(A) Based on the most reliable and up-to-date scientific evidence and guidance from the U.S. Surgeon General, the City Council finds that the rapid introduction of legalized edible and consumable nonedible products containing any amount of cannabinoids ("cannabinoid product"), including tetrahydrocannabinol ("THC"), presents a significant potential threat to the public health, safety, and welfare of the residents of the city, and can interfere with brain development in youth and adolescents.
(B) Minnesota has recognized the danger cannabinoid products pose to youth and adolescents by prohibiting the sale of cannabinoid products to those under age 21 and regulating label design. (M.S. § 151.72, subds. 3(c) and 5a(b)). As such, the City Council desires to prevent the sale of cannabinoid products to underage people within the city.
(C) The City Council finds that in this emerging marketplace there is a real likelihood that people may purchase mislabeled cannabinoid products. These noncompliant products represent a unique risk to the general welfare of the community.
(D) The City Council finds that a local regulatory system for cannabinoid product sellers is appropriate and not unduly burdensome to ensure that sellers comply with the state cannabis laws and business standards of the city to protect the health, safety, and welfare of the city's youth and all residents. The city does not intend to inhibit the production, sale, or use of medical cannabis products.
(Ord. 307, passed 7-11-2023)
For the purpose of this chapter, the following definitions, in addition to the definitions contained in M.S. § 151.72, shall apply unless the context clearly indicates or requires a different meaning.
CANNABINOID. A chemical compound derived from the cannabis plant or synthetically derived from the cannabis plant.
CANNABINOID PRODUCT. Any edible cannabinoid product or nonedible cannabinoid product authorized for sale in Minnesota Statutes.
COMPLIANCE CHECKS. The system the city uses to investigate and ensure that those authorized to sell licensed products are following and complying with the requirements of this chapter. COMPLIANCE CHECKS may also be conducted by other units of government for the purpose of enforcing appropriate federal, state, or local laws and regulations relating to licensed products.
HHC. The intoxicating cannabinoid hexahydrocannabinol.
LICENSED PREMISES. The premises described in the approved license application as set forth in this section.
SCHOOL. A building used for the purpose of elementary or secondary education, which meets all the requirements of compulsory education laws of the State of Minnesota.
THC. The cannabinoid tetrahydrocannabinol whether derived naturally or synthetically from the cannabis plant.
UNDERAGE PERSON. A person who is under the age of 21.
(Ord. 307, passed 7-11-2023)
(A) Required. No person shall sell or offer to sell any cannabinoid products without first having obtained a license to do so from the city.
(B) Application. Any business owner or property owner desiring a retail cannabinoid product license will make and file with the City Clerk an application, in writing. Such application will give the name and resident address of the applicant, if an individual; will identify the location at which it is proposed to sell the cannabinoid products at retail, and will provide such other information as the city may require from time to time.
(C) Police investigation. The City Clerk will immediately transmit a copy of the application to the Chief of Police, who will investigate all facts and information which he or she can reasonably find, bearing upon the question of the applicant's fitness to receive the license and to perform the duties imposed by this chapter. The Police Department is responsible for conducting background checks prior to issuance of license, and the Department is authorized to conduct such additional investigation as deemed necessary. Upon completing the investigation, the Chief of Police will report, in writing, his or her findings to the City Administrator or designee, together with his or her recommendation as to the issuance of a license to the applicant. The City Administrator or designee will submit to the City Council the report of the Chief of Police, together with the recommendation as to the issuance of the license to the applicant.
(D) Action. The City Council will consider the facts and recommendation of the Chief of Police and of the City Administrator, together with any material facts which it may have or obtain, and then, by motion, will approve or deny the application.
(E) Term. All licenses issued under this chapter shall expire at midnight on December 31 of each year.
(F) Revocation or suspension. Any license issued under this chapter may be revoked or suspended by the City Council as provided in § 117.08.
(G) Renewals. The renewal of a license issued under this chapter shall be handled in the same manner as the original application. The request for a renewal shall be made at least 30 days but no more than 60 days before the expiration of the current license.
(H) Non-transferrable. No license shall be issued for the sale of cannabinoid products at any place other than the applicant's place of business where retail, food, or beverage sales occur or will occur. No license shall be issued for a moveable place of business; nor shall any single license be issued at more than one place of business. No license shall be issued for sales from a residential dwelling unit or accessory structure.
(I) Fee. No license shall be issued under this chapter until the appropriate license fee shall be paid in full. The fee for a cannabinoid license under this chapter shall by established by the City Council and adopted in the city fee schedule, as may be amended from time to time.
(J) Exemptions.
(1) This section does not apply to any medical cannabis product dispensed by a registered medical cannabis manufacturer pursuant to M.S. §§ 152.22 to 152.37. Medical cannabis dispensaries that sell non-medical cannabis products which are also cannabinoid products are not exempt from this section.
(2) This section does not apply to cannabinoid products that contain non-intoxicating, non-psychoactive cannabinoids as the primary cannabinoid ingredient, such cannabidiol ("CBD") or cannabinol ("CBN").
(Ord. 307, passed 7-11-2023)
(A) Grounds for denial. The following will be grounds for denying the issuance or renewal of a license under this section:
(1) The applicant is under the age of 21 years.
(2) The applicant has been convicted of a controlled substance-related felony within three years of the application.
(3) The applicant has had a license to sell cannabinoid products revoked within the past five years.
(4) The applicant fails to provide any information required on the license application, fails to pay the license fee, or provides false or misleading information on such license application.
(5) The applicant is prohibited by state, or other local law, ordinance, or other regulation from holding a license under this section.
(6) The proposed licensed premises is within 300 feet of a school measured from property line to property line.
(7) Pursuant to M.S. § 340A.412, subd. 14, no license shall be issued to an exclusive liquor store.
(B) Rehabilitation. Persons convicted of a felony described in division (A)(2) of this section may provide evidence of rehabilitation to the city through the process outlined in M.S. § 364.03, subd. 3.
(C) Mistakenly issued. If a license is mistakenly issued or renewed, it shall be revoked upon the discovery that the person was ineligible for the license under this section. The city will provide the license holder with notice of the revocation, along with information on the right to appeal.
(Ord. 307, passed 7-11-2023)
(A) Sales. It shall be a violation of this section for any person to sell or offer to sell any cannabinoid products:
(1) To any person under the age of 21 years.
(2) By means of any type of vending machine.
(3) By means of self-service merchandising whereby the customer does not need to make a verbal or written request to an employee of the licensed premises to receive the cannabinoid product. All such products shall be stored behind a counter or other area not freely accessible to customers.
(4) That contain any chemical compound or drug that is otherwise a controlled substance under state law.
(5) That contain any amount of HHC.
(6) By any other means or to any other person prohibited by state or other local laws, ordinances, or other regulations.
(7) That fails to meet the labeling requirements as established in M.S. § 151.72, subds. 5, 5a, and 6.
(8) That fails to meet the testing requirements as established in M.S. § 151.72, subd. 4.
(B) Sampling and on-site consumption. Sampling of cannabinoid products within an establishment selling any cannabinoid product is prohibited.
(C) Signage. The licensee shall display a sign in plain view to provide public notice that selling any of these products to any person under the age of 21 is illegal and subject to penalties. The notice shall be placed in a conspicuous location in the licensed establishment and shall be readily visible to any person who is purchasing or attempting to purchase these products.
(D) Delivery. All sales of cannabinoid products must be completed on the licensed premises. Delivery by the licensee or a third party to the consumer is prohibited.
(E) Testing requirements. All manufacturer testing must comply with the requirements set forth in M.S. § 151.72, subd. 4, as may be amended.
(F) Labeling requirements. All labeling must comply with the requirements set forth in M.S. § 151.72, subds. 5, 5a, and 6, as may be amended.
(G) Employee background checks. Licensee shall require potential employees who will sell or handle cannabinoid products to complete a background check authorization form provided by the city and submit the completed form to the Police Department. The potential employee shall not begin work prior to the conclusion of the background check.
(Ord. 307, passed 7-11-2023)
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