City Council Agenda Packet 08-22-2022 SpecialAGENDA
MONTICELLO SPECIAL CITY COUNCIL MEETING
Monday, August 22, 2022 — 4:30 p.m.
Monticello Community Center
Call to Order
2. 4:30 p.m. THC Interim Ordinance Discussion
3. 5:00 p.m. 2023 Budget Discussion
4. Adjournment
257 LAWS of MINNESOTA 2022 Ch 98, art 13, s 3
(ii) identifying best practices for rare disease care implemented in other states, at the national level, and
at the international level that will improve rare disease care in the state and seeking opportunities to partner
with similar organizations in other states and countries;
(iii) identifying and addressing problems faced by patients with a rare disease when changing health
plans, including recommendations on how to remove obstacles faced by these patients to finding a new
health plan and how to improve the ease and speed of finding a new health plan that meets the needs of
patients with a rare disease; ai:td
(iv) identifying and addressing barriers faced by patients with a rare disease to obtaining care, caused
by prior authorization requirements in private and public health plans; and
fiv)_Uv identifying, recommending, and implementing best practices to ensure health care providers are
adequately informed of the most effective strategies for recognizing and treating rare diseases; affd
(2) advising, consulting, and cooperating with the Department of Health, including the Advisory
Committee on Heritable and Congenital Disorders;; the Department of Human Services, including the Drug
Utilization Review Board and the Drug Formulary Committee; and other agencies of state government in
developing recommendations, information, and programs for the public and the health care community
relating to diagnosis, treatment, and awareness of rare diseases..;
(3) advising on policy issues and advancing policy initiatives at the state and federal levels; and
(4) receiving funds and issuing grants.
(b) The advisory council shall collect additional topic areas for study and evaluation from the general
public. In order for the advisory council to study and evaluate a topic, the topic must be approved for study
and evaluation by the advisory council.
(c) Legislative members may not deliberate about or vote on decisions related to the issuance of grants
of state money.
Subd. 5. Conflict of interest. Advisory council members are subject to the Baetfd of Regents poliie-y
an ean flief.. advisory council's conflict of interest policy as outlined in the advisory council's operating
procedures.
Subd. 6. Annual report. By January I of each year, beginning January 1, 2020, the advisory council
shall report to the chairs and ranking minority members of the legislative committees with jurisdiction over
higher education and health care policy on the advisory council's activities under subdivision 4 and other
issues on which the advisory council may choose to report.
EFFECTIVE DATE. This section is effective July 1, 2022.
Sec. 3. Minnesota Statutes 2020, section 151.72, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have the meanings
given.
(b) "Certified hemp" means hemp plants that have been tested and found to meet the requirements of
chapter 18K and the rules adopted thereunder.
(c) "Edible cannabinoid product" means any product that is intended to be eaten or consumed as a
beverage by humans, contains a cannabinoid in combination with food ingredients, and is not a drug.
Official Publication of the State of Minnesota
Revisor of Statutes
Ch 98, art 13, s 3 LAWS of MINNESOTA 2022 258
(�)_(dj "Hemp" has the meaning given to "industrial hemp" in section 18K.02, subdivision 3.
(e) "Label" has the meaning given in section 151.01, subdivision 18.
(e) "Labeling" means all labels and other written, printed, or graphic matter that are:
(1) affixed to the immediate container in which a product regulated under this section is sold;,&f
(2) provided, in any manner, with the immediate container, including but not limited to outer containers,
wrappers, package inserts, brochures, or pamphlets...; or
(3) provided on that portion of a manufacturer's website that is linked by a scannable barcode or matrix
barcode.
(g) "Matrix barcode" means a code that stores data in a two-dimensional array of geometrically shaped
dark and light cells capable of being read by the camera on a smartphone or other mobile device.
(h) "Nonintoxicating cannabinoid" means substances extracted from certified hemp plants that do not
produce intoxicating effects when consumed by any route of administration.
Sec. 4. Minnesota Statutes 2020, section 151.72, subdivision 2, is amended to read:
Subd. 2. Scope. (a) This section applies to the sale of any product that contains
cannabinoids extracted from hemp athef than food and that is an edible cannabinoid product or is intended
for human or animal consumption by any route of administration.
(b) This section does not apply to any product dispensed by a registered medical cannabis manufacturer
pursuant to sections 152.22 to 152.37.
(c) The board must have no authority over food products, as defined in section 34A.01, subdivision 4,
that do not contain cannabinoids extracted or derived from hemp.
Sec. 5. Minnesota Statutes 2020, section 151.72, subdivision 3, is amended to read:
Subd. 3. Sale of cannabinoids derived from hemp. (Notwithstanding any other section of this
chapter, a product containing nonintoxicating cannabinoids, including an edible cannabinoid product, may
be sold for human or animal consumption only if all of the requirements of this section are met, provided
that a product sold for human or animal consumption does not contain more than 0.3 percent of any
tetrahydrocannabinol and an edible cannabinoid product does not contain an amount of any
tetrahydrocannabinol that exceeds the limits established in subdivision 5a, paragraph (f).
No other substance extracted or otherwise derived from hemp may be sold for human consumption
if the substance is intended:
(1) for external or internal use in the diagnosis, cure, mitigation, treatment, or prevention of disease in
humans or other animals; or
(2) to affect the structure or any function of the bodies of humans or other animals.
(c) No product containing any cannabinoid or tetrahydrocannabinol extracted or otherwise derived from
hemp may be sold to any individual who is under the age of 21.
d) Products that meet the requirements of this section are not controlled substances under section 152.02.
Official Publication of the State of Minnesota
Revisor of Statutes
259 LAWS of MINNESOTA 2022 Ch 98, art 13, s 7
Sec. 6. Minnesota Statutes 2020, section 151.72, subdivision 4, is amended to read:
Subd. 4. Testing requirements. (a) A manufacturer of a product regulated under this section must
submit representative samples of the product to an independent, accredited laboratory in order to certify that
the product complies with the standards adopted by the board. Testing must be consistent with generally
accepted industry standards for herbal and botanical substances, and, at a minimum, the testing must confirm
that the product:
(l) contains the amount or percentage of cannabinoids that is stated on the label of the product;
(2) does not contain more than trace amounts of any mold, residual solvents, pesticides, fertilizers, or
heavy metals; and
(3) does not contain
more than 0.3 percent of any
tetrahydrocannabinol.
(b) Upon the request of the board, the manufacturer of the product must provide the board with the
results of the testing required in this section.
(c) Testing of the hemp from which the nonintoxicating cannabinoid was derived, or possession of a
certificate of analysis for such hemp, does not meet the testing requirements of this section.
Sec. 7. Minnesota Statutes 2021 Supplement, section 151.72, subdivision 5, is amended to read:
Subd. 5. Labeling requirements. (a) A product regulated under this section must bear a label that
contains, at a minimum:
(l) the name, location, contact phone number, and website of the manufacturer of the product;
(2) the name and address of the independent, accredited laboratory used by the manufacturer to test the
product; and
(3) an accurate statement of the amount or percentage of cannabinoids found in each unit of the product
meant to be consumed;; er.
(4) instead of the inf9fmation fequifed in elauses (1) to (3), a seannable baf eede of QR eede that links
to the ffiaflufaetufef's websife.
(b) The information in paragraph (a) may be provided on an outer package if the immediate container
that holds the product is too small to contain all of the information.
(c) The information required in paragraph (a) may be provided through the use of a scannable barcode
or matrix barcode that links to a page on the manufacturer's website if that page contains all of the information
required by this subdivision.
The label must also include a statement stating that this the product does not claim to diagnose, treat,
cure, or prevent any disease and has not been evaluated or approved by the United States Food and Drug
Administration (FDA) unless the product has been so approved.
(b)_Le) The information required to be an the label by this subdivision must be prominently and
conspicuously placed ttffd on the label or displayed on the website in terms that can be easily read and
understood by the consumer.
Official Publication of the State of Minnesota
Revisor of Statutes
Ch 98, art 13, s 7 LAWS of MINNESOTA 2022 260
{e)jf The labe4 labeling must not contain any claim that the product may be used or is effective for the
prevention, treatment, or cure of a disease or that it may be used to alter the structure or function of human
or animal bodies, unless the claim has been approved by the FDA.
Sec. 8. Minnesota Statutes 2020, section 151.72, is amended by adding a subdivision to read:
Subd. 5a. Additional requirements for edible cannabinoid products. (a) In addition to the testing
and labeling requirements under subdivisions 4 and 5, an edible cannabinoid must meet the requirements
of this subdivision.
(b) An edible cannabinoid product must not:
(1) bear the likeness or contain cartoon -like characteristics of a real or fictional person, animal, or fruit
that appeals to children;
(2) be modeled after a brand of products primarily consumed by or marketed to children;
(3) be made by applying an extracted or concentrated hemp -derived cannabinoid to a commercially
available candy or snack food item;
(4) contain an ingredient, other than a hemp -derived cannabinoid, that is not approved by the United
States Food and Drug Administration for use in food;
(5) be packaged in a way that resembles the trademarked, characteristic, or product -specialized packaging
of any commercially available food product; or
(6) be packaged in a container that includes a statement, artwork, or design that could reasonably mislead
any person to believe that the package contains anything other than an edible cannabinoid product.
(c) An edible cannabinoid product must be prepackaged in packaging or a container that is child -resistant,
tamper -evident, and opaque or placed in packaging or a container that is child -resistant, tamper -evident, and
opaque at the final point of sale to a customer. The requirement that packaging be child -resistant does not
apply to an edible cannabinoid product that is intended to be consumed as a beverage and which contains
no more than a trace amount of any tetrahydrocannabinol.
(d) If an edible cannabinoid product is intended for more than a single use or contains multiple servings,
each serving must be indicated by scoring, wrapping, or other indicators designating the individual serving
size.
(e) A label containing at least the following information must be affixed to the packaging or container
of all edible cannabinoid products sold to consumers:
(1) the serving size;
(2) the cannabinoid profile per serving and in total;
(3) a list of ingredients, including identification of any major food allergens declared by name; and
(4) the following statement: "Keep this product out of reach of children."
An edible cannabinoid product must not contain more than five milligrams of any tetrahydrocannabinol
in a single serving, or more than a total of 50 milligrams of any tetrahydrocannabinol per package.
Official Publication of the State of Minnesota
Revisor of Statutes
261 LAWS of MINNESOTA 2022 Ch 98, art 13, s 10
Sec. 9. Minnesota Statutes 2020, section 151.72, subdivision 6, is amended to read:
Subd. 6. Enforcement. (a) A product sell regulated under this section, including an edible cannabinoid
product, shall be considered an adulterated drug if:
(1) it consists, in whole or in part, of any filthy, putrid, or decomposed substance;
(2) it has been produced, prepared, packed, or held under unsanitary conditions where it may have been
rendered injurious to health, or where it may have been contaminated with filth;
(3) its container is composed, in whole or in part, of any poisonous or deleterious substance that may
render the contents injurious to health;
(4) it contains any food additives, color additives, or excipients that have been found by the FDA to be
unsafe for human or animal consumption; of
(5) it contains an amount or percentage of nonintoxicating cannabinoids that is different than the amount
or percentage stated on the label...;
(6) it contains more than 0.3 percent of any tetrahydrocannabinol or, if the product is an edible cannabinoid
product, an amount of tetrahydrocannabinol that exceeds the limits established in subdivision 5a, paragraph
(f); or
(7) it contains more than trace amounts of mold, residual solvents, pesticides, fertilizers, or heavy metals.
(b) A product regulated under this section shall be considered a misbranded drug if the product's
labeling is false or misleading in any manner or in violation of the requirements of this section.
(c) The board's authority to issue cease and desist orders under section 151.06; to embargo adulterated
and misbranded drugs under section 151.38; and to seek injunctive relief under section 214.11, extends to
any violation of this section.
Sec. 10. Minnesota Statutes 2020, section 152.02, subdivision 2, is amended to read:
Subd. 2. Schedule I. (a) Schedule I consists of the substances listed in this subdivision.
(b) Opiates. Unless specifically excepted or unless listed in another schedule, any of the following
substances, including their analogs, isomers, esters, ethers, salts, and salts of isomers, esters, and ethers,
whenever the existence of the analogs, isomers, esters, ethers, and salts is possible:
(1) acetylmethadol;
(2) allylprodine;
(3) alphacetylmethadol (except levo-alphacetylmethadol, also known as levomethadyl acetate);
(4) alphameprodine;
(5) alphamethadol;
(6) alpha-methylfentanyl benzethidine;
(7) betacetylmethadol;
(8) betameprodine;
Official Publication of the State of Minnesota
Revisor of Statutes
LMCLEAGUE
MINNESOTA
CITIES
Cities and Regulation of Edible
Cannabinoid Products
Published: July 15, 2022
A new law was enacted at the end of the 2022 legislative session that allows certain edible and
beverage products infused with tetrahydrocannabinol (THC) to be sold. Since the enactment of
the law, the League of Minnesota Cities has been researching and collecting information from
state agencies and stakeholders to answer questions pertaining to local regulatory authority,
law enforcement, taxing, and employment. The following frequently asked questions (FAQ)
aim to provide information to cities on the new law to assist local governments in making
decisions related to the law. The League will continually update the information below as
necessary.
(Updated July 28, 2022)
Get answers to FAQs regarding the new law allowing certain edible and beverage products
containing THC extracted from hemp to be sold.
General information
Q1. What does the new law do?
Q2. Under the new law, where are edible cannabinoids allowed to be sold? (Updated July 20,
2022)
Q3. Could my city's municipal liquor store sell the edible cannabinoid products? (Updated July
20, 2022)
Q4. What regulations are in place for packaging for edible cannabinoids?
QS. Are these products legal under federal regulations? (Updated July 22, 2022)
Q6. Where do the edible cannabinoid products come from?
Q7. How are the new products taxed?
Enforcement and public safety
Q8. How is the new law enforced? (Updated July 28, 2022)
Q9. What are penalties for someone who violates?
Q10. How do our officers determine if a driver is under the influence of these new products?
Q11. Could citiesprohibit the sale of edible cannabinoids entirely? (Updated July 19, 2022)
Q12. Is our city required to adopt regulations under the new law?
City Licensing
Q13. What authority do cities have regarding licensing the sale of edible cannabinoids?
Q14. What types of restrictions should we consider in regulating cannabinoids? (Updated July
19, 2022)
Q15. Can a city add edible cannabinoid products to its existing tobacco licensing
-p
Q16. If our city licenses edible cannabinoid products, how much can we charge as a license
fee?
Zoning
Q17 What authority do cities have regarding zoning for where theproducts could be sold?
(Updated July 19, 2022)
Q18. Could cities adopt a moratorium prohibiting the sale, manufacturing ur, distribution of
cannabinoids so it can studv the issue?
City employment and personnel issues
Q19. Does the new Minnesota legal cannabinoid law change anything about how we do drug
testing for CDL holders? (Updated July 22, 2022)
Q20. Does the new law change anything related to employees who carry a firearm? (Updated
July 22, 2022)
Q21. Are there now "acceptable" limits of cannabinoids for non -CDL empoyees for purposes of
drug testing at work (i.e., those we test under state drug and alcohol testing law)?
Q22. Can we still prohibit emp�ees from being under the influence of cannabinoids while at
work? Does the League have a model pow with updated language?
Q23. Can empoyees be in possession of edibles or other cannabinoid -Products while at work?
Q24. Do we need to change anything in our collective bargaining agreement with regard to
discipline of employees who use cannabinoid products?
Q25. Can employees use cannabinoidproducts off-duty?
Q26. How does this impact the requirements of the Drug -Free Workplace Act?
Q27. Should my cijy still continue to include marijuana as a pre-employment panel screen for
my Non -DOT emp oyees? (Updated July 19, 2022)
General information
Q1. What does the new law do?
Al. It is now legal to sell certain edibles and beverages infused with tetrahydrocannabinol
(THC), the cannabis ingredient extracted from hemp.
The new law was passed by the Legislature as part of Chapter 98. Article 13 makes several
changes to Minnesota Statutes, section 151.72 regarding the sale of certain cannabinoid (CBD)
products. The changes took effect on July 1.
The new law amends the scope of sale of any product that contains cannabinoids extracted
from hemp and that is an edible cannabinoid product or is intended for human or animal
LALEAGUE
C MINNESOTA
CITIES
Cities and Regulation of Edible
Cannabinoid Products
Published: July 15, 2022
A new law was enacted at the end of the 2022 legislative session that allows certain edible and
beverage products infused with tetrahydrocannabinol (THC) to be sold. Since the enactment of
the law, the League of Minnesota Cities has been researching and collecting information from
state agencies and stakeholders to answer questions pertaining to local regulatory authority,
law enforcement, taxing, and employment. The following frequently asked questions (FAQ)
aim to provide information to cities on the new law to assist local governments in making
decisions related to the law. The League will continually update the information below as
necessary.
(Updated July 28, 2022)
Get answers to FAQs regarding the new law allowing certain edible and beverage products
containing THC extracted from hemp to be sold.
General information
Q1. What does the new law do?
Q2. Under the new law
where are edible cannabinoids allowed to be sold? (Updated July 20,
2022)
Q3. Could my city's municipal liquor store sell the edible cannabinoid products? (Updated July
20, 2022)
_Q . What regulations are in place for packaging for edible cannabinoids?
Q5. Are these products legal under federal regulations? (Updated July 22, 2022)
Q6. Where do the edible cannabinoid products come from?
Q7. How are the new products taxed?
Enforcement and public safety
Q8. How is the new law enforced? (Updated July 28, 2022)
Q9. What arepenalties for someone who violates?
Q10. How do our officers determine if a driver is under the influence of these new products?
Q11. Could cities prohibit the sale of edible cannabinoids entirely? (Updated July 19, 2022)
Q12. Is our city required to adopt regulations under the new law?
City Licensing
Q13. What authority do cities have regarding licensing the sale of edible cannabinoids?
Q14. What types of restrictions should we consider in regulating cannabinoids? (Updated July
19, 2022)
Q15. Can a city add edible cannabinoidproducts to its existing tobacco licensing- ram?
Q16. If our city licenses edible cannabinoid products, how much can we charge as a license
fee?
Zoning
Q17.What authority do cities have regarding zoning for where the products could be sold?
(Updated July 19, 2022)
Q18. Could cities adopt a moratorium prohibiting the sale, manufacturing or, distribution of
cannabinoids so it can study the issue?
City employment and personnel issues
Q19. Does the new Minnesota legal cannabinoid law change anything about how we do drug
testing for CDL holders? (Updated July 22, 2022)
Q20. Does the new law change anything related to employees who carry a firearm? (Updated
July 22, 2022)
Q21. Are there now "acceptable" limits of cannabinoids for non -CDL employees for purposes of
drug testing at work (i.e., those we test under state drug and alcohol testing law)?
Q22. Can we still prohibit employees from being under the influence of cannabinoids while at
work? Does the League have a model-_ olicy with updated language?
Q23. Can employees be in possession of edibles or other cannabinoid products while at work?
Q24. Do we need to change anything in our collective bargaining agreement with regard to
discipline of employees who use cannabinoid products?
-25. Can employees use cannabinoid products off-duty?
Q26. How does this impact the requirements of the Drug -Free Workplace Act?
Q27. Should my city still continue to include marijuana as apre-em ployment panel screen for
my Non -DOT employees? (Updated July 19, 2022)
General information
Q1. What does the new law do?
Al. It is now legal to sell certain edibles and beverages infused with tetrahydrocannabinol
(THC), the cannabis ingredient extracted from hemp.
The new law was passed by the Legislature as part of Chapter 98. Article 13 makes several
changes to Minnesota Statutes, section 151.72 regarding the sale of certain cannabinoid (CBD)
products. The changes took effect on July 1.
The new law amends the scope of sale of any product that contains cannabinoids extracted
from hemp and that is an edible cannabinoid product or is intended for human or animal
consumption.
Previous law authorized a product containing nonintoxicating cannabinoids to be sold, but the
authority to sell edible CBD products was unclear. The new law expands the authority to
include nonintoxicating cannabinoids, including edible cannabinoid products, provided they
do not contain more than 0.3% of any THC. An edible cannabinoid product also cannot exceed
more than five milligrams of any THC in a single serving, or more than a total of 50 milligrams
of any THC per package.
Q2. Under the law, where are edible cannabinoids
allowed to be sold?
A2. The new law does not limit where edible cannabinoids products may be sold. However,
certain businesses by their nature maybe be limited on their ability to sell the products. Liquor
stores, for example, are limited to selling specific items set by Minnesota Statute, section
340A.412, subd. 14. The Alcohol and Gambling Enforcement Division (AGE) of the Minnesota
Department of Public Safety has advised the League of Minnesota Cities that products
containing CBD, hemp, or THC are not allowed for sale at an exclusive liquor store. In addition,
AGE has informed LMC that a liquor store's ability to sell food pursuant to Minnesota Statute,.
section 340A.412, subd. 14 (b)., does not include edible cannabinoid products.
Q3. Could my city's municipal liquor store sell the
edible cannabinoid products?
A3. Liquor stores are limited to selling specific items set by Minnesota Statute, section
340A.412, subd. 14. The Alcohol and Gambling Enforcement Division (AGE) of the Minnesota
Department of Public Safety has advised the League of Minnesota Cities that products
containing CBD, hemp, or THC are not allowed for sale at an exclusive liquor store. AGE has
advised LMC that CBD, hemp, or THC infused beverages are not intended to be mixed with
alcoholic beverages and are not considered soft drinks. In addition, AGE has informed LMC
that a liquor store's ability to sell food pursuant to Minnesota Statute, section 340A.412, subd. 14
.(b)., does not include edible cannabinoid products. Due to this guidance, LMC recommends
cities refrain from selling such products at their municipal liquor stores.
Q4. What regulations are in place for packaging for
edible cannabinoids?
A4. Along with testing and labeling requirements, an edible cannabinoid must meet several
requirements, including that it:
• Not bear the likeness or contain cartoon -like characteristics.
• Not be modeled after a brand of products primarily consumed or marketed to children.
• Not be made by applying an extracted or concentrated hemp -derived cannabinoid to a
commercially available candy or snack food item.
• May not contain an ingredient, other than a hemp -derived cannabinoid, that is not approved
by the federal Food and Drug Administration.
• May not be packaged in a way that resembles any commercially available food product.
• Must not be packaged in a container that could reasonably mislead any person to believe that
it contains anything other than an edible cannabinoid product.
Q5. Are these products legal under federal
regulations?
A5. The 2018 Farm Bill made several changes to federal law related to hemp. Under the law,
hemp was removed from the controlled substance act, including derivates, extracts, and
cannabinoids, provided those substances contained less than 0.3% THC concentration. If a
product contains more than 0.3% THC it is considered marijuana and not hemp. Pursuant to
the Farm Bill, Minnesota has legalized the production of hemp through its industrial hemp
program.
Although hemp extracts that meet the mandated THC level are no longer controlled
substances, the Farm Bill did not alter the authority of other federal agencies, including the
Food and Drug Administration (FDA) from regulating hemp and hemp byproducts. Under
current FDA regulations, CBD or THC products cannot be sold as a dietary supplement and
cannot be added to food for humans or animals.
Q6. Where do the edible cannabinoid products come
f rom?
A6. Under current law, these products can be manufactured in Minnesota but also imported
from other states. Growing hemp in Minnesota is governed by the Department of Agriculture,
though the MDA Hemp Program does not regulate cannabis extracts, development and
manufacturing of cannabis extracts, or the retail and marketing of cannabinoid products.
Cities may want to consider zoning implications for manufacturing and production of
cannabinoid products.
Q7. How are the new products taxed?
A7. It is the understanding of LMC that edible cannabinoid products legalized under the new
law are subject to Minnesota sales tax. LMC is waiting for more guidance from the Minnesota
Department of Revenue to determine if any exemptions apply. The new law does not authorize
cities to tax the products in their communities, however LMC is waiting on more information
as to whether the products would be subject to a local food and beverage tax.
Return to top of page
Enforcement and public safety
Q8. How is the new law enforced?
A8. The Minnesota Board of Pharmacy has regulatory authority over drug products that are
implicitly or explicitly intended for human or animal consumption. This includes products
regulated in the new law. If a product does not meet all the requirements of the new law, the
product may be considered misbranded or adulterated. The sale of a misbranded or
adulterated product is a misdemeanor -level crime which is to be prosecuted by the county_
attorney_ where the offense took place. Questions regarding whether a specific product deviates
from the requirements of the new law should be forwarded to the Minnesota Board of
Pharmacy_. The Board of Pharmacy has provided a form to file complaints against licensed or
unlicensed cannabis businesses and an inspection checklist to assist law enforcement.
In addition, the new law limits the sale of CBD and THC products to persons over the age of 21.
The sale of CBD and THC products to a person under the age of 21 is a misdemeanor -level
crime which is to be prosecuted by the county attorney_ where the offense took place. Cities will
need to work with local law enforcement and the county attorney to determine how to enforce
this requirement.
If cities desire to further regulate CBD and THC products within their jurisdiction, they will
need to work with their city attorney to adopt local regulations.
The League is working with the Minnesota Chiefs of Police Association and Minnesota Sheriff's
Association to understand potential implications for law enforcement and identify additional
questions pertaining to the enforcement of these new products along with employment related
questions for law enforcement.
Q9. What are penalties for someone who violates?
A9. A violation of the new law is a misdemeanor. In most cases, the county attorney_ is charged
with prosecuting these violations.
Q10. How do our officers determine if a driver is under
the influence of these new products?
A10. The new law does not change the current rules relating to driving under the influence of a
cannabinoid. Officers should use the same process to determine sobriety as they have used if
they suspected a driver was under the influence of marijuana.
Q11. Could cities prohibit the sale of edible
cannabinoids entirely?
All. In most states that have adopted adult use cannabis legislation, local governments are
given the option to either opt -in or opt -out of cannabis in their communities. This framework
helps to maintain local control of the cannabis issue. The new Minnesota law does not provide
such an option. Therefore, the new law makes the new cannabinoid products legal in every city
throughout the state.
Without a clear opt -out option, the question as to whether a city could completely prohibit the
sale of edible cannabinoids is an open question. One potential approach would be to follow the
Minnesota House Research's suggestion to LMC that it may be possible for a city to classify
cannabis edibles containing THC as an intoxicating cannabinoid and therefore would not be
allowed under the new law.
Arguments have also been made that a city may be able to prohibit the sale of edible
cannabinoids products under its authority to provide for the health safety and welfare of its
community. If a city were to attempt to prohibit edible cannabinoids under this authority, it
would need to work with its city attorney to develop findings that clearly show the dangers of
edible cannabinoids products and the need to prohibit the products. Cities may want to look at
communities that have banned the sale of flavored tobacco products as a model for such
prohibitions.
Q12. Is our city required to adopt regulations under
the new law?
Al2. The new law does not require cities to take action in regulating the new products. If a city
chooses not to adopt additional regulations, the sale and production of these new products will
be governed by the city's existing zoning and other regulations. In addition, the new law gives
local law enforcement power to enforce violations as a misdemeanor.
Return to top of page
City licensing
Q13. What authority do cities have regarding
licensing the sale of edible cannabinoids?
A13. A city's authority to license comes from either a specific grant of authority from the
Legislature or from its authority to provide for its general health, safety, and welfare. When a
city official proposes local licensing of any activity or occupation, a city first must determine
whether the state already licenses that activity and, if so, whether the law forbids or allows a
local license.
Q14. What types of restrictions should we consider in
regulating cannabinoids?
A14. If a city decides to regulate edible cannabinoids or other cannabinoid products, the types
of regulations can vary from city to city. Some items a city may consider when drafting these
regulations include:
• What areas of the city edible cannabinoids may be sold or manufactured or distributed.
• What business should be allowed to sell edible cannabinoids.
• Age of person selling the product.
• Location of products within retail establishment.
• Pop-up sales.
• Transient merchants.
• Vending machines.
• Distance from other uses (schools, parks, residential, etc.).
• Distance between retailers.
• Delivery services.
• Online sales.
• Limit number of establishments within the city.
• Age verification.
• Hours.
• Background checks.
Q15. Can a city add edible cannabinoid products to its
existing tobacco licensing program?
A15. The requirements and legal authority for tobacco products are unique to those products.
While some aspects of tobacco regulations may be used when regulating edible cannabinoid
products, the products and the authority to regulate them are quite different. If a city chooses
to license edible cannabinoid sellers, it would be best to do so separately from tobacco
regulations or be sure to carefully draft new language in an existing ordinance that follows the
unique requirements of the new law.
Q16. If our city licenses edible cannabinoid products,
how much can we charge as a license fee?
A16. When setting fees, cities should consider a number of things. First, cities should not view
municipal licensing as a significant source of revenue. License fees must approximate the
direct and indirect costs associated with issuing the license and policing the licensed activities.
License fees that significantly exceed these costs are considered unauthorized taxes.
This means a license fee may not be so high as to be prohibitive or produce any substantial
revenue beyond the actual cost to issue the license and to supervise, inspect, and regulate the
licensed business.
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Zoning
Q17.What authority do cities have regarding zoning
for where the products could be sold?
A17. Nothing in the new law limits a city's zoning authority related to CBD and THC products.
No Minnesota court has interpreted the limits on zoning authority in this context, but at least
one court in another state has ruled that a state law related to cannabis did "not nullify a
municipality's inherent authority to regulate land use under [state] law so long as the
municipality does not prohibit or penalize all medical marijuana cultivation ... and so long as
the municipality does not impose regulations that are unreasonable and inconsistent with
regulations established by state law." DeRuiter v. Township of Byron, 505 Mich. 130, 949 N.W.2d 91
(2020). It is unknown if a Minnesota court would come to the same conclusion.
Cities should be thoughtful and intentional about how zoning regulations related to
cannabinoid products affect their communities and work with their city attorney to determine
what, if any, zoning restrictions should be adopted. Cities will need to consider not only zoning
regulations related to retail sales of CBD and THC products but also the manufacturing and
production of the products within the city. Unless specifically differentiated in a zoning
ordinance, a city's general manufacturing and production zoning provisions will likely apply to
CBD and THC production as well.
Q18. Could cities adopt a moratorium prohibiting the
sale, manufacturing or, distribution of cannabinoids
so it can study the issue?
A18. A moratorium is a tool cities use to pause specific uses in order that the city may study the
issue in anticipation of future regulations. A moratorium is limited to a period of one year. To
adopt a moratorium, a city must follow the procedures in Minnesota Statute, section 462.355,.
subd. 4. The statute specifies the specific instances where a city may adopt a moratorium. If a
city were to adopt a moratorium prohibiting the sale or manufacturing of edible cannabinoid
products, it should work with its city attorney to clearly state the legal justification for the
moratorium.
If a city does adopt a moratorium, it must actually review and study the issue or meet one of
the other requirements of the statute. More information on moratoriums can be found in the
LMC Zoning Guide for Cities.
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City employment and personnel issues
Q19. Does the new Minnesota legal cannabinoid law
change anything about how we do drug testing for
CDL holders?
A19. No, cities with positions requiring an employee to hold a commercial driver's license
(CDL) will recall these positions are regulated by federal law, and those regulations are
supervised by the Federal Department of Transportation (DOT). Federal law preempts state law
related to cannabinoid use; in fact the DOT states in its DOT Recreational Marijuana Notice it
does not authorize the use of Schedule I drugs, including marijuana, for any reason. As a result,
cities should continue to follow their drug -testing procedures related to CDL holders and may
enforce prohibitions against any use of cannabinoids for CDL holders, regardless of state law
protections.
Although there is a legal difference between marijuana and hemp, DOT warns CDL drivers the
hemp products could lead to a positive marijuana test; therefore CDL holders are ultimately
responsible if those products lead to a positive marijuana test.
Cities can find more information on the effects of the new law on drug testing in the LMC Drug
and Alcohol Testing Toolkit, starting on page 22.
Q20. Does the new law change anything related to
employees who carry a firearm?
A20. No. Public safety employees who carry a firearm cannot lawfully use marijuana under
federal law. Federal law prohibits cities from providing firearms or ammunition to an employee
it knows or has reason to think is using marijuana. Although there is a legal difference between
marijuana products and hemp products, it is the understanding of LMC that it may not be
possible to differentiate the products in a drug test. Officers should be mindful of any substance
they ingest because they are ultimately responsible if those products lead to a positive
marijuana test.
Q21. Are there now "acceptable" limits of
cannabinoids for non -CDL employees for purposes of
drug testing at work (i.e.,
drug and alcohol testing
those we test under state
law)?
A21. There isn't a clear answer, since THC can remain in the body for several weeks after usage
(and long after any intoxicating or impairing effects have since disappeared), so positive test
results may not indicate any wrongdoing on the employee's part and may just be evidence of an
employee's lawful actions done outside of work. The League of Minnesota Cities recommends
that employers thoroughly document any suspicions of an employee being under the influence
and to work closely with their city attorney(s) before taking any action against the employee.
With this new area of law, a city may want to avoid relying on the results of traditional tests that
detect metabolites remaining in a person's body (for many days or weeks after using marijuana)
and instead focus on implementing reasonable -suspicion drug -testing protocols to detect
marijuana intoxication based on behavioral observations. Keep in mind, employers may
prohibit all employees from being under the influence while the employee is working. That
would include employees who operate vehicles. Employers may want to revise their policies to
clarify that employees still may not be under the influence of cannabis, legal or otherwise,
while at work.
The National Drug -Free Workplace Alliance offers a toolkit to help employers work through the
complex and confusing issue of marijuana and the workplace.
Q22. Can we still prohibit employees from being
under the influence of cannabinoids while at work?
Does the League have a model policy with updated
language?
A22. Yes, employers can continue to prohibit employees from being under the influence of
cannabinoid products, including edibles, while at work. Although employers' obligations and
restrictions related to marijuana use vary widely across the states, there is no law we are aware
of that requires employers to allow cannabinoid use during work hours or to allow an
employee to report to work impaired. Thus, employers may continue to maintain drug-free
policies at the workplace and discipline employees who use cannabinoids during working
hours or who report to work impaired. In fact, one could argue that under the Occupational
Safety and Health Administration's (OSHA) General Duty Clause of the Occupational Safety and
Health Act, employers are required to furnish a workplace free from recognized hazards that
are likely to cause serious physical harm. This provision of the Act is typically used in accident
cases where toxicology screens are positive.
OSHA's new electronic recordkeeping rule, clarified on 10/11/2018, states "If the employer
chooses to use drug testing to investigate the incident, the employer should test all employees
whose conduct could have contributed to the incident, not just employees who reported
injuries," with respect to using drug testing to evaluate the root cause of a workplace incident
that harmed or could have harmed employees. Thus, if a city has a non -DOT drug -testing policy
in place, a protocol following this guidance is important.
The League has a Non -DOT Drug and Alcohol Testing and Drug -Free Workplace Act model
policy_ that has been updated initially, and will be continually updated as the League learns
more.
Q23. Can employees be in possession of edibles or
other cannabinoid products while at work?
A23. Cities may enact policies prohibiting employees from bringing cannabinoid products,
including edibles, to work.
Q24. Do we need to change anything in our collective
bargaining agreement with regard to discipline of
employees who use cannabinoid products?
A24. No, but ensure your city's drug -testing policy has been updated and your supervisors are
trained on the behavioral signs and symptoms associated with impairment. Of course, if the
collective bargaining agreement includes language that policy changes need to be negotiated,
then there would need to be a meeting with the union if the city's policy changes.
Q25. Can employees use cannabinoid products off -
d uty?
A25. It depends. Certain types of employees, such as law enforcement officers and other
employees issued firearms and ammunition as part of their jobs, are subject to regulations
from the federal Bureau of Alcohol, Tobacco and Firearms, which prohibits firearms and
ammunitions to be given to individuals who do or are believed to use illegal drugs. As noted
above, city positions required to hold a commercial driver's license are subject to Department
of Transportation regulations and are not authorized for the use of Schedule I drugs, including
marijuana, for any reason. Thus, these types of employees could be prevented from using
cannabinoid products both on and off duty. Other employees who are not subject to that or
other federal regulations would likely be able to use cannabinoid products while they are off
duty, as there is nothing under Minnesota law which prohibits certain classes of employees
from using cannabinoid products off duty, as long as they are not impaired at work.
If there are any questions regarding whether an employee could be prevented from using
cannabinoid products while off-duty due to federal regulations, please consult your city
attorney before any action is taken.
Q26. How does this impact the requirements of the
Drug -Free Workplace Act?
A26. It does not. The Drug -Free Workplace Act of 1988 (DFWA) requires federal grantees and
contractors to implement a drug-free workplace policy and establish a drug-free awareness
program as a precondition for receiving a federal grant or a contract. However, the DFWA does
not require covered employers to test employees for drugs or terminate them for drug-related
violations, so the new Minnesota state law does not impact the DFWA directly. Minnesota law
allows employers to prohibit employees from bringing legal cannabinoid products to work and
permits employers to prohibit employees from being under the influence while at work. It
would be best practice for cities with drug-free work policies to keep those in effect. If a city
wishes to do so, it can update its policy to include lawful cannabinoid products within its scope.
Q27. Should my city still continue to include
marijuana as a pre-employment panel screen for my
Non -DOT employees?
A27. That is for each city to decide for itself. Because currently there are no devices or blood
tests available that measure marijuana impairment, and because a best practice approach for
Non -DOT marijuana drug testing is to base testing on behavioral observations, some employers
are excluding marijuana from their pre-employment Non -DOT drug screens. Some states even
prohibit an employer from refusing to hire an applicant simply because of a positive drug test,
but Minnesota is currently not one of these states at this time. Any city that chooses to continue
to test for THC for Non -DOT positions must be aware of the fact that these substances may
remain in an individual's system for weeks after the impairing effect of the drug has worn off.
Thus, it will be difficult, if not impossible, to determine whether the positive test indicates
usage in violation of the city's drug-free workplace policy or indicates lawful usage during an
employee's time -off from work. Cities should consult with their city attorneys prior to taking
any action based upon a positive drug test for THC.
Your LMC Resource
Research & Information Service staff members are ready to help you apply their broad
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