Lower-Potency Hemp Edible Retail Compliance Violation and Possible Suspension

Minnesota Statute § 342.22, subd. 4, requires local governments to conduct an unannounced age-verification compliance check of each cannabis and hemp business with a local retail registration at least once each calendar year. Ramsey City Code § 26-887(d) contains the same annual compliance-check requirement.

On September 8, 2026, the Ramsey Police Department conducted 10 lower-potency hemp age-verification compliance checks and one adult-use cannabis compliance check at registered businesses in the City. One business failed the compliance check. The failed check occurred at Ramsey Tobacco Outlet, 6415 Highway 10 NW, Suite 108.

During the failed check, a 20-year-old compliance checker, under the direct supervision of a Ramsey Police Officer, attempted to purchase a lower-potency hemp edible. The employee did not request identification or otherwise verify that the purchaser was at least 21 years old and completed the sale of CBN Sleep and Relaxation Cannabis-Infused Gummies for $12.31. The employee was cooperative following the check and was issued a citation for Fourth Degree Sale of Cannabis under Minn. Stat. § 152.0264, subd. 4(a)(3). See the attached police report for additional information.

Minn. Stat. § 342.46, subds. 3 and 7(1), requires a lower-potency hemp edible retailer to verify that a customer is at least 21 years old before initiating a sale and prohibits sales of lower-potency hemp edibles to individuals under 21 years old.

Ramsey City Code § 26-887(d)(4) requires failed compliance checks to be reported to the Minnesota Office of Cannabis Management (OCM). The Police Department reported this failure to OCM on September 10, 2026.

Ramsey City Code § 26-888 and Minn. Stat. § 342.22, subd. 5, provide the City with the authority to suspend a local lower-potency hemp edible retail registration when the requirements for suspension are met. A suspension may be for up to 30 calendar days. The City's current ordinance and fee schedule do not establish a monetary administrative penalty for this type of compliance-check violation.

The City Council is being asked to review the violation and determine whether suspension of the business's local retail registration is warranted.

The employee who completed the sale was notified of the violation immediately following the compliance check. The business owner later contacted the Police Department regarding the failed check and was advised that the City would provide additional information.

A written Notice of Cannabis/Hemp Retail Compliance Violation and City Council Consideration, dated September 10, 2026, was sent to the registered business owner by USPS certified mail. The notice explained the violation, advised that no suspension had been imposed, and informed the owner that the matter would be considered by the City Council on September 22, 2026. The owner was given until September 17, 2026, to contest the violation or request a hearing before the City Council. As of the time this Council case was submitted on September 17, 2026, the business had not contested the violation or requested a hearing.

Ramsey City Code § 26-888 allows the City to suspend a lower-potency hemp edible retail registration when the requirements for suspension are met. A suspension may be for up to 30 calendar days. If the registration is suspended, the business may not make retail sales of lower-potency hemp edibles during the suspension. The City must also immediately notify OCM of the suspension and the reason for it.

The City's current ordinance and fee schedule do not provide an administrative fine for a failed age-verification compliance check. Therefore, for this violation, the City Council may:

• Suspend the local retail registration for up to 30 calendar days; or
• Take no suspension action.

The employee's citation and any action OCM may take under state law are separate from the City Council's decision regarding the local retail registration.

Office of Cannabis Management Action:
In addition to any action taken by the Council in response to the compliance check violation, the Office of Cannabis Management (OCM) will also consider action against Ramsey Tobacco Outlet. OCM has different enforcement tools than the City. Specifically, they are authorized to fine the business up to $10,000 for a first violation (Minn. Stat. 342.19, subd. 5(b)).

In addition, if it was determined that the product was stored incorrectly or was not a product permitted to be sold by a lower-potency hemp retailer, the business may face additional fines and possible license revocation.

Staff reviewed Police Department contacts involving the business over the past five years. No prior cannabis or lower-potency hemp-related complaints or violations were identified before the September 8, 2026 compliance-check failure. In 2022, the business was the subject of a complaint alleging that it sold tobacco products to a 17-year-old. Approximately one month later, the business failed a tobacco compliance check conducted by the Ramsey Police Department.

Compliance checks are conducted using funds from the Police Department's general budget. No additional City funding is required as a result of this action.

Staff recommends that the City Council determine if a lower-potency hemp age-verification compliance violation occurred on September 8, 2026, and decide whether the business’s local retail registration should be suspended.

Option 1 – No Suspension:
Motion to determine that a lower-potency hemp age-verification compliance violation occurred on September 8, 2026, and impose no suspension of the business’s local retail registration.

Option 2 – Suspension:
Motion to determine that a lower-potency hemp age-verification compliance violation occurred on September 8, 2026, and suspend the business’s local retail registration for ___ calendar days pursuant to Ramsey City Code § 26-888.