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A. 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 general public and can interfere with brain development in youth and adolescents according to the U.S. Surgeon General.
B. The City Council finds that a local regulatory system for Cannabinoid Product retailers is appropriate and not unduly burdensome to ensure that retailers comply with the cannabis laws and business standards of City to protect the health, safety, and welfare of our youth, visitors, and all residents. (Ord. 1075, 11-7-2022)
The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:
ADULT: | A person twenty-one (21) years of age or older. |
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 Statute and intended for human consumption whether chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means. |
LICENSED PREMISES: | The premises described in the approved license application. |
MOVABLE PLACE OF BUSINESS: | A business whose physical location is not permanent or is capable of being moved or changed including, but not limited to, motorized vehicles, mobile sales kiosks, or trailers. |
PERSON: | One or more natural persons; a partnership, including a limited partnership; a corporation, including a foreign, domestic, or nonprofit corporation; a trust; a political subdivision of the state; or any other business organization. |
PLACE OF WORSHIP: | Church, synagogue, temple, mosque, or other facility used for religious services. |
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, and not providing residential accommodations. |
SELF-SERVICE MERCHANDISING: | A method of displaying Cannabinoid Products so that they are accessible to the public without the intervention of an applicant, license holder or their agents or employees. |
THC: | The chemical compound tetrahydrocannabinol whether derived naturally or synthetically from the cannabis plant. |
UNDERAGE PERSON: | A person who is under the age of 21. |
VENDING MACHINE: | Any mechanical, electric or electronic, self-service device which, upon insertion of money, tokens or any other form of payment, dispenses Cannabinoid Products and including vending machines equipped with manual, electric or electronic locking devices. (Ord. 1075, 11-7-2022) |
A. 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: An application for a license to sell Cannabinoid Products shall be made on a form provided by the city. The application shall include, but is not limited to, requiring the full name of the applicant, the applicant’s residential and business address and telephone numbers, the name of the proposed license holder, and the business location for which the license is sought. The application and investigation fees shall be paid at the time of application. If the city administrator or designee determines that an application is incomplete, he or she shall return the application to the applicant with notice of the deficiencies.
C. Action: The city administrator or designee may either approve or deny the license, or may delay action for such reasonable period of time to permit the city to complete any investigation of the application or the applicant deemed necessary. If the city administrator or designee approves the license, a license shall be issued to the applicant. If the city administrator or designee denies the application, a notice of denial shall be sent to the applicant at the business address provided on the application along with the reasons for the denial, and information regarding the appeal process set forth in Section 3-24-7D.
D. Mistake: If a license is mistakenly issued or renewed to an applicant or license holder, it shall be revoked by the city administrator or designee upon the discovery that the person, applicant or license holder was ineligible for the license under this section.
E. Term: All licenses are issued for a period of one year. All licenses shall expire on December 31.
F. 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 to whom the license was issued. No transfer of any license to another location or person shall be valid.
G. Display: Every license shall be conspicuously posted at the place of business for which the license is issued and shall be exhibited to any person upon request.
H. Renewals: The renewal of a license under this section shall be handled in the same manner as the original application. The request for renewal shall be made at least thirty (30) days but no more than sixty (60) days before the expiration of the current license. The issuance of a license 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. If the city administrator or designee denies the renewal, a notice of denial shall be sent to the applicant at the business address provided on the application along with the reasons for the denial, and information regarding the appeal process set forth in Section 3-24-7D.
I. Exemptions:
1. This chapter does not apply to medical cannabis products dispensed by a registered medical cannabis dispensaries pursuant to Minn. Stat. §§ 152.22 to 152.37. Medical cannabis dispensaries that sell non-medical cannabis products which are also Cannabinoid Products are not exempt.
2. This chapter does not apply to Cannabinoid Products wherein the only cannabinoids present are non-intoxicating cannabinoids, such as Cannabidiol (“CBD”) or Cannabinol (“CBN”), and which have no more than trace amounts of THC. (Ord. 1075, 11-7-2022)
Grounds for Denial. The following will be grounds for denying the issuance or renewal of a license:
A. The applicant or license holder is an underage person.
B. The applicant or license holder who, within five years of the license application, has been convicted of a controlled substance-related felony.
C. The applicant or license holder has had a license to sell Cannabinoid Products revoked within the preceding twelve (12) months of the date of application.
D. The applicant or license holder fails to provide any information required on the city license application, or provides false or misleading information.
E. The applicant or license holder has outstanding fines, penalties, or property taxes owed to the city.
F. The applicant or license holder is prohibited by state, or other local law, ordinance, or other regulation from holding a license under this chapter.
G. The proposed premises is a moveable place of business.
H. The proposed premises is a residential dwelling unit. (Ord. 1075, 11-7-2022)
A. Prohibited Sales: No person shall sell, offer for sale, give away, furnish, or otherwise deliver any Cannabinoid Products:
1. To any underage person.
2. By means of any type of vending machine.
3. By means of self-service merchandising.
4. Containing any chemical compound or drug that is a controlled substance under Minnesota law.
5. By any other means, or to any other person, prohibited by state or local laws.
6. That fails to meet the labeling requirements as established in Minn. Stat. § 151.72 subds. 5 and 5a.
7. That fails to meet the testing requirements as established in Minn. Stat. § 151.72 subd. 4.
B. Sampling of Cannabinoid Products: Sampling of Cannabinoid Products on a licensed premises is prohibited.
C. On-site Consumption: Any Cannabinoid Products sold may not be consumed and must remain sealed while on the licensed premises. Exceptions to this regulation include on premise consumption of Cannabinoid Products at a food and beverage establishment that is licensed by the Minnesota Department of Health and licensed under this chapter. Food and beverage establishments selling cannabinoid products must provide product to consumers in original packaging, complete with labeling. Such establishments must abide by all other state and county laws regarding on-premises consumption and sales, including the Minnesota Clean Indoor Air Act (Minn. Stat. §§ 144.411 to 144.417).
D. 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 Cannabinoid Products.
E. Delivery: All sales of Cannabinoid Products must be completed on the licensed premises. Delivery by the license holder or a third party to the consumer is prohibited.
F. Testing Requirements: All Cannabinoid Products offered for sale must be compliant with the testing requirements in Minn. Stat. § 151.72, Subd. 4.
G. Labeling Requirements: All Cannabinoid Products offered for sale must comply with the labelling requirements set forth in Minn. Stat. § 151.72, Subd. 5, 5a, and 6. (Ord. 1075, 11-7-2022)
All licensed premises shall be open to inspection by authorized City officials during regular business hours. From time to time, but at least once per year, the City shall conduct compliance checks. Such compliance checks may involve, but are not limited to, inspection of Cannabinoid Products offered for sale and engaging underage persons to enter the licensed premises to attempt to purchase Cannabinoid Products. (Ord. 1075, 11-7-2022)
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