Marshall Takes New Steps on THC Regulation | News, sports, work

Photo: Deb Gau Tall Grass Liquor, Marshall’s municipal liquor store, is currently the city’s only retailer of lower-THC beverages and edibles. But this week, the Marshall City Council introduced ordinances that will allow other businesses to register to sell edibles with lower THC potencies.

MARSHALL — For the past year, sales of THC-containing edibles in Marshall have been limited to the town’s liquor store. But on Tuesday, the Marshall City Council took steps that could open retail sales of lower-power grocery items to other businesses.

Council members voted to introduce a city ordinance that would allow businesses to register with the city to sell hemp THC-based products. The ordinance would also update Marshall’s zoning code to prohibit the sale of THC products in homes and near schools.

Because it would impact the city’s zoning, the proposed ordinance will go to the Marshall Planning Commission for a June 12 hearing.

Council members and city staff emphasized that the ordinance would only allow the sale of lower-strength hemp-based edibles, which are legal in Minnesota since 2022.

“So we’re clear on that, what we’re doing here is creating the ability to license and recognize lower concentrations of THC.” said council member Craig Schafer. “We do not approve or license stronger marijuana to anyone.”

On Tuesday, in a separate action, the council also introduced a moratorium on “higher level” cannabis businesses, and the city is exploring potential local regulations for them. The moratorium was to remain in effect until Jan. 1 or until the city repeals it, whichever came first.

A public hearing on the cannabis moratorium is scheduled for the June 25 city council meeting.

At Tuesday’s council meeting, City Attorney Pam Whitmore said the creation of the registration and zoning ordinance came after Marshall took steps to allow breweries to produce limited amounts of THC-containing beverages and allow businesses with licenses to sell alcohol for serving them.

“This has stimulated the Legislative and Regulation Committee’s desire to have a broader discussion about lower THC products and the sale of these products in the city.” she said.

“We took advice from Pam and her colleagues, discussed it and think we have a pretty good thing to recommend to the council.” said council member and L&O committee member Steven Meister.

A proposed ordinance before council would allow businesses to register with the city to sell “edible products with lower THC content”, Whitmore said.

Businesses registering to sell THC will be required to renew their registration with the city annually for a fee.

“The purpose of this registration system is to allow the city to know where these products are sold as compliance inspections are required under (state) statute.” Whitmore said.

The ordinance will also update the city’s zoning rules to prohibit the sale of products containing THC within 500 feet of a school or as a home-based business.

“Is a 500-foot drop the same as alcohol and tobacco sales?” Mayor Bob Byrnes asked.

“Yes it is,” said Marshall City Clerk Steven Anderson.

Tall Grass Liquor was the only business in Marshall that was originally allowed to sell lower-strength THC-infused beverages and edibles. Tall Grass manager Eric Luther said that while sales of THC-containing products have increased since they were first available last summer, they currently account for about 4% of the store’s sales.

“Things have kind of evened out.” Luther said.

It was still unclear what impact the new regulations would have on the availability of THC products in Marshall.

“We don’t know what the impact will be and how many other retail businesses will be affected,” he added. Luther said.

Whitmore said one positive thing about the lower THC registration ordinance is that it provides a framework in which the city looks at the sale of higher concentration cannabis products.

“It should be translated well so that it is not confusing for the public. There will be many similarities.” she said.

Council members said some discussions about regulating cannabis businesses will have to wait until Minnesota’s new Office of Cannabis Management begins setting licensing and other rules.

Whitmore said one of the reasons the city placed a moratorium on higher-level marijuana sales was recent action by the state Legislature.

“In the last hours of the last session, the legislature introduced a lot of changes,” he added. Whitmore said. “There are still no licensing structures in place, but the Office of Cannabis Management has been allowed… to grant initial licenses. They established a structure for how to do it.”

Whitmore said the new moratorium order “continues to temporarily pause this higher level of cannabis activity in the City of Marshall until we can conduct further research and see what the Office of Cannabis Management intends.”

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