Loading...
(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)
Compliance check. All retail areas on premises licensed under this section shall be open to inspection by the city during regular business hours. From time to time the city may conduct compliance checks by engaging minor persons over 15 years of age but under 21 years of age to enter the licensed premises to attempt to purchase cannabinoid products.
(Ord. 307, passed 7-11-2023)
(A) Generally. Any violation of this section shall be grounds to revoke or suspend a license under this section. Notwithstanding misdemeanor prosecution, the city may also seek an administrative penalty or civil injunctive relief for violations under this section.
(B) Criminal penalty. It shall be a:
(1) Misdemeanor to sell cannabinoid products to a person under the age of 21 years.
(2) Misdemeanor to furnish cannabinoid products to a person under the age of 21 years.
(3) Misdemeanor to violate the provisions of M.S. § 151.72 or this section.
(C) Administrative penalties.
(1) Presumed administrative penalties for violations: The presumed penalties for violations of a licensee are as follows:
Type of Violation | First Violation | Second Violation within 36 Months | Third Violation within 36 Months | Fourth violation within 36 Months |
1. Sale of cannabinoid products while license is under suspension. | Revocation | N/A | N/A | N/A |
2. Sale of cannabinoid products to an underage person. | $500 | $1,000 and 1-day suspension | $2,000 and 30-day suspension | Revocation |
3. Failed test of sample product or misbranding if retailer is also manufacturer of product. | $250 and remaining identical products must not be sold | $500 and remaining identical products must not be sold | $1,000, 1-day suspension, and remaining identical products must not be sold | Revocation |
4. Other violations of M.S. § 151.72 or this section. | $250 | $500 | $1,000 and 1-day suspension | Revocation |
(2) The imposition of a presumptive penalty shall be communicated by a written notice to the licensee by the City Administrator. The penalty may be appealed through an administrative hearing process by filing a written appeal and delivering the appeal to the City Administrator within ten days of the notice.
(3) The appeal notice and hearing procedure shall follow the procedure outlined in § 113.12, except that the City Council shall conduct the hearing and render a decision in lieu of a hearing officer. The City Council's decision is final. Appeals of any decision made by the City Council under this chapter shall be filed in the district court for the city in which the alleged violation occurred within ten business days.
(4) Subsequent violations. Violations occurring after the notice of hearing has been mailed, but prior to the hearing if requested, must be treated as a separate violation, and dealt with as a second violation. The same procedure applies to the second, third, or fourth violations.
(Ord. 307, passed 7-11-2023)