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CITY OF HUGO, <br /> COUNTY OF WASHINGTON <br /> ORDINANCE NO.2024-532 <br /> AN INTERIM ORDINANCE PROHIBITING THE SALE,TESTING,MANUFACTURING,AND <br /> DISTRIBUTION OF CANNABINOID 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 regulating the sale of"edible cannabinoid products"that contain no more <br /> than 0.3 %of Tetrahydrocannabinol,commonly known as THC ("THC Products") <br /> 2. On August 15, 2022, The City of Hugo adopted an interim ordinance prohibiting the sale, <br /> testing and manufacturing of edible cannabinoid products, and is set to expire on August 15, <br /> 2023. <br /> 3. By enacting 2023 Session Law though HF100 and SF73, Chapter 63, the Minnesota <br /> Legislature has newly defined and redefined types of intoxicating and non-intoxicating <br /> cannabis and hemp products. <br /> 4. The Act expands the types of legal products and now includes cannabinoid products,cannabis <br /> products,lower-potency hemp edibles, and edible cannabis products,among other things. <br /> 5. The Act provides a regulatory framework for the sale, and manufacturing of cannabis and <br /> hemp products and for the licensing of cannabis and hemp businesses, and establishes a State <br /> Agency now called the"Office of Cannabis Management"(OCM). <br /> 6. The Act directs the OCM to research and study cannabis and hemp, make rules, establish <br /> policy,and exercise regulatory authority over cannabis and hemp businesses. <br /> 7. Section 343.13 of the Act allows a local unit of government to "adopt reasonable restrictions <br /> on the time, place, and manner of the operation of a "cannabis business," including limiting <br /> the number of licenses, and mandating registration and compliance checks. It further allows a <br /> local unit of government to enact an interim ordinance that"may regulate,restrict, or prohibit <br /> the operation of a cannabis business within the jurisdiction or a portion thereof until January <br /> 1,2025." <br /> 8. Section 343.22 of the Act requires local units of government to provide for registration and <br /> compliance checks for low-potency hemp products, and does not specifically prohibit local <br /> control of lower-potency hemp edibles. <br /> 9. The Act requires the OCM to create a regulatory framework for cannabis and hemp products <br /> and directs the OCM to draft model ordinances for local units of government to establish <br /> certain zoning and other regulations related to cannabis products. The Act further requires <br /> the OCM to develop standardized forms for retail registration and compliance checks by local <br /> units of government of cannabis businesses and lower-potency hemp businesses. <br /> 10. The City will benefit from an understanding of the OCM's regulations, rules, model <br /> ordinances, forms, registration procedures, and guidance for compliance checks before <br /> making decisions related to cannabis and lower-potency hemp businesses. <br /> 11. Pursuant to Minn. Stat. § 462.355, subd. 4, the City is authorized to enact by ordinance a <br />