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Shakopee City Council
August 16, 2022
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| | | | | | | | | FROM: | William H. Reynolds, City Administrator | | TO: | Mayor and City Council Members |
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| | | | | | | | Subject:
Moratorium on the Sale of THC Products and Authorization for Publication by Title and Summary | | |
| | | | | | | | Policy/Action Requested:
Approve 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.
Approve Resolution R2022-108 authorizing publication of Ordinance O2022-021 by title and summary.
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| | | | | | | | 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 part 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 has 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.
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| | | | | | | | Budget Impact:
None for the moratorium. | | |
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