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The following terms, as used in this section, shall have the meanings stated.
CITY. The City of Hoyt Lakes.
COMPLIANCE CHECKS. The system used by the city, or other applicable governmental unit, to investigate and ensure that those authorized to sell edible cannabinoid products are following and complying with the requirements of this chapter. COMPLIANCE CHECKS may involve the use of persons under the age of 21 authorized by this chapter. COMPLIANCE CHECKS may also be conducted by other units of government for the purpose of enforcing appropriate state and local laws and regulations relating to edible cannabinoid product.
SELF-SERVICE MERCHANDISING. Open displays of edible cannabinoid products in any manner where any person has access to the edible cannabinoid product without the assistance or intervention of the licensee or the licensee’s employee. Assistance or intervention means the actual physical exchange of the licensed product between the customer and the licensee or employee.
TOBACCO STORE. A retail store utilized primarily for the sale of tobacco products and accessories and in which the sale of other products is incidental.
VENDING MACHINE. Any mechanical, electric, or electronic, or other type of device which dispenses tobacco-related products upon the insertion of money, tokens, or other form of payment directly into the machine by the person seeking to purchase the tobacco-related product.
(Ord. 241, passed 1-23-2023)
(A) License required. No person shall sell or offer to sell any edible cannabinoid product without first having obtained a license to do so from the city.
(B) License eligibility. No license shall be issued except to a person operating a tobacco store licensed under City Code Chapter 113, as it may be amended from time to time.
(C) Application. An application for a license to sell edible cannabinoid products shall be made on a form provided by the city. Upon receipt of a completed application, the Administrator, Clerk/Treasurer shall forward the application to the Police Department for the purpose of conducting a background check on the applicant. The Police Department shall have ten days from receipt of a complete application to complete the background check. Upon completion of the background check, the Police Department shall forward the application and investigation results to the City Council for action at its next regularly scheduled meeting. If the Administrator, Clerk/Treasurer determines that an application is incomplete, he/she shall return the application to the applicant with notice of the information necessary to make the application complete.
(D) Action. The City Council may either approve or deny the license, or it may delay action for a reasonable period of time as necessary to complete any investigation of the application or the applicant it deems necessary. If the City Council approves the license, the Administrator, Clerk/Treasurer shall issue the license to the applicant. If the City Council denies the license, notice of the denial shall be given to the applicant along with notice of the applicant’s right to appeal the decision.
(E) License fee. No license shall be issued under this chapter until the appropriate license fee is paid in full. The annual fee for a license under this chapter shall be established in the city’s ordinance establishing fees and charges, as may be amended from time to time. Initial license applications covering a period of less than one year shall be charged a fee calculated on a monthly pro rata basis.
(F) Restriction on issuance.
(1) No license shall be granted or renewed for operation on any premises on which taxes, assessments, utility charges, service charges, or other financial claims of the city are delinquent and unpaid. In the event an action has been commenced pursuant to the provisions of M.S. Ch. 278, as it may be amended from time to time, questioning the amount or validity of taxes, the Council may, on application by the licensee, waive strict compliance with this division. No waiver may be granted, however, for taxes or any portion thereof which remain unpaid for a period exceeding one year after becoming due.
(2) No license shall be issued for a premises within 500 feet of any school or church. The distance is to be measured from the closest side of the school or church to the closest side of the structure on the premises within which edible cannabinoid products are to be sold.
(3) No license shall be granted if the applicant, responsible party, owner, manager, or any other person involved with the licensee:
(a) Is under the age of 21;
(b) Who is not of good moral character and repute;
(c) The applicant has had a license to sell cannabinoid products revoked within the preceding five years of the date of application; or
(d) Who has been convicted, within five years prior to the application for such license, of any violation of any law of the United States, this state or any other state or territory or of any local ordinance regarding the manufacture, sale or distribution of edible cannabinoid products.
(4) If a license is mistakenly issued or renewed to a person, it shall be revoked upon the discovery that the person was ineligible for the license under this chapter.
(G) Term. All licenses issued under this chapter shall expire on December 31 of each year.
(H) Revocation or suspension. Any license issued under this chapter may be revoked or suspended as provided in this chapter.
(I) Transfers. All licenses issued under this chapter shall be valid only on the premises for which the license was issued and only for the person to whom the license was issued. No transfer of any license to another location or person shall be valid without the prior approval of the City Council.
(J) Display. All licenses shall be posted and displayed in plain view of the general public on the licensed premises.
(K) Renewals. The renewal of a licenses 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 not more than 60 days before the expiration of the current license.
(L) Issuance as privilege and not a right. The issuance of a license issued under this chapter shall be considered a privilege and not an absolute right of the applicant and shall not entitle the holder to an automatic renewal of the license.
(Ord. 241, passed 1-23-2023)
(A) Unlawful sales. It shall be a violation of this chapter for any person to sell any edible cannabinoid product:
(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 methods whereby the customer does not need to make a verbal or written request to an employee of the licensed premises in order to receive the edible cannabinoid product and whereby there is not a physical and in person exchange of the edible cannabinoid product between the licensee or the licensee’s employee, and the customer; or
(4) That is in violation of M.S. § 151.72, as it may be amended from time to time.
(B) Use of false identification. It shall be a violation of this chapter for any person to attempt to disguise his/her true age by the use of a false form of identification, whether the identification is that of another person or one on which the age of the person has been modified or tampered with to represent an age older than the actual age of the person.
(C) Unlawful purchases. It shall be unlawful for any person who is under the age of 21 years to purchase any edible cannabinoid product. Persons acting under the direct supervision of the city, law enforcement, or other governmental unit and which are actively engaged in a compliance check of the licensed premises are exempted from this provision while engaged in the compliance check.
(D) Distribution of edible cannabinoid product samples. It shall be unlawful for any licensee or any person, business or retailer to distribute or give away edible cannabinoid products free of charge to any person.
(Ord. 241, passed 1-23-2023)
No sale of cannabinoid products may be made:
(A) After 10:00 p.m. on Mondays through Sundays;
(B) Before 8:00 a.m. on Mondays through Saturdays;
(C) Before 12:00 noon on Sundays;
(D) On Thanksgiving Day;
(E) On Christmas Day, December 25; and
(F) After 8:00 p.m. on Christmas Eve, December 24.
(Ord. 241, passed 1-23-2023)
(A) Actions of employees. All licensees under this chapter shall be responsible for the actions of their employees in regard to the sale of edible cannabinoid products on the licensed premises, and the sale of such an item by an employee shall also be considered a sale by the license holder. The license holder shall at all times be responsible for how edible cannabinoid products are offered for sale on the licensed premises and for ensuring that such edible cannabinoid products are compliant with this chapter and state and federal law. Violations of this code, state law, or other applicable law or regulation may be enforced against the license holder and any other responsible individual. Nothing in this section shall be construed as prohibiting such separate enforcement actions related to a single behavioral incident nor shall the imposition of any penalty act as a bar to the prosecution, licensing action, or other enforcement action against another.
(B) Maintenance standards. The property shall conform to all building and zoning requirements of the City of Hoyt Lakes and the laws of the state of Minnesota.
(Ord. 241, passed 1-23-2023)
All licensed premises shall be open to inspection by the East Range Police Department or other authorized city official during regular business hours. The East Range Police Department or city may conduct compliance checks from time to time. The city may conduct a compliance check that involves the participation of a person between the ages of 18 and 20 to enter the licensed premises to attempt to purchase edible cannabinoid products. Persons under the age of 21 used for compliance checks shall not be guilty of an unlawful purchase or attempted purchase, not the unlawful possession of edible cannabinoid products when those items are obtained or attempted to be obtained as part of the compliance check. No person under the age of 21 used in compliance checks shall attempt to use a false identification misrepresenting the persons age and all persons under the age of 21 lawfully engaged in a compliance check shall answer all questions about their age asked by the licensee or his/her employee and shall produce any identification, if any exists, for which he/she is asked.
(Ord. 241, passed 1-23-2023)
Every cannabinoid license is subject to revocation for violations of this section or any other provision of Minnesota or City of Hoyt Lakes Ordinances.
(A) Violations. Violations of this section shall be reported to the City Clerk’s Office. The City Administrator shall review the violation and provide written notice to the license holder of the violation and any necessary remedial actions.
(B) Revocation. If a license holder fails to correct a violation or receives three violations within any 12-month period, the City Administrator shall recommend revocation of the license to the City Council. The City Council and City Administrator shall provide written notice to the owner and any registered agent of the revocation. The notice shall inform the owner and agent of the right to appeal the decision to the Hoyt Lakes City Council.
(C) Appeal. A license holder aggrieved by the revocation of a license may appeal to the City Council. Such appeal shall be taken by filing with the City Clerk’s office within ten days after date of issuance of the written revocation notice, a written statement requesting a hearing before the City Council and setting forth fully the grounds for the appeal. A hearing shall be held within 30 days of receipt of the request. Notice of the hearing shall be given by the City Clerk’s Office in writing, setting forth the time and place of the hearing. Such notice shall be mailed, postage prepaid, to the license holder at his/her last known address at least five days prior to the date set for hearing.
(D) Effect of Revocation. If a license is revoked, it shall be unlawful for anyone to thereafter allow any new sale of cannabinoid products until such time as a cannabinoid license is issued by the city. No person who has had a license revoked under this section shall be issued a cannabinoid license for five years from the date of revocation.
(Ord. 241, passed 1-23-2023)
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