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HomeMy WebLinkAbout01-25 - Ordinance - Amending 617 Cannabis BusinessesV Reading: February 10, 2025 Website Notice: February 11, 2025 2"d Reading: February 24, 2025 Publication: March 4, 2025 Adoption: February 24, 2025 Effective: April 3, 2025 CITY OF LINO LAKES ORDINANCE NO. 01-25 ORDINANCE AMENDING 617 OF THE CITY CODE CONCERNING THE REGULATION OF CANNABIS BUSINESSES The City Council of Lino Lakes ordains: Section 1. Chapter 617 of the Lino Lakes City Code is hereby amended in its entirety to read as follows: CHAPTER 617 CANNABIS BUSINESSES SECTION: 617.01: Findings and Purpose: Authoritv and Jurisdiction 617.02: Definitions 617.03: State License Required 617.04: Retail Registration 617.05: Performance Standards 617.06: Minimum Buffer Requirement 617.07: TemDorary Cannabis Events 617.08: Use in Public Places 617.09: Local Government as a Cannabis Retailer 617.10 Severabilitv 617.01 FINDINGS AND PURPOSE• AUTHORITY AND JURISDICTION (1). Findings and Purpose. The city makes the following legislative findings: (a) The purpose of this chapter is to implement the provisions of Minnesota Statutes, chapter 342, which authorizes the city to protect the public health, safety, welfare of residents by regulating cannabis businesses within the city. (b) The city finds that the proposed provisions are appropriate and lawful land use regulations for the city, that the proposed regulations will promote the interests of the communitv for now and in the future, and that the DroDosed provisions are in the public interest and for the public good. (2). Authority. The city has the authority to adopt this chapter pursuant to: 4838-5794-226587v2 (a) Minnesota Statutes, section 342.13(c), regarding the authority of a local unit of government to adopt reasonable restrictions of the time, place, and manner of the operation of a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses. (b) Minnesota Statutes, section 342.22, regarding the local registration and enforcement requirements of state licensed cannabis retail businesses and lower potency hemp edible retail businesses. (c) Minnesota Statutes, section 152.0263, Subd. 5, regarding the use of cannabis in public places. 617.02 DEFINITIONS Unless otherwise noted in this chapter, words and phrases contained in Minnesota Statutes, section 342.01 and the rules promulgated pursuant to any of these acts, shall have the same meanings in this chapter: ADULT USE CANNABIS PRODUCT. As defined under Minnesota Statutes section 342.01 subd. 4. CANNABIS BUSINESS. In accordance with Minnesota Statutes. section 342.01. subdivision 14 "Cannabis Business" means any of the following license types: Cannabis Microbusiness, Cannabis Mezzobusiness Cannabis Cultivator Cannabis Manufacturer Cannabis Retailer Cannabis Wholesaler, Cannabis Transporter, Cannabis Testing Facility, Cannabis Event Organizer, Cannabis Delivery Service, Medical Cannabis Cultivator, Medical Cannabis Processor, Medical Cannabis Retailer. and Medical Cannabis Combination Business. CANNABIS RETAIL BUSINESS. A state licensed retail location and the retail location(s) of a mezzobusinesses with a retail operations endorsement, microbusinesses with a retail operations endorsement, medical combination businesses operating a retail location, excluding lower Potency hemp edible retailers. CANNABIS RETAILER. Any person, partnership, firm, corporation, or association, foreign or domestic, selling cannabis product to a consumer and not for the purpose of resale in any form. LOWER POTENCY HEMP EDIBLE. As defined under Minnesota Statutes section 342.01 subd. 50. LOWER POTENCY HEMP EDIBLE RETAILER OR HEMP RETAIL BUSINESS. A hemp business, as defined by Minnesota Statutes, section 342.01, Subd. 34, that holds a valid lower -potency hemp edible retailer license. OFFICE OF CANNABIS MANAGEMENT. State of Minnesota Office of Cannabis Management, as may be referred to as "OCM" in reference to this chapter. PLACE OF PUBLIC ACCOMMODATION. A business accommodation refreshment entertainment recreation, or transportation facility of any kind, whether licensed or not, whose goods, services, facilities, privileges, advantages or accommodations are extended, offered, sold, or otherwise made available to the public. PRELIMINARY LICENSE APPROVAL. Office of Cannabis Management pre -approval for a cannabis business license for applicants who qualify under Minnesota Statutes, section 342.17. PUBLIC PLACE. A public park or trail, public street or sidewalk; any enclosed, indoor area used by the general public, including, but not limited to, restaurants; bars; any other food or liquor establishment; hospitals; nursing homes; auditoriums; arenas; gyms; meeting rooms; common areas of rental aaartment buildings, and other Dlaces of Dublic accommodation. RESIDENTIAL TREATMENT FACILITY. As defined under Minnesota Statute section 245.462 Subd. 23. RETAIL REGISTRATION. An approved registration issued by the city to a cannabis retail business. SCHOOL. A public school as defined under Minnesota Statutes, section 120A.05 or a nonpublic school that complies with the reporting requirements under Minnesota Statute, section 120A.24. STATE LICENSE. An approved license issued by the Office of Cannabis Management to a cannabis retail business. 617.03: STATE LICENSE REQUIRED. Operation of a cannabis business of the types established by Minnesota Statues, section 324.10 within the city shall require a state license in accordance with Minnesota Statutes, section 342.14. 617.04: RETAIL REGISTRATION: (1) Consent to Registering Cannabis Businesses and Hemp Retail Business (a) No individual or entity may operate a state -licensed cannabis retail business or hemp retail business within Lino Lakes without first registering with the city. (b) Any state -licensed cannabis retail business or hemp retail business that sells to a customer or patient without a valid retail registration shall incur a civil penalty of up to $2,000 per violation. Compliance Checks Prior to Retail Registration (a) Prior to issuance of a cannabis retail business or hemp retail business registration, the city shall conduct a preliminary compliance check to ensure compliance with local ordinances. (b) Pursuant to Minnesota Statutes Chapter 342, within 30 days of receiving a copy of a state license application from OCM, the city shall certify on a form provided by OCM whether a proposed cannabis retail business or hemp retail business complies with local zoning ordinances and, if applicable, whether the proposed business complies with the city's zoning ordinance and state fire and building codes. (3) Registrations Limited: (a) The city limits the number of cannabis retail businesses to no more than one registration for every 12,500 residents within city limits. (b) Registrations for cannabis retail businesses shall be issued in order as of the date the citv has received a complete application. (4) Registration Fees: (a) Applicants for registration or renewal registrations shall be required to pay the registration and renewal fees as established by the city's fee schedule depending upon the type of retail business license applied for and in accordance with the following: An initial retail registration fee shall not exceed five hundred dollars ($500) or one-half (1/2) the amount of an initial state license fee established by Minnesota Statutes, section 342.11, whichever is less. The initial registration fee shall include the initial retail registration fee and the first annual renewal fee. 2. Any renewal retail registration fee imposed by the city shall be charged at the time of the second renewal and each subsequent renewal thereafter. 3. A renewal retail registration fee shall not exceed one thousand dollars ($1,000) or one-half (1/2) the amount of a renewal state license fee established by Minnesota Statutes, section 342.11, whichever is less. 4. A medical combination business operating as an adult -use retail location shall only be charged a single registration fee, not to exceed the lesser of 4 a single retail registration fee, defined by this section, for the adult -use retail business. 5. No registration fee shall be required for location change applications required under Section 617.04 (8) of this chapter. (b) The registration/renewal fee shall be non-refundable once processed in accordance with Section 617.04(6) of this chapter. (5) Application Submittal. (a) The city shall issue a retail registration to a state -licensed cannabis retail business or hemp retail business that adheres to the requirements of Minnesota Statutes, section 342.22 and is in compliance with this chapter. 1. An applicant for either a cannabis or hemp retail registration shall fill out an application form, as provided by the city. The application form shall include, but is not limited to: Full name of the property owner and applicant. ii. Address, email address, and telephone number of the applicant. iii. The address and parcel ID for the property which the retai registration is sought. iv. Name of the cannabis retail business or hemp retail business registered. V. Certification that the applicant complies with the requirements of local ordinances established pursuant to Minn. Stat. 342.13. 2. The applicant shall include with the form: i. The registration fee as required in Section 617.04(a) of this chapter. ii. A copy of a valid state license or written notice of OCM license preapproval. iii. A map showing the retail store meets the minimum buffer requirements outlined in Section 617.06 of this section of this chapter. 5 3. Once an application is considered complete, the City Clerk shall inform the applicant as such, process the application fees, and forward the application to the City Administrator or designee for approval or denial. (6) Application Approval. Registration of a cannabis retail business or hemp retail busin will be approved by the city and in effect so long as the following requirements are met: (a) A state -licensed cannabis retail business registration will not exceed the maximum number of registered cannabis retail businesses permitted under Section 617.04(3) of this chapter. (b) All applicable registration/renewal fees are paid in full. (c) The applicant holds a valid license or license preapproval issued to the cannabis retail business by OCM for a cannabis retail license or valid lower -potency hemp edible retailer license issued by OCM for a hemp retail license. (d) If applicable, the applicant is current on all property taxes and assessments at the location where the retail establishment is located• and (e) The cannabis retail business or hemp retail business is found to be in compliance with the zoning code (Chapter 1007) and all requirements of Section 6.17.05 and 617.06 Annual Compliance Chec (a) The city shall complete at minimum one unannounced compliance check per calendar year of every registered cannabis retail business and hemp retail business to assess if the business meets age verification requirements, as required under Minnesota Statutes, section 342.22, Subd. 4(b), Minnesota Statutes, section 342.24, and this chapter. (b) Age verification compliance checks shall involve persons at least 17 years of age but under the age of 21 who, with the prior written consent of a parent or guardian- if the person is under the age of 18, attempt to purchase adult -use cannabis flower, adult -use cannabis products, lower -potency hemp edibles, or hemp -derived consumer products under the direct supervision of a law enforcement officer or an employee of the local unit of government. (d) Any failures under this section must be reported to the Office of Cannabis Management. (8) Location Change (a) A registered cannabis retail business or hemp retail business shall be required to submit a new application for registration under Section 617.04 of this chapter if it seeks to move to a new location still within the citv. (b) A previously registered cannabis retail business or hemp retail business that seeks to change locations within the city shall be subject to all requirements of this chapter, including but not limited to the location requirements established by Chapter 1007 of the city code (zoning ordinance). (9) Registration is nontransferable. Cannabis retail business and hemp retail business registrations issued under this chapter shall not be transferred to a different cannabis retail business or hemp retail business. (10) Renewal of Registration. A registration for a state -licensed cannabis retail business or a hemp retail business shall be renewed at the same time OCM renews the license for that business, provided: (a) The business shall apply to renew registration on a form established by the city. (c) An applicant for a renewal registration shall pay the renewal registration fee required under Section 617.04 (4) of this chapter. (d) The application for renewal of a retail registration shall include but is not limited items required under Section 617.04 (5) of this chapter. (11) Suspension of Registration (a) When Suspension is Warranted. 1. The city may suspend a cannabis or hemp business's registration if it violates the provisions of this chapter or poses an immediate threat to the health or safety of the public. The city shall immediately notify the business in writing the grounds for the suspension. 2. Notification to OCM. The city shall immediately notify the OCM in writing of the grounds for the suspension. OCM will provide the city and cannabis retail business or hemp retail business a response to the complaint within seven calendar days and perform any necessary inspections within 30 calendar days. 3. Length of Suspension. The suspension of a cannabis retail business or hemp retail business registration may be up to 30 calendar days, unless OCM suspends the license for a longer period. The business may not make sales to customers if their registration is suspended. The City Administrator or designee shall determine the appropriate length of suspension. For the first violation, the presumptive suspension shall be seven (7) days. For a second violation found within an eighteen (18) month period, the presumptive suspension shall be fourteen (14) days. For a third and all subsequent violations within an eighteen (18) month period, the presumptive suspension shall be thirty (30) days. Nothing in this section shall prevent the City Administrator or designee from deviating from the presumptive suspension length based on the specific circumstances of a given violation, including but not limited to the severity of the violation, whether the violation was knowing or intentional, and the degree of risk to the public health caused by the violation. ii. The city may reinstate a registration if it determined that the violations have been resolved. iii. The city shall reinstate a registration if OCM orders reinstatement. 4. Civil Penalties. Subiect to Minnesota Statutes, section 342.22, Subd. 5(e) the city may impose a civil penalty, as specified in the city's fee schedule, for registration violations, not to exceed $2,000. 617.05 PERFORMANCE STANDARDS: Operation of a cannabis business of the types established by Minnesota Statues, section 324.10 within the city shall comply with the provisions of this chapter and the following: 1) Building Code. The cannabis business shall comply with the provisions of 1003, of this code. (2) Zoning Ordinance. The cannabis business shall comply with the provisions of Chapter 1007 of this code. (3) Ventilation: A cannabis business shall be ventilated so that the odor of marijuana cannot be detected by a person with a normal sense of smell at the exterior of the cannabis business at the property line. (4) Age Limitations: No cannabis flower, cannabis products, lower -potency hemp edibles, or hemp derived consumer products shall be sold to any person under twenty-one (21) years of age unless the person is enrolled in the registry program and the cannabis business holds a medical cannabis retail endorsement. (5) Hours of Operation. Cannabis businesses are limited to retail sale of cannabis, cannabis flower, cannabis products, lower -potency hemp edibles, or hemp -derived consumer products between the hours of 10:00 am and 9:00 pm, Sunday through Saturday. Prohibited Activities: (a) Consumption or use of edible cannabis products onsite of a cannabis retail business is prohibited except for licensed microbusinesses that have an on -site consumption endorsement and meets all requirements of Minnesota Statutes, section 342.28, Subd. 10. (b) There shall be no outdoor events or sales associated with a cannabis business• all such activities shall occur within a principal or accessory building, including temporary structures, as allowed in compliance with Chanter 1007 of this code. (c) No cannabis business shall occupy a residential dwelling unit. 617.06 MINIMUM BUFFER REQUIREMENT. Except as provided for in subpart 2 of this subdivision, setbacks shall be measured from the closest point of the property line upon which the cannabis business is located, to the property line of the following uses: (1) A cannabis retail business shall not operate within 1000 feet of a school, and 500 feet of a residential treatment facility. (2) A cannabis retail business shall not operate within 500 feet of an attraction within a public park that is regularly used by minors, including a playground or athletic field. For purposes of this subpart, the distance measured shall be between the closest point of the property line upon which the cannabis business is located and the attraction that is regularly used by minors. (3) Nothing in this section shall prohibit an active cannabis business or a cannabis business seeking registration from continuing operation at the same site if a school, residential treatment facility, or a park attraction regularly used by minors, is installed or moves within the minimum buffer zone. 617.07 TEMPORARY CANNIBIS EVENTS: (1) Temporary Cannabis Event Permit Required: A temporary cannabis event permit is required to be issued and approved by the city prior to holding a Temporary Cannabis Event. (2) Fee: A registration fee, as established in city's fee schedule, shall be charged to applicants for a temporary cannabis event permit. The application fee shall be non-refundable. (3) Application Submittal and Review: (a) An applicant for a temporary cannabis event permit shall fill out an application form, as provided by the city. The application shall include, but is not limited to: 1. Full name of the property owner and applicant. 2. Address, email address, and telephone number of the applicant. 3. Site plan of event space, including location and number of access points. 4. Proposed capacity of event space. 5. Plans for security to general public safety, security for cannabis workers, security of intoxicating cannabinoid product displays, and storage security of intoxicating cannabinoid products. 6. Plans on how to restrict access of intoxicating products to minors and verify age at the time of sale. 7. Plans on how waste will be disposed properly. 8. Details on how sales take place in an established retail space and how sales are recorded for tax collection. 9. Full list of all vendors with a brief explanation of what thev are providing/selling and their license number/information. 10. Other information as required by the city based on the type or size of the event. (b) The applicant shall include with the application form: The application fee as required in Section 617.07 (2) of this chapter. 10 2. A copy of the OCM cannabis event license application, submitted pursuant to Minn. Stat. 342.39 subd. 2. 3. The application shall be submitted to the City Clerk or designee for review, no less than 45 days prior to the event. If the designee determines that a submitted application is incomplete, they shall return the application to the applicant with the notice of deficiencies. (c) Once an application is considered complete, the City Clerk shall inform the applicant that the application is complete, process the application fees, and forward the application to the City Council for approval or denial at a regularly scheduled Citv Council meeting. 1. The application for a temporary cannabis event permit shall meet the following standards: a. Minimum Buffer Zone Required: A temporary cannabis event shall provide the minimum buffer zones required under section 617.06 of this chapter. b. Temporary cannabis events shall only occur between the hours of ten o'clock (10:00) A.M. and ten o'clock (9:00) P.M, unless extended by the city council with approval of a special event permit. C. Adequate security for the event is in place to ensure compliance with the requirements of state law and city code. (d) An application for a temporary cannabis event permit that meets the requirements of this section shall be approved. (e) A request for a temporary cannabis event permit that does not meet the requirements of this section shall be denied. The city shall notify the applicant of the standards not met and basis for denial. 617.08 USE IN PUBLIC PLACES: No person shall use cannabis flower, cannabis products, lower potency hemp edibles, or hemp -derived consumer products in a public place or a place of public accommodation unless the premises is an establishment, or an event licensed to permit on -site consumption of cannabis products. 617.09 LOCAL GOVERNMENT ASA CANNABIS RETAILER. Any municipal cannabis retail store shall not be included in any limitation on the number of registered cannabis retail businesses established in this ordinance. 11 (1) Notwithstanding anything within this Chapter to the contrary, the city may establish, own and operate one municipal cannabis retail business. (2) The city shall be subject to all the same retail license requirements and procedures applicable to all other applicants. 617.10 SEVERABILITY: If any provision of this chapter is for any reason held to be invalid, such decision shall not affect the validity of the remaining provisions of this chapter. Section 2. This Ordinance shall be in force and effect from and after upon its passage and publication according to the Lino Lakes City Charter. ADOPTED by the Lino Lakes City Council this 24th day of February, 2025. ATTEST Roberta Colotti, CMC, City Clerk CITY OF LINO LAKES BY: _ k LL' . R ferty, Mayor 12