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Memorandum To:Mayor Webster & City Council Members From:Richard Sonterre, City Code Official Re:Amendment to Section 117.16 – Sale of Cannabinoids Derived From Hemp Date:Council Worksession - January 14, 2025 ------------------------------------------------------------------------------------------------------------------------------------- Background: In November 2024 staff began consideration as to the need to make modifications to the established language within Section 117.16 in order to be better prepared to address growing changes and trends within the newly created cannabis and hemp industries, as product types grow and distribution opportunities expand. Moreover, staff believed that the existing language may cause industries that meet current licensing qualifications to be eliminated in the future and changes now would secure these industries within the marketplace. Proposed Amended Language (underlined only): 117.16 SALES OF CANNABINOIDS DERIVED FROM HEMP(G) Eligible licensed establishments. Only the following establishments shall be eligible to apply for or receive a license from the city for the sales of products subject to this section in one of three four (4) categories: (1) City-licensed off-sale retail liquor establishments. This category of license is limited to municipal liquor retail locations. The sale and licensing of edible cannabinoid - beverage products (both solid and beverages) in such establishments shall be subject to the regulations of this section, as well as to all of the same requirements of the liquor license and city codes regulating such licensing, including Chapter 116; (2) City and County licensed food and beverage establishments. This category of license is limited to businesses which sell food and beverages and are licensed to sell food and beverages at the time of adoption of this ordinance. The on and off sale licensing of edible cannabinoid - beverage products (both solid and beverages) in such establishments shall be subject to the regulations of this section, as well as to all of the same requirements of the liquor license and city codes regulating such licensing, including Chapter 116; and (3) City-licensed on-sale retail liquor establishments. The sale and licensing of edible cannabinoid products - beverages, as an accessory use, and expressly excluding solids. Such establishments shall be subject to the regulations of this section, as well as to all of the same requirements of the liquor license and city codes regulating such licensing, including Chapter 116; and (4) City-licensed tobacco retail establishments, limited to the sale of edible cannabinoid products. Solids as defined herein as an accessory use, and expressly excluding beverages. The sale and licensing of THC-infused products in such establishments shall be subject to the regulations of this section, as well as to all of the same requirements of the tobacco license and city codes regulating such licensing, including §§ 115.001 through 115.012. 41