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HomeMy WebLinkAboutNo 1050 Regarding the Regulation of Cannabis Businesses1 ORDINANCE NO. 1050 An Ordinance Regarding the Regulation of Cannabis Businesses The Maplewood City Council ordains as follows: Section I. The city council hereby creates Chapter 15 of the Maplewood code of ordinances by adding the following: CHAPTER 15. – Cannabis Business Sec. 15-1. - Findings and Purpose. The City makes the following legislative findings: The purpose of this chapter is to protect the public health, safety and welfare of the City by implementing regulations pursuant to Minnesota Statutes, Chapter 342 related to cannabis and hemp businesses. The City finds and concludes that these regulations are appropriate and lawful, that they will promote the city’s interest in a 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 public good. Sec. 15-2. – Definitions. All definitions found in Minnesota Statutes, section 342.01 are adopted by reference, in addition to the following definitions: Applicant means an entity with a license issued by the Office of Cannabis Management (OCM) that is applying for an initial registration or the renewal of a registration through the City. Act means Minnesota Statutes, Chapter 342, as may be amended from time to time. Cannabis retail business means a cannabis retailer and the retail location(s) of a mezzobusinesses with a retail operations endorsement, microbusinesses with a retail operations endorsement, or medical combination businesses operating a retail location. The term includes any person, partnership, firm, corporation, association, foreign or domestic, selling cannabis to a consumer and not for the purpose of resale in any form. OCM means the Minnesota Office of Cannabis Management. Park feature means an attraction within a public park that is regularly used by minors, including a playground or athletic field. These may include playground equipment, courts, ice rinks, active or passive park features. Potential licensee means an entity that has not received a license from the OCM but is seeking a pre-license zoning approval. Preliminary license approval means OCM pre-approval for a cannabis business license for applicants who qualify under Minnesota Statutes, section 342.17. 2 Residential treatment facility means any facility licensed or regulated by the Minnesota Department of Human Services that provides 24-hour-a-day care, lodging, or supervision outside a person’s home and which also provides chemical dependency or mental health services. Retail registration means an approved registration issued by the City to a state-licensed retail business. Retailer means a cannabis retail business or lower-potency hemp edible retailer that is required to obtain a retail registration from the City. School means a public school as defined under Minnesota Statutes, section 120A.05 or a nonpublic school that must meet the reporting requirements under Minnesota Statutes, section 120A.24. State license means the approved license issued by the OCM to a cannabis retail business. Zoning Ordinance means all city zoning and land use ordinances authorized under Minnesota Statutes, Chapter 462. Sec. 15-3. – Authority and Jurisdiction. The City has authority to adopt this ordinance pursuant to Minnesota Statutes, section 342.13(c) allowing a local unit of government to adopt reasonable restrictions on 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; Minnesota Statutes, section 342.22, requiring local registration and enforcement of state-licensed cannabis retail businesses and lower- potency hemp edible retail businesses; and Minnesota Statutes, sections 462.351 through 462.364, granting the authority of a local unit of government to adopt zoning and other land use ordinances. Sec. 15-4. – Pre-license Certification of Cannabis Businesses. (a) Authorization. The City Manager is authorized to appoint staff to certify to the OCM 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) Certification. 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 the state building and fire code regulations, provided that the potential licensee has obtained inspections prior to the City’s receipt of a request for certification from the OCM. Building and fire code inspections will be valid for 1 year from completion. 3 Sec. 15-5. – 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 Minnesota Statutes, section 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. (b) Limits. (1) The City will issue one registration per 12,500 residents in the City, 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. (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 Ramsey County will be based on the number of registrations in Ramsey County on the day the application is received. (5) If the number of registrations available within the City decreases based upon the County reaching the one per 12,500 threshold or the City’s population decreases below a previous threshold, businesses with current registrations will be allowed to maintain and renew their registrations but no new registrations will be issued. (6) Registrations issued to businesses with a license preapproval will count toward the City’s registration limit. (7) Registrations can not be reserved and are based upon completed and approved applications on a first-come, first-served basis. (c) Application. The applicant must submit a registration application or renewal on a form provided by the City. The form may be amended from time to time, 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 complied with the requirements of this Chapter; (5) Proof of taxes, assessments, utility charges or other financial claims of the city or the state are current; and (6) A copy of a valid state license or written notice of OCM license preapproval. (d) Fee required. At the time of the initial application and prior to the City’s consideration of any renewal application, each Retailer must pay the fee established in the City’s fee schedule. (e) Non-refundable. Initial registration fees and renewal registration fees are non- refundable. 4 Sec. 15-6. – 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. Sec. 15-7. – Reasons for Denial. The City shall not issue a registration or renewal if any of the following conditions is 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 the applicable zoning 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 the fee owner is not current on all property taxes and assessments at the location where the Retailer is located; or (6) The applicant does not have valid license from the OCM. Sec. 15-8. – Issuing the Registration or Renewal. The City shall issue the registration or renewal if the Retailer meets the requirements of this Chapter, including that none of the reasons for denial in Sec. 15-7 is true. Sec. 15-9. – Nontransferable. A registration is not transferable to another person, entity or location. Sec. 15-10. – Registration Enforcement. (a) 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. (b) 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 its right to a hearing on the alleged violation. (1) Notice shall be delivered in person or by regular United States mail to the address of the registered business and shall inform the registered business of its right to a hearing before a Hearing Officer. The notice will indicate that a response must be submitted within 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’s designated Hearing Officer before final action to fine or suspend a registration. Following the hearing, the hearing officer shall prepare findings which shall be delivered personally or by regular United States mail to the registered business. The Hearing Officer shall give due regard to the frequency and seriousness of the violations, the ease with which such violations could 5 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 10 business days of receipt by the registered business of the Hearing Officer’s order, the registered business may submit a written appeal of the Hearing Officer’s decision to the City Council. (3) If no request for a hearing before a Hearing Officer is received by the City within 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. (c) 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 hearing before the City Council as prescribed in section 15-10(b)(3). (d) 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. Sec. 15-11. – Compliance Checks (a) 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 by the Act and any applicable cannabis or hemp regulations adopted by the City. (b) Unannounced 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. (c) Any failures under this section are a basis for enforcement action and must be reported to the OCM. Sec. 15-12. – Hours and Distance Requirements (a) Hours of Operation. Sales of approved products at a registered cannabis retail business are only allowed between the hours of 10 a.m. and 9 p.m. seven days per week. The cannabis retail business may not be open to the public or sell any other products at times when the business is prohibited from selling approved products. (b) Buffer Zones. The city prohibits the establishment and operation of a cannabis business within the following buffer zones: (1) 500 feet from a School; (2) 500 feet from a Residential treatment facility; and (3) 500 feet from an attraction with a Park feature. (c) Measuring buffers. The buffers will be measured from the potential licensee’s proposed business location based on the location of schools, residential treatment facilities, and park features on the date the city receives the request from the OCM for certification pursuant to Sec. 15-4(b). Buffer distances will be measured from the edge of the property line to the 6 property line of the proposed business. In the case of a park feature, it will be measured from the closest portion of the park feature to the property line of the proposed business. (d) Exemptions. Nothing in this section shall prohibit a cannabis business from continuing to operate at the same location if a school, residential treatment facility, or park feature later establishes within the buffer. Sec. 15-13. – Temporary Cannabis Events (a) Permit Required. A permit is required to be issued and approved by the City prior to holding a Temporary Cannabis Event held by a licensed Cannabis Event Organizer, as established and provided for in Minnesota Statutes, Chapter 342. (b) Permit Fee. A permit fee, as established in the City’s fee schedule, shall be charged to applicants for Temporary Cannabis Event permits. (c) Permit Standards. The applicant must meet the standards of City Code Sec. 14-385 – Sec. 14-492, Large Assemblies. (d) Application Submittal. An applicant must submit an application for City approval of a temporary cannabis event permit in a form provided by the city clerk. The application may be amended from time to time but shall include or be accompanied by: (1) Full name of the property owner and applicant; (2) Address, email address and telephone number of the applicant; (3) A copy of the OCM cannabis event license application, submitted pursuant to Minnesota Statutes, section 342.39, subd. 2.; and (4) Permit fee as required in the city’s fee schedule. (e) Application Review. (1) The application shall be submitted to the city clerk, or other designee for review. The application will be considered complete when the application form is submitted with all of the required information included and application fee paid. If the submitted application is incomplete, the city clerk shall return the application to the applicant with the notice of deficiencies. (2) Once an application is considered complete, the designee shall inform the applicant as such, process the application fees, and forward the application to the City Manager or designee for approval or denial. (3) The application fee shall be non-refundable once processed. (f) Denial. A request for a Temporary Cannabis Event 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. (g) On-Site Consumption. Pursuant to Minnesota Statutes, section 342.40, subd. 8, the City prohibits on-site consumption of cannabis and hemp products at all temporary cannabis events. (h) Use of City property. Temporary cannabis events are prohibited on City property. Sec. 15-14. – 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. Violations of this 7 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 Sec. 1-17 – Administrative Penal Offenses. Sec. 15-15. – Severability If any section, clause, provision, or portion of this ordinance is adjudged unconstitutional or invalid by a court of competent jurisdiction, the remainder of this ordinance shall not be affected thereby. Sec. 15-16 – Sec. 15-99. – Reserved. Section II. The city council hereby amends the subdivision (b)(9) of Chapter 14, Section 14-56 – License requirements to read as follows: (b) Home occupations requiring a license shall be subject but not limited to the following requirements: (9) A home occupation shall not include the repair of internal combustion engines, body repair shops, spray painting, machine shops, welding, ammunition manufacturing or sales, the sale or manufacture of firearms or knives, cannabis or hemp businesses or other objectionable uses as determined by the city. Machine shops are defined as places where raw metal is fabricated, using machines that operate on more than 120 volts of current. Section III. The city council hereby amends Chapter 44, Section 44-6 to add the following definitions: Cannabis business has the same meaning as in Minnesota Statutes, section 342.01, subd. 14. Cannabis cultivation means a cannabis business with a license or endorsement to grow cannabis plants within the approved amount of space from seed or immature plant to mature plant, harvest cannabis flower from mature plant, package and label immature plants and seedlings and cannabis flower for sale to other cannabis businesses, transport cannabis flower to a cannabis manufacturer located on the same premises, and perform other actions approved by the office. Cannabis delivery business means a cannabis business with a license or endorsement to purchase cannabis, cannabis products, and hemp products from retailers or cannabis business with retail endorsements for delivery to customers. Cannabis manufacturing means a cannabis business with a license or endorsement to manufacture cannabis products with processes that involve the compounding, processing, packaging, wholesaling, testing, or treatment of cannabis products. Cannabis retailer means any person, partnership, firm, corporation, or association, foreign or domestic, with a license or endorsement to sell cannabis product to a consumer. 8 Cannabis transportation business means a cannabis business with a license or endorsement to transport immature cannabis plants and seedlings, cannabis, cannabis products, and hemp products to and from licensed cannabis businesses. Section IV. The city council hereby amends Chapter 44, Table 44-46-1 – Principal Use Table to add the cannabis business use alphabetically within Retail Sales and Services section as follows: Use Type Mixed Use Commercial Industrial Use Specific Standard MU NE NC CO BC LBC BC(M) SC M-1 to M-2 Cannabis business PS PS PS PS PS PS PS PS PS See Division 19 of Chapter 44 Section V. The city council hereby amends Chapter 44, section 44-321 – Principal Uses to add the cannabis business as subdivision (3) and renumber the remaining items as follows: (3) Cannabis business a. All cannabis businesses must provide evidence of a state license under Minnesota Statutes, section 342.14, and be in compliance with the provisions of the Zoning Code, City Code, and all applicable state laws and regulations. b. Cannabis businesses shall be allowed as follows: i. Cannabis retail and cannabis delivery businesses in the MU, NE, NC, BC, LBC, BC(M), and SC districts; ii. Cannabis cultivation and cannabis manufacturing in the M-1 and M-2 districts; and iii. Cannabis transportation businesses as a CUP in the M-1 and M-2 districts. c. Buffers as stated in section 15-12 shall be required for cannabis retail businesses. Section VI. The ordinance shall be effective January 1, 2025 following its adoption and publication. 9 Approved by the City Council of the City of Maplewood this 9th day of December, 2024. Signed: Attest: Andrea Sindt, City Clerk