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§ 156.01 PURPOSE AND FINDINGS.
   (A)   Purpose. It is the purpose of this chapter to regulate time, place, and manner of the operation of a cannabis business to promote the health, safety, and general welfare of the citizens of the city and to establish reasonable and uniform regulations to:
      (1)   Prevent unwanted criminal activity within the city;
      (2)   Prevent deterioration of neighborhoods and its consequent adverse effect on real estate values of properties within the neighborhood; and
      (3)   To locate cannabis businesses away from residential areas, schools, residential treatment facilities, day care facilities, parks and playgrounds.
   (B)   Findings. The City Council makes the following findings about the effect cannabis businesses have on the character of the city's neighborhoods.
      (1)   Cannabis businesses can have a detrimental influence on young people and students attending schools and day cares and can diminish the enjoyment and family atmosphere of persons using parks, playgrounds and other public recreational areas.
      (2)   Cannabis businesses can have a detrimental influence on people in residential treatment facilities.
      (3)   M.S. Chapter 342, as it may be amended from time to time, allows local government units to regulate cannabis businesses within city limits.
      (4)   Minnesota Statutes defines CANNABIS BUSINESSES as:
         (a)   CANNABIS MICROBUSINESS. Can grow, make, sell, and buy cannabis (including plants and seedlings) and lower-potency hemp products. They can also have on-site lounges where customers can use cannabis. These businesses can grow up to 5,000 square feet of cannabis plants indoors and up to one-half acre outdoors. This license may hold a cannabis event organizer license.
         (b)   CANNABIS MEZZOBUSINESS. Can grow, make, sell, and buy cannabis (including plants and seedlings) and lower-potency hemp products. Mezzobusinesses can grow up to 15,000 square feet of cannabis plants indoors and up to one acre outdoors. This license type is available in limited quantities, and licensees will be selected through a vetted lottery run by the Office of Cannabis Management.
         (c)   CANNABIS CULTIVATOR. Can grow cannabis plants from seed to maturity. They can grow up to 30,000 square feet of cannabis plants indoors and two acres outdoors. Cultivators are allowed to harvest, package, label, and transport fully grown cannabis plants to manufacturers. They can also package, label, and transport seedlings. This license type is available in limited quantities, and licensees will be selected through a vetted lottery run by the Office of Cannabis Management.
         (d)   CANNABIS MANUFACTURER. Process raw cannabis plants into various products, such as edibles, concentrates, wax, oils, and tinctures. Manufacturers can buy cannabis flowers, cannabis products, and lower-potency hemp products from other cannabis businesses. They turn these materials into cannabis products, then package and sell them to other cannabis businesses. This license type is available in limited quantities, and licensees will be selected through a vetted lottery run by the Office of Cannabis Management.
         (e)   CANNABIS RETAILER. Sell packaged cannabis products to the general public and medical patients. They can buy cannabis (including plants and seedlings) and lower-potency hemp products from other cannabis businesses and sell them to customers. This license type is available in limited quantities, and licensees will be selected through a vetted lottery run by the Office of Cannabis Management. A cannabis retailer may operate up to five retail locations; however, no person, cooperative, or business may hold a license to own or operate more than one cannabis retail business in one city and three retail businesses in one county.
         (f)   CANNABIS WHOLESALER. Buy cannabis, cannabis products, and lower-potency hemp products from cannabis businesses and then sell them to other cannabis businesses.
         (g)   CANNABIS TRANSPORTER. Businesses that move cannabis, cannabis products, and lower-potency hemp products between businesses.
         (h)   CANNABIS TESTING FACILITY. Receive cannabis, cannabis products, and lower-potency hemp products from manufacturers and cultivators to test. They ensure these products meet safety standards.
         (i)   CANNABIS EVENT ORGANIZER. Plan and host events featuring cannabis, and may allow for the sale of cannabis, cannabis products, and lower-potency hemp products to consumers at events like festivals (an event cannot last more than four days). They can also provide spaces for consumers to use cannabis. An event organizer must receive local approval, including obtaining any necessary permits or licenses issued by a local unit of government.
         (j)   CANNABIS DELIVERY SERVICE. May purchase cannabis and lower- potency hemp products from specific cannabis businesses and sell and deliver those products directly to consumers.
         (k)   LOWER-POTENCY HEMP EDIBLE MANUFACTURER. Produce edibles from hemp. These manufacturers can create, package, and label lower-potency hemp products, and sell them to cannabis businesses. This license type cannot hold any cannabis business licenses.
         (l)   LOWER-POTENCY HEMP EDIBLE RETAILER. Sell packaged lower-potency hemp edibles to consumers. This license type cannot hold any cannabis business licenses.
         (m)   MEDICAL CANNABIS CULTIVATOR. 
         (n)   MEDICAL CANNABIS PROCESSOR.
         (o)   MEDICAL CANNABIS RETAILER.
         (p)   MEDICAL CANNABIS COMBINATION BUSINESS. Can grow, manufacture, package, label, and sell cannabis products (including cannabis plants and seedlings) to both medical patients and adult consumers. These businesses can package and sell medical cannabis products to other eligible cannabis businesses. They are allowed to cultivate up to 60,000 square feet of medical cannabis plant canopy for distribution into the medical market, and depending upon the total amount of medical sales the year prior, up to an additional 30,000 square feet of cannabis plant canopy for distribution into the adult-use market.
      (5)   Businesses such as the types described in division (B)(4), and all other similar businesses, require close inspection, permitting, and regulations.
      (6)   Control and regulation of businesses of these types, in view of the abuses that may be perpetrated, require intensive efforts by the Police Department and other departments of the city. It is necessary for the city to provide services to all of the city without concentrating the public services in one area. The concentrated use of city services detracts from and reduces the level of services available to the rest of the city. Thus, if not properly overseen, these types of establishments can diminish the ability of the city to protect and promote the general health, welfare, and safety of the city.
      (7)   The limitation on the hours of operation and the regulation of exterior appearance, including signage, of cannabis business activities is necessary to protect and secure neighboring uses, to control adverse noise and traffic impacts associated with those activities, and otherwise address, mitigate and, if possible, eliminate the adverse impacts and secondary effects of cannabis business activities on the areas in which the activities are located or taking place.
      (8)   The City Council adopts the following land use and permitting regulations, recognizing that it has an interest in the present and future character of the city's residential and commercial neighborhoods. These regulations are to lessen the potential detrimental and adverse effects cannabis businesses may have on adjacent land uses and to protect and promote the health, safety, and welfare of the residents of the city.
(Ord. 105, passed 8-6-2024)
§ 156.02 DEFINITIONS.
   For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
   CANNABIS BUSINESS. An establishment, building or business as defined by M.S. § 342.01, as it may be amended from time to time.
   DAY CARE. Licensed family daycare, licensed group family daycare, licensed child care center or a licensed in-home daycare.
   MINOR. Any person under the age of 21 years.
   PARKS, PLAYGROUNDS, PUBLIC RECREATION AREAS. A park, athletic field, reservation, playground, or beach that is regularly used by minors.
   SCHOOL. A building or space that is principally used as a place where 25 or more persons receive a full course of educational instruction. Any post-secondary or post high school educational building, including any college or any vocational-technical college, shall not be deemed a SCHOOL for purposes of this chapter.
(Ord. 105, passed 8-6-2024)
§ 156.03 RETAIL REGISTRATION.
   (A)   Retail registration required. Before making retail sales to customers or patients, an applicable cannabis business must register with the city, town, or county in which the cannabis business is located.
   (B)   Applications.
      (1)   An application for a license shall be made on a form provided by the city.
      (2)   This application shall include:
         (a)   The name, residence, phone number and birth date of the applicant, if an individual; and if a corporation, partnership, limited liability corporation (LLC) or similar entity, the names, residences, phone numbers and birth dates of those owners holding more than 10% of issued and outstanding stock of the corporation or ownership interest in a partnership, LLC, or similar entity;
         (b)   The names and addresses of all creditors of the applicant, owner, licensee or manager insofar as the same have furnished or extended credit for the purposes of constructing, equipping, maintaining, operating, furnishing or acquiring the premises, personal effects, equipment, or anything incident to the establishment, maintenance and operation of the business;
         (c)   A statement detailing each felony of which the manager, operator, lessee, and, for a corporation, the owners of more than 10% of the issued and outstanding stock of the corporation or ownership interest in a partnership, LLC, or similar entity, have been convicted, and whether the applicant has ever applied for or held a license to operate a similar type of business in other counties or
cities;
         (d)   The activities and type of cannabis business to be conducted;
         (e)   The address and legal description of the building, establishment, or premises where the cannabis business is to be located;
         (f)   A building plan of the premises detailing internal operations, outdoor operations if allowed, and activities, including a statement of total floor space occupied by the business;
         (g)   A description or building plan that details all proposed interior and exterior changes to an existing building or structure;
         (h)   Intended hours of operations;
         (i)   Provisions made to restrict access by minors;
         (j)   Security means set forth on the premises;
         (k)   The license fee as set forth by the City Council must accompany the application; and
         (l)   Each application shall contain a provision on the application in bold print stating that any withholding of information or the providing of false or misleading information will be grounds for
the denial or revocation of a retail registration. Any changes in the information provided on the application shall be reported to the City Clerk-Treasurer by the applicant or licensee. Failure to report
the changes by the applicant(s) or the licensee may result in the denial or revocation of the retail registration.
      (3)   Retail registration fees.
         (a)   The registration fee and renewal fee for a cannabis business retail registration shall be established by resolution of the City Council.
         (b)   Each application for registration shall be accompanied by payment in full of the required registration fee and/or renewal fee. All fees shall be paid at the time of application.
         (c)   All retail registration shall expire on the last day of December in each year. The initial registration fee includes the first year renewal fee. The renewal fee shall be charged beginning the second year renewal.
         (d)   No part of any fee paid as required by this section shall be refunded.
         (e)   No fee shall be prorated based on the length of registration.
      (4)   Granting of license. The city shall investigate all facts set out in the application. The City Clerk's Office shall approve or deny the retail registration within 30 days from the date the application was submitted. If the application is deficient, the City Clerk's Office shall act on the application within 60 days from the date that the deficiency has been corrected.
      (5)   Persons ineligible for retail registration. The city shall not grant a retail registration to, nor may one be held by, any person who:
         (a)   Is under 21 years of age;
         (b)   Is not the proprietor of the establishment for which the retail registration is issued;
         (c)   Has not paid the license and retail registration fees required by this section; or
         (d)   Has had cannabis business or similar permit or license revoked under an ordinance or statute similar to this section.
      (6)   Place ineligible for retail registration.
         (a)   No retail registration shall be granted for a cannabis business on any premises where a licensee has been convicted of a violation of this section, or where any license hereunder has been revoked for cause until one year has elapsed after the conviction or revocation.
         (b)   Except uses lawfully existing at the time of this section, no retail registration shall be granted for any cannabis business that does not meet all city ordinance requirements, all building and fire codes requirements and all provisions of state and federal law.
      (7)   Conditions of retail registration generally.
         (a)   The city shall issue the license to the applicant. The license shall not be transferred to another holder.
         (b)   The license shall be issued only for the premises or location described in the application. No license may be transferred to another location or place without the approval of the City Council.
         (c)   Every license shall be granted subject to the conditions of this chapter and all other provisions or any applicable city, state and federal law.
         (d)   The retail registration, if granted, shall state on its face the name of the licensee, the expiration date and the address of the business. All licensed premises shall have the retail registration posted in a conspicuous place at or near the entrance of the business so that it may be easily read at any
time.
         (e)   No minor shall be allowed in or on the premises of cannabis business.
         (f)   Every licensee shall be responsible for the conduct of its place of business and shall maintain conditions consistent with this section and all federal, state and local rules and regulations generally.
         (g)   The layout of the display areas shall be designed so that the management of the establishment and any law enforcement personnel inside the retail store can observe all patrons while they have access to any cannabis merchandise offered for sale or viewing including, but not limited to, books, magazines, photographs, video tapes or any other material.
         (h)   Illumination of the premises exterior shall be adequate to observe the location and activities of all persons on the exterior premises.
      (8)   Inspection.
         (a)   Access. An applicant or licensee shall permit health officials, representatives of the Police Department, Fire Department, and other pertinent city officials to inspect the premises of any cannabis business for the purpose of ensuring compliance with the law, at any time it is occupied or open for business.
         (b)   Refusal to permit inspections. A person who operates a cannabis business or his or her agent or employee commits an offense if he or she refuses to permit a lawful inspection of the premises by health officials, representatives of the Police Department, Fire Department, and other pertinent city officials at any time it is occupied or open for business. Refusal to permit inspections may result in the suspension, revocation or non-renewal of the license as provided in division (B)(9) below.
      (9)   Expiration, suspension, revocation or non-renewal of retail registration.
         (a)   Expiration. Each retail registration shall expire at the end of the calendar year and may be renewed only by making an application to the City Clerk's Office. Applications for renewal must be made at least 30 days before the expiration date.
         (b)   Suspension, revocation, or non-renewal. The city may revoke, suspend, or not renew a retail registration upon recommendation of the Police Chief and complaint to the Office of Cannabis Management that shows that the licensee, its owners, managers, operator, employees, agents or any other interested parties have engaged in any part of the following conduct:
            1.   Fraud, deception or misrepresentation about securing the license;
            2.   Knowingly permitted gambling by any person on the cannabis business premises. Knowingly operated the cannabis business during a period of time when the licensee's retail registration was suspended;
            3.   Demonstrated inability to operate or manage cannabis business in a peaceful and law-abiding manner, thus necessitating action by law enforcement officers;
            4.   Refused to allow an inspection of the cannabis business premises as authorized by this section; and
            5.   Conviction of a felony.
         (c)   Notice. A suspension, revocation, or non-renewal by the city shall be preceded by written complaint to the Office of Cannabis Management. The city shall also send a copy of the complaint to the licensee as notice. The notice may be served upon the licensee personally, or be sent
by United States Postal Service first-class mail.
(Ord. 105, passed 8-6-2024)
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