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CITY OF HUGO,
<br />COUNTY OF WASHINGTON
<br />ORDINANCE NO.2022-515
<br />AN INTERIM ORDINANCE PROHIBITING THE SALE, TESTING, MANUFACTURING, AND
<br />DISTRIBUTION OF THC PRODUCTS
<br />NOW, THEREFORE, the City Council of the City of Hugo does ordain: SECTION 1.
<br />BACKGROUND.
<br />1. By enacting 2022 Session Law Chapter 98, Article 13, the Minnesota Legislature amended
<br />Minn. Stat. § 151.72 and permitted the sale of edible and nonedible cannabinoid products that
<br />contain no more than 0.3 % of Tetrahydrocannabinol, commonly known as THC ("THC
<br />Products").
<br />2. The new law does enact some requirements for labeling and testing, but the law provides no
<br />parameters regulating production, compliance checks, or sales of THC Products. The new
<br />law does not prohibit local regulation.
<br />3. Pursuant to Minn. Stat. § 462.355, subd. 4, the City is authorized to enact by ordinance a
<br />moratorium to regulate, restrict or prohibit any use within the jurisdiction to protect the public
<br />health, safety, and welfare. Specifically, the City is authorized to enact a moratorium
<br />ordinance to allow it to undertake a study to determine whether to adopt any regulations or
<br />restrictions, including siting and location of uses, related to the sales, testing, manufacturing,
<br />and distribution of THC Products.
<br />4. Pursuant to its general police powers, including but not limited to, Minn. Stat. §
<br />421.221, subd. 32, the City may enact and enforce regulations or restrictions on THC
<br />Products within the City to protect the public safety, health, and welfare, including
<br />restrictions and a moratorium on the use of sales, testing, manufacturing, and distribution,
<br />during the pendency of a study to determine the need for police power regulations, including
<br />but not necessarily limited to licensing and permitting.
<br />SECTION 2. FINDINGS.
<br />1. The City Council finds there is a need to study THC Products and uses and businesses related
<br />thereto, in order to assess the necessity for and efficacy of regulation and restrictions relating
<br />to the sales, testing, manufacturing, and distribution of THC Products, including through
<br />licensing or zoning ordinances, in order to protect the public health, safety, and welfares of its
<br />residents.
<br />2. The study will allow the City Council to determine the appropriate changes, if any, that that it
<br />should make to City ordinances.
<br />3. The City Council, therefore, finds that there is a need to adopt a City-wide moratorium of the
<br />sale, testing, manufacturing, and distribution of THC Products within the City while City staff
<br />studies the issue.
<br />SECTION 3. MORATORIUM.
<br />1. No individual, establishment, organization, or business may sell, test, manufacture,
<br />or distribute THC Products for twelve (12) months from the effective date of this
<br />ordinance.
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