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HomeMy WebLinkAbout03-22 Council Ordinances 1st Reading: October 10,2022 Publication: November 1,2022 2nd Reading: October 24,2022 Effective: December 1,2022 CITY OF LINO LAKES ORDINANCE NO. 03-22 REGULATING EDIBLE CANNABINOID PRODUCTS BY ADDING A NEW CHAPTER 619 TO THE LINO LAKES CODE OF ORDINANCES,ENTITLED EDIBLE CANNABINIOD PRODUCTS The City Council of Lino Lakes ordains: Section 1. That Section 600 of the Lino Lakes Code of Ordinances be amended by adding a new Chapter 619 to read as follows: CHAPTER 619. EDIBLE CANNABINOID PRODUCTS. 619.01. Purpose. The City of Lino Lakes recognizes that many persons under the age of 21 years purchase or otherwise obtain, possess, and use Edible Cannabinoid Products. Sales, possession, and use of Edible Cannabinoid Products by persons under 21 is a violation of State and Federal Laws. Further, the City of Lino Lakes recognizes the consumption of Edible Cannabinoid Products preceding the operation of a motor vehicle results in a danger to public safety in the form of intoxicated drivers. This Chapter is intended to regulate the sales and possession of Edible Cannabinoid Products by persons under 21 and limit the impact on public safety from intoxicated individuals. 619.02. Application of Chapter 601. The provisions of Chapter 601 shall apply to the issuance of licenses hereunder. 619.03. Definitions. Except as other provided or clearly implied by context all terms shall be given their commonly accepted definitions. Within this Chapter,the following terms shall have the definitions given to them: CONVICTED. Any disposition of a criminal charge that is not a dismissal or acquittal. EDIBLE CANNABINOID PRODUCT. A product that is intended to be eaten or consumed as a beverage by humans and contains a cannabinoid in combination with food ingredients and comports with all of the requirements of Minnesota Statute 151.72 or its progeny. PRIMARYPLACE OFBUSINESS. The physical location where the edible cannabinoid product will be sold;the primary place of business must be a permanent building with a mailing address. SCHOOL. A public or nonpublic elementary or secondary school. SELL. Sell,give away,barter,deliver, exchange,distribute or dispose of to another or to offer or agree to perform any of the aforementioned. VENDING MACHINE. Any mechanical,electric or electronic, or other type of device which dispenses a product upon the insertion of money,tokens,or other form of payment directly into the machine by the person seeking to purchase the product. PERSON. Individuals,partnerships, corporations,or any other legal entity. 619.04. License Required. No person shall directly or indirectly deal in, sell,or offer for sale any Edible Cannabinoid Product in the City without first obtaining a license under this Chapter and paying the associated fees. 619.05. Ineligible for License. No license under this Chapter will be issued to or held by: (1) Any person which holds a license under Chapter 700,entitled Liquor and Beer, except for a license holder under that chapter that is a Brewer Taproom as defined by that chapter. (2) Any person whose primary place of business will be within 1000 feet of a school or church. (3)Any person manufacturing Edible Cannabinoid Product on the same premises as the retail sales; unless retail sales are conducted in a separate area of the premises with a separate entrance/exit from the manufacturing operation. (4) Any person who does not have a primary place of business. No door to door sales or pop-up vendors of Edible Cannabinoid Product is allowed. (5) Any person who has been convicted of a violation of Minnesota Statutes Chapter 152. (6) Any person who has been convicted of illegal acts involving alcohol,tobacco,or Minnesota Statute 151.72. (7) Any person under the age of 21. 619.06. Application for License. An application for a license under this chapter shall be made to the City Clerk in writing on a form provided by the City. (1) Application Form. The application must include the following: (a) Applicant's full name and date of birth. (b) Applicant's residence address and telephone number. (c) Applicant's primary place of business address and telephone number. (d) Name of applicant's business. (e) Kind of business being conducted or to be conducted. (f) Whether the applicant has been charged within the preceding five years of violating any Federal, State,or local laws relating to the sale of tobacco,vaping products, alcohol, or THC products and the circumstances which lead to any charge. (g) Such other information as required by the City. (h) Proof of liability insurance. (2) Application Fee. The license fee shall be paid in full before the application for a license is accepted. All fees shall be paid into the general fund of the City. Upon rejection of any application for a license or withdrawal of the application for approval,the fee shall be refunded to the applicant,less costs for processing. 619.07. Fee. Application and license fees for licenses issued pursuant to this Chapter shall be established from time to time by ordinance of the City Council.Fees shall be sufficient to cover the costs of investigating and issuing a license and the anticipated expenses and costs of enforcing this Chapter. Fees shall be prorated on a monthly basis and the commencement of a license period may be stayed until the purpose for which the license is granted begins. 619.08. Issuance. 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 shall approve the license,the City Clerk shall issue the license to the applicant. 619.09. Term of License. Each license shall be issued for a period of one year,except,that if the application is made during the license year,a license may be issued for the remainder of the year for a pro-rata fee with any unexpired fraction of a month being counted as one month. Every license shall expire on the last day of June. 619.10. Renewals. 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.The issuance of a license pursuant to 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. 619.11. Prohibited Acts. A license holder or anyone acting under the license holders' authority, express or implied, may not do the following: (1) Sell an Edible Cannabinoid Product to any individual who is not at least 21 years of age. (2) Allow an Edible Cannabinoid Product to be consumed at their primary place of business. (3) Sell any product which does not comply with Minnesota Statute 151.72 or its progeny. (4) Allow any person under the age of 18 to sell an Edible Cannabinoid Product. (5) Sell an Edible Cannabinoid Product through any vending machine. (6) Provide delivery services for an Edible Cannabinoid Product. (7) Sell Edible Cannabinoid Product's through internet sales. 619.12. Compliance Checks. All licensed premises shall be open to inspection by the City Police or other authorized City official during regular business hours. From time to time,but at least once per year,the City shall conduct compliance checks by engaging persons at least 17 years of age, but less than 21 years of age,to enter each licensed premises to attempt to purchase Edible Cannabinoid Products. Prior written consent from a parent or guardian is required for any person under the age of 18 to participate in a compliance check. Persons used for the purpose of compliance checks shall be supervised by City designated law enforcement officers or other designated City personnel.No persons used in compliance checks shall attempt to use a false identification misrepresenting the person's age, and all persons lawfully engaged in a compliance check shall answer all questions about the person's age asked by the licensee or his or her employee and shall produce any identification, if any exists, for which he or she is asked.Nothing in this Section shall prohibit compliance checks authorized by State or Federal laws for educational, research,training purposes or required for enforcement of a particular State or Federal law. 619.13. Licensee Responsibility. 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 be considered a sale by the license holder.Nothing in this Section shall be construed as prohibiting the City from also subjecting the clerk to whatever penalties are appropriate under this Chapter, State or Federal law, or other applicable law or regulation. Licensees must comply with all other state and local laws and ordinances. 619.14. Days and Hours. No sale of Edible Cannabinoid Products may be made: (1) On Sundays,except between the hours of 11:00 a.m.and 6:00 p.m. (2) Before 8:00 a.m,on Monday through Saturday; (3) After 10:00 p.m.on Monday through Saturday; (4) On Thanksgiving Day; (5) On December 25; (6) After 8:00 p.m.on December 24. 619.15.Violations and Penalty. (1) Administrative Civil Penalties—Individuals. If a person who is not a licensee is found to have violated this article,the person shall be charged an administrative penalty as follows: (a) First Violation.The Council shall impose a civil fine not to exceed$50.00. (b) Second Violation within 12 months.The Council shall impose a civil fine not to exceed$100.00. (c) Third Violation within 12 months.The Council shall impose a civil fine not to exceed $150.00. (2) Same—Licensee. If a licensee or an employee of a licensee is found to have violated this article,the licensee shall be charged an administrative penalty as follows: (a) First Violation.The Council shall impose a civil fine of$500.00 and suspend the license for not less than I day. (b) Second Violation within 36 Months.The Council shall impose a civil fine of $1,000.00 and suspend the license for not less than 3 consecutive days. (c)Third Violation within 36 Months.The Council shall impose a civil fine of$2,000.00 and suspend the license for not less than 10 consecutive days. (d)Fourth Violation within 36 Months.The Council shall revoke the license for at least one year. (3) Administrative Penalty Procedures. Notwithstanding anything to the contrary in this section: (a)Any of the administrative civil penalties set forth in this section that may be imposed by the Council, may in the alternative be imposed by an administrative citation. (b) If one of the foregoing penalties is imposed by an action of the Council, no penalty shall take effect until the licensee or person has received notice(served personally or by mail)of the alleged violation and of the opportunity for a hearing before the Council, and such notice must be in writing and must provide that a right to a hearing before the Council must be requested within 10 business days of receipt of the notice or such right shall terminate. (4) Misdemeanor Prosecution. Nothing in this section shall prohibit the City from seeking prosecution as a misdemeanor for any alleged violation of this article. Section 2. That Section 601.05, Subdivision 2,of the Lino Lakes Code of Ordinances entitled Background Checks be amended as follows: (2) Criminal history license background investigations. The Lino Lakes Police Department is hereby required,as the exclusive entity within the city,to do a criminal history background investigation on the applicants for the following licenses within the city: (a) Liquor; (b) Tobacco; (c) Cabaret; (d) Lawful gambling; (e) Special event; (f) Peddler,solicitor,transient merchant; (g) Taxicab; (h) Pawnbroker,precious metal dealers,secondhand good dealers; (i) Adult uses(sexually-oriented businesses); 0) Massage therapists and therapeutic massage businesses,and (k) Edible Cannabinoid Products. Section 3. Amendment of Fee Schedule Approved Pursuant to §404.04 Ordinance No. 07-20(The 2022 Fee Schedule)is hereby amended to include the following rates effective January 1, 2022: Business& Miscellaneous Cannabinoid Product Sales $ 200 per year Section 4.Effective Date This ordinance shall be in force and effect from and after its passage and publication according to the Lino Lakes City Charter. Adopted by the Lino Lakes City Council this 24th day of October, 2022. The motion for the adoption of the foregoing ordinance was introduced by Councilmember Lyden and was duly seconded by Councilmember Ruhland and upon a vote being take thereon,the following voted in favor thereon: Lyden, Ruhland, Stoesz, Cavegn,Rafferty The following voted against same: None Rob Rafferty,Mayor ATTEST: ll �Tul'. ne Bartell,City, Jerk �'