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Interim Ordinance No. 1408, Cannabinoid Moratorium 06-12-2023 Interim Ordinance No. 1408 Authorizing a Study and Imposing a Moratorium on the Sale of Cannabinoid Products The City Council of the City of Fridley does ordain, after review, examination and staff recommendation that a moratorium on cannabinoid products be enacted as follows: Section 1. Purpose The Fridley City Council (Council) finds that an interim ordinance placing a moratorium on the retail sale of cannabinoids is necessary to protect the health, safety general welfare of the citizens of the City of Fridley (City). The City further finds that an ordinance establishing a moratorium on the retail sale of cannabinoids will allow the City time to study the issue and determine what, if any, additional licensing and/or regulations for these cannabinoid products are appropriate. Section 2. Definitions Cannabinoids: any product containing tetrahydrocannabinol (THC), tetrahydrocannabinol acetate (THC-O), Tetrahydrocannabivarin (THC-V), hexahydrocannabinol (HHC), tetrahydrocannabiphorol (THC-P or THC-Heptyl), tetrahydrocannabioctyl (THCjd), tetrahydrocannabihexol (THC-H), and cannabinol (CBN). This term excludes products that are not intended to be eaten or consumed by humans or that are marketed as being a cannabidiol (CBD) product which contains less than 0.3% of any tetrahydrocannabinol (THC) by dry weight. Trace amount: a product that contains no more than a trace amount of THC if the manufacturer is not required by any State or Federal law to identify the amount of any tetrahydrocannabinol on the product label or the product label indicates the product contains less than 0.3% of any tetrahydrocannabinol by dry weight. Section 3. Legislative Findings 1. There is a great deal of uncertainty regarding the effect of Minnesota Laws 2022, Chapter 98 amending M.S. § 151.72 (Act) to allow the sale of certain cannabinoid products. 2. Because the proposal to allow the sale of cannabinoids received little publicity until the Act went into effect on July 1, 2022, the City did not have an opportunity to study and consider the potential impacts of the Act on the City. Nor did the Council have sufficient time to engage in policy discussions regarding the regulations the Council may elect to impose on the sale of cannabinoids and now wishes to do so to ensure responsible and adequate regulations are implemented. 3. The Act authorizes the Minnesota Board of Pharmacy to enforce the Act, but the Act does not provide for any licensing of manufacturers or of those who sell cannabinoids. The Act is also silent regarding the enactment of local regulations related to cannabinoids. 4. The Legislature did not expressly prohibit or limit local regulations, and the regulations established in the Act clearly do not constitute the Legislature having occupied the field of regulation regarding the sale of cannabinoids. 5. The Council finds the uncertainties associated with sale of cannabinoids, and the options for local regulation compels the need for a study to develop information the Council can rely on as it engages in policy discussions related to potential regulation of cannabinoids through the adoption of licensing and zoning controls. 6. Pursuant to M.S. § 462.355, subd. 4(a), the Council is authorized to adopt an interim ordinance “to regulate, restrict, or prohibit any use…within the jurisdiction or a portion thereof for a period not to exceed one year from the date it is effective.” 7. The Council is also authorized as part of its general police powers to adopt business licensing requirements related to the sale of cannabinoids. 8. The Minnesota Supreme Court in Almquist v. Town of Marshan, 245 N.W.2d 819 (Minn. 1976) upheld the enactment of a moratorium despite the lack of express statutory authority as being a power inherent in a broad legislative grant of power to municipalities. In most cases, the enactment of business licensing requirements is based on a city’s police powers, which is the broadest grant of power to cities. Inherent in that broad grant of authority is the power to temporarily place a moratorium on a business activity to study and potentially implement licensing regulations on that business activity. 9. There are both business licensing and zoning issues associated with the sale of cannabinoids that the Council determines it needs time to study in order to consider the development and adoption of appropriate local regulations. In order to protect the planning process and the health, safety, and welfare of the residents while the City conducts its study and the Council engages in policy discussions regarding possible regulations, the Council determines it is in the best interests of the City to impose a temporary moratorium on the sale of cannabinoids. Section 4. Study City staff will conduct a study regarding cannabinoids and provide the Council a report on the potential regulations of such products. The report must include the staff’s recommendations on whether the Council should adopt regulations and, if so, the recommended types of regulations. The study will consider, but is not limited to, the following: 1. The potential impacts of the sale of cannabinoids within the City; 2. Licensing the sale of cannabinoids and related regulations; and 3. Zoning regulations related to the sale, manufacture, and distribution of cannabinoids as uses within the City. Section 5. Moratorium A moratorium is hereby imposed to prohibit any business, person, or entity from offering for sale or selling cannabinoids to the public within the jurisdictional boundaries of the City. The City will not accept, process, or act on any application, site plan, building permit, or other zoning approval for a business proposing to engage in the sale of cannabinoids. Section 6. Exceptions This moratorium does not apply to the selling of products containing THC related to the Medical Cannabis Program as administered by the Minnesota Department of Health, provided that such activity is done in accordance with the regulations and laws of Minnesota regarding Medical Cannabis. Section 7. Violations During the term of the moratorium, it is a violation of this Ordinance for any business, person, or entity to offer for sale, or to sell cannabinoid products within the City. Section 8. Enforcement A violation of this Ordinance is a misdemeanor. In addition, the City may enforce this Ordinance by mandamus, injunction, other appropriate civil remedy in any court of competent jurisdiction, or through the City’s administrative penalties program under Section 203.05 of the Fridley City Code (Code). Section 9. Severability Every section, provision, and part of this Ordinance is declared severable from every other section, provision, and part of this Ordinance. If any section, provision, or part of this Ordinance is held to be invalid by a court of competent jurisdiction, such judgment will not invalidate any other section, provision, or part of this Ordinance. Section10. Effective Date and Term This Ordinance will have a term of 12 months. This Ordinance will remain in effect until June 30, 2024, until it is expressly repealed by the Council or until the effective date of an ordinance amending the Code to address the sale of cannabinoid products, whichever occurs first. Section 11. Notice This Ordinance has been published to clearly inform the public of the intent and effect of the Council. A copy of this Ordinance is available for inspection by any person during regular business hours at the office of the City Clerk at Fridley City Hall (7071 University Ave N.E.). th Passed and adopted by the City Council of the City of Fridley the 12 day of June, 2023. ________________________________ Scott J. Lund, Mayor Attest: ____________________________ Melissa Moore, City Clerk First reading: May 22, 2023 Second reading: June 12, 2023 Publication: June 15, 2023