08.a Interim Ordinance No. 2023-08 Prohibiting Cannabis and Hemp Business under Section 342.13(e)
Staff Report
Date: August 10, 2023
To: Mayor and City Council
From: Eric Larson, City Attorney
Re: Interim Ordinance Prohibiting Cannabis and Hemp Businesses under
Section 342.13(e).
This Scandia City Attorney Memorandum supplements the City Attorney Memoranda, dated July
14, 2023, and July 28, 2023, and is submitted respecting the proposed Interim Ordinance
Prohibiting Cannabis and Hemp Businesses under Section 342.13(e).
Moratorium:
At the August 2, 2023 Scandia City Council Workshop, the Scandia City Council adopted the
Cannabis/Hemp Moratorium pursuant to Minnesota Statutes section 462.355 that did not require
a public hearing and permitted a one-year moratorium. Furthermore, the new cannabis legislation
authorizing municipalities to enact a moratorium did not include the new hemp businesses
authorized under the new legislation.
The new Cannabis legislation, specifically section 342.13(e), authorizes a municipal moratorium
after a public hearing. The Interim Ordinance Prohibiting Cannabis and Hemp Businesses under
Section 342.13(e), respecting Cannabis businesses, extends the moratorium to January 1, 2025.
The purpose of the moratorium is to provide the City sufficient time to study its zoning code and
enact an appropriate time, place, and manner zoning for the retail operations and sale of cannabis
and hemp products. Per the express language of the interim ordinance, the moratorium does not
apply to either edible cannabinoid products or industrial hemp to the extent those products were
lawful prior to August 1, 2023 under separate state laws.
Attachments:
• Interim Ordinance No. 2023-08
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ORDINANCE NO. 2023-08
AN INTERIM ORDINANCE OF THE CITY OF SCANDIA, WASHINGTON COUNTY, MINNESOTA
PROHIBITING:
THE OPERATION OF CANNABIS BUSINESSES IN THE CITY UNDER MINNESOTA STATUTE
SECTION 342.13(e)
THE CITY COUNCIL OF THE CITY OF SCANDIA DOES HEREBY ORDAIN:
Section 1. An interim ordinance is hereby established as follows:
Section 2. The purpose of this interim ordinance is to protect the planning process and the health, safety,
and welfare of the City of Scandia for the following reasons:
(1) The State of Minnesota established the Office of Cannabis Management tasked with issuing
licenses for the operation of Cannabis Businesses and Hemp Businesses in Chapter 63 of
Minnesota Session Law – 2023, Regular Session.
(2) Chapter 63 of Minnesota Session Law – 2023, Regular Session does not include a date for
the Office of Cannabis Management to begin issuing licenses to Cannabis Businesses and
Hemp Businesses.
(3) The City of Scandia does not currently permit or regulate the uses of Hemp Businesses or
Cannabis Businesses.
(4) Edible Cannabinoid Products are legal for sale under Minnesota Statutes Section 151.72
through March 1, 2025, after which sales of Edible Cannabinoid Products will require a
Hemp Business license from the Office of Cannabis Management. Sales of Edible
Cannabinoid Products are not subject to this Interim Moratorium Ordinance as sales of
Edible Cannabinoid Products are not Hemp Businesses under Minnesota Statute until 2025.
(5) Activities lawful under the Industrial Hemp Act, Minnesota Statutes Chapter 18K are not
subject to this Interim Moratorium Ordinance.
Section 2. Definitions.
Hemp Business means either of the following licensed under chapter 342:
(1) lower-potency hemp edible manufacturer; or
(2) lower-potency hemp edible retailer.
Hemp business does not include a person or entity licensed under chapter 18K to grow
industrial hemp for commercial or research purposes or to process industrial hemp for
commercial purposes.
Lower – potency hemp edible means any 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 cannabigerol, 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
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(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.
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.
Section 3. The Cannabis Legislation empowering municipalities to adopt an interim ordinance prohibiting
the operation of a Cannabis Business within its jurisdiction did not take effect until August 1,
2023. This ordinance is adopted to provide for adequate time for study, analysis, and
finalization of City Code amendments regarding time, place, and manner of the operation of a
Cannabis Business and Hemp Businesses within the City.
Section 4. Pursuant to Minnesota Statutes, Section 342.13 (e), on August 15, 2023, a public hearing was
held, after notice duly published as required by law, and the views of all interested persons with
respect therefor presented at the hearing having been considered.
Section 5. Pursuant to Minnesota Statutes, Section 342.13(e) and 462.355 Subd. 4, an interim ordinance is
hereby adopted authorizing the City to conduct a study regarding the impacts of Cannabis
Businesses and Hemp Businesses to determine whether and what revisions to the Scandia City
Code of Ordinances or other regulations on the time, place, and manner of Cannabis Business
and Hemp Business operations are warranted for the purpose of protecting the planning process
and the health, safety, and welfare of the citizens of Scandia.
Section 6. Pursuant to Minnesota Statutes, Section 342.13 (e), the operation of Cannabis Businesses in the
City of Scandia is prohibited from and after its passage and publication according to law until
January 1, 2025.
Section 7. For avoidance of doubt, any existing businesses or persons legally selling Edible Cannabinoid
Products in the City of Scandia are not subject to the moratoria imposed by this ordinance.
Section 8. Violation of any portion of this ordinance shall be a misdemeanor punishable by imprisonment
for up to 90 days and a fine of $1,000.00 or both, plus the costs of prosecution. Each day that a
violation occurs shall be considered a separate offense. The City may enforce any provision of
this ordinance by mandamus, injunction or any other appropriate civil remedy in any court of
competent jurisdiction.
Section 9. This ordinance shall be in full force and effect from and after its passage and publication
according to law. Passed by the Scandia City Council this 15th day of August, 2023.
ATTEST:
___________________________________ ______________________________
Kyle Morell, City Administrator Christine Maefsky, Mayor