(A) License required. No natural person, corporation, partnership, limited liability company, business entity, or organization of any type shall sell, donate, give away, or otherwise transfer any THC product, or offer to do so, without first having obtained a license to do so from the city.
(B) Application.
(1) An application for a license to sell THC products shall be made on a form provided by the city and approved by the City Council. Every application for a license shall be verified and filed with the City Clerk or the City Clerk’s designee. The application shall consist of information found in division (B)(2) below.
(2) Form of applicant. The application shall show whether the applicant is a natural person, corporation, partnership, limited liability company, or other form of organization.
(a) Natural person. If the applicant is a natural person, the following information shall be required:
1. Full legal name, place and date of birth and street address of applicant.
2. Whether the applicant has ever used or been known by a name other than his or her true legal name and, if so, what was such name or names, and information concerning dates and places where used.
3. The name of the business if it is to be conducted under a designation, name, or style other than the full individual name of the applicant.
4. Street addresses at which applicant lived during the preceding five years.
5. Kind, name and location of every business or occupation applicant has been engaged in during the preceding five years.
6. Names and addresses of applicant's employers and business partners, if any, for the preceding five years.
7. Whether the applicant has ever been convicted of any felony, crime, or violation of any ordinance, other than traffic offenses, except that alcohol related driving offenses shall be reported. If so, the applicant shall furnish information as to the time, place and offense for which convictions were had.
8. Whether applicant has ever been engaged as an employer or in operating a business of a similar nature. If so, applicant shall furnish information as to the time, place, and length of time of such operation.
9. Whether applicant has ever been in the military service. If so, applicant shall upon request exhibit all discharges.
10. The name of the operating officer, manager or proprietor or other agent in charge of the premises to be licensed, if different than the applicant.
11. Certification that the applicant has liability insurance covering the applicant’s sale of THC products.
(b) Partnership or limited liability partnership. If the applicant is a partnership or limited liability partnership, the names and addresses of all partners and all information concerning each partner as is required of a single applicant in division (B)(2)(a) above. A managing partner, or partners, shall be designated. The interest of each partner in the business shall be disclosed. A true copy of the applicant’s partnership agreement, if any, shall be submitted with the application. If and in the event the composition of the partnership shall change at any time subsequent to the initial application, any amended partnership agreements must be filed with the city.
(c) Corporation, limited liability company, or other business entity. If the applicant is a corporation, limited liability company, or any other business entity, the following information shall be required:
1. Company name and state of incorporation or organization.
2. A true copy of Certificate of Incorporation or Organization, Articles of Incorporation or Organization, and, if a foreign corporation, any certificate of authority to conduct business in the State of Minnesota as may be required by state law.
3. The name of the operating officer, manager, proprietor, or other agent in charge of the premises to be licensed, giving all the information about said person as is required of a single applicant in division (B)(2)(a) above.
4. A list of all persons who, whether individually or with another, own or control any interest in said corporation or association together with their addresses and all information as is required of a single applicant in division (B)(2)(a) above.
5. The name of the business if it is to be conducted under a designation, name, or style other than the full legal name of the applicant.
(d) Legal description and street address. The street address and exact legal description of the premises to be licensed, together with a plan, sketch, or drawing of the area showing dimensions, location of buildings, street access, parking facilities and the locations of and distances to the nearest place of worship and school building.
(e) Floorplan. A diagram or sketch depicting the licensed premises and the area within the licensed premises where the licensed product will be sold.
(f) Age 21 and older retailer. Certification as to whether access to the licensed premises will be limited to persons age 21 or older.
(g) Disclosure of ownership interests. At the time of application, each applicant that is not a natural person shall furnish the city with a list of all persons that have an interest of 5% or more in the business. The list shall name all owners and show the interest held by each, either individually or beneficially for others. It is the duty of each business licensee to notify the City Clerk in writing of any change in ownership in the business. Any change in the ownership or control of the business shall be deemed equivalent to a transfer of the license, and any such license shall be revoked 30 days after any such change in ownership or control unless the licensee has notified the Council of the change in ownership by submitting a new license application for the new owners, and the Council has approved the transfer of the license by appropriate action. Any time an additional investigation is required because of a change in ownership or control of a business, the licensee shall pay an additional investigation fee to be determined by the city. The city may at any reasonable time examine the transfer records and minute books of any business licensee to verify and identify the owners, and the city may examine the business records of any other licensee to the extent necessary to disclose the interest which persons other than the licensee have in the licensed business. The Council may revoke any license issued upon its determination that a change of ownership of a licensee has actually resulted in the change of control of the licensed business so as materially to affect the integrity and character of its management and its operation, but no such action shall be taken until after a hearing by the Council on notice to the licensee.
(h) Additional information. Any additional information the city deems necessary.
(C) Incomplete application. If the City Clerk or the Clerk’s designee determines that an application is incomplete, they shall return the application to the applicant with notice of the information needed to make the application complete.
(D) Investigation.
(1) Upon receipt of an application for a license under this chapter, the city shall conduct a background investigation on all new applications and applications to transfer a license. The applicant shall pay with the application a nonrefundable investigation fee set annually by resolution of the City Council. The city shall request that its Chief of Police conduct a preliminary background and financial investigation of the applicant. The application in such case shall be made on a form prescribed by the State Bureau of Criminal Apprehension and with such additional information as the Council may require. If the Council deems it in the public interest to have an investigation made on a particular application for renewal of a license, it shall so determine. If the Council determines that a comprehensive background and financial investigation of the applicant is necessary, it may conduct the investigation itself or contract with the Bureau of Criminal Apprehension for the investigation. If an investigation outside the state is required, the applicant shall be charged the cost not to exceed $10,000, which shall be paid by the applicant after deducting any initial investigation fee already paid. The fee shall be payable by the applicant whether or not the license is granted. Upon completion of the investigation, the Chief of Police shall make a written report and recommendation to the City Council of his or her findings, including a specific report on any violations of federal or state law or municipal regulations.
(2) As an alternative to the investigation process set forth in division (D)(1), an applicant may pay a nonrefundable investigation fee set annually by resolution of the City Council and submit the results of a comparable background investigation completed by an agency of the State of Minnesota within the 12 months prior to the application. To do so, the applicant must authorize the city to obtain any and all related information from said agency so that the Council may review it to determine if any additional investigation is necessary. If the Council determines that the agency’s investigation is insufficient for these licensing purposes, the Council may then require the investigation described in division (D)(1).
(E) Public hearing. For initial and renewal applications, upon receipt of the written report and recommendation by the Police Chief, and within 21 days thereafter, the City Clerk shall cause to be scheduled a public hearing, with notice thereof to be published in the official newspaper ten days in advance of the scheduled hearing, setting forth the day, time and place when the hearing will be held, the name of the applicant, the premises where the business is to be conducted, the nature of the business, and such other information as the Council may direct. At the hearing, opportunity shall be given to any person to be heard for or against the granting of the license. After such investigation and hearing, the Council shall grant or refuse the application in its discretion.
(F) Action. The City Council may either approve or deny the application for a 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. A four-fifths vote of the City Council shall be required for the granting of any license. If the City Council approves the license, the City Clerk 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 City Council's decision pursuant to § 113.06. If a license application is denied, the earliest an applicant may reapply is 12 months from the date the license is denied.
(G) Term. All licenses issued under this section shall be valid from January 1 until December 31. License fees shall be prorated on a monthly basis for the portion of any year remaining on an initial application and with any portion of a licensed month counting as a full month.
(H) Revocation or suspension. Any license issued under this section may be revoked or suspended whenever the City Council deems there is cause to do so. Cause exists whenever a licensee violates any provision of this chapter or no longer meets the license eligibility requirements of this section.
(I) Transfers. All licenses issued under this section shall be valid only on the premises for which the license was issued and only for the person or business to whom the license was issued. The transfer of any license to another location, business, or person is prohibited, except as provided herein for successors of licensees.
(J) Display. The licensee shall post and display on the licensed premises and in plain public view any license issued hereunder.
(K) Renewals. The renewal of a license issued under this section shall be handled in the same manner as the original application, provided, however that the City Council may waive the requirement of a background and financial check on an application for a renewal of a license if the City Council deems it is in the public interest to do so. 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.
(L) Issuance as privilege and not a right. The issuance of a license issued under this section is a privilege and does not entitle the applicant to a license, nor does it entitle a license holder to automatic renewal of the license.
(Ord. 23-301, passed 3-13-2022)