4.9 SR 10-17-2022
Request for Action
To Item Number
Mayor and City Council 4.9
Agenda Section Meeting Date Prepared by
Consent October 17, 2022 Cal Portner, City Administrator
Item Description Reviewed by
Hemp THC Sales Temporary Ordinance Jared Shepherd, City Attorney
Moratorium Extension
Reviewed by
Action Requested
Approve, by motion, an extension of the Temporary Moratorium Ordinance for THC
Background/Discussion
On September 6, 2022, the City Council approved a 60-day temporary ordinance to prohibit the sale, testing,
manufacturing, and distribution of intoxicating THC products within the City of Elk River. The moratorium
grandfathered in the sale for existing retailers who were selling prior to the temporary ordinance as the city
attorney crafted ordinance language to license and regulate the sales of the product.
Because of the newness of the state law, enacted on July 1, 2022, there are many complexities to consider in
drafting the final ordinance. With that, our 60-day moratorium is scheduled to end on November 5, just before
the first meeting in November.
This motion will extend the ordinance an additional 45 days to ensure we have a proper draft ordinance to
consider.
Financial Impact
N/A
Mission/Policy/Goal
Elk River City Mission
Attachments
Temporary Ordinance Extension
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
Updated: August 2020
Ordinance No. ___
CITY OF ELK RIVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
AN INTERIM ORDINANCE PROHIBITING THE SALE, TESTING,
MANUFACTURING, AND DISTRIBUTION
INTOXICATING AND PSYCHOACTIVE CANNABINOIDS
NOW, THEREFORE, the City Council of the City of Elk River does ordain:
SECTION 1. REPEAL/REPLACE.
This ordinance repeals and replaces Ordinance No. 22-20 in its entirety.
SECTION 2. BACKGROUND.
1. By enacting 2022 Session Law Chapter 98, Article 13, the Minnesota Legislature
amended Minn. Stat. §151.72 and permitted the sale of edible and nonedible
cannabinoid products that contain of Tetrahydrocannabinol, commonly known as THC
(“THC Products”).
2. The new law does enact some requirements for labeling and testing, but the law
provides no parameters regulating production, compliance checks, or sales of THC
Products. The new law does not prohibit local regulation.
3. Since the enactment of the new law, local government and law enforcement remain
concerned about legal status and classification of the production, sale, and use of other
intoxicating and psychoactive cannabinoids, such as HHC, as primary or secondary
ingredients in edible and nonedible cannabinoid products (“Intoxicating
Cannabinoids”).
4. Pursuant to Minn. Stat. § 462.355, subd. 4, the City is authorized to enact by ordinance
a moratorium to regulate, restrict or prohibit any use within the jurisdiction to protect
the public health, safety, and welfare. Specifically, the City is authorized to enact a
moratorium ordinance to allow it to undertake a study to determine whether to adopt
any regulations or restrictions, including siting and location of uses, related to the sales,
testing, manufacturing, and distribution of THC Products and Intoxicating
Cannabinoids.
5. Pursuant to its general police powers, including but not limited to, Minn.
Stat. § 421.221, subd. 32, the City may enact and enforce regulations or restrictions on
THC Products and Intoxicating Cannabinoids within the City to protect the public
safety, health, and welfare, including restrictions and a moratorium on the use of sales,
testing, manufacturing, and distribution, during the pendency of a study to determine
the need for police power regulations, including but not necessarily limited to licensing
and permitting.
SECTION 3. FINDINGS.
1. The City Council finds there is a need to study THC Products Intoxicating
Cannabinoids and uses and businesses related thereto, in order to assess the necessity
for and efficacy of regulation and restrictions relating to the sales, testing,
manufacturing, and distribution of THC Products, including through licensing or
zoning ordinances, in order to protect the public health, safety, and welfares of its
residents.
2. The study will allow the City Council to determine the appropriate changes, if any, that
that it should make to City ordinances.
3. The City Council, therefore, finds that there is a need to adopt a City-wide moratorium
of the sale, testing, manufacturing, and distribution of THC Products and Intoxicating
Cannabinoids within the City while City staff studies the issue.
SECTION 4. MORATORIUM.
1. No individual, establishment, organization, or business may sell, test, manufacture, or
distribute THC Products and Intoxicating Cannabinoids for twelve (12) months from
the effective date of this ordinance.
2. The City shall not issue any license or permit related to THC Products and Intoxicating
Cannabinoids for twelve (12) months from the effective date of this ordinance. No
license or permit application, of any kind, by any individual, establishment,
organization, or businesses involved in the proposed sale, testing, manufacturing, or
distribution of THC Products and Intoxicating Cannabinoids within the City of Elk
River shall be accepted or considered for twelve (12) months from the effective date of
this ordinance.
3. Planning or zoning applications related to THC Products and Intoxicating
Cannabinoids or applications from individuals, establishments, organizations, or
businesses involved in the proposed sale, testing, manufacturing, or distribution of
THC Products and Intoxicating Cannabinoids within the City of Elk River shall not be
accepted or considered for twelve (12) months from the effective date of this ordinance.
4. Exemptions:
a. This moratorium does not apply to the selling, testing, manufacturing, or
distributing of THC Products 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.
b. This moratorium does not apply to the selling, manufacturing, or distribution of
products that contain non-intoxicating, non-psychoactive cannabinoids as the
primary cannabinoid ingredient, such Cannabidiol (“CBD”) or Cannabinol
(“CBN”), and which have no more than trace amounts of THC.
SECTION 5. STUDY. The City Council directs City staff to study the need for local regulation
regarding the sale, testing, manufacturing, or distribution of THC Products and Intoxicating
Cannabinoids within the City of Elk River. Staff must also study the need for creating or amending
zoning ordinances, licensing ordinances, or any other ordinances to protect the citizens of Elk
River from any potential negative impacts of THC Products and Intoxicating Cannabinoids. Upon
completion of the study, the City Council, together with such commission as the City Council
deems appropriate or, as may be required by law, will consider the advisability of adopting new
ordinances or amending its current ordinances.
SECTION 6. ENFORCEMENT. The City may enforce this Ordinance by mandamus,
injunctive relief, or other appropriate civil remedy in any court of competent jurisdiction. The City
Council hereby authorizes the City Administrator, in consultation with the City Attorney, to initiate
any legal action deemed necessary to secure compliance with this Ordinance. A violation of this
Ordinance is also subject to the City’s general penalty in City Code § 1-8.
SECTION 7. TERM. Unless earlier rescinded by the City Council, the moratorium established
under this Ordinance shall remain in effect until forty-five (45) days from its effective date, at
which point, it will automatically expire.
SECTION 8. EFFECTIVE DATE. This Ordinance shall be in full force and effect from and
after its passage by the City Council.
Passed this 17th day of October 2022.
__________________________
John J. Dietz, Mayor
ATTEST
_____________________
Tina Allard, City Clerk