one can get a license yet. A public hearing would need to be held and it 33 is planned for the first meeting in August. 34 35 C. Resolution 23-040 — Approving Summary Publication of Ordinance 2023-03 36 37 City Manager Charlie Yunker reviewed the resolution before the Council is for approving a 38 Summary Publication for Ordinance 2023-03. 39 40 Motion by Councilmember Randle, seconded by Councilmember Walker, to approve Resolution 41 23-040 — Approving Summary Publication of Ordinance 2023-03. 42 43 Motion carried 4-0. 44 45 D. Liquor Operations Mid -Year Report. 46