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CITY OF HUGO, <br />COUNTY OF WASHINGTON <br /> <br />ORDINANCE NO. 2024-___ <br /> <br />AN INTERIM ORDINANCE PROHIBITING THE SALE, TESTING, MANUFACTUR1NG, 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 /> <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 /> <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 /> <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 /> <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 /> <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 /> <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 /> <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 /> <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 /> <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 /> <br />11. Pursuant to Minn. Stat. § 462.355, subd. 4, the City is authorized to enact by ordinance a