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HomeMy WebLinkAboutAgenda Packets - 2025/02/05 CITY OF MOUNDS VIEW PLANNING COMMISSION AGENDA MOUNDS VIEW CITY HALL Wednesday, February 5„ 2025 6:00 P.M. 1. CALL TO ORDER 2. ROLL CALL: Chair Farmer, Vice-Chair Munson, Urlacher, Larson, Nelson, Stevenson, Rundle 3. APPROVAL OF AGENDA 4. CONSENT AGENDA A. Approval of Minutes: January 15, 2025 5. SPECIAL ORDER OF BUSINESS A. None 6. PUBLIC COMMENT Citizens may speak to issues relating to Planning and Zoning not on the agenda. Before speaking, please give your full name and address for the minutes. Also, please limit your comments to three minutes. As a reminder, public comment is for addressing the Planning and Zoning Commission only. Comments or concerns regarding staff must be submitted in writing to the Mayor or City Administrator. Failure to respect these guidelines will result in the Chair asking you to cease commenting and asking you to return to your seat. That said, is there anyone here for public comment? 7. PLANNING BUSINESS A. Reviewing Regulations Related to Cannabis 8. REPORTS A. Reports of Staff B. Reports of Council C. Reports of Planning Commissioners 9. NEXT PLANNING COMMISSION MEETINGS: A. Wednesday, February 19, 2025 at 6:00 p.m. AS-Needed B. Wednesday, March 5, 2025 at 6.00 p.m. As-Needed 10. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW PLANNING COMMISSION CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting January 15, 2025 Mounds View City Hall 2401 Mounds View Boulevard, Mounds View,MN 55112 1. Call to Order The meeting was called to order by Chair Farmer at 6:00 p.m. for January 15, 2025. 2. Roll Call Members Present: Commissioners Farmer, Larson, Munson,Nelson, and Rundle. Absent and Excused: Commissioners Stevenson and Urlacher. Also Present: Assistant City Administrator Brian Beeman, Council Member Gary Meehlhause and Council Member Sherry Gunn. 3. Approval of Agenda MOTION/SECOND: Commissioner Nelson/Commissioner Munson. To approve the agenda as presented. Ayes—5 Nays—0 Motion carried. 4. Consent Agenda A. Approval of Minutes: December 4, 2024 MOTION/SECOND: Commissioner Munson/Commissioner Rundle. To approve the Minutes of the December 4, 2024 regular Planning Commission meetings as presented. Ayes—5 Nays 0 Motion carried. Mounds View Planning Commission January 15, 2025 Regular Meeting Page 2 5. Special Order of Business A. Oath of Office—Commissioners Larson, Urlacher and Nelson Assistant City Administrator Beeman administered the Oath of Office to Commissioners Larson, Urlacher and Nelson. 6. Public Comment None. 7. Planning Business A. Recommend Chair and Elect Vice Chair Assistant City Administrator Beeman requested the Planning Commission make a recommendation for Chair and elect a Vice Chair for 2025. MOTION/SECOND: Commissioner Nelson/Commissioner Larson. To recommend the City Council appoint Dennis Farmer Chair of the Planning Commission for 2025 and that Miranda Munson be elected Vice Chair for 2025. Ayes—5 Nays—0 Motion carried. 8. Reports A. Reports of Staff Assistant City Administrator Beeman discussed upcoming planning cases with the Commission, noting he would have items for the Commission to address on Wednesday, February 5. B. Reports of Council Council Member Meehlhause provided the Planning Commission with an update from the City Council. He explained the Council passed the 2025 balanced budget and tax levy in December. He reported trash haulers would now have to provide their maximum rates with the City. He stated the City purchased the Mermaid for$1 and she was currently in New Ulm to be rehabilitated. He estimated it would cost $30,000 to complete this work. He indicated the Council voted to discontinue the Economic Development Commission. He explained he would continue to be the Acting Mayor for 2025, but noted Council Member Gunn would now be serving as the Planning Commission liaison. Mounds View Planning Commission January 15, 2025 Regular Meeting Page 3 Council Member Gunn reported the Council recently approved plans for the Mounds View Tribute Park on a 5-0 park. She noted fundraising would now begin for the park and explained the City received a $50,000 donation from the SBM Fire Relief Association and$4,000 from the Mounds View Lions. She reviewed the granite markers that would be included within the park. She indicated the Tribute Park would be dedicated on 13, 2025 which was when the SBM Fire/Mounds View Police softball game would be held. She stated a big ceremony would be held at the park on Veterans Day. She commented on how the City plans to pay for the park noting there would be fundraising efforts and grants would be pursued. C. Reports of Planning Commissioners Bill Barker, Minnesota Roots, introduced himself to the Council and spoke regarding the legalized use of cannabis in Minnesota. He commented on how slow the rollout has been for the State. He reported he was hopeful the State would have licenses and rules in place sooner rather than later in 2025. He discussed the potential of opening a municipal cannabis retail shop in Mounds View noting he has been working with staff on this matter for the 30 days. He stated he has been looking at properties in Mounds View for a viable storefront and understood retail space was very hard to come by in the City. Further discussion ensued regarding potential properties that may be available for this use. 9. Next Planning Commission Meeting: A. Wednesday,February 5,2025 at 6:00 p.m. B. Wednesday,February 19, 2025 at 6:00 p.m. 10. Adjournment There being no further business before the Planning Commission, Chair Farmer adjourned the meeting at 6:50 p.m. Respectfully submitted, Brian Beeman Assistant City Administrator Transcribed by: Heidi Guenther Minute Maker Secretarial Item No: 07A /�J Meeting Date: February 5, 2025 MOUN-DS VIL 1'� Type of Business: Planning Business Planning Case: N/A City of Mounds View Staff Report To: Planning Commission From: Brian Beeman, Assistant City Administrator Item Title/Subject: Recommend Cannabis Zoning Decisions to the Mounds View Planning and Zoning Commission Introduction: The City of Mounds View is currently reviewing regulations related to cannabis. Staff is asking that the Planning Commission review the zoning aspect of these regulations Discussion: Attached find a memorandum from Kennedy & Graven regarding decision required for cannabis sales. Attached is a guide from the office of Cannabis Management dated January 6, 2025 to assist local cities decision making. Also attached is draft ordinance number 1025 entitled, "an ordinance adopting regulations related to Cannabis". Introduction and first reading was done at the January 27th City Council meeting. A Public Hearing and second reading is scheduled for February 10th, 2025. Also attached is a preliminary cannabis dispensary buffer map showing the proposed buffer areas for churches, daycares, libraries, city park/playgrounds, and schools. Joe Sathe of Kennedy & Graven will be on hand to answer any questions as necessary. Strategic Plan Strategy/Goal: N/A Recommendation: 1. Staff recommends the Planning Commission reviews the attached information and provides staff with any recommended changes or additions to the proposed ordinance. Any input must be provided at this meeting as the second reading will be conducted on February 10th, 2025. Respectfully, lylyl�' &14441_ Brian Beeman, MPA, CMA Assistant City Administrator The Mounds View Vision A Thriving Desirable Commune Joseph L.Sathe Fifth Street Towers 150 South Fifth Street,Suite 100 Minneapolis,MN 55402 (612)337-9255 direct email:jsathe@kennedy-graven.com MEMORANDUM TO: Mounds View Planning Commission FROM: Joseph L. Sathe, Assistant City Attorney DATE: January 29, 2025 RE: Cannabis Zoning Decisions The enclosed draft ordinance includes both administrative and zoning provisions related to cannabis regulation in the city.The draft ordinances are based on city council input and discussion. The administrative provisions establish the process for cannabis retailers to register with the city prior to making any sales to the public, sets a limit on the number of retailers allowed in the city, and outlines the enforcement process related to cannabis businesses. The zoning provisions establish buffers from cannabis retailers to schools, day cares, and certain park features, and designates the zoning districts in which a cannabis business may be located. The entire ordinance is being provided in full, for context, however, the zoning provisions are the most important to the planning commission as they are the provisions that are subject to a public hearing. Section 1 of the enclosed ordinance are the administrative regulations and Section 2 of the ordinance contains the zoning provisions. Additionally, the buffers contained in Section 121.008 of the administrative section are part of the Planning Commission's review and are referenced in the zoning section when a cannabis retailer is mentioned. Finally, I have also enclosed the Office of Cannabis Management's ("OCM") A Guide for Local Governments on Adult Use Cannabis for reference should you be interested in additional information. Proposed Schedule • January 27—First Reading of Administrative Provisions • February 5 —Planning Commission Consideration of Zoning Provisions • February 10—First Reading of Zoning Provisions/ Second Reading of Zoning Provisions • February 24—Second Reading of Zoning Provisions MU210\317\1007602.v 1-1/29/25 L DECISIONS—GENERALLY Under the Cannabis Act, cities generally maintain their ability to enact regulations with two primary limitations: (1) the City may not prohibit the establishment or operation of a cannabis or hemp business; and(2) the Legislature has established a maximum buffer from certain uses. IL ZONING DECISIONS—DESIGNATING ZONING DISTRICTS The City can amend its zoning code to specifically allow each business type in a particular district or it can choose to simply allow cannabis businesses in zones with similar uses (e.g., retailers in commercial zones with other retail). The following table, which is from the OCM's Guide for Local Governments, includes each licensed business and very high-level information on the businesses operations and potential land use considerations. The enclosed draft ordinance establishes the districts in which each type of cannabis business will be allowed and is based largely on matching cannabis businesses with uses in that district. Table 1: Cannabis and Hemp Business Activities EndorsedEndorsed License Type Comparable Municipal Activity Eligible to Do Description of Activity Districts Considerations "Cultivation"means any • Cultivator activity involving the Indoor: • Odor • Mezzobusiness planting,growing, Industrial, • Potential need for • Microbusiness harvesting,drying, Commercial, transportation from Cultivation curing,grading,or Production facility • Medical trimming of cannabis • Waste,water,and Cannabis plants,cannabis flower, Outdoor: energy usage • Combination hemp plants,or hemp Agricultural • Security plant parts. This group of endorsed • Odor • Manufacturer • Potential need for Cannabis activities turn raw,dried Indoor: • Mezzobusiness transportation from Manufacturing, • Medical cannabis and cannabis Industrial, facility Processing, parts into other types of Commercial, Extraction Cannabis cannabis products,e.g. Production • Waste,water,and • Combination energy usage edibles or topicals. • Security • Lower-Potency These businesses Indoor: . Odor Hemp Hemp Edible Industrial, Manufacturing (LP HE) convert hemp into LPHE Commercial, • Waste,water,and Manufacturing edible products. Production energy • Wholesale This activity and license • Cultivator type allows a business to purchase from a • Manufacturer Indoor: • Need for business growing or • Mezzobusiness Industrial, transportation from Wholesale . Microbusiness manufacturing cannabis commercial, facility • Medical or cannabis products Production . Security and sell to a cannabis Cannabis business engaged in • Combination retail. 2 W 210\317\1007602.v1-1/29/25 Table 1: Cannabis and Hemp Business Activities (continued) Endorsed Activity Eligible to Do ty Activity Districts Considerations Endorsed Indoor:Retail, • Micros may offer • Retailer This endorsed Neighborhood onsite consumption, • Mezzobusiness activity and license type Shopping Sho in Districts, similar to breweries. • Microbusiness Light Industrial, • Micros and Mezzos Cannabis Retail 0 Medical allow a business Existing districts may include multiple to sell cannabis Cannabis products directly where off-sale activities:cultivation, • Combination liquor or tobacco manufacture,and/or to consumers. sales are allowed. retail. •This license type Fleet based allows a businesses that will own multiple Transportation transport • Cannabis company to vehicles,but not - Transporter products from necessarily hold a one license type substantial amount to another. of cannabis or cannabis products. • Fleet based business This license type that will own allows for multiple vehicles, Delivery • Cannabis transportation to but not necessarily - Delivery the end hold a substantial amount of cannabis consumer. or cannabis products. III. Cannabis Business Buffers from Certain Uses A local unit of government may prohibit the operation of a cannabis business within: 1) 1,000 feet of a school; or 2) 500 feet of a day care, residential treatment facility, or an attraction within a public park that is regularly used by minors, including a playground or athletic field(a"park feature"). The terms school, day care, residential treatment facility, and attraction within a public park that is regularly used by minors, including a playground or athletic field are not further defined in statute or administrative rule, so the city has some discretion in defining these terms. The enclosed draft ordinance proposes establishing 300' buffers only from cannabis retail and only from schools, day cares, and park features. Enclosures: 1. Mounds View Cannabis Ordinances 2. OCM's A Guide for Local Governments on Adult-Use Cannabis 3 W 210\317\1007602.v 1-1/29/25 ORDINANCE NO. 1025 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA AN ORDINANCE ADOPTING REGULATIONS RELATED TO CANNABIS The City of Mounds View hereby ordains: SECTION 1. The City Council of the City of Mounds View hereby amends Title XI of the Mounds View Municipal Code by adding a new Chapter 121 as follows: CHAPTER 121: CANNABIS AND HEMP BUSINESSES § 121.001 PURPOSE. The City of Mounds View makes the following legislative findings: The purpose of this ordinance is to protect the public health, safety, welfare in the city by implementing regulations pursuant to Minnesota Statutes, chapter 342 related to cannabis and hemp businesses within the city. The city finds and concludes that these regulations are appropriate and lawful, that the proposed amendments will promote the community's interest in reasonable stability in the development and redevelopment of the city for now and in the future, and that the regulations are in the public interest and for the public good. § 121.002 DEFINITIONS The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this chapter, except where the context clearly indicates a different meaning: Applicant means an entity with a license or endorsement issued by the OCM that is applying for an initial registration or for registration renewal. The Act means Minnesota Statutes, Chapter 342, as is may be amended from time to time. Cannabis Business has the same meaning as defined in Minnesota Statutes, section 342.01. Cannabis Retailer means a business with a cannabis retailer license or cannabis retail endorsement from OCM. Retailer means every business that is licensed under the Act and required to register with the city under Minnesota Statutes, section 342.22. Including cannabis businesses and lower-potency hemp edible retailers. OCM means the Minnesota Office of Cannabis Management. Ordinance No. 1025 Page 2 of 9 DOCSOPEN\MU21 0\317\1 001 615.v2-1/15/25 Potential Licensee means an entity that has not received a license from the OCM and is seeking a pre-license certification. School means a public school, as defined in section 120A.05, subdivisions 9, 11, 13, and 17, or a nonpublic school, or church or religious organization in which a child is provided instruction in compliance with this section and section 120A.24, but does not include a home school. Day Care means a location licensed with the Minnesota Department of Human Services to provide the care of a child in a residence or other facility outside the child's own home for gain or otherwise, on a regular basis, for any part of a 24-hour day Park Feature means an attraction within a public park that is regularly used by minors, including a playground or athletic field. § 121.003 LOCAL GOVERNMENT AS A CANNABIS RETAILER Pursuant to Minnesota Statutes, section 342.32, the city of Mounds View may establish, own, and operate a municipal cannabis store. The municipal cannabis store shall be subject to applicable cannabis retailer requirements as established by Minnesota Statutes, Chapter 342 and the rules adopted thereunder. § 121.004 PRE-LICENSE CERTIFICATION OF CANNABIS BUSINESSES (A) The City Administrator is authorized to certify whether a proposed Cannabis Business complies with the city's zoning ordinances, this Chapter, and if applicable, with state fire code and building code pursuant to Minnesota Statutes, section 342.13. (B) Potential licensees are responsible for obtaining all necessary zoning approvals prior to the City receiving the request for certification from the OCM. If a potential licensee fails to obtain necessary zoning approvals prior to the city receiving a request for certification, the city will inform the OCM that the potential licensee does not meet zoning and land use laws. If, at the time the city receives a request for zoning certification, there are no further intended alterations to the building where the business is to be conducted, the city will also certify compliance with building and fire code regulations,provided that the potential licensee has obtained inspections prior the city's receipt of a request for certification from the OCM. Building and fire code inspections will be valid for I year from completion. § 121.005 RETAILER REGISTRATION (A) Retail Registration Required. Before making retail sales to customers or patients, a Retailer must register with the city. Making retail sales to customers or patients without an active registration is prohibited. Subject to Minn. Stat. 342.22, subd. 5(e) the city may impose a civil penalty, as specified in the city's fee schedule, for making a sale to a customer or patient without a valid registration from the City and a valid license from the OCM. Ordinance No. 1025 Page 3 of 9 DOCSOPEN\MU21 0\317\1 001 615.v2-1/15/25 (B) Retail Registration Limits (1) The city will issue two cannabis retailer registrations pursuant to this chapter, except that the city will not issue any registrations if there is one registration per 12,500 residents in Ramsey County. (2) The number of registrations available will be calculated by dividing the state demographer's estimate of the city's population by 12,500 and rounding up to the nearest whole number. (3) The city will update the number of registrations available based on the most recent data available from the state's demographer. (4) The number of registrations in the County will be based on the number of registrations in the County on the day the application is received. (5) If the number of registrations available within the city decreases based on the County reaching the one per 12,500 threshold,businesses with current registrations will be allowed to maintain and renew their registrations but no new registration will be issued. (6) Registrations issued to businesses with a license preapproval will count toward the city's registration limit. (7) Businesses operating under a tribal compact entered into under Minnesota Statutes, section 3.9224 or 3.9228 and tribally issued licenses and registrations are counted towards the city's registration limit and the County registration limit. (8) A municipal cannabis store within the city of Mounds View shall not count towards the registration limit in this section. (C) Processing Registrations (1) Applications will be processed on a first-come, first-served basis based on the city receiving a complete application. Applications will be considered complete when all materials in Section 121.005 (D) are received by the city and include all required information and the fee described in Section 121.005 (D)(5) and as adopted in the city's fee schedule is received (2) The date a certification under Section 121.004 is issued will have no impact on the applicant's registration processing. (D) Application. The applicant must submit a registration application or renewal form provided by the city. The form may be amended from time to time by the City Administrator,but must include or be accompanied by: (1) Name of the property owner (2) Name of the applicant (3) Address and parcel ID for the property for which the registration is sought (4) Certification that the applicant complies with the requirements of this Chapter (5) Fee Required. At the time of initial application, and prior to the city's consideration of any renewal application, each Retailer must pay the applicable fee as established in the city's fee schedule. Initial registration fees and renewal registration fees are nonrefundable. Ordinance No. 1025 Page 4 of 9 DOCSOPEN\MU21 0\317\1 001 615.v2-1/15/25 (6) Proof of taxes, assessments,utility charges or other financial claims of the city or the state are current. (7) A copy of a valid state license or written notice of OCM license preapproval (E) Preliminary Compliance Check. Prior to issuing any retail registration, the city shall conduct a preliminary compliance check to ensure compliance with this Chapter and any other regulations established pursuant to Minnesota Statutes, section 342.13. (F) Reasons for Denial. The city shall not issue a registration or renewal if any of the following conditions are true: (1) The applicant has not submitted a complete application. (2) The applicant does not comply with the requirements of this Chapter. (3) The applicant does not comply with applicable zoning and land use regulations. (4) The applicant is found to not comply with the requirements of the Act or this Chapter at the preliminary compliance check. (5) The applicant or property owner is not current on all property taxes and assessments at the location where the retailer is located. (6) The maximum number of registrations, pursuant to Section 121.005 (B), have been issued by the city or within the County. (7) The applicant does not have a valid license from the OCM. (G) Issuing the Registration or Renewal. The city shall issue the registration or renewal if the Retailer meets the requirements of this article, including that none of the reasons for denial in Section 121.005(F) are true. (H) Nontransferable. A registration is not transferable to another person, entity, or location. (I) Registration Enforcement. (1) Generally. The City Council may impose a fine or suspend a registration under this Chapter on a finding that the registered business has failed to comply with the requirements of this Chapter or any applicable statute or regulation. (2) Notice and Right to Hearing. Prior to imposing a fine or suspending any registration under this chapter, the city shall provide the registered business with written notice of the alleged violations and inform the registered business of his or her right to a hearing on the alleged violation. Ordinance No. 1025 Page 5 of 9 DOCSOPEN\MU21 0\317\1 001 615.v2-1/15/25 1. Notice shall be delivered in person or by regular mail to the address of the registered business and shall inform the registered business of its right to a hearing. The notice will indicate that a response must be submitted within ten (10)business days of receipt of the notice, or the right to a hearing will be waived. 2. The registered business will be given an opportunity for a hearing before the City Administrator before final action to fine or suspend a registration. Provided, the registered business has submitted a written application for appeal within ten(10)business days after the notice was served. The City Administrator shall give due regard to the frequency and seriousness of the violations, the ease with which such violations could have been cured or avoided and good faith efforts to comply and shall issue a decision to fine or suspend the registration only upon written findings. Within ten(10)business days of the City Administrator's order, the decision may be appealed to the City Council. 3. If no request for a hearing is received within ten(10)business days following the service of the notice, the matter shall be submitted to the City Council for imposition of the fine or suspension of the registration. (3) Emergency. If, in the discretion of the city, a registered business poses an imminent threat to the health or safety of the public, the City may immediately suspend the registration and provide notice of the right to hold a subsequent hearing as prescribed in part(B) of this section. (4) Reinstatement. The city may reinstate a registration if it determines that the violations have been resolved. The city shall reinstate a registration if the OCM determines the violations have been resolved. § 121.006 COMPLIANCE CHECKS The city shall complete at minimum one compliance check per calendar year of every registered business to assess if the business meets age verification requirements, as required under the Act and any applicable cannabis or hemp regulations adopted by the city. 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 city. Any failures under this section are a basis for enforcement action and must be reported to the OCM. Ordinance No. 1025 Page 6 of 9 DOCSOPEN\MU210\317\1001615.v2-1/15/25 § 121.007 HOURS OF OPERATION Cannabis Retailers may only make retail sales of cannabis, cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products pursuant to the hours established in Minnesota Statues, section 342.27, subd. 7 (a). § 121.008 DISTANCE REQUIREMENTS (A)The city prohibits the establishment and operation of a cannabis retailer within the following buffer zones: • 300 from a School • 300 feet from a Day Care • 300 feet from an attraction with a Park Feature (B)The buffers in Section 121.008 (B) will be measured from the potential licensee's proposed business location based on the location of schools, day cares, residential treatment facilities, and park features on the date the city receives the request from the OCM for certification pursuant to § 121.004. Buffer distances will be measured from the shortest line between the entrance to the cannabis business and the structure consisting of the school, day care, residential treatment facility, or park feature. (C)Nothing in this section shall prohibit a cannabis business from continuing to operate at the same location if a school, day care, residential treatment facility, or park feature establishes within the buffer. § 121.009 CANNABIS BUSINESS COMPLAINTS The City Administrator is authorized to make complaints to the OCM related to cannabis businesses the city believes is in violation of the act or the administrative rules adopted pursuant thereto. The City Administrator is also authorized to file a complaint against a cannabis business that poses an immediate threat to the health or safety of the public and request immediate action by the OCM. § 121.010 PENALTIES ADMINISTRATION AND ENFORCEMENT Any violation of the provisions of this Chapter or failure to comply with any of its requirements constitutes a misdemeanor and is punishable as defined by law. Each day each violation continues or exists, constitutes a separate offense. Violations of this ordinance can occur regardless of whether or not a permit is required for a regulated activity listed in this ordinance. Violations of this Chapter may also be addressed under City Code, section 130.002— Administrative Offenses. Ordinance No. 1025 Page 7 of 9 DOCSOPEN\MU21 0\317\1 001 615.v2-1/15/25 Violation of this Chapter shall be grounds for enforcement against any business license issued by the City of Mounds View § 121.011 SEVERABILITY If any section, clause,provision, or portion of this chapter is adjudged unconstitutional or invalid by a court of competent jurisdiction, the remainder of this chapter shall not be affected thereby SECTION 2. Section 505.03 of the Mounds View City Code is hereby amended by the addition of the bold and double underlined language and the deletion of the bold and stricken language, as follows, and reorganization of Section 505.03 to insert the terms in the appropriate alphabetical order: Cannabis business has the same meaning as in Minnesota Statutes. section 342.01. Cannabis cultivation business -A business with a cannabis cultivator license. medical cannabis cultivator license, or cultivation endorsement from the State of Minnesota Office of Cannabis Management. Cannabis delivery business-A business with a cannabis delivery service license or delivery service endorsement from the State of Minnesota Office of Cannabis Management. Cannabis manufacturing business-A business with a cannabis manufacturer license, or manufacturing endorsement from the State of Minnesota Office of Cannabis Management. Cannabis retailer-A business with a cannabis retailer license, medical cannabis retailer license,lower-potency hemp edible retailer license, or retail endorsement from the State of Minnesota Office of Cannabis Management. Cannabis testing business-A business with a cannabis testing facility license or testing endorsement from the State of Minnesota Office of Cannabis Management. Cannabis transportation business-A business with a cannabis transporter license or transportation endorsement from the State of Minnesota Office of Cannabis Management. Cannabis wholesaling business-A business with a cannabis wholesaler license or wholesaling endorsement from the State of Minnesota Office of Cannabis Management. SECTION 3. Section 160.181 (B), B-2, Limited Business District—Permitted Uses, of the Mounds View City Code is hereby amended by the addition of the bold and double underlined language, as follows: (0) Cannabis Retailer, subiect to the requirements in City Code, section 121.008. (P) Cannabis Delivery Service Ordinance No. 1025 Page 8 of 9 DOCSOPEN\MU210\317\1001615.v2-1/15/25 SECTION 4. Section 160.183, B-2, Limited Business District—Conditional Uses, of the Mounds View City Code is hereby amended by the addition of the bold and double underlined language, as follows: (K) Cannabis Manufatturer when on the same premises as a Cannabis Retailer, subject to the requirements in City Code, section 121.008, under a microbusiness license. SECTION 5. Section 160.196, B-3, Highway Business District—Permitted Uses, of the Mounds View City Code is hereby amended by the addition of the bold and double underlined language, as follows: (0) Cannabis Retailer, subject to the requirements in City Code, section 121.008. (P) Cannabis Delivery Service (Q) Cannabis Manufacturer when on the same premise as a Cannabis Retailer, subject to the requirements in City Code, section 121.008, and under a Cannabis Microbusiness License. SECTION 6. Section 160.215, B-4 Regional Business District—Permitted Uses, of the Mounds View City Code is hereby amended by the addition of the bold and double underlined language, as follows: (L) Cannabis Retailer, subject to the requirements in City Code, Section121.008. (M) Cannabis Delivery Business SECTION 7. Section 160.231, I-1 Industrial Permitted Uses, of the Mounds View City Code is hereby amended by the addition of the bold and double underlined language, as follows: (AB)Cannabis Wholesaling Business (AC)Cannabis Transportation Business (AD)Cannabis Testing Business SECTION 8. Section 160.231, I-1 Industrial Conditional Uses, of the Mounds View City Code is hereby amended by the addition of the bold and double underlined language, as follows: (A) Cannabis Manufacturing Business; provided that: (1) The business maintains compliance with compliance with odor management requirements as established in Minnesota Statutes, Minnesota Rules, and City Code (B) Cannabis cultivation business; provided that: (1) Cultivation operations must be completely contained within a structure. (2) Cannabis Cultivation businesses must comply with odor management requirements as established in Minnesota Statutes, Minnesota Rules, and City Code. Ordinance No. 1025 Page 9 of 9 DOCSOPEN\MU21 0\317\1 001 615.v2-1/15/25 SECTION 9. In accordance with Section 3.07 of the City Charter, City staff shall have the following summary printed in the official City newspaper in lieu of the complete ordinance: On February 10, 2025, the City Council adopted Ordinance No. 1025 by amending Chapter 121 of the Mounds View City Code related to Cannabis. A printed copy of the ordinance is available for inspection during regular business hours at Mounds View City Hall and is available on line at the City's web site located at www.moundsviewmn.org. SECTION 10. This ordinance shall take effect and be in force 30 days from and after its passage and publication, in accordance with Section 3.09 of the City Charter. Introduction and First Reading by the Mounds View City Council on January 27, 2025. Second Reading and Adoption by the Mounds View City Council on February 10, 2025. Publication Date: February 13, 2025. Zach Lindstrom, Mayor Attest: Nyle Zikmund, City Administrator (SEAL) .1 r , m MINN@SOTA OFFICE OF CANNABIS MANAGEMENT • Guide for Local Governments on Jult- Use Cannabis Table of Contents Introduction ................................................................................................ 3 AboutOCM ................................................................................................. 4 Cannabis License Types ................................................................................ 5 Adult-Use Cannabis Law .............................................................................. 7 Cannabis Licensing Process .......................................................................... 8 General Authorities ................................................................................... 11 Zoningand Land Use .................................................................................. 13 Local Approval Process .............................................................................. 16 Inspections and Compliance Checks ........................................................... 21 Municipal Cannabis Stores ......................................................................... 22 Creating Your Local Ordinance ................................................................... 23 Additional Information —Tobacco Sales.......................................................24 Additional Resources ................................................................................. 25 m1 MINNeSOTA Page OFFICE OF CANNABIS MANAGEMENT Introduction This guide serves as a general overview of Minnesota's new adult-use cannabis law, and how local governments can expect to be involved. The guide also provides important information about Minnesota's new Office of Cannabis Management (OCM), and the office's structure, roles, and responsibilities. While medical cannabis continues to play an important role in the state's cannabis environment, this guide is primarily focused on the adult-use cannabis law and marketplace. The following pages outline the variety of cannabis business licenses that will be issued, provide a broad summary of important aspects of the adult-use cannabis law, and cover a wide range of expectations and authorities that relate to local governments. This guide also provides best practices and important requirements for developing a local cannabis ordinance. Chapter 342 of Minnesota law was established by the State Legislature in 2023 and was updated in 2024. Mentions of "adult-use cannabis law" or "the law" throughout this guide refer to Chapter 342 and the changes made to it. As of this guide's date of publication, final state regulations governing the adult-use cannabis market have not yet been published. A draft of the rules is available on our Rulemaking webpage (https://mn.gov/ocm/laws/rulemaking.osp). The first draft of rules is based on substantial input OCM has received through surveys, meetings, and conversations that took place since fall 2023, as well as OCM's review of Minnesota's cannabis statute and cannabis rules in other states. OCM will publish in the State Register a notice of intent to adopt rules, which will prompt a 30-day formal comment period. Watch the OCM website for updates. This guide is not a substitute for legal advice, nor does it seek to provide legal advice. Local governments and municipal officials seeking legal advice should consult an attorney. m MINNeSOTA Page3 OFFICE OF CANNABIS MANAGEMENT About OCM Minnesota's Office of Cannabis Management is the state regulatory office created to oversee the implementation and regulation of the adult-use cannabis market, the medical cannabis market, and the consumer hemp industry. Housed within OCM are the Division of Medical Cannabis (effective July 1, 2024), which operates the medical cannabis program, and the Division of Social Equity, which promotes development, stability, and safety in communities that have experienced a disproportionate, negative impact from cannabis prohibition and usage. M MINNeSOTA OFFICE OF CANNABIS MANAGEMENT OCM, through Chapter 342, is tasked with establishing rules and policy and exercising its regulatory authority over the Minnesota cannabis industry. In its duties, OCM is mandated to: • Promote public health and welfare. • Protect public safety. • Eliminate the illicit market for cannabis flower and cannabis products. • Meet the market demand for cannabis flower and cannabis products. • Promote a craft industry for cannabis flower and cannabis products. • Prioritize growth and recovery in communities that have experienced a disproportionate, negative impact from cannabis prohibition. OCM governs the application and licensing process for cannabis and hemp businesses, specific requirements for each type of license and their respective business activities and conducts enforcement and inspection activities across the Minnesota cannabis and hemp industries. m MINNeSOTA Page4 OFFICE OF CANNABIS MANAGEMENT License Types Minnesota law allows for 13 different types of business licenses, each fulfilling a unique role in the cannabis and hemp supply chain. In addition to license types below, OCM will also issue endorsements to license holders to engage in specific activities, including producing, manufacturing, and sale of medical cannabis for patients. Microbusiness Microbusinesses may cultivate cannabis and manufacture cannabis products and hemp products, and package such products for sale to customers or another licensed cannabis business. Microbusiness may also operate a single retail location. Mezzobusiness Mezzobusinesses may cultivate cannabis and manufacture cannabis products and hemp products, and package such products for sale to customers or another licensed cannabis business. Mezzobusiness may also operate up to three retail locations. Cultivator Cultivators may cultivate cannabis and package such cannabis for sale to another licensed cannabis business. Manufacturer Manufacturers may manufacture cannabis products and hemp products, and package such products for sale to a licensed cannabis retailer. Retailer Retailers may sell immature cannabis plants and seedlings, cannabis, cannabis products, hemp products, and other products authorized by law to customers and patients. Wholesaler Wholesalers may purchase and/or sell immature cannabis plants and seedlings, cannabis, cannabis products, and hemp products from another licensed cannabis business. Wholesalers may also import hemp-derived consumer products and lower- potency hemp edibles. m MINNeSOTA Page5 OFFICE OF CANNABIS MANAGEMENT License Types (continued Transporter Transporters may transport immature cannabis plants and seedlings, cannabis, cannabis products, and hemp products to licensed cannabis businesses. Testing Facility Testing facilities may obtain and test immature cannabis plants and seedlings, cannabis, cannabis products, and hemp products from licensed cannabis businesses. Event Organizer Event organizers may organize a temporary cannabis event lasting no more than four days. Delivery Service Delivery services may purchase cannabis, cannabis products, and hemp products from retailers or cannabis business with retail endorsements for transport and delivery to customers. Medical Cannabis Combination Business Medical cannabis combination businesses may cultivate cannabis and manufacture cannabis and hemp products, and package such products for sale to customers, patients, or another licensed cannabis business. Medical cannabis combination businesses may operate up to one retail location in each congressional district. Lower-Potency Hemp Edible Manufacturer Lower-potency hemp edible manufacturers may manufacture and package lower-potency hemp edibles for consumer sale, and sell hemp concentrate and lower-potency hemp edibles to other cannabis and hemp businesses. Lower-Potency Hemp Edible Retailer Lower-potency hemp edible retailers may sell lower-potency hemp edibles to customers. Each license is subject to further restrictions on allowable activities. Maximum cultivation area and manufacturing allowances vary by license type.Allowable product purchase, transfer, and sale between licensees are subject to restrictions in the law. m MINNeSOTA Page OFFICE OF CANNABIS MANAGEMENT The Adult-Use Cannabis law Minnesota's new adult-use cannabis law permits the personal use, possession, and transportation of cannabis by those 21 years of age and older, and allows licensed businesses to conduct cultivation, manufacturing, transport, delivery, and sale of cannabis and cannabis products. For Individuals • Possession limits: o Flower - 2 oz. in public, 2 lbs. in private residence • o Concentrate - 8 g o Edibles (including lower-potency hemp) - 800 mg THC • Consumption only allowed on private property or at licensed businesses with on-site consumption endorsements. Consumption not allowed in public. • Gifting cannabis to another individual over 21 years old is allowed, subject to possession limits. • Home cultivation is limited to four mature and four immature plants (eight total) in a single residence. Plants must be in an enclosed and locked space. • Home extraction using volatile substances (e.g., butane, ethanol) is not allowed. • Unlicensed sales are not allowed. For Businesses • Advertising: o May not include or appeal to those under 21 years old. o Must include proper warning statements. o May not include misleading claims or false statements. o Billboards are not allowed. • The flow of all products through the supply chain must be tracked by the state-authorized tracking system. • All products sold to consumers and patients must be tested for contaminants. • Home delivery is allowed by licensed businesses. m MINNeSOTA Pagel OFFICE OF CANNABIS MANAGEMENT The Cannabis Licensing Process The general licensing process will align with the adoption of rules and OCM will share more information about the timing of general licensing process. The general licensing process includes social equity applicants and non-social equity applicants. General Licensing: Cultivator, Manufacturer, Retailer, Mezzobusiness 1. Applicant completes application and submit application fees. If applicable, an applicant's social equity applicant status may be verified. 2. Application vetted for minimum requirements by OCM. 3. Application (if qualified) entered into lottery drawing. 4. If selected in lottery, applicant completes background check process and submits attestation of labor-peace agreement. 5. If applicant successfully completes Step 5, OCM issues preliminary approval to applicant. 6. Once prepared for final licensure, applicant with preliminary approval submits business location and updates application accordingly. 7. OCM forwards completed application to local government. 8. Local government completes zoning certification of whether a proposed cannabis business complies with local zoning ordinances, and if applicable, whether the proposed business complies with state fire code and building code. (This is distinct from the retail registration approval process.) 9. OCM conducts site inspection. 10. If applicant successfully passes site inspection, OCM issues license, operations may commence except for retail activity.* Continued High-Level Pathway for Licensees Seeking to Conduct Retail Sales: Process for Required Local Retail Registration from Local Governments (Retailer, Mezzobusiness) 11. Licensed business seeks local retail registration from local government. 12. Local government approves applicant for retail registration through means determined by ordinance (see Page 19 for more information about the retail registration process). m MINNeSOTA Page OFFICE OF CANNABIS MANAGEMENT The Cannabis Licensing Process (cont. ) 13. Applicant pays retail registration fee to the local government (see appendix for relevant fees in accordance with Minn. Stat., section 342.22). 14. Local government conducts compliance check for any applicable local ordinance established pursuant to Minn. Stat., section 342.13, if desired. 15. Local government ensures tax compliance, if applicable. 16. Local government issues retail registration to licensee. 17. Licensee is able to conduct retail sales now that they have received a state license and a local retail registration. *For businesses seeking a retail endorsement(microbusiness, mezzobusiness, and retailer), a valid local retail registration is required prior to the business commencing any retail sales. See Page 19 for information on the local retail registration process. General Licensing: Microbusiness, Wholesaler, Transporter, Testing Facility, Medical Cannabis Combination Business 1. Applicant complete application and submit application fees. If applicable, an applicant's social equity applicant status may be verified. 2. Application vetted for minimum requirements by OCM. 3. For qualified applicants, applicant completes background check process and submits attestation of labor-peace agreement. 4. If applicant successfully completes Step 3, OCM issues preliminary approval to applicant. 5. Once prepared for final licensure, selected applicant submits business location and amends application accordingly. 6. OCM forwards completed application to local government. 7. Local government completes zoning certification of whether a proposed cannabis business complies with local zoning ordinances, and if applicable, whether the proposed business complies with state fire code and building code. (This is distinct from the retail registration approval process.) 8. OCM conducts site inspection. 9. If applicant successfully passes site inspection, OCM issues license, operations may commence except for retail activity.* m MINNeSOTA Page9 OFFICE OF CANNABIS MANAGEMENT The Cannabis Licensing Process (cont. ) Continued High-Level Pathway for Licensees Seeking to Conduct Retail Sales: Process for Required Local Retail Registration from Local Governments (Microbusiness, Medical Cannabis Combination Businesses) 10. Licensed business seeks local retail registration from local government. 11. Local government approves applicant for retail registration through means determined by ordinance (see Page 19 for more information about the retail registration process). 12. Applicant pays retail registration fee to the local government (see appendix for relevant fees in accordance with Minn. Stat., section 342.22). 13. Local government conducts compliance check for any applicable local ordinance established pursuant to Minn. Stat., section 342.13, if desired. 14. Local government ensures tax compliance, if applicable. 15. Local government issues retail registration to licensee. 16. Licensee is able to conduct retail sales now that they have received a state license and a local retail registration. *For businesses seeking a retail endorsement(microbusiness, mezzobusiness, and retailer), a valid local retail registration is required prior to the business commencing any retail sales. See Page 19 for information on the local retail registration process. Applicant Responsibility All applicants and licensees are responsible for working with their local government to ensure their success in the zoning certification and, if applicable based on license type, the local retail registration process. This includes reviewing local ordinances and understanding how the local government will be selecting applicants for a retail registration (including if retail registrations will be limited). Local units of government have the statutory authority to limit retail registrations if they desire, and applicants should understand this prior to making decisions about site locations. OCM will not facilitate communication between applicants and units of local government, nor can it mediate disputes as they relate to local zoning compliance or retail registration. OCM is required to ask each local unit of government where an applicant intends to locate a business if that business has met all zoning and use requirements. m MINNeSOTA Page 10 OFFICE OF CANNABIS MANAGEMENT General Authorities Local governments in Minnesota have various means of oversight over the cannabis market, as provided by the adult-use cannabis law. Local governments may not issue outright bans on cannabis business, or limit operations in a manner beyond what is provided by state law. Cannabis Retail Restrictions (342.13) Local governments may limit the number of retailers and microbusiness/mezzobusinesses with retail endorsements allowed within their locality, as long as there is at least one retail location per 12,500 residents. Local units of government are not obligated to seek out a business to register as cannabis business if they have not been approached by any potential applicants but cannot prohibit the establishment of a business if this population requirement is not met. Local units of government may also issue more than the minimum number of registrations. Per statutory direction, a municipal cannabis store (Page 24) cannot be included in the minimum number of registrations required. For population counts, the state demographer estimates will likely be utilized. Tribal Governments (342.13) OCM is prohibited from and will not issue state licenses to businesses in Indian Country without consent from a tribal nation. Tribal nations hold the authority to license tribal cannabis businesses on tribal lands—this process is separate than OCM's licensing process and authority. Subject to compacting, Tribal nations may operate cannabis businesses off tribal lands. There will be more information available once the compacting processes are complete. Taxes (295.81; 295.82) Retail sales of taxable cannabis products are subject to the state and local sales and use tax and a 10% gross receipts tax. Cannabis gross receipts tax proceeds are allocated as follows: 20% to the local government cannabis aid account and 80% to the state general fund. Local taxes imposed solely on sale of cannabis products are prohibited. Cannabis retailers will be subject to the same real property tax classification as all other retail businesses. Real property used for raising, cultivating, processing, or storing cannabis plants, cannabis flower, or cannabis products for sale will be classified as commercial and industrial property. m MINNeSOTA Page 11 OFFICE OF CANNABIS MANAGEMENT General Authorities Cont. Retail Timing Restrictions (342.13) Local governments may prohibit retail sales of cannabis between the hours of 8 a.m. and 10 a.m. Monday-Saturday, and 9 p.m. and 2 a.m. the following day. Operating Multiple Locations with One License Certain cannabis licenses allow for multiple retail locations to be operated under a single license, with the following limitations: • Retailers: up to five retail locations. • Mezzobusinesses: up to three retail locations. • Microbusinesses: up to one retail location. • Medical cannabis combination businesses: one retail location per congressional district. Additionally, medical cannabis combination businesses may cultivate at more than one location within other limitations on cultivation. For all other license types, one license permits the operation of one location. Each retail location requires local certification and/or registration. r�mm I O O m MINNeSOTA Page 12 OFFICE OF CANNABIS MANAGEMENT Zoning and land Use Buffer Guidelines (342.13) State law does not restrict how a local government conducts its zoning designations for cannabis businesses, except that they may prohibit the operation of a cannabis business within 1,000 feet of a school, or 500 feet of a day care, residential treatment facility, or an attraction within a public park that is regularly used by minors, including playgrounds and athletic fields. Zoning Guidelines While each locality conducts its zoning differently, a few themes have emerged across the country. For example, cannabis manufacturing facilities are often placed in industrial zones, while cannabis retailers are typically found in commercial/retail zones. Cannabis retail facilities align with general retail establishments and are prohibited from allowing consumption or use onsite and are also required to have plans to prevent the visibility of cannabis and hemp-derived products to individuals outside the retail location. Industrial hemp is an agricultural product and should be zoned as such. Cannabis businesses should be zoned under existing zoning ordinances in accordance with the license type or endorsed activities held by the cannabis business. Note that certain types of licenses may be able to perform multiple activities which may have different zoning analogues. In the same way municipalities may zone a microbrewery that predominately sells directly to onsite consumers differently than a microbrewery that sells packaged beer to retailers and restaurants, so too might a municipality wish to zone two microbusinesses based on the actual activities that each business is undertaking. Table 1, included on Pages 16 and 17, explains the types of activities that cannabis businesses might undertake, as well as some recommended existing zoning categories. m MINNeSOTA Page 13 OFFICE OF CANNABIS MANAGEMENT Zoning and land Use Cont. Table 1: Cannabis and Hemp Business Activities EligibleEndorsed License Type I Comparable Municipal Activity to Do Description of Activity Districts Considerations Endorsed "Cultivation" means any • Cultivator activity involving the Indoor: • Odor • Mezzobusiness planting,growing, Industrial, • Potential need for • Microbusiness harvesting, drying, Commercial, transportation from Cultivation curing,grading, or Production facility • Medical trimming of cannabis • Waste,water,and Cannabis plants,cannabis flower, Outdoor: energy usage • Combination hemp plants, or hemp Agricultural • Security plant parts. This group of endorsed • Odor • Manufacturer • Potential need for Manufacturing, cannabis and cannabis Industrial, Cannabis activities turn raw,dried Indoor: • Mezzobusiness transportation from • Medical facility Processing, parts into other types of Commercial, Extraction Cannabis cannabis products, e.g. Production ' Waste,water, and • Combination energy usage edibles or topicals. . Security • Lower-Potency These businesses Indoor: . Odor Hemp Hemp Edible Industrial, Manufacturing (LPHE) convert hemp into LPHE Commercial, ' Waste,water, and edible products. energy Manufacturing Production • Wholesale This activity and license • Cultivator type allows a business to purchase from a • Manufacturer Indoor: • Need for • Mezzobusiness business growing or Industrial, transportation from Wholesale . Microbusiness manufacturing cannabis Commercial, facility • Medical or cannabis products production • Security and sell to a cannabis Cannabis business engaged in • Combination retail. m MINNeSOTA Page 14 OFFICE OF CANNABIS MANAGEMENT Zoning and land Use Cont. Table 1: Cannabis and Hemp Business Activities (continued) EndorsedLicense Type - - Municipal EndorsedActivity Eligible to Do Activity Districts Considerations Indoor: Retail, • Micros may offer • Retailer This endorsed Neighborhood onsite consumption, • Mezzobusiness activity and license type Shopping Districts, similar to breweries. • Microbusiness Light Industrial, • Micros and Mezzos Cannabis Retail • Medical allow a business Existing districts may include multiple to sell cannabis Cannabis products directly where off-sale activities: cultivation, • Combination liquor or tobacco manufacture,and/or to consumers. sales are allowed. retail. This license type • Fleet based allows a businesses that will company to own multiple Transportation • Cannabis transport vehicles, but not - Transporter products from necessarily hold a one license type substantial amount to another. of cannabis or cannabis products. • Fleet based business This license type that will own multiple vehicles, Delivery transportation to • Cannabis allows for but not necessarily - Delivery the end hold a substantial amount of cannabis consumer. or cannabis products. This license Anywhere that the • On site entitles license holder to city permits events consumption. to occur,subject to • Retail sales by a Events • Event Organizer organize a other restrictions licensed or endorsed temporary event related to cannabis retail business lasting no more use. possible. than four days. m MINNeSOTA Page 15 OFFICE OF CANNABIS MANAGEMENT Local Approval Process Local governments play a critical role in the licensing process, serving as a near-final approval check on cannabis businesses nearing the awarding of a state license for operations. Once an applicant has been vetted by OCM and is selected for proceeding in the verification process, they are then required to receive the local government's certification of zoning compliance and/or local retail registration before operations may commence. Local Certification of Zoning Compliance (342.13; 342.14) Following OCM's vetting process, local governments must certify that the applicant with preliminary approval has achieved compliance with local zoning ordinances prior to the licensee receiving final approval from OCM to commence operations. During the application and licensing process for cannabis businesses, OCM will notify a local government when an applicant intends to operate within their jurisdiction and request a certification as to whether a proposed cannabis business complies with local zoning ordinances, and if applicable, whether the proposed business complies with state fire code and building code. According to Minnesota's cannabis law, a local unit of government has 30 days to respond to this request for certification of compliance. If a local government does not respond to OCM's request for certification of compliance within the 30 days, the cannabis law allows OCM to issue a license. OCM may not issue the final approval for a license if the local government has indicated they are not in compliance. OCM will work with local governments to access the licensing software system to complete this zoning certification process. m MINNeSOTA Page 16 OFFICE OF CANNABIS MANAGEMENT Local Approval Process Cont. Local Retail Registration Process (342.22) Once the licensing process begins, local government registration applies to licensed cannabis retailers or other cannabis/hemp businesses seeking to conduct retail sales. Several license types are authorized to conduct retail sales if they receive a retail endorsement from OCM. Prior to conducting retail sales under their business license, state law also requires the business receive a local retail registration. There are five license types that are eligible to conduct cannabis retail activity and will seek a retail registration from local governments: • Cannabis retailers • Microbusinesses • Mezzobusinesses • Medical cannabis combination businesses • Lower-potency hemp edible retailers Local governments must issue a retail registration after verifying that: • The business has a valid license issued by OCM. • The business has paid a registration fee or renewal fee to the local government. o Initial registration fees collected by a local government may be $500 or half the amount of the applicable initial license fee, whichever is less, and renewal registration fees may be $1,000 or half the amount of the applicable renewal license fee, whichever is less. • The business is found to be in compliance with Chapter 342 and local ordinances. • If applicable, the business is current on all property taxes and assessments for the proposed retail location. Local registrations may also be issued by counties if the respective local government transfers such authorities to the county. m MINNeSOTA Page 17 OFFICE OF CANNABIS MANAGEMENT Local Approval Process Cont. Option to limit Retail Registrations for Cannabis Businesses: Determining a Process State law allows the option for a local government to place a limitation on the number of cannabis retailers, microbusiness, and mezzobusinesses with retail endorsements allowed within their locality via ordinance, as long as there is at least one retail location per 12,500 residents. Please see Page 13. Retail registrations for lower-potency hemp edible retailers and medical cannabis combination businesses are required but may NOT be limited in number by a local government. If a local government wishes to limit the number of cannabis retailers, microbusinesses, or mezzobusinesses via ordinance, state law does not define the process for a local government's selection if there are more applicants than registrations available. Local units of government issuing retail registrations should consider how they will issue retail registrations. Local units of government may wish to consider whether they will accept applications during a specified application window or on a rolling basis. Local governments may wish to consider how to accommodate to the timing of accepting applications for retail registration as to not allocate all registrations at once. This may also include timelines that coincide with state licensing timelines as to limit bottlenecks. Additionally, local units of government should consider the process by which they will determine who gets a registration, e.g., through the use of a lottery, on a first-come/first- serve model, through a merit-based scoring system, etc. It is highly recommended that local governments work with an attorney to determine their specific process for selection if they wish to limit the number of retail registrations per section 342.13. It is also important to note that local governments are not required to limit the number of licensed cannabis retailers, microbusinesses, or mezzobusinesses, and instead local governments can determine a process that reviews requests/applications for retail registrations as they are received. m MINNeSOTA Page 18 OFFICE OF CANNABIS MANAGEMENT '� '--•"��IA s *'max,�„� - :uIla all aa» _ �- > .al all aa1 - y a 00 �1 Local Approval Process Cont. Other Considerations Existing retail locations. Retailers in Minnesota's medical cannabis program and lower- potency hemp edible program may currently be operating in a local government's jurisdiction under active registrations. In the future, these active businesses will be required to obtain a license from OCM and will need a local retail registration to continue their operations. Local governments may wish to consider how businesses currently operating will be issued retail registrations when determining if and how to limit retail registrations. Local zoning approval does not guarantee retail registration. Zoning certification from local governments does not guarantee a local retail registration. This is a distinctly separate approval process. All applicants seeking retail activity will be required to obtain a zoning certification from the local government to be issued a state license. Local governments may wish to monitor the number of zoning certifications they provide to OCM to inform the likely volume of retail registration applicants. m MINNeSOTA Page 19 OFFICE OF CANNABIS MANAGEMENT Local Approval Process Cont. Local governments are permitted specific authorities for registration refusal and registration suspension, in addition to—and not in conflict with—OCM authorities. Registration and Renewal Refusals , Local governments may refuse the registration and/or 0 certification of a license renewal if the license is associated with an individual or business who no longer holds a valid license, has failed to pay the local registration or renewal I i1a fee, or has been found in noncompliance in connection with DENIED a preliminary or renewal compliance check. Local Registration Suspension (342.22) Local governments may suspend the local retail registration of a cannabis business or hemp business if the business is determined to not be operating in compliance with a local ordinance authorized by section 342.13 or if the operation of the business poses an immediate threat to the health and safety of the public. The local government must immediately notify OCM of the suspension if it occurs. OCM will review the suspension and may reinstate the registration or take enforcement action. Expedited Complaint Process (342.13) Per state law, OCM will establish an expedited complaint process during the rulemaking process to receive, review, read, and respond to complaints made by a local unit of government about a cannabis business. Upon promulgation of rules, OCM will publish the complaint process. At a minimum, the expedited complaint process shall require the office to provide an initial response to the complaint within seven days and perform any necessary inspections within 30 days. Within this process, if a local government notifies OCM that a cannabis business poses an immediate threat to the health or safety of the public, the office must respond within one business day. m MINNeSOTA Page20 OFFICE OF CANNABIS MANAGEMENT '4 4 77 Inspections & Compliance Checks Local governments are permitted specific business inspection and compliance check authorities, in addition to—and not in conflict with—OCM authorities. Inspections and Compliance Checks (342.22) Local governments must conduct compliance checks for cannabis and hemp businesses holding retail registration at least once per calendar year. These compliance checks must verify compliance with age verification procedures and compliance with any applicable local ordinance established i pursuant to section 342.13. OCM maintains inspection authorities for all cannabis licenses to verify compliance with operation requirements, product limits, and other applicable requirements of Chapter 342. m1 MINNeSOTA Page21 OFFICE OF CANNABIS MANAGEMENT Municipal Cannabis Stores As authorized in section 342.32, local governments are permitted to apply for a cannabis retail license to establish and operate a municipal cannabis store. State law requires OCM issue a license to a city or county seeking to operate a single municipal cannabis store if the city or county: • Submits required application information to OCM, • Meets minimum requirements for licensure, and • Pays applicable application and license fee. A municipal cannabis store will not be included in the total count of retail licenses issued by the state under Chapter 342. A municipal cannabis store cannot be counted as retail registration for purposes of determining whether a municipality's cap on retail registrations imposed by ordinance. m MINNeSOTA Page22 OFFICE OF CANNABIS MANAGEMENT Creating Your local Ordinance As authorized in section 342.13, a local government may adopt a local ordinance regarding cannabis businesses. Establishing local governments' ordinances on cannabis businesses in a timely manner is critical for the ability for local cities or towns to establish local control as described in the law and is necessary for the success of the statewide industry and the ability of local governments to protect public health and safety. The cannabis market's potential to create jobs, generate revenue, and contribute to economic development at the local and state level is supported through local ordinance work. The issuance of local certifications and registrations to prospective cannabis businesses is also dependent on local ordinances. • Local governments may not prohibit the possession, transportation, or use of cannabis, or the establishment or n operation of a cannabis business licensed under state law. • Local governments may adopt reasonable restrictions on the time, place, and manner of cannabis business operations (see Page 14). • Local governments may adopt interim ordinances to protect public safety and welfare, as any studies and/or further considerations on local cannabis activities are being conducted, until January 1, 2025. A public hearing must be held prior to adoption of an interim ordinance. O • If your local government wishes to operate a municipal cannabis store, the establishment and operation of such a p facility must be considered in a local ordinance. •'• Model Ordinance For additional guidance regarding the creation of a cannabis related ordinance, please reference the additional resources on page 27. m MINNeSOTA Page23 OFFICE OF CANNABIS MANAGEMENT Additional Information — Tobacco Sales Penalties Related to a Revocation or Suspension of Tobacco License A cannabis or hemp business license holder may also hold a tobacco license under Minnesota Statutes Chapter 461. However, tobacco cannot be sold in the cannabis retail location. Under section 461.12, Minnesota law allows a , licensee's authority to sell tobacco and related products under the section to be suspended and possibly revoked if the licensee also holds a cannabis or hemp business license under Chapter 342 or is a registrant under section 151.72 and that license or registration is revoked. This penalty also applies if the license holder is convicted of an offense under section 151.72 or has been convicted under any other statute for illegal sale of cannabis products. Clarifying Cannabis Businesses Authority Cannabis businesses will be able to sell vaporizers without a tobacco license. Under Minnesota Statutes, section 342.27, subd. 3(a), retail licensees are permitted to sell cannabis paraphernalia. Cannabis paraphernalia includes "all equipment, products, and materials of any kind that are knowingly or intentionally used primarily in ... ingesting, inhaling, or otherwise introducing cannabis products into the human body" [Minnesota Statutes, section 342.01, subd. 18(2)]. Therefore, Minnesota Statutes, section 342.27, subd. 3(a) specifically authorizes retail licensees to sell cannabis paraphernalia, which in this instance includes vaporizers. m MINNeSOTA Page24 OFFICE OF CANNABIS MANAGEMENT Additional Resources OCM Toolkit for Local Partners Please visit the OCM webpage (mn.gov/ocm/local-governments/) for additional information, including a toolkit of resources developed specifically for local government partners. The webpage will be updated as additional information becomes available and as state regulations are adopted. Toolkit resources include: • Appendix A: Cannabis Model Ordinance (mn.gov/ocm/Igg-appendix-a) • Appendix B: Retail Registration Form and Checklist (mn.gov/ocm/Igg-appendix-b) • Appendix C: Cannabis Flower and Hemp-Derived Cannabinoid Products Inspection Checklist (mn.gov/ocm/Igg-appendix-c) • Appendix D: Enforcement Notice from the Office of Cannabis Management (mn.gov/ocm/Igg-appendix-d) • Appendix E: Notice to Unlawful Cannabis Sellers (mn.gov/ocm/Igg-appendix-e) • Appendix F: Model Guidelines on Age Verification Compliance Checks Policy and Procedures (mn.gov/ocm/Igg-appendix-f) • Appendix G: Cannabis and Hemp Age Compliance Check Form (mn.gov/ocm/Igg- appendix-g) • Appendix H: Local Unit of Government Cannabis Licensing Contact, Delegation Form, and Accela Registration Instructions Guide (mn.gov/ocm/local- governments/contactform.isp) • Appendix J: Local Approval for Early Cultivation (mn.gov/ocm/Igg-appendix-i) Local Organizations There are several organizations who also have developed resources to support local governments regarding the cannabis industry. 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