Item Coversheet

10.A.


Shakopee City Council
AugustĀ 3, 2022


FROM:William H. Reynolds, City Administrator
TO:Mayor and City Council Members
Subject:
Moratorium on the Sale of THC Products and Authorization for Publication by Title and Summary 
Policy/Action Requested:

Review Interim Ordinance O2022-021 imposing a moratorium on the sale of cannabis (THC) products within the City of Shakopee and authorizing studies regarding such products.

 

Review Resolution R2022-108 authorizing publication of Ordinance O2022-021 by title and summary. 

Recommendation:
Review and provide guidance for future approval. 
Discussion:

On July 1, 2022 the State of Minnesota made it legal to sell certain edibles and beverages infused with tetrahydrocannabinol (THC), the cannabis ingredient extracted from hemp. This law was passed by the Legislature as par of Chapter 98, Article 13, Section 151.72. 

 

The new law was intended to reign in the selling of delta-8, a substance manufactured from hemp derived cannabinoid that has similar intoxicating effects as the more commonly known cannabinoid delta-9 in edible products. Unfortunately, the law actually authorized certain amounts of both delta-8 and delta-9 in edible products as opposed to just regulating delta-8. The full impact of this law have yet to be identified. Currently legislation is being drafted at the state level to try and address the unintended consequences of this legislation.

 

There was no prior warning of the effects of this legislation on cities since it was essentially a mistake. Cities have not had the opportunity to study, determine if regulation is appropriate, and to outline where such sale should occur if such sale is allowed. 

 

The law is very vague and may be amended soon. As such, a moratorium is requested prohibiting its sale to allow staff the opportunity to study the issue, consider licensing and rules including regulatory controls on sales akin to tobacco, enforcement, and compliance. It would also give the city the opportunity to work with adjoining communities to create consistent licensing and rules. 

 

Any ordinance has a required 10 day posting period. If Council agrees to impose a moratorium, staff will bring the attached forward on August 16 as part of the Consent Agenda. 

Budget Impact:
None in connection to the moratorium.
ATTACHMENTS:
Description
O2022-021 THC Moratorium
R2022-108 THC Moratorium Publish