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HomeMy WebLinkAbout2024.08.05 ORD 2024-532 Moratorium on Cannabinoid Products CITY OF HUGO, COUNTY OF WASHINGTON ORDINANCE NO.2024-532 AN INTERIM ORDINANCE PROHIBITING THE SALE,TESTING,MANUFACTURING,AND DISTRIBUTION OF CANNABINOID PRODUCTS NOW,THEREFORE,the City Council of the City of Hugo does ordain: SECTION 1. BACKGROUND. 1. By enacting 2022 Session Law Chapter 98, Article 13, the Minnesota Legislature amended Minn. Stat. §151.72 regulating the sale of"edible cannabinoid products"that contain no more than 0.3 %of Tetrahydrocannabinol,commonly known as THC ("THC Products") 2. On August 15, 2022, The City of Hugo adopted an interim ordinance prohibiting the sale, testing and manufacturing of edible cannabinoid products, and is set to expire on August 15, 2023. 3. By enacting 2023 Session Law though HF100 and SF73, Chapter 63, the Minnesota Legislature has newly defined and redefined types of intoxicating and non-intoxicating cannabis and hemp products. 4. The Act expands the types of legal products and now includes cannabinoid products,cannabis products,lower-potency hemp edibles, and edible cannabis products,among other things. 5. The Act provides a regulatory framework for the sale, and manufacturing of cannabis and hemp products and for the licensing of cannabis and hemp businesses, and establishes a State Agency now called the"Office of Cannabis Management"(OCM). 6. The Act directs the OCM to research and study cannabis and hemp, make rules, establish policy,and exercise regulatory authority over cannabis and hemp businesses. 7. Section 343.13 of the Act allows a local unit of government to "adopt reasonable restrictions on the time, place, and manner of the operation of a "cannabis business," including limiting the number of licenses, and mandating registration and compliance checks. It further allows a local unit of government to enact an interim ordinance that"may regulate,restrict, or prohibit the operation of a cannabis business within the jurisdiction or a portion thereof until January 1,2025." 8. Section 343.22 of the Act requires local units of government to provide for registration and compliance checks for low-potency hemp products, and does not specifically prohibit local control of lower-potency hemp edibles. 9. The Act requires the OCM to create a regulatory framework for cannabis and hemp products and directs the OCM to draft model ordinances for local units of government to establish certain zoning and other regulations related to cannabis products. The Act further requires the OCM to develop standardized forms for retail registration and compliance checks by local units of government of cannabis businesses and lower-potency hemp businesses. 10. The City will benefit from an understanding of the OCM's regulations, rules, model ordinances, forms, registration procedures, and guidance for compliance checks before making decisions related to cannabis and lower-potency hemp businesses. 11. Pursuant to Minn. Stat. § 462.355, subd. 4, the City is authorized to enact by ordinance a moratorium to regulate,restrict or prohibit any use within the jurisdiction to protect the public health, safety, and welfare. Specifically, the City is authorized to enact a moratorium ordinance to allow it to undertake a study to determine whether to adopt any regulations or restrictions, including siting and location of uses, related to the sales, testing, manufacturing, and distribution of cannabis and lower-potency hemp products. 12. Section 343.13 of the Act allows a city to adopt an interim ordinance relating to regulation of cannabis businesses until January 1,2025. This provision only relates to cannabis businesses, and does not include the ability to study lower-potency hemp products, even though the new Act regulates such products, creates the OCM to administer regulations, and requires certain functions for a city including registration and compliance checks and other matters. 13.Pursuant to its general police powers, including but not limited to, Minn. Stat. § 421.221, subd. 32,the City may enact and enforce regulations or restrictions on both cannabis and lower-potency hemp products within the City to protect the public safety, health, and welfare, including restrictions and a moratorium on the use of sales, testing, manufacturing, and distribution, during the pendency of a study to determine the need for police power regulations,including but not necessarily limited to licensing and permitting. 14.The Act specifically allows for the immediate sale of"edible cannabis products"at exclusive on-sale liquor stores. The definition of "edible cannabis products" in the Act, excludes "lower-potency hemp edibles." "Edible cannabis products" are now permitted for sale in the City only in exclusive liquor stores. 15. The City Council adopted Ordinance No. 2023-527 on July 10, 2023, placing a twelve (12) month moratorium on the sale, testing, manufacturing, and distribution of cannabinoid products within the City that expired on July 10,2024. SECTION 2.FINDINGS. 1. The City Council finds there is a need to study cannabinoid products, which includes cannabis products and lower-potency hemp products including uses and businesses related thereto, in order to assess the necessity for and efficacy of regulation and restrictions relating to the sales, testing, manufacturing, and distribution of cannabinoid products, including through licensing or zoning ordinances, in order to protect the public health, safety, and welfares of its residents. 2. The study will allow the City Council to determine the appropriate changes,if any,that that it should make to City ordinances. 3. The City Council,therefore, finds that there is a need to adopt a City-wide moratorium of the sale, testing, manufacturing, and distribution of cannabinoid products within the City while City staff studies the issue. SECTION 3.MORATORIUM. 1. No individual, establishment, organization, or business may sell, test, manufacture, or distribute cannabinoid products from the effective date of this ordinance until January 1, 2025. 2. The City shall not issue any license or permit related to cannabinoid products from the effective date of this ordinance until January 1,2025.No license or permit application,of any kind, by any individual, establishment, organization, or businesses involved in the proposed sale, testing, manufacturing, or distribution of cannabinoid products within the City of Hugo shall be accepted or considered from the effective date of this ordinance until January 1, 2025. 3. Planning or zoning applications related to cannabinoid products or applications from individuals, establishments, organizations, or businesses involved in the proposed sale, testing, manufacturing, or distribution of cannabinoid products within the City of Hugo shall not be accepted or considered from the effective date of this ordinance until January 1,2025. 4. This moratorium does not apply to the sale of edible cannabinoid products as defined in section 151.72, subdivision 1,paragraph(f)in exclusive liquor stores. SECTION 4. STUDY. The City Council directs City staff to study the need for local regulation regarding the sale, testing, manufacturing, or distribution of cannabinoid products within the City of Hugo. Staff must also study the need for creating or amending zoning ordinances, licensing ordinances, or any other ordinances to protect the citizens of Hugo from any potential negative impacts of cannabinoid products. Upon completion of the study,the City Council,together with such commission as the City Council deems appropriate, or as may be required by law, will consider the advisability of adopting new ordinances or amending its current ordinances. SECTION 5. ENFORCEMENT. The City may enforce this Ordinance by mandamus, injunctive relief, or other appropriate civil remedy in any court of competent jurisdiction. The City Council hereby authorizes the City Manager, in consultation with the City Attorney, to initiate any legal action deemed necessary to secure compliance with this Ordinance. A violation of this Ordinance is also subject to the City's general penalty in City Code § Sec. 1 -18 subd. (b). SECTION 6. TERM. Unless earlier rescinded by the City Council, the moratorium established under this Ordinance shall remain in effect from its effective date until January 1, 2025, at which point, it will automatically expire. SECTION 7. EFFECTIVE DATE. This Ordinance shall be in full force and effect from and after its passage by the City Council. This ordinance is effective upon adoption. ADOPTED by the City Council this 5t'day of August om Weidt,Mayor ATTEST: khe-le Lindau, City Clerk SUMMARY ORDINANCE 2024-532 NOTICE: THIS PUBLISHED MATERIAL IS ONLY A SUMMARY OF AN ORDINANCE OF THE CODE OF ORDINANCES FOR THE CITY OF HUGO. THE FULL TEXT OF THE ORDINANCE IS AVAILABLE FOR PUBLIC INSPECTION AT THE HUGO CITY HALL DURING REGULAR BUSINESS HOURS. SUMMARY OF AN INTERIM ORDINANCE PROHIBITING THE SALE,TESTING, MANUFACTURING,AND DISTRIBUTION OF CANNABINOID PRODUCTS. During the 2023 Legislative Session, a law was enacted that provides a regulatory framework for the sale and manufacturing of cannabis and hemp products, and for the licensing of cannabis and hemp businesses, and establishes a State Agency now called the"Office of Cannabis Management' (OCM), which is expected to be established by January 1, 2025. The Act also allows for local governments to adopt an interim ordinance until January 1, 2025 on cannabis businesses. Pursuant to Minn. Stat. § 462.355, Subd. 4, the City is authorized to enact by ordinance a moratorium to regulate, restrict or prohibit any use within the jurisdiction to protect the public health, safety, and welfare. City is authorized to enact a moratorium ordinance to allow it to undertake a study to determine whether to adopt any regulations or restrictions, including siting and location of uses, related to the sales, testing,manufacturing, and distribution of cannabis and lower-potency hemp products. The City Council of the City of Hugo has passed an Interim Ordinance on the sale,use, manufacturing, and distribution of cannabis and lower-potency hemp products within the City of Hugo for one year. This moratorium does not apply to the sale of edible cannabinoid products in exclusive liquor stores. Please note this title and summary of this Ordinance clearly informs the public of the intent and effect of the Ordinance and conforms to Minn. Stat. § 412.191. This Ordinance shall be effective the date that it is published. The entire ordinance is available at City Hall for review. Passed and adopted by the City Council of the City of Hugo this 5 b day of August, 2024. Tom Weidt, Mayor - Attest: Michele Lindau, City Clerk AFFIDAVIT OF PUBLICATION STATE OF MINNESOTA) )ss. COUNTY OF RAMSEY ) Carter Johnson,being first duly sworn,on oath states as follows: 1. I am the publisher of the THE CITIZEN,or the publisher's designated agent. I have personal knowledge of the facts stated in this Affidavit,which is made pursuant of Minnesota Statutes §331 A.07. CITY OF HUGO SUMMARY ORDINANCE 2024-532 2. The newspaper has complied with all of the requirements to constitute a NOTICE: THIS PUBLISHED MATERIAL IS ONLY A SUMMARY OF P q AN ORDINANCE OF THE CODE OF ORDINANCES FOR THE CITY OF qualified newspaper under Minnesota law, including those requirements HUGO. THE FULLTEXT OF THE ORDINANCE IS AVAILABLE FOR PUBLIC found in Minnesota Statutes §331A.02. INSPECTION AT THE HUGO CITY HALL DURING REGULAR BUSINESS HOURS. SUMMARY OF AN INTERIM ORDINANCE PROHIBITING THE SALE, 3. The dates of the month and the year and day of the week upon which the TESTING,MANUFACTURING,AND DISTRIBUTION OF CANNABINOID PRODUCTS public notice attached was published in the newspaper are as follows: During the 2023 Legislative Session, a law was enacted that provides a regulatory framework for the sale and manufacturing of cannabis and hemp published on Thursday, 22nd day Products, and for the licensing of cannabis and hemp businesses, and Once a week, for one week,it was p Y y establishes a State Agency now called the"Office of Cannabis Management" of August,2024. (OCM), which is expected to be established by January 1,2025. The Act also allows for local governments to adopt an interim ordinance until January 1,2025 on cannabis businesses. Pursuant to Minn.Stat. §462.355,Subd. 4. The publisher's lowest classified rate paid by commercial users for 4, the City is authorized to enact by ordinance a moratorium to regulate, comparable space,as determined pursuant to §331A.06,is as follows: restrict or prohibit any use within the jurisdiction to protect the public health, safety, and welfare. City is authorized to enact a moratorium ordinance to allow it to undertake a study to determine whether to adopt any regulations a) Lowest classified rate paid by commercial users for or restrictions, including siting and location of uses, related to the sales, comparable space testing,manufacturing,and distribution of cannabis and lower-potency hemp products. The City Council of the City of Hugo has passed an Interim Ordinance on the b)Maximum rate allowed by law for the above matter sale,use,manufacturing,and distribution of cannabis and lower-potency hemp products within the City of Hugo for one year. This moratorium does not apply to the sale of edible cannabinoid products in exclusive liquor stores. c)Rate actually charged for the above matter $ 13.99/inch Please note this title and summary of this Ordinance clearly informs the public of the intent and effect of the Ordinance and conforms to Minn.Stat.§ 412.191. This Ordinance shall be effective the date that it is published. 5. Mortgage Foreclosure Notices. Pursuant to Minnesota Statutes §580.033 The entire ordinance is available at City Hall for review. Passed and adopted by the City Council of the City of Hugo this 51,day of relating to the publication of mortgage foreclosure notices: The August,2024. newspaper's known office of issue is located in Ramsey County. The Tom Weidt,Mayor complies with the conditions described in 580.033,subd. 1, Attest:Michele me in,city clerk newspaper p § Published one time n The Citizen on August 22,2024. clause(1)or(2). If the newspaper's known office of issue is located in a county adjoining the county where the mortgaged premises or some part of the mortgaged premises described in the notice are located,a substantial portion of the newspaper's circulation is in the latter county. We are a qualified newspaper in the following counties:Anoka,Ramsey and Washington FURTHER YOUR AFFIANT SAITH NOT. BY: TITLE: Carter Johnson,Publisher PRESS PUBLICATIONS 4779 Bloom Avenue White Bear Lake,MN 55110 Subscribed and sworn to before me on this 22nd day of August,2024. Notary Pu c MYRNA L. PRESS Fif. Notary Public-Minnesota Misc:Affidavit-Citizen-1 Wk.docx as My Commission Expiras Jan 31,2025