Moorhead City Council approves THC regulations

MOORHEAD, Minn. (KVRR-KFGO) – After a lengthy conversation, the Moorhead City Council approved the first reading of a proposed ordinance on regulations for businesses selling THC-infused edibles.

Earlier this month, the city council postponed the first reading in order to examine what other cities statewide are charging for their license fees.

Originally, the draft had recommended a $125 licensing fee. Several council members wanted the license fee to increase to $2,000 annually to cover expenses the city will incur for issuing permits, and background and compliance checks.

“I was thinking more along the lines of about $2,000-3,000 for licensing because liquor license is $6,000 and this is mood-altering,” council member Chuck Hendrickson said. “So, I think $1,000 would be the minimum, but I’m looking more toward the $2,000 or $3,000 area. And, who knows, this seems like an issue that’s going to come back to us over and over again until the legislature figures it out.”

Council member Deb White recommended amending the fee cost.

“To me, it looks like we’re really on the low end compared to where other cities were at,” White said. “If we are trying to be responsible in terms of use of taxpayer money, again this isn’t anything that is generating resources and we’re using resources. So, I’d like to see a fee that is more on par with even where we think the costs are going to be.”

On a 5-2 vote, the council approved the amendment for a $750 license fee. Members said that fee can be adjusted later.

There was also discussion about enforcement of the sales of the edibles.

Police Chief Shannon Monroe said his department has already conducted some compliance checks of businesses at the request of the Board of Pharmacy to check if there are underage sales and make sure the packaging is in compliance with state law.

“On the THC content, it’s supposed to be on the packaging, but we haven’t had an ability to test it,” Monroe said. “So, we wouldn’t know that, but out of the two different times that we did compliance checks, every one of our businesses failed at some level.”

The city council’s second reading of the measure is scheduled next month and, if passed, could take effect soon after.

The legislature legalized the use of hemp-derived THC products earlier this year. That came as a surprise to many Minnesota residents and, although there are some regulations, much has been left to cities.