St. Louis Park considers moratorium on THC edibles and drinks

Earlier this year, the St. Louis Park City Council approved a legislative priority in favor of marijuana legalization. The statement reads, “The City of St. Louis Park supports efforts at the state legislature to legalize the use of cannabis for recreational purposes by adults and further supports using funds raised from taxes on sale of cannabis to remediate negative effects that may result from legalization.”

Although the new state law did not go that far, a majority of council members now want to block its implementation in St. Louis Park, potentially up to a year. The council would use the time to consider licensing rules and other restrictions. The state law does not limit the sale of products with THC to any particular type of business.

“The reason it’s important for us right now is that the law didn’t really have any guardrails,” Mayor Jake Spano said during a July 11 study session. “There were no real guidelines about where it could be sold, when it could be sold, how – all of that.”

Councilmember Tim Brausen described himself as “pro-legalization” but said he wanted the council to consider “a short moratorium around this issue.” He said the law has “no regulatory network in place at all” and has “wide-ranging impacts.”

In proposing a moratorium, Brausen said, “The way the law currently stands, anybody in our city could start selling it. There are products available already. ... We want to protect the youth of our city and look at the unintended consequences.”

Councilmember Larry Kraft noted the law does have some restrictions on packaging, labels and the minimum age to buy the products but said it provides limited enforcement, with the Minnesota Board of Pharmacy planning to investigate violations on a complaint basis. He said he continues to support the city’s legislative priority regarding cannabis legalization.

“This is a positive step toward that path,” Kraft said. “I think we should regulate it especially with an eye to how do we make sure to keep it out of the hands of young people.”

He said he is open to a moratorium until the city decides upon further rules.

Spano also pointed out that the city position on cannabis had called for taxing it with funds used to address abuse and other impacts. He questioned whether the state law would allow the city to collect a tax. Brausen, an attorney by trade, said the Minnesota Legislature would need to grant cities the ability to impose taxes, although the city could consider licensing fees.

As for a moratorium that would temporarily halt legalization of THC products in the city, Spano said, “I like the idea of saying, you know, we’re moving in this direction, but not right now.”

He suggested gaining input from cities in other states that allow cannabis in food and beverages.

With the state law as it is, Building and Energy Director Brian Hoffman said both retail stores and restaurants could potentially sell products.

“Theoretically, you could have edibles that could be served by a restaurant for dessert or whatever – as an appetizer,” Hoffman said, prompting chuckles from council members.

He said city staff could draft a proposal for a moratorium or present licensing options.

Brausen urged a swift moratorium before shops in the city begin selling THC products. If the city imposes a moratorium later, he said, “That kind of does a disservice to the vendors.”

Similarly, Councilmember Sue Budd said, “I would support a moratorium sooner rather than later.”

Spano indicated he did not feel as much urgency in approving a moratorium since he has not heard of any stores in the city offering the products yet.

He said, “If a liquor store actually started selling edibles tomorrow and all of a sudden was outraged that a city came forward and said we’re not going to allow it or we’re going to regulate it, you’ve got to take it off (the shelves), like, they deserve what they get.”

Brausen responded, “I don’t think the liquor store is going to be outraged as much as the people in line going into the store.”

Spano said he wanted to hear from three other council members not in attendance at the study session, but he said, “Let’s move forward with some language around the moratorium.”

As for the potential regulations themselves, Brausen suggested the city model rules around tobacco licenses since employees are already accustomed to checking ages. Budd also suggested that the products could be accessible only through a request to an employee, like tobacco, so that children could not access it as easily.

Spano said the council should also discuss whether home-based businesses would be allowed to sell products with THC. He noted the city set restrictions on firearms sales from home.

While the League of Minnesota Cities is considering a model policy for cities, Spano praised lawmakers for allowing cities to place differing rules on the issue.

He said, “I appreciate the fact that the representatives and those who supported this bill and shepherded it through recognized that local control is an important aspect of this, for us to be able to reflect the sort of needs and concerns and positive aspects, right – the positive aspects of this opportunity.”

The council planned to discuss options again July 18, after this edition went to press.

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