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HomeMy WebLinkAbout2024-017 and Summary ,!It -AvEN HILLS ORDINANCE NO. 2024-017 CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA AN ORDINANCE AMENDING CHAPTER 3,LICENSES AND REGULATIONS, SECTION 310.01 AND ENACTING SECTION 396 OF THE ARDEN HILLS CITY CODE REGARDING CANNABIS BUSINESS REGISTRATION THE CITY COUNCIL OF THE CITY OF ARDEN HILLS, MINNESOTA, ORDAINS: SECTION 1. Chapter 3, Licenses and Regulations, Section 310—Fees, Subsection 310.01 is hereby amended b adding the underlined language as follows: • Adult Cannabis Registrations SECTION 2. ENACTMENT. Chapter 3, Section 396 of the Arden Hills City Code is hereby enacted as follows: SECTION 396—CANNABIS AND LOWER-POTENCY HEMP EDIBLES 396.1.—Purpose. The purpose of this chapter is to implement the provisions of Minnesota Statute Chapter 342, which authorizes cities to protect the public health, safety, and welfare of residents by regulating cannabis and lower-potency hemp edible businesses within its jurisdiction. 396.2.—Definitions. Unless otherwise noted in this section, words, terms, and phrases found in the definitions of Minnesota Statutes Section 342.01, or as amended, apply, unless otherwise noted or except where the context clearly indicates a different meaning. In addition, the following definitions apply: CANNABIS EVENT. A temporary event organized by a Cannabis Event Organizer at which cannabis products or lower-potency hemp edible products are sold by vendors. Such Cannabis Event may be comprised solely of cannabis and lower-potency hemp edible vendors or may be part of a larger event at which cannabis and lower-potency hemp edible vendors wish to participate. OFFICE OF CANNABIS MANAGEMENT or OCM. The Minnesota Office of Cannabis Management. STATE LICENSE. An approved license issued by the Minnesota Office of Cannabis Management to a cannabis and lower-potency hemp edible business. Page 1 of 6 396.3.—Registration Required. Before operating a business licensed by OCM the business must register with the City, except for businesses with an OCM issued license for lower-potency hemp edible retailer, which is exempt from City registration requirements under this Section 396, applications shall be submitted on the forms provided by the City Clerk, and all applicants shall comply with the process below. All applications shall be considered and approved or denied by the City Council. See Minnesota Statute 342.22. 396.4.—Cap on Registrations. The City will not issue more than one (1) cannabis retail registration per 12,500 residents, as determined by the most recent state demographer's estimate. This cap on registrations does not apply to a medical cannabis combination business with a retail endorsement or a lower- potency hemp edible retailer. See Minnesota Statute 342.13, Local Control. 396.5.—Application Process and Fees (Minnesota Statute 342.11). 1. All applicants must: (a) Complete the registration form provided by the City; (b) Pay the non-refundable registration fee for each type of retail license for which the business is applying; and (c) Provide a copy of all State Licenses issued by OCM. 2. No registration shall be issued under this chapter until the appropriate fees are paid in full. The fee for a registration under this chapter shall be set by ordinance. 3. All fees are nonrefundable and shall not be pro-rated. 4. At the time of the initial registration, the initial registration fee and the renewal fee shall be due and payable. 5. For the first renewal of the registration,no additional registration fee shall be required. Beginning with the second renewal, and each subsequent renewal thereafter, the renewal registration fee shall be paid at the time of renewal. 396.6.—Approval. The City Council must take action on each new and renewal registration application within a reasonable time following receipt of the recommendation from City staff regarding the application. At the City Council meeting at which the application is considered, the registration will be approved by the City Council if the applicant: (a) Is in compliance with this chapter and all zoning requirements; (b) Has paid the registration fee; (c) Is current on all property taxes and assessments; (d) Has a State License Issued by OCM for the retail business being negotiated; and (e) Is current on payment for all other City fees and charges. Page 2 of 6 396.7. —Exceptions—Cannabis Event Organizer (Minnesota Statutes 342.39 and 342.40). No registration shall be required for an Event Organizer licensed by OCM who intends to conduct a Cannabis Event within the City; however, each Cannabis Event must be approved by the City Council through a Cannabis Event permit. The Event Organizer shall submit an application as provided by the City Clerk. The cannabis event permit application shall include: (a) A copy of the Event Organizer's license by OCM or a copy of the license application submitted to OCM; (b) Payment of the permit fee; (c) A copy of a Certificate of Insurance from an insurance company authorized to do business in the State of Minnesota; (d) The location, including address, Property Identification Numbers and ownership information of the property upon which the Cannabis Event is proposed to take place and whether the activity is proposed indoors or outdoors, including a diagram of the physical layout of the event which includes consumption areas, and retail sales areas. (e) The dates and number of days requested for the Cannabis Event; (f) If the Cannabis Event is part of a larger event, signed consent from the organization sponsoring the larger event; (g) A security plan that has been approved by Chief Law Enforcement Agency, including the name of the contracted licensed security personnel that complies with Minn. Stat. Section 342.40 Subd. 3; (h) If on-site consumption is proposed, a detailed plan for complying with Minn. Stat. Section 342.40 Subd. 8 regarding such activity. The City Council may approve or deny on-site consumption of cannabis as part of the permit in its sole discretion,based on the circumstances of the specific cannabis event requested; (i) The printed names and signatures of the Event Organizer and the property owner. No Cannabis Event will be permitted on public property or in a public park. The Council may add reasonable conditions to the permit, may reduce the number of days for the event, prohibit outdoor activity and/or restrict or prohibit on-site consumption, in order to protect the public health, safety, and general welfare. 396.8.—Renewal Process. (a) Registration renewals are issued in the same manner and subject to the same conditions as a new registration application. A cannabis retail business shall apply to renew its registration on a form established by the City. (b) Before renewing a registration, the City may enter and inspect the cannabis business to ensure that the cannabis business is in compliance with this chapter, the zoning ordinance, and state laws. 396.9.—Registration Term. The registration term begins on January 1 and ends on December 31. Page 3 of 6 396.10.—Premises Covered by Registration. Unless otherwise authorized by this Code, the registration for the business is only effective for the compact and contiguous space specified in the approved registration application. 396.11.—No transfer or Assignment of Registration or Location. A registered business shall not transfer or assign a registration to another person or entity or move to a different location without completing a new application and paying the appropriate fees. 396.12.—Prohibited Acts. The owner or operator of a registered business is responsible for the conduct of their place of business and the conditions of order in it. The act of an employee of the premises is deemed the act of the owner or operator as well, and the owner or operator is responsible for all penalties provided by this chapter equally with the employee. (a) It shall be unlawful for any person to sell, purchase, obtain or otherwise provide any cannabis or lower-potency hemp edible product to any person under the age of twenty-one(21), including cannabinoids derived from hemp. (b) It shall be unlawful for any person under the age of twenty-one (21) to possess any cannabis or lower-potency hemp edible product. This chapter shall not apply to persons under the age of twenty-one(21) lawfully involved in a compliance check, including cannabinoids derived from hemp. (c) It shall be unlawful for any person under the age of twenty-one(21)to use or consume any cannabis or lower-potency hemp edible product unless it is legally authorized medical cannabis. (d) It shall be unlawful for any person under the age of twenty-one (21)to attempt to disguise the person's true age by the use of a false form of identification, whether the identification is that of another person or one in which the age of the person has been modified or tampered with, to represent an age older than the actual age of the person, in order to purchase any cannabis or lower-potency hemp edible product. (e) No cannabis or lower-potency hemp edible product may be sold to an obviously intoxicated person or a person under the influence of a controlled substance. (f) No one under the age of twenty-one(21) shall sell cannabis or lower- potency hemp edibles. (g) Cannabis and lower-potency hemp edibles cannot be sold in vending machines, through a drive-through window or as part of a home occupation. (h) On-site consumption is prohibited at lower-potency hemp edible retail and cannabis retail businesses, except for lower-potency hemp products that are consumed as a beverage at an on-sale liquor establishment. (i) It shall be unlawful to sell,purchase, obtain, or otherwise provide products with Delta-10 THC unless it is derived from industrial hemp and contains not more than 0.3 percent THC. (j) No retail cannabis or lower-potency hemp edible product shall be visible from the exterior of the building. Page 4 of 6 396.13.—Compliance Checks and Inspections. (a) Inspections. All registered business premises must be open to inspection by the local law enforcement or other authorized City official during regular business hours. (b) Compliance Checks. From time to time, but at least once per year, the City will conduct compliance checks on registered retail businesses by engaging persons between the ages of sixteen (16) and twenty-one (21) years, to enter the premises to attempt to purchase cannabis products. Persons used for compliance checks are not guilty of the unlawful purchase or attempted purchase, nor the unlawful possession of cannabis products when the items are obtained or attempted to be obtained as a part of the compliance check. No person used in compliance checks may attempt to use a false identification misrepresenting the person's age, and all persons lawfully engaged in a compliance check may answer all questions about the person's age and shall produce any identification, if any exists, for which he or she is asked. Nothing in this section prohibits compliance checks authorized by State or Federal laws for educational, research or training purposes, or required for the enforcement of a particular State or Federal law. 396.14. —Violations. (a) Civil Penalties. If the City determines that a registered business made a sale to a customer or patient without a valid retail registration,the City may impose a civil penalty for each violation as follows: First violation $1,000 Second violation $2,000 Third violation $2,000 Fourth violation $2,000 and revocation of City registration (b) Suspension. If the City determines that a business with a registration is not operating in compliance with the City Code or zoning ordinance, or that the operation of the business poses an immediate threat to the health or safety of the public, the City, through the Chief Law Enforcement officer, may immediately suspend the registration for up to thirty (30) days. The City will notify the business and the OCM in writing of the suspension, stating the grounds for the suspension. The OCM will investigate and may extend the period of suspension, revoke the registration, or order the reinstatement of the registration, or take any other action described in Minnesota Statutes Section 342.19 or 342.21 Page 5 of 6 SECTION 3. SUMMARY PUBLICATION. Pursuant to Minnesota Statutes Section 412.191, in the case of a lengthy ordinance, a summary may be published. While a copy of the entire ordinance is available without cost at the office of the City Clerk, the following summary is approved by the City Council and shall be published in lieu of publishing the entire ordinance. The text amendment adopted by the Arden Hills City Council on December 9, 2024 enacts the City's policies on Cannabis Business registrations to reflect Minnesota State Statutes Sections 342 and 151.72. SECTION 4. EFFECTIVE DATE. This Ordinance shall be effective after its passage and publication according to law. PASSED AND ADOPTED this 9'h day of December, 2024,by the City Council of the City of Arden Hills, Minnesota. CITY OF ARDEN HILLS A41e&A9W:& David Grant, Mayor ATTEST: Julie Wanson, City Clerk Published in the Pioneer Press on December Al2024 To view the final document,access adopted Ordinances via Arden Hills Public Lase>fiche Weblink by visiting cityofardenhills.org and clicking on Archived Documents under Helpful Links on our main webpage Page 6 of 6