moorhead city council
Nancy Edmonds Hanson
After delaying its deliberations for two weeks, the Moorhead City Council gave first approval to a new city ordinance that regulates shops selling THC-infused edibles Monday, nearly four months after a new Minnesota law legalized the sale of beverages, candies and other products including no more than 5 mg. of the hemp-derived intoxicant per serving.
The council approved the regulation by a vote of 5 to 2, with council members Shelly Dahlquist and Chuck Hendrickson dissenting. Voting in favor of the amended measure were Brad Gilbertson, Heather Nesemeier, Deb White, Larry Seljevold and Steve Lindaas. Laura Caroon was absent.
Assistant city manager Mike Rietz reported that several small changes were made to the ordinance after the previous council meeting. Among them, it now permits the sale – but not the consumption – of THC products in restaurants and bars to “level the playing field.” The prohibition against selling in off-sale liquor establishments, however, remains.
City prosecutor Cheryl Duysen and assistant Clay County attorney Katie Stock described the ways that underage infractions are handled for alcohol sales, with the focus on restorative justice rather than criminalization. The city handles violators between the ages of 18 and 20, who are otherwise considered adults but fall under the legal age. Younger teens fall under the county’s juvenile justice system.
Most of Monday’s discussion, however, centered on the city license fee. The draft measure originally developed by a committee of city staffers proposed $125, the same amount charged for licenses to sell tobacco products, secondhand sales and massages. Several council members compared THC sales, instead, to liquor licenses, currently set at $6,000. The new state law bans the imposition of other potential sources of revenue, including sales tax.
Assistant city manager Mike Rietz reported that a survey of other Minnesota cities that have so far dealt with the issue uncovered a wide range of fee levels, ranging from $180 to $10,700. Council member Larry Seljevold noted that the fee is intended to reimburse the city for the cost of enforcing the measure; he asked Police Chief Shannon Monroe what that cost will be.
“After the first year of sales, we’ll be able to tell you the cost of compliance checks,” the chief responded, addressing inspections for underage sales similar to those for alcohol. He said that other concerns raised by council members, including testing of THC levels in products and packaging that clearly sets products apart from candy marketed to children, are included in the state and local regulations.
Gilbertson moved to raise the city fee to $2,000. Then council member Deb White noted that the median amount charged by other cities, as reported in the state survey, is $750. She introduced a “friendly amendment” setting the Moorhead fee at that level. The amended measure was passed by a strong majority vote and now awaits its second reading at the next council meeting Nov. 7.
Several residents addressed the council before the discussion. Jeanine Hanson suggested the city institute the same approach it passed last summer when it banned the sale of flavored tobacco products, including vapes, to lessen their appeal to children: “Prohibit the sale of flavored THC products.” Mark Altenburg highlighted the potential impact of passage of North Dakota’s initiated ballot measure legalizing marijuana in November.
Sale of edible products containing tetrahydrocannabinol (THC), the active component distilled from hemp that affects mood, became legal here July 2 after the 2022 Minnesota Legislature’s approval. The state law includes little guidance on regulation of the newly available products, which cannot contain more than 0.3% THC or 5 mg. of the active ingredient per serving. That limit does not apply to medical marijuana products. At this point, additional regulation is left to individual Minnesota cities to decide.
