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City Council Agenda Packet 08-14-2023 SpecialAGENDA MONTICELLO CITY COUNCIL WORKSHOP Monday, August 14, 2023 — 5:15 p.m. Monticello Community Center Call to Order 5:15 p.m. Cannabis Legislation Workshop 3. Adjournment Understanding the Impacts of the Adult -Use Cannabis Law'in Minnesota July 25, 2023 LMCLEAGUE MINNESOTA CITIES Poll: What are you most worried about regarding adult -use cannabis? Agenda • Background on the passage of the new law, • What is legal starting August 1, 2023? • What will be coming in the future? • What steps cities should take going forward? • Public Use • Edible cannabinoid Regulation • cannabis Regulation 2023 Legislative Session: Fixing the THC edibles law or legalizing adult -use cannabis? LMC Legalization of Adult -Use Cannabis Chapter 53 legalizes adult -use cannabis and creates a statewide regulatory framework, making NDN the 23rd state to legalize, 6591%* 16 House committee hearings, 14 Senate 41committee hearings, 12 engrossments. Legalization of possession and home growth, decriminalization effective August 1, 2023. • Majority of rulemaking to occur in 2024. • Legal sales expected to begin by January 2025. What is legal August 15t? LMC Edible Cannabinoid Products Still Legal • Now governed by Department of Health • Testing • Standards to be set by State. • Must test each batch. • Better defines testing laboratory. • Labeling • Batch number. Other Changes to Edible Cannabinoid Products • Beverages can only be two servings per container, • Prohibits artificially derived cannabinoids unless approved by state, • only allows delta -8 and delta -9 THC, • Requires products be located behind counter or in locked case, • Age verification, • Sale at exclusive liquor stores, Other Changes to Edible Cannabinoid Products • on-site consumption allowed if; • Hold on -sale liquor license. • Served in original packaging, • Not sold to intoxicated customer, • Not allowed to be mixed with alcoholic beverage, • Products that have been removed from packaging must not be removed from premises, • Retailer must register with state by October 1, 2023. "No r .... wo OVO loo gg-CITRUS BEBER ju r 7V ®ro RURO nffz :BLUE RASPBERRY Mm WO W., 309 <)C. "Ilk --l NoMINJ , AN, t j r m S;ATIVAI:l M nit is IeCICII ns nt August 1 211 A/)j �- y & INA i OPEN Possession • Legal to possess; • 2 ounces of cannabis flower. • 8 grams of concentrate, • 800 mg of edible products. • 2 pounds of flower in private residence, • In vehicle trunk or area not normally occupied by driver if opened, Possession Restrictions • Public school or charter schools and school buses • State correctional facilities, • On federal property. • If under 21 years old. In vehicle if open and not in trunk, Use of Cannabis Law specifically authorizes an individual 21 years or older to use adult -use cannabis flower 8 products in; TTTTTT TTT � M-2 Private residence, Private property, unless Events licensed to permit on-site including yard owner prohibits consumption IMahassel@Imc.org NO WEED ZONE Prohibitions on Use • where prohibited by clean indoor air act. • while operating motor vehicles. • Public or charter schools and school buses. • State correctional facilities. • In a location where the smoke or vapor may be inhaled by a minor. • on federal property. • If under 21 years old. City Public Use Ordinance • Cities may adopt ordinance prohibiting in a public place if definition of "public place" does not include; • Private residence, including person's curtilage or yard, • Private property not generally accessible by the public, unless prohibited by the owner, • Licensed on-site consumption or event, • check current ordinance, may be broad enough, Growing Cannabis • Up to eight plants (four mature). • Only be grown in an enclosed locked space that is not open to public view. CANNABIS Selling Cannabis • Medical • Edibles All others need to wait for Office of cannabis Management to begin licensing, What's coming in the future for cannabis sales? LMC Adult -Use Cannabis Regulatory Structure Cannabis Management Board as regulating entity and administers all licenses. Five members appointed by: ■ Speaker of the House • Leader of minority caucus in the House • Senate Subcommittee on Committees • Leader of the minority caucus in Senate • Governor Cannabis Advisory Council comprised of 50 appointed or designated individuals, including o representative from the League of Minnesota Cities. Medical Event Delivery Lower Patency Retailer Mezzobusiness Microbusiness Cannabis Edible Retailer Business Organizer Service Medical Cultivator Manufacturer �a'an ufacturer er Potency Cannabis Testing Facility ManWholesaler Transporter Processer Minnesota office of Cannabis Management Minnesota has become the 23rd state in the nation to legalize cannabis use for people 21 and older. Learn more about the tegislation. For Adult Consumers For Medical Cannabis Patients Find out about limits on possession and how Learn how the legislation will reduce costs for much cannabis can be grown at a person's medical cannabis patients. https:Il c a n n a bis. m n. _cam For People Interested in Starting a Business Get details about the types of licenses that will City Role in Regulation A cannabis business applies for a license through the Office of Cannabis Management. OCM consults city for zoning approval and feedback. Cities issue registrations to certain cannabis businesses once they receive a license. Cities conduct compliance checks and may suspend registrations if needed Cities may collect registration fees and are provided 10% of tax revenue. What should cities do now?. LMC Moratoriums on Retailers Cities may adopt moratorium on cannabis businesses until 2025. • Prohibits establishing cannabis retailer so city can study the issue. Moratorium:.) Edible Temporary Regulations? • If licensing, continue with new restrictions. • Start licensing? • Nothing? City Use Ordinance • Where allowed to use not entirely clear. • Cities may adopt ordinance to prohibit in public places. • Cities get to define "public place." • Considerations Smoking v, edible What areas • Parks • City Property • Trails • Streets • Sidewalks • Places where outdoor smoking is otherwise allowed Public Safety • No reliable test to determine impairment, • officers use same training as they have previously, • Search of vehicle when smell is likely different, Prepping for Cannabis Regulation LMC Zoning Begin thinking about where to allow cannabis businesses. Retailers Manufacturers Growers What types of restrictions? CUP • Allowed Use 1 License limits • A city may limit the number of licensed cannabis retailers to no fewer than one registration for every 12,500 residents. • If a county has one active registration for every 12,500 residents, a city within the county is not obligated to register any additional cannabis businesses. • Amount of state funds will depend on the number of licenses within the city. The limits operate as follows: • 1-24,999 population: 1 license • 25,000-37,499 population; 2 licenses • 37,500-49,999 population; 3 licenses... IM ahassel@Imc.org 0 (651) 281_1261 L7 IS? Municipal Cannab • Authorizes cities to sell cannabis, • Need more guidance from state, • Analyzing insurance and liability issues, Cannabis WLCitYM Poll: What do you want to learn most about in the coming months? Alex Hassel Intergovernmental Relations Representative League of Minnesota Cities Kyle Hartnett Ass't Research Managaer League of Minnesota Cities ® ahassel@lmc.org ® khartnett@lmc.org ® (651) 281-1261 (651) 215-4084 0 @alexhassel LALEAGUE C MINNESOTA CITIES Adult -Use Cannabis: What Cities Need to Know Published: June 12, 2023 A new law enacted at the end of the 2023 legislative session legalizes adult -use cannabis in Minnesota and establishes a regulatory framework over the cannabis industry. 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. Read the full bill The following frequently asked questions (FAQs) aim to provide information to cities about the new law to assist local governments in making decisions related to the law. The League will continually update this information as necessary. Get answers to FAQs regarding the new law on adult -use cannabis General information Q1. What does the new law do? Q2. How much cannabis can aperson legally -possess? Q3. Are cannabis products legal under federal regulations? _Q . Can a person grow their own cannabis? Q5. Does the Clean Indoor Air Act apply to cannabisproducts? Q6. What types of licenses will the OCM issue? Q7. Can cannabis start to be sold now? Q8. Under the new law, where can adult -use cannabis be sold? Q9. Could my city's municipal liquor store sell adult -use cannabis? -10. Can my city have a municipal cannabis retail store? Taxation and revenue Q11. How will these new products be taxed? Q12. Can our city impose its own cannabis tax? Q13. Do sales taxes apply? Q14. Who receives taxes collected from the sale of cannabis products? Q15. What is considered a "taxable cannabis product retailer?" Q16. How much revenue will cities receive from the local government cannabis aid fund? Q17. When will cities receive revenue from the local government cannabis aid account? Enforcement and public safety Q18. How is the new law enforced? Q19. What are penalties for someone selling edible cannabis products that do not meet the state's requirements? Q20. Can a person still be charged with possession of cannabis products? Q21. Can a person still be charged with sale of cannabis products? Q22. Can a person be charged with a crime for cultivating cannabis? Q23. Can a person be charged with a crime for using cannabis in public? Q24. How do our officers determine if a driver is under the influence of adult -use cannabis? Q25. Is it a crime to use cannabis products while operating a motor vehicle? Q26. Is it a crime to possess cannabis products in a motor vehicle? Q27. Could cities prohibit the sale of adult -use cannabis entirely? Q28. Is our city required to adopt regulations under the new law? Q29. Are prior convictions for cannabis use expunged and what is the city's role in that process? City regulation Q30. Can the city require sellers to have a city -issued license? Q31. When is our city required to issue retail registration to a cannabis retail business? Q32. Can a retail registration issued by our city be transferred? Q33. Is our city required to conduct compliance checks on businesses with a cannabis retail registration? Q34. Can our city charge a fee for a cannabis retail registration? -35. Can my city limit the number of cannabis retailer licenses issued in our city? Q36. How does this impact my city's existing license for THC products? Q37. Which state agency is charged with regulating edible cannabinoid products until the OCM begins licensing cannabis products? Q38. What changes have been made to the edible cannabinoid law adopted in 2022? Q39. Can edible cannabinoid products be sold for on-site consumption? Q40. Will I be able to prohibit cannabis eventsin my city? Q41. How does this impact my city's existing THC license program? Q42. How does the new law impact my city's existing THC moratorium? Q43. Can the city's zoning regulation restrict where a business can operate? Q44. Can cities adopt a moratorium prohibiting the sale, manufacturing, or distribution of adult -use cannabis to study the issue? Q45: What if mycity has complaints about a licensed cannabis business? Q46: Can a city deny a liquor license if they find that the business is selling cannabis or low - potency hemp products without a license? Q47. Can a city suspend or revoke a tobacco license if they find that they are selling cannabis or low -potency hemp products without a license? City employment and personnel issues Q48. Does the new law allowing adult -use cannabis change anything about how we do drug testing for CDL holders? Q49. Does the new law change anything related to employees who carry a firearm? Q50. Besides positions requiring a CDL or carrying a firearm, are there any other positions which are not affected by the new law? Q51. Can we still prohibit employees from being under the influence of cannabis while at work? Does the League have a model policy with updated language? Q52. If an employee is injured while being under the influence of cannabis at work, are they still entitled to workers' compensation benefits? Q53. Can employees be in possession of edibles or other cannabis products while at work? Q54. Do we need to change anything in our collective bargaining agreement (CBA) regarding discipline of employees who use cannabis products? Q55. Can employees use cannabisproducts off-duty? Q56. How does this impact the requirements of the Drug -Free Workplace Act? Q57. Should mycity continue to include cannabis as a pre-employment panel screen for my_ non-DOT/safety-sensitive employees? General information Q1. What does the new law do? Al. The new law legalizes the possession, use, manufacturing, and sale of certain cannabis products within the state. It establishes the Office of Cannabis Management (OCM), which is charged with, among other things, enforcing an organized system of regulation for the cannabis industry and the hemp consumer industry. The law also: • Establishes labor standards for the use of cannabis and hemp products by employees and testing of employees. • Establishes expungement procedures for certain individuals previously convicted of a crime related to cannabis. Possession, use, and home growth under this new law will be legal beginning Aug. 1, 2023, and legal sales are expected to begin in January of 2025. Various other effective dates are noted throughout these FAQs as they apply. Access the Office of Cannabis Management's website Return to top of page Q2. How much cannabis can a person legally possess? A2. This law allows a person of 21 years of age or older to: • Use, possess, or transport cannabis paraphernalia. • Possess 2 ounces or less of cannabis flower in a public place. • Possess 2 pounds or less of cannabis flower in a person's residence. • Possess or transport 8 grams or less of adult -use cannabis concentrate. • Possess or transport edible products infused with a total of 800 milligrams or less of tetrahydrocannabinol. • Give away cannabis flower and products in an amount that is legal for a person to possess in public. The law authorizes an individual to use adult -use cannabis flower and adult -use cannabis products: • In a private residence including the individual's curtilage or yard. • On private property, unless the owner of the property prohibits the use of the products. • On the premises of an establishment or event licensed to permit on-site consumption. Return to top of page Q3. Are cannabis products legal under federal regulations? A3. Marijuana remains a Schedule I drug under federal law, meaning it is illegal, with limited exceptions, to grow, process, sell or possess marijuana from a federal standpoint. Return to top of page Q4. Can a person grow their own cannabis? A4. The law authorizes a person to cultivate up to eight cannabis plants, of which four or fewer may be mature, flowering plants provided that it is in an enclosed, locked space that is not open to public view. Return to top of page Q5. Does the Clean Indoor Air Act apply to cannabis products? A5. A person may not use cannabis flower, cannabis products, or hemp -derived consumer products in a manner that involves the inhalation of smokes, aerosol, or vapor at any location where smoking is prohibited under the Clean Indoor Air Act. Return to top of page Q6. What types of licenses will the OCM issue? A6. The OCM will issue the following types of licenses: • Cannabis microbusiness. • Cannabis mezzobusiness. • Cannabis cultivator. • Cannabis manufacturer. • Cannabis retailer. • Cannabis wholesaler. • Cannabis transporter. • Cannabis testing facility. • Cannabis event organizer. • Cannabis delivery service. • Lower -potency hemp edible manufacturer. • Medical cannabis cultivator. • Medical cannabis processor. • Medical cannabis retailer. Return to top of page Q7. Can cannabis start to be sold now? A7. Cannabis will not be able to be sold until the Office of Cannabis Management is established and able to issue licenses. Communication from state agencies indicate an intended timeline of January 2025 for when sales will be live to the public. Before beginning sales, a cannabis retailer must obtain a local retail registration. Any business attempting to sell cannabis products before licenses are issued should be reported to the Department of Health. Return to top of page Q8. Under the new law, where can adult -use cannabis be sold? A8. Cannabis products and hemp derived consumer products may only be sold in business with a license issued by the OCM. Return to top of page Q9. Could my city's municipal liquor store sell adult -use cannabis? A9. The law adds edible cannabinoid products as an item allowed to be sold at exclusive liquor stores, including municipal liquor stores. The ability of cities to sell cannabinoid products at a liquor store is unique to Minnesota and may create new and complex coverage and liability questions around these products. The League and the League of Minnesota Cities Insurance Trust (LMC1T) are working on guidance for cities considering selling cannabinoid products at their municipal liquor stores. This information will be updated when such guidance is drafted. Return to top of page Q10. Can my city have a municipal cannabis retail store? A10. The new law authorizes cities to operate a municipal cannabis retail store. This is a unique opportunity for Minnesota cities and more research is needed to determine the legal ramifications of such an operation. Return to top of page Taxation and revenue Q11. How will these new products be taxed? All. A tax equal to 10% of gross receipts from retail sales of taxable cannabis products will be imposed on any taxable cannabis product retailer that sells cannabis products to customers. Return to top of page Q12. Can our city impose its own cannabis tax? Al2. Cities are prohibited from imposing a tax solely on the sale of taxable cannabis products. Return to top of page Q13. Do sales taxes apply? A13. The state sales tax and local sales taxes apply to cannabis and hemp -derived cannabinoid products. Return to top of page Q14. Who receives taxes collected from the sale of cannabis products? A14. Revenues from the retail sales of cannabis products will be divided, with 80% going to the general fund and 20% to the local government cannabis aid account. Cities will receive 50% of the amount certified to the local government cannabis aid account. Return to top of page Q15. What is considered a "taxable cannabis product retailer?" A15. A taxable cannabis product retailer is a retailer that sells any taxable cannabis products. This includes a cannabis retailer, cannabis microbusiness, cannabis mezzobusiness, and lower - potency hemp edible retailer. Minn. Stat § 295.81, subd. 1(s). Return to top of page Q16. How much revenue will cities receive from the local government cannabis aid fund? A16. Half of the amount certified in the cannabis local government aid fund will go to cities. Cities will receive a distribution proportional to the number of cannabis businesses located in the city as compared to the number of cannabis businesses in all cities. Return to top of page Q17. When will cities receive revenue from the local government cannabis aid account? A17. The gross receipts tax goes is effective for gross receipts received after June 30, 2023. The law requires the Department of Revenue to certify the amount to be paid to each city by Sept. 1, 2024, and every year after, and the full amount must be paid on Dec. 26, 2024, and every year after. Return to top of page Enforcement and public safety Q18. How is the new law enforced? A18. All licensing issues will be enforced by the Office of Cannabis Management. Until the OCM is up and running, the currently legal hemp -derived edible products under Minn. Stat. § 151.72 will be temporarily regulated by the Department of Health, which is taking over the enforcement of edible cannabis products previously done by the Board of Pharmacy. Local law enforcement may still enforce illegal possession or use crimes where applicable. Access the Department of Health's site on the temporaryregulation of lower -potency hemp edibles Return to top of page Q19. What are penalties for someone selling edible cannabis products that do not meet the state's requirements? A19. If a retailer is found to be selling edible cannabis products that do not meet state requirements, the Department of Health may embargo the products and potentially destroy the products with the retailer paying for all court costs and fees, storage, and other proper expenses. Return to top of page Q20. Can a person still be charged with possession of cannabis products? A20. Beginning Aug. 1, 2023, the following actions are considered cannabis possession crimes: Possession of cannabis in the first degree. (Punishable by imprisonment for not more than five years or payment of a fine of not more than $10,000, or both). o More than 2 pounds but not more than 10 kilograms of cannabis flower. o More than 160 grams but not more than 2 kilograms of cannabis concentrate. o Edible cannabis products, lower -potency hemp edibles, or hemp -derived consumer products infused with more than 16 grams but not more than 200 grams of THC. Possession of cannabis in the second degree. (Punishable by imprisonment for not more than one year or payment of a fine of not more than $3,000, or both). o More than 1 pound but not more than 2 pounds of cannabis flower in any place other than the person's residence. • More than 80 grams but not more than 160 grams of cannabis concentrate. o Edible cannabis products, lower -potency hemp edibles, or hemp -derived consumer products infused with more than 8 grams but not more than 16 grams of THC. • Possession of cannabis in the third degree. (Punishable by imprisonment for not more than 90 days or payment of a fine of not more than $1,000, or both). • More than 4 ounces but not more than 1 pound of cannabis flower in any place other than the person's residence. o More than 16 grams but not more than 80 grams of cannabis concentrate. o Edible cannabis products, lower -potency hemp edibles, or hemp -derived consumer products infused with more than 1,600 milligrams but not more than 8 grams of THC. • Possession of cannabis in the fourth degree. (Punishable as a petty misdemeanor). o More than 2 ounces but not more than 4 ounces of cannabis flower in any place other than the person's residence. o More than 8 grams but not more than 16 grams of cannabis concentrate. o Edible cannabinoid products infused with more than 800 milligrams but not more than 1,600 milligrams of THC. Return to top of page Q21. Can a person still be charged with sale of cannabis products? A21. Beginning Aug. 1, 2023, the following actions are considered cannabis sale crimes: • Sale of cannabis in the first degree. Punishable by imprisonment for not more than five years or to a payment of a fine of not more than $10,000 or both if a person unlawfully sells more than 2 ounces of cannabis flower; more than 8 grams of cannabis concentrate; or edible cannabis products, lower -potency hemp edibles, or hemp -derived consumer products infused with more than 800 milligrams of THC: o To a minor and the defendant is more than 36 months older than the minor. o Within 10 years of two or more convictions of sale in the second or third degree. • Within 10 years of a conviction of first degree • Sale of cannabis in the second degree. May be sentenced to imprisonment for not more than one year or to payment of a fine of not more than $3,000, or both if an adult: o Unlawfully sells more than 2 ounces of cannabis flower; more than 8 grams of cannabis concentrate; or edible cannabis products, lower-potency hemp edibles, or hemp-derived consumer products infused with more than 800 milligrams of THC: ■ In a school zone, a park zone, or a drug treatment facility; or ■ Within 10 years of a conviction of sale of cannabis in the first, second, or third degree. o Unlawfully sells cannabis flower, cannabis concentrate, edible cannabis products, lower- potency hemp edibles, or hemp-derived consumer products to a minor. • Sale of cannabis in the third degree. An adult may be sentenced to imprisonment for not more than 90 days or to payment of a fine of not more than $1,000, or both, if the adult unlawfully sells: o More than 2 ounces of cannabis flower. o More than 8 grams of cannabis concentrate. o Edible cannabis products, lower-potency hemp edibles, or hemp-derived consumer products infused with more than 800 milligrams of THC. • Sale of cannabis in the fourth degree. An adult is guilty of a petty misdemeanor if they unlawfully sell: o Not more than 2 ounces of cannabis flower. o Not more than 8 grams of cannabis concentrate. o Edible cannabis products, lower-potency hemp edibles, or hemp-derived consumer products infused with not more than 800 milligrams of THC. A sale for no remuneration by an individual over the age of 21 to another individual over the age of 21 is not unlawful as cannabis sale in the fourth degree. • Sale of cannabis by a minor. A minor is guilty of a petty misdemeanor if the minor unlawfully sells: o Not more than 2 ounces of cannabis flower. o Not more than 8 grams of cannabis concentrate. o Edible cannabis products, lower-potency hemp edibles, or hemp-derived consumer products infused with not more than 800 milligrams of THC. A minor is guilty of a misdemeanor if the minor unlawfully sells: o More than 2 ounces of cannabis flower. o More than 8 grams of cannabis concentrate. o Edible cannabis products, lower-potency hemp edibles, or hemp-derived consumer products infused with more than 800 milligrams of THC. Return to top of page Q22. Can a person be charged with a crime for cultivating cannabis? A22. Beginning Aug. 1, 2023, the following are crimes related to the cultivation of cannabis. • Cultivation of cannabis in the first degree. A person is guilty of cultivation of cannabis in the first degree and may be sentenced to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both, if the person unlawfully cultivates more than 23 cannabis plants. • Cultivation of cannabis in the second degree. A person is guilty of cultivation of cannabis in the second degree and may be sentenced to imprisonment for not more than one year or to payment of a fine of not more than $3,000, or both, if the person unlawfully cultivates more than 16 cannabis plants but not more than 23 cannabis plants. Return to top of page Q23. Can a person be charged with a crime for using cannabis in public? A23. Beginning Aug. 1, 2023, a city may adopt an ordinance establishing a petty misdemeanor offense for a person who unlawfully uses cannabis flower, cannabis products, lower -potency hemp edibles, or hemp -derived consumer products in a public place other than the following. • A private residence including the person's curtilage or yard. • Private property not generally accessible by the public, unless the person is explicitly prohibited from consuming cannabis flower, cannabis products, lower -potency hemp edibles, or hemp -derived consumer products on the property by the owner of the property. • The premises of an establishment or event licensed to permit on-site consumption. Return to top of page Q24. How do our officers determine if a driver is under the influence of adult -use cannabis? A24. Officers will need to use the same process for determining if a person is under the influence of cannabis while operating a vehicle as they would have prior to the new law being enacted. Return to top of page Q25. Is it a crime to use cannabis products while operating a motor vehicle? A25. It is a misdemeanor for a person to use cannabis flower, a cannabis product, a lower - potency hemp edible, a hemp -derived consumer product, or any other product containing an artificially derived cannabinoid in a motor vehicle when the vehicle is on a street or highway. Return to top of page Q26. Is it a crime to possess cannabis products in a motor vehicle? A26. Beginning Aug. 1, 2023, a person may be charged with a misdemeanor if they possess cannabis products in a motor vehicle on a street or highway if the products meet any of the following conditions: • Do not meet the packaging requirements set in statute. • Have been removed from the packaging in which they were sold. • Are in packaging that has been opened, or the seal has been broken. • Are in packaging in which the contents have been partially removed. It is not considered a crime if the cannabis products are in the trunk of the vehicle or in another area of the vehicle not normally occupied by the driver and passengers if the vehicle is not equipped with a trunk. A utility compartment or glove compartment is deemed to be within the area occupied by the driver and passengers. Return to top of page Q27. Could cities prohibit the sale of adult -use cannabis entirely? A27. Cities may not prohibit the possession, transportation, or use of cannabis flower, cannabis products, lower -potency hemp edibles, or hemp -derived consumer products authorized by the new law. Return to top of page Q28. Is our city required to adopt regulations under the new law? A28. Cities are not required to adopt any new regulations under the new law. However, they will be required to register retail sellers and perform compliance checks. Return to top of page Q29. Are prior convictions for cannabis use expunged and what is the city's role in that process? A29. Certain cannabis -related convictions will be expunged by the Bureau of Criminal Apprehension. Upon receipt of a notice of expungement, cities are required to seal all records related to the expungement, including the records of the person's arrest, indictment, trial verdict, and dismissal or discharge of the case. Certain felony convictions will be reviewed by the Cannabis Expungement Board to determine what, if any, action should be taken related to a prior conviction. Cities will be required to provide the Cannabis Expungement Board free access to records held by law enforcement agencies or prosecuting authorities. Return to top of page City regulation Q30. Can the city require sellers to have a city -issued license? A30. A city may not require additional licenses other than the cannabis licenses issued by the OCM. However, the OCM will forward applications to cities for them to certify whether the proposed cannabis business complies with local zoning ordinance and, if applicable whether the proposed business complies with the state fire and building code. The OCM may not issue a license to a cannabis business that does not meet local zoning and land use laws. In addition, upon receipt of an application for a cannabis license, the OCM will contact the city in which the business would be located and provide the city with 30 days in which to provide input on the application. This is the city's opportunity to provide the OCM with any additional information it believes is relevant to the OCM's decision on whether to issue a license, including but not limited to identifying concerns about the proposed location of a cannabis business, or sharing public information about the applicant. Before a cannabis business begins making retails sales, it will be required to register with the city in which it is located. Return to top of page Q31. When is our city required to issue retail registration to a cannabis retail business? A31. A city is required to issue a retail registration to a cannabis microbusiness with a retail operations endorsement, cannabis mezzobusiness with a retail operations endorsement, cannabis retailer, medical cannabis retailer, or lower -potency hemp edible retailer that: • Has a valid license issued by the OCM. • Has paid the registration fee. • Is found to be in compliance with the requirements of the applicable state laws through a preliminary compliance check performed by the city. • Is current on all property taxes and assessments at the location where the retail establishment is located. Return to top of page Q32. Can a retail registration issued by our city be transferred? A32. Retail registration may not be transferred. Return to top of page Q33. Is our city required to conduct compliance checks on businesses with a cannabis retail registration? A33. Cities will be required to conduct compliance checks on retail cannabis businesses with a retail registration by the city. The OCM will develop standardized forms and procedures for these compliance checks. Return to top of page Q34. Can our city charge a fee for a cannabis retail registration? A34. city may impose an initial retail fee of $500 or up to half the amount of the applicable initial license fee charged by the OCM, whichever is less. The city may also charge a renewal retail registration fee of $1,000 or up to half the amount of the applicable renewal license fee charged by the OCM, whichever is less. Return to top of page Q35. Can my city limit the number of cannabis retailer licenses issued in our city? A35. A city that issues cannabis retailer registrations may, by ordinance, limit the number of licensed cannabis retailers, cannabis mezzobusinesses with a retail operations endorsement, and cannabis microbusinesses with a retail operations endorsement to no fewer than one registration for every 12,500 residents. In addition, if a county has one active registration for every 12,500 residents, a city within the county is not obligated to register any additional cannabis businesses. Return to top of page Q36. How does this impact my city's existing license for THC products? A36. It appears that cities may continue to license edible cannabinoid products until the OCM begins issuing licenses. Those businesses that sell edible cannabinoid products to consumers must register with the Minnesota Department of Health by Oct. 1, 2023. However, once the OCM begins issuing lower -potency hemp edible retailer licenses, cities are likely preempted from continuing to issue their own licenses and would begin registering retailers through the city's cannabis retailer registration process. Return to top of page Q37. Which state agency is charged with regulating edible cannabinoid products until the OCM begins licensing cannabis products? A37. The Minnesota Department of Health is now charged with the regulations of edible cannabinoid products until the OCM begins issuing licenses. Learn more on the Minnesota Department of Health website. Return to top of page Q38. What changes have been made to the edible cannabinoid law adopted in 2022? A38. The new law allows for the continued sale of certain edible cannabinoid products with new limitations including: • Manufacturers must have each batch of products tested to certify they comply with the standards adopted by the Minnesota Department of Health. • Manufacturers must disclose information regarding foreign materials applied or added to the products. • Labels must contain a batch number. • Beverages cannot contain more than two servings per container. • Edible cannabinoid products may not contain artificially derived or synthetic cannabinoids. • Edible cannabinoid products, other than beverages, must be displayed behind a checkout counter. • Retailers must verify age of purchaser. Return to top of page Q39. Can edible cannabinoid products be sold for on-site consumption? A39. Until the OCM begins issuing licenses, the on-site consumption of edible cannabinoid products is limited to those businesses with an on -sale liquor license issued under Minnesota Statutes, Chapter 340A. In addition, the following conditions must be met: • Products must be served in original. • Products may not be sold to an intoxicated customer. • Products must not be permitted to be mixed with alcoholic beverages. • Products removed from packaging must remain on premises. After the OCM is set up, it will issue on-site consumption endorsements for cannabis license holders. Return to top of page Q40. Will I be able to prohibit cannabis events in my city? A40. The new law authorizes temporary cannabis events lasting no more than four days. To be approved for a cannabis event license, applicants must obtain any necessary permits or licenses issued by a local unit of government. Cities may not prohibit cannabis events, but they may set standards which the event organizer must meet. Cities may also permit on-site consumption for events but are not required to. Return to top of page Q41. How does this impact my city's existing THC license program? A41. Local THC licenses may continue until the OCM begins issuing its own licenses, which state agencies anticipate beginning in January of 2025. When the OCM licensing begins, cities will need to follow the retail registration procedures outlined in the law. Return to top of page Q42. How does the new law impact my city's existing THC moratorium? A42. The new law does not affect a current moratorium. If a city adopted a moratorium on low - potency edibles, it remains in place and will expire as noted when it was adopted. Return to top of page Q43. Can the city's zoning regulation restrict where a business can operate? A43. Cities are allowed to adopt reasonable restrictions on the time, place, and manner of the operations of a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses. Cities may prohibit the operations of a cannabis business within 1,000 feet of a school, or 500 feet of a day care, residential treatment facility, or an attraction within a public park that is regularly used by minors, including a playground or athletic field. The OCM will develop model ordinances for reasonable restrictions on the time, place, and manner of a cannabis business. Return to top of page Q44. Can cities adopt a moratorium prohibiting the sale, manufacturing, or distribution of adult -use cannabis to study the issue? A44. Cities may adopt an interim ordinance if: • It is conducting studies. • Has authorized a study to be conducted. • Has held or has scheduled a hearing for the purpose of considering adoption or amendment of reasonable restriction on the time, place, and manner of the operation of a cannabis business as defined in the new law. Before adopting an interim ordinance, the city must hold a public hearing on the issue. The interim ordinance may be in place until Jan. 1, 2025. The authority for an extended moratorium does not apply to the sale or production of low -potency hemp edible products. Return to top of page Q45: What if my city has complaints about a licensed cannabis business? A45. The OCM will establish an expedited complaint process to receive, review, and respond to complaints made by cities about a cannabis business. The OCM will be required to respond to the complaint within seven days and perform any necessary inspections within 30 days. If certain cannabis businesses are deemed by the city to pose an immediate threat to the health or safety of the public, the OCM must respond within one business day. Return to top of page Q46: Can a city deny a liquor license if they find that the business is selling cannabis or low -potency hemp products without a license? A46. Yes. The new law prohibits a retail license from being issued to a person who has had a license or registration issued under ch. 342 or Minn. Stat. § 151.72, subd. 5b revoked; has been convicted of an offense under Minn. Stat. § 151.72, subd. 7; or has been convicted under any other statute for the illegal sale of marijuana, cannabis flower, cannabis products, lower - potency hemp edibles, hemp -derived consumer products, or edible cannabinoid products and the sale took place on the premises of a business that sells intoxicating liquor or 3.2% malt liquor. Return to top of page Q47. Can a city suspend or revoke a tobacco license if they find that they are selling cannabis or low -potency hemp products without a license? A47. Yes. The new law allows a tobacco license to be suspended or revoked if the licensee has a registration or licensed under ch. 342 or Minn. Stat. § 151.72, subd. 5b revoked; is convicted of an offense under Minn. Stat. § 151.72, subd. 7; or has been convicted under any other statute for the illegal sale of marijuana, cannabis flower, cannabis products, lower -potency hemp edibles, hemp -derived consumer products, or edible cannabinoid products and the sale took place on the premises of a business that sells tobacco. A city must provide notice and an opportunity for a hearing before suspension or revocation. Return to top of page City employment and personnel issues Q48. Does the new law allowing adult -use cannabis change anything about how we do drug testing for CDL holders? A48. 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 that 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. Cities can find more information on existing drug testing policies in the LMC Drug and Alcohol Testing Toolkit, starting on page 22. An updated model Non -DOT Drug, Alcohol and Cannabis Policies will be available once legal consultants have reviewed. Return to top of page Q49. Does the new law change anything related to employees who carry a firearm? A49. 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 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. Return to top of page Q50. Besides positions requiring a CDL or carrying a firearm, are there any other positions which are not affected by the new law? A50. Yes. The law excludes the following seven position classes from the law's changes: 1. A safety -sensitive position, as defined in as defined in Minn. Stat. § 181.950, subd. 13. 2. A peace officer position, as defined in Minn. Stat. § 626.84, subd. 1. 3. A firefighter position, as defined in Minn. Stat. § 299N.01, subd. 3. 4. A position requiring face-to-face care, training, education, supervision, counseling, consultation, or medical assistance to: 1. Children. 2. Vulnerable adults, as defined in Minn. Stat. § 626.5572, subd. 21. 3. Patients who receive health care services from a provider for the treatment, examination, or emergency care of a medical, psychiatric, or mental condition. 5. A position funded by a federal grant. 6. Any other position for which state or federal law requires testing of a job applicant or employee for cannabis. 7. A position requiring a commercial driver's license or requiring an employee to operate a motor vehicle for which state or federal law requires drug or alcohol testing of a job applicant or employee. Return to top of pagc Q51. Can we still prohibit employees from being under the influence of cannabis while at work? Does the League have a model policy with updated language? A51. Yes, employers can continue to prohibit employees from being under the influence of cannabis products, while at work. For employers, a key focus will be workplace safety with the consideration that cannabis is more difficult to detect and test than alcohol. Employers may continue to maintain drug-free policies at the workplace and discipline employees who use cannabis during working hours or who report to work impaired. 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 Oct. 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, a non -DOT drug and cannabis -city testing policy with protocols following this guidance is important. Under the new law, employers can enact and enforce work policies prohibiting the use, possession, and impairment of cannabis while at work or operating employer vehicles, equipment, and machinery. It is difficult to test for cannabis to determine if an employee is currently under the influence due to the drug's ability to be detectable for weeks after it is used. With the prohibitions on disciplining employees other than those listed in Q3, employers will be in a difficult position to take action against an employee who tests positive for cannabis. A best practice is for cities to train supervisors about the behavioral signs and symptoms of drug and cannabis use as well as how to document observations of potential impairment so should a situation occur in the workplace, supervisors can effectively respond and document what they observed leading to the situation. An updated model Non -DOT Drug, Alcohol and Cannabis Policies will be available once legal consultants have reviewed. Return to top of pagc Q52. If an employee is injured while being under the influence of cannabis at work, are they still entitled to workers' compensation benef its? A52. While each case is very fact -specific, the general rule is that if the injury was intentionally self-inflicted or the intoxication of the employee is the proximate cause of the injury, then the employer is not liable for compensation. The burden of proof of these facts is upon the employer. Return to top of pagc Q53. Can employees be in possession of edibles or other cannabis products while at work? A53. Cities may enact policies prohibiting employees from bringing cannabis products, including edibles, to work. A best practice is for cities to train supervisors about the behavioral signs and symptoms of drug and cannabis use as well as documenting observations of potential impairment so should a situation occur in the workplace, supervisors can effectively respond and document what they observed leading to the situation. Return to top of page Q54. Do we need to change anything in our collective bargaining agreement (CBA) regarding discipline of employees who use cannabis products? A54. Maybe. If cities have policies within their CBAs that relate to cannabis use and discipline, cities should consult with their city attorney to determine if any changes are needed. CBAs may address cannabis and cannabis testing, but the CBAs must at least meet the minimum employee rights guaranteed by the statute. Ensure your city's drug and cannabis -testing policies have been updated and your supervisors are trained on the behavioral signs and symptoms associated with impairment as well as documenting observations of potential impairment. If the CBA 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. Return to top of page Q55. Can employees use cannabis products off-duty? A55. It depends. See Q1, Q2, and Q3 for a list of employees who can be prohibited from using cannabis products both on and off duty due to federal or state regulations. Other employees would be able to use cannabis products while they are off duty, if they are not impaired at work. If there are any questions regarding whether an employee could be prevented from using cannabis products while off-duty, please consult your city attorney before any action is taken. In addition, the law prohibits an employer from taking adverse employment action against an employee who is a patient in the state's medical cannabis program unless a failure to do so would violate federal or state law or regulations, or cause an employer to lose a monetary or incensing -related benefit under federal law or regulations. Return to top of page Q56. How does this impact the requirements of the Drug -Free Workplace Act? A56. 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 cannabis 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 cannabis products within its scope. An updated model Non -DOT Drug, Alcohol and Cannabis Policies will be available once legal consultants have reviewed. Return to top of page Q57. Should my city continue to include cannabis as a pre- employment panel screen for my non-DOT/safety-sensitive employees? A57. The new Minnesota law prohibits an employer from refusing to hire an applicant simply because of a positive cannabis drug test. There are exceptions for positions where such testing and denial of job offer is required under applicable federal or state law. Cities will want to refer to the Qa, which provides a list of positions excepted from cannabis testing prohibitions. Practically speaking, if a position is not excepted, cities will need to determine whether they want to continue to test for cannabis in light of the limitation of the testing and confer with their city attorney before taking an action as a result of a positive test. Return to top of page Your LMC Resource Research & Information Service staff members are ready to help you apply their broad knowledge to the issues you're dealing with today. Access online form to submit a question, or call us: (651) 281-1200 or (800) 925-1122 COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE No.: 23-3 ORDINANCE REGULATING THE USE OF CANNABIS AND CANNABIS DERIVED PRODUCTS IN PUBLIC PLACES THE COUNTY BOARD OF WRIGHT COUNTY HEREBY ORDAINS: ARTICLE I — CHAPTER 97 CANNABIS REGULATION Sec. 1. Create CHAPTER 97 — CANNABIS REGULATION and insert the following: 97.01. PURPOSE, INTENT AND STATUTORY AUTHORITY (A) Statement of Purpose andlntent. This Ordinance is adopted by the Wright County Commissioners for the purpose of protecting public health and safety by ung the use of Cannabis and cannabis derived products in public places and places of public accommodation within Wright County. By enacting 2023 Session Law, Chapter 63, H. F. No. 100 [hereinafter referred to "State Legislation"l, the Minnesota Legislature passed the adult -use cannabis bill. Under that bill, the adult use, possession and personalrg owing of cannabis became legal on August 1, 2023. State legislation authorizes adoption of a local ordinance establishing a petty misdemeanor offense for public use of cannabis. See State Legislation Article 4, Sec. 19, Minn. Stat. 152.0263, Subd. 5, or successor statute. Wright County (hereinafter "the Coun . ") recognizes the risks that unintended access and use of cannabis products and exposure to cannabis and its effects present to the health, welfare, and safety of youth and theeg neral public in Wright County State legislation authorizes adoption of ordinances to regulate actual or potential threats to the public health. See Minn. Stat. 145A.05, subds. 1 and 7. The County wishes to be proactive in protecting public health and safetyby enacting regulations that will mitigate threats presented to the public and public health by the public use of cannabis. (B) Statutory Authority. This Ordinance is enacted pursuant to 2023 Session Law, Chapter 63, H. F. No. 100 [hereinafter referred to "State Legislation"]; State Legislation Article 1, Sec. 1 Minn. Stat. 342.01; State Legislation Article 1, Sec. 9 Minn. Stat. 342.09 Subd. 1(b) or successor statute; State Legislation Sec. 9 Minn. Stat. 342.09, Subd. 1 (b)(9) or successor statute; State Legislation Minn. Stat. 342.09 Subd.l(a)(7) or successor statute; and State Legislation Article 4, Sec. 19 Minn. Stat. 152.0263, Subd. 5, or successor statute; and Minn. Stat. 145A.05. 97.02 DEFINITIONS Except as may otherwise be provided or clearly plied by context, all terms shall be given their commonly accepted definitions. The following words, terms, and phrases, when used in this ordinance, shall have the meanings ascribed to them except where the context clearly indicates a different meaning. (A) Adult -use cannabis flower. "Adult -use cannabis flower" means cannabis flower that is approved for sale by the office or is substantially similar to a product approved by the office. Adult -use cannabis flower does not include medical cannabis flower, hemp plant parts, or hemp - derived consumer products. (B) Adult -use cannabis products. "Adult -use cannabis products" means a cannabis product that is approved for sale by the office or is substantially similar to a product approved by the office. Adult -use cannabis product includes edible cannabis products but does not include medical cannabinoid products or lower -potency hemp edibles. (C) Cannabis flower. "Cannabis flower" means the harvested flower, bud, leaves, and stems of a cannabis plant. Cannabis flower includes adult -use cannabis flower and medical cannabis flower. Cannabis flower does not include cannabis seed, hemp plant parts, or hemp -derived consumer products. (D) Cannabis plant. "Cannabis plant" means all parts of the plant of the Renus Cannabis that isrig or has not been harvested and has a delta -9 tetrahydrocannabinol concentration of more than 0.3 percent on a da weight basis. (E) Cannabis product. "Cannabis product" means any of the following_ (1) cannabis concentrate; (2) a product infused with cannabinoids, including but not limited to tetrahvdrocannabinol. extracted or derived from cannabis plants or cannabis flower: or (3) an.. other that contains cannabis concentrate. (F) Hemp derived consumer products. (1) "Hemp derived consumer products" means a product intended for human or animal consumption, does not contain cannabis flower or cannabis concentrate, and: (i) contains or consists of hemp plant parts; or (ii) contains hemp concentrate or artificially derived cannabinoids in combination with other ingredients. (2) Hemp -derived consumer products does not include artificially derived cannabinoids, lower -potency heMp edibles, hemp -derived topical products, hemp fiber products, or hempgrain. (G)Lower-potency hemp edible. A "lower -potency heMp edible" means M product that: (1) is intended to be eaten or consumed as a beverage by humans; (2) contains hemp concentrate or an artificially derived cannabinoid; in combination with food ingredients; (3) is not a drug; (4) consists of servings that contain no more than five milligrams of delta -9 tetrahydrocannabinol, 25 milligrams of cannabidiol, 25 milligrams of cannabi eg rol, or any combination of those cannabinoids that does not exceed the identified amounts; (5) does not contain more than a combined total of 0.5 milligrams of all other cannabinoids per serving; (6) does not contain an artificially derived cannabinoid other than delta - 9 tetrahydrocannabinol; (7) does not contain a cannabinoid derived from cannabis plants or cannabis flower; and (8) is a type of product approved for sale by the office or is substantially similar to a product approved by the office, including but not limited to products that resemble nonalcoholic beverages, candy, and baked goods. ods. (I) Public place. A "public place," means a public park or trail, public street or sidewalk, any enclosed, indoor area used by the general public, including, but not limited to, theaters, restaurants, bars, food establishments, places licensed to sell intoxicating liquor, wine, ormalt beverages, retail businesses, gyms, common areas in buildings, public shopping areas, auditoriums, arenas, or other places of public accommodation. 0) Place of public accommodation. "Place of public accommodation" means a business, refreshment, entertainment, recreation, or transportation facility of any kind, whoseog ods, services, facilities, privileges, advantages, or accommodations are extended, offered, sold, or otherwise made available to the public." (J) Exceptions to public place or place of public accommodation. "A public place" or "a place of public accommodation" does not include the following: 1. a private residence, including the individual's curtilage or. 2. a private grope . , noteg nerally accessible by the public, unless the individual is explicitly prohibited from consuming cannabis flower, cannabis products, lower -potency hemp edibles, or hemp -derived consumer products on the property by the owner of the property; or 3. on the premises of an establishment or event licensed to permit on-site consumption. (K)Smoking. "Smoking" means inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, pipe, or any other lighted or heated product containing cannabis flower, cannabis products, artificially derived cannabinoids, or hemp -derived consumer products. Smoking includes cgMing or using an activated electronic delivery device for human consumption through inhalation of aerosol or vapor from the product. 4 97.03 JURISDICTION This Ordinance shall be applicable within the legal boundaries of Wright Count. 4 97.04 PROHIBITED ACTS (A) No person shall use cannabis flower, cannabis products, lower -potency hemp edibles, or hemp - derived consumer products in a public place or a place of public accommodation unless the premises is an establishment or an event licensed to permit on-site consumption of adult -use cannabis flower and adult use cannabis products. See State Legislation Article 4, Sec. 19 codified as Minn. Stat. 152.0263, Subd. 5, or successor statute. (B) No person shall vaporize or smoke cannabis flower, cannabis products, artificially derived cannabinoids, or hemp -derived consumer products in any location where the smoke, aerosol, or vapor would be inhaled by a minor. See State Legislation Article 1, Sec. 9 codified as Minn. Stat. 342.09, Subd. I (b)(9) or successor statute. 4 97.05 PENALTY (A) Criminal Penalty. A violation of this ordinance chapter shall be a petty misdemeanor having a fine payable up to $300. Nothing in this ordinance prohibits the County from seeking prosecution for an alleized violation. 4 97.06 SEVERABILITY If any section or provision of this ordinance is held invalid, such invalidity will not affect other sections or provisions that can be given force and effect without the invalidated section or provision. 4 97.07 EFFECTIVE DATE This ordinance shall be in full force and effect from and after its passage and publications as required by law. ADOPTED by the Wright County Board of Commissioners this day of 2023. Darek Vetsch Chair, Wright County Board of Commissioners ATTEST: Lee Kelly Wright County Administrator