8.3 SR 01-02-2024
Request for Action
To Item Number
Mayor and City Council 8.3
Agenda Section Meeting Date Prepared by
General Business January 2, 2024 Tina Allard, City Clerk
Item Description Reviewed by
Ordinance Amendment: allowing on-site sampling of Cal Portner, City Administrator
hemp-based, low potency THC products
Reviewed by
Joe Audette, Liquor Operations Manager
Joe Stremcha, Assistant City Administrator
Action Requested
Adopt, by motion, an ordinance amendment allowing on-site sampling of hemp-based, low potency THC
products.
Background/Discussion
Surrounding communities are allowing on-site sampling of hemp-based, low potency THC products. The adopted
city ordinance does not allow sampling in Elk River.
Per state law, sampling is allowed until the recently adopted new legislation takes effect January 1, 2025. At that
time, sampling will require an on-site consumption endorsement from the Office of Cannabis Management.
To allow for competition and local licensees to educate the public about THC products, an ordinance amendment
is needed. Elk River currently licenses 11 businesses to sell hemp-based, low potency THC products.
Sampling would only be done with liquid seltzers, not vapes or other candied products. Liquid seltzers are
produced in varying flavors and due to their pricing, sampling allows customers to find the taste they prefer.
The sample size would be consistent with state law for malt liquor (100 ml or 3.3 oz) which would provide no
intoxicating affect.
Financial Impact
N/A
Mission/Policy/Goal
Welcome a revolutionary spirit that fosters a culture of exceptional service
Attachments
Draft Ordinance
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
Updated: January 2023
Strikethroughs to be removed
Underlines to be added
Ordinance 24 - ____
An Ordinance Amending Chapter, 26, Section 115, Rules and Regulations
regarding On Site Sampling for Cannabinoid Products of the City of Elk River,
Minnesota, City Code
The City Council of the City of Elk River does hereby ordain as follows:
Sec. 26-115. General requirements.
(a) Prohibited sales. No person shall sell, offer for sale, give away, furnish, or otherwise deliver any
cannabinoid products:
(1) To any underage person.
(2) By means of any type of vending machine.
(3) By means of self-service merchandising.
(4) Containing any chemical compound or drug that is a controlled substance under
Minnesota law.
(5) That contain any amount of HHC.
(6) By any other means, or to any other person, prohibited by state or local laws.
(7) That fails to meet the labelling requirements as established in Minn. Stats. § 151.72, subds.
5 and 5a.
(8) That fails to meet the testing requirements as established in Minn. Stats. § 151.72, subd. 4.
(b) Sampling of cannabinoid products. Sampling of intoxicating beverages containing cannabinoid
products on a licensed premises in quantities, consistent with the process for sampling malt
liquor provided in Minn. Stat. § 340A.510, subd. 2., is allowed until March 1, 2025, when the
Office of Cannabis Management takes over all licensing. At that time, state laws on sampling
are incorporated as if they are a part of this ordinance.
(c) On-site consumption. Any cannabinoid products sold may not be consumed and must remain
sealed while on the licensed premises. Exceptions to this regulation include on premise
consumption of cannabinoid products at a food and beverage establishment that is licensed by
the Minnesota Department of Health and licensed under this chapter. Food and beverage
establishments selling cannabinoid products must provide such product to consumers in
original packaging, complete with labeling. Such establishments Licensees must abide by all
other state and county laws regarding on-premises consumption and sales, including the
Minnesota Clean Indoor Air Act (Minn. Stats. §§ 144.411—144.417).
(d) Employees. All employees selling cannabinoid products must be 21 years of age or older. All
licensees under this chapter shall be responsible for the actions of their employees in regard to
the sale of cannabinoid products, and the sale of such products by an employee shall be
considered a sale by the licensee. Nothing in this section shall be construed as prohibiting the
city from also subjecting the employee to whatever penalties are appropriate under this article,
state law, or other applicable laws and regulations.
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(e) Display. Every license shall be posted and displayed in plain view of the general public on the
licensed premises.
(f) Signage. The licensee shall display a sign in plain view to provide public notice that selling any of
these products to any person under the age of 21 is illegal and subject to penalties. The notice
shall be placed in a conspicuous location in the licensed establishment and shall be readily
visible to any person who is purchasing or attempting to purchase cannabinoid products.
(g) Delivery. All sales of cannabinoid products must be completed on the licensed premises.
Delivery by the licensee or a third party to the consumer is prohibited.
(h) Testing requirements. All cannabinoid products offered for sale must be compliant with the testing
requirements in Minn. Stats. § 151.72, subd. 4.
(i) Labeling requirements. All cannabinoid products offered for sale must comply with the labelling
requirements set forth in Minn. Stats. § 151.72, subd. 5, 5a, and 6.
(j) Responsibility for conduct on premises. Except as provided in this chapter, every licensee under this
chapter shall be responsible for the conduct of his place of business and shall maintain
conditions of sobriety and order therein.
(k) Other regulations. Except as otherwise provided in this chapter, licenses under this chapter shall
be governed by the requirements and procedures set forth in chapter 38, article II of this Code.
SECTION 4. That this ordinance shall take effect upon adoption and publication as provided by
law.
Passed and adopted by the City Council of the City of Elk River this 2nd day of January, 2024.
______________________________
John J. Dietz, Mayor
ATTEST:
_______________________________
Tina Allard, City Clerk
Created: 2023-10-18 09:21:25 \[EST\]
(Supp. No. 59)
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