Brooklyn Park aims to license THC sales

While state law limits the sale of THC products to anyone under the age of 21 and has requirements related to packaging and dosage per package, cities can enact other licensing programs regulating the sale of THC products.

The council supported development of a THC licensing requirement in a 5-1 vote with Mayor Lisa Jacobson casting a dissenting vote.

According to the city’s limited survey data on licensing, there’s a “mixed bag of different opinions about the government being involved with something like this,” said Keith Jullie, rental and business licensing manager.

City staff members are expected to propose a licensing fee and background check fee upon a second reading of the ordinance.

According to Jullie, all THC licenses would be subject to approval by the council.

The licensing ordinance would make the sale of THC products to anyone under 21 years of age a misdemeanor, while possession of the products by anyone under 21 would be a petty misdemeanor.

Customers would be required to provide government-issued photo identification upon request before being eligible to purchase THC products. Retailers would be required to keep THC products located behind a counter or in a locked case.

Retailers within 300 feet of a school would not be eligible for a license.

Business inspections and compliance checks would be used to ensure compliance with the regulations, Jullie said.

Businesses that violate licensing rules would face a penalty schedule similar to tobacco license violations, with the first violation resulting in a $300 fine. A second violation within 36 months would result in a $600 fine.

Three violations within a 36-month period would result in a $1,000 fine and 30-day suspension. Four or more violations within this period would result in a $2,000 fine and the revocation of the license.

Cities within the metro area have instituted vastly different costs for THC licensing.

Eden Prairie has a $300 annual fee and a $250 background check, while Spring Lake Park charges $1,000 annually. Woodbury charges $10,200 annually plus a $500 background check, while Coon Rapids has a $10,500 fee, which includes costs for a background check.

While city staff members did not propose a limit to the total number of licenses that could be issued across the city, the council was interested in considering a limit in the new ordinance.

Councilmember Susan Pha said the costs for a license should fall between costs for a tobacco license and a full liquor license, and should cover the costs for the city to administer the program. A $10,000 or more fee is “ridiculous,” and would have an equity impact on which stores can afford to sell the products, she said.

People will spend their money in neighboring cities if Brooklyn Park makes an attempt to ban or heavily limit the sale of the products, Pha said.

Councilmember Boyd Morson questioned how limiting the number of licenses would be supportive of local businesses. “I think it’s a hindrance to any business owner that has a dream of opening up a business, regardless of what business it may be,” he said.

Councilmembers XP Lee, Wynfred Russell and Pha, along with Jacobson, spoke in favor of limiting the number of the licenses issued in the city.

Lee said it will be important to track data on public safety and locations of applicants, while Jacobson asked if the city could consider a smaller pilot program before issuing a full battery of licenses.

Lee said he was amenable to limiting the total licenses to approximately 50.

Councilmember Terry Parks spoke in favor of establishing a licensing program, but said he was concerned that if the city limited the number of licenses, businesses may sell the products without a license. “I don’t want it here at all but if we’re going to have it here I’d like to regulate it,” Parks said.

Lee, Jacobson and Parks said they had never tired any illicit drugs.

“I know there are a number of people who want to think that this somehow does not effect people in a potentially negative way,” Jacobson said. “It has the word intoxicating in it for a reason.”

Russell said he would support licensing that wasn’t so stringent it resulted in backroom operations, and said that fees ought to “defray the costs” of enforcement.

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