HomeMy WebLinkAbout2658-22 - ADMIN Ordinance - City Council - 2022/11/21Ordinance No. 2658-22
Ordinance amending St. Louis Park City Code Chapter 8, Article II, Division 3
related to Cannabinoid Products
The City Council of the City of St. Louis Park, Minnesota does ordain:
Sec. 1. The St. Louis Park City Code, Chapter 8, Article II, Division 3 is hereby amended
by adding:
Subdivision XVI. Cannabinoid Products
Sec. 8-471. Purpose.
(a) Based on the most reliable and up-to-date scientific evidence and guidance from the U.S.
Surgeon General, the city council finds that the rapid introduction of legalized edible and
consumable nonedible products containing any amount of cannabinoids (“Cannabinoid
Product”), including tetrahydrocannabinol (“THC”), presents a significant potential threat to the
public health, safety, and welfare of the residents of St. Louis Park, and can interfere with brain
development in youth and adolescents.
(b) Minnesota has recognized the danger Cannabinoid Products pose to youth and adolescents
by prohibiting the sale of Cannabinoid Products to those under age 21 and regulating label
design (i.e., prohibiting cartoon-like characters). Minn. Stat. § 151.72, subds. 3(c) and 5a(b). As
such, the city council desires to prevent the sale of Cannabinoid Products to underage people
within the city.
(c) The city council finds that in this emerging marketplace there is a real likelihood that people
may purchase mislabeled Cannabinoid Products. These noncompliant products represent a
unique risk to the general welfare of the community.
(d) The city council finds that a local regulatory system for Cannabinoid Product sellers is
appropriate and not unduly burdensome to ensure that sellers comply with the state cannabis
laws and business standards of the city to protect the health, safety, and welfare of the city’s
youth and all residents. The city does not intend to inhibit the production, sale, or use of
medical cannabis products.
Sec. 8-472. Definitions.
The following words, terms, and phrases, when used in this article, and in addition to the
definitions contained in Minn. Stat. §151.72 as amended, shall have the meanings ascribed to
them in this section, except where the context clearly indicates a different meaning:
Cannabinoid means a chemical compound derived from the cannabis plant or synthetically
derived from the cannabis plant.
Cannabinoid Product means any edible cannabinoid product or nonedible cannabinoid product
authorized for sale in Minnesota Statute.
HHC means the intoxicating cannabinoid hexahydrocannabinol.
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Ordinance No. 2658-22 2
Licensed premises means the premises described in the approved license application as set
forth in this article.
School means a building used for the purpose of elementary or secondary education, which
meets all the requirements of compulsory education laws of the State of Minnesota.
THC means the cannabinoid tetrahydrocannabinol whether derived naturally or synthetically
from the cannabis plant.
Underage person means a person who is under the age of 21.
Sec. 8-473. License required.
(a) No person shall sell or offer to sell any Cannabinoid Products without first having obtained a
license to do so from the city.
(b) No license shall be issued for the sale of Cannabinoid Products at any place other than the
applicant’s place of business where retail, food, or beverage sales occur or will occur. No licen se
shall be issued for a moveable place of business; nor shall any single license be issued at more
than one place of business. No license shall be issued for sales from a residential dwelling unit
or accessory structure.
(c) Complete applications shall be reviewed by the city for verification and investigation of the
facts set forth in the application, including a background investigation of the applicant. The
Police Department is responsible for background checks prior to issuance of license and is
authorized to conduct such additional investigation as deemed necessary.
(d) The director of the department responsible for issuance of a license shall make the
determination whether to approve or deny the license. Any denial shall be communicated to
the applicant in writing, specifying the reasons for denial. The applicant may appeal the denial
in accordance with the procedure specified in section 8 -36 of the city code.
(e) Complete applications for issuance of annual licenses shall be submitted to the city at least
thirty (30) days prior to the expiration of the license. The determination regarding approval or
denial of the license renewal shall be communicated to the applicant in writing, specifying the
reasons if the application is denied. The applicant may appeal the denial in accordance with the
procedure specified in section 8-36 of the city code.
(f) Exemptions.
(1) This article does not apply to any medical cannabis product dispensed by a registered
medical cannabis manufacturer pursuant to Minn. St at. §§ 152.22 to 152.37. Medical
cannabis dispensaries that sell non-medical cannabis products which are also
Cannabinoid Products are not exempt from this article.
(2) This article does not apply to Cannabinoid Products that contain non -intoxicating,
non-psychoactive cannabinoids as the primary cannabinoid ingredient, such Cannabidiol
(“CBD”) or Cannabinol (“CBN”), and which have no more than trace amounts of THC.
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Ordinance No. 2658-22 3
Sec. 8-474. Denial of license.
(a) Grounds for Denial. The following will be grounds for denying the issuance or renewal of a
license under this article:
(1) The applicant is under the age of 21 years.
(2) The applicant has been convicted of a controlled substance-related felony within
three years of the application that:
(a) was violent, fraudulent, or deceitful in nature; or
(b) involved more than 42.5 grams of marijuana or any amount of any other
controlled substance.
(3) The applicant has had a license to sell Cannabinoid Products revoked within the past
five years.
(4) The applicant fails to provide any information required on the license application or
provides false or misleading information on such license application.
(5) The applicant is prohibited by state, or other local law, ordinance, or other regulation
from holding a license under this article.
(6) The proposed licensed premises is within 300 feet of a school measured from
property line to property line.
(7) Pursuant to Minnesota Statute § 340A.412, subd. 14, no license shall be issued to an
exclusive liquor store.
(b) Rehabilitation. Persons convicted of a felony described in (a)(2) of this section may provide
evidence of rehabilitation to the City through the process outlined in Minn. Stat. §364.03 subd.
3.
(c) Mistakenly Issued. If a license is mistakenly issued or renewed, it shall be revoked upon the
discovery that the person was ineligible for the license under this section.
Sec. 8-475. Regulations Adopted.
(a) Sales. It shall be a violation of this article for any person to sell or offer to sell any
Cannabinoid Products:
(1) To any person under the age of 21 years.
(2) By means of any type of vending machine.
(3) By means of self-service merchandising whereby the customer does not need to
make a verbal or written request to an employee of the licensed premises to receive the
Cannabinoid Product. All such products shall be stored behind a counter or other area
not freely accessible to customers.
(4) That contain any chemical compound or drug that is otherwise a controlled
substance under Minnesota law.
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Ordinance No. 2658-22 4
(5) That contain any amount of HHC.
(6) By any other means or to any other person prohibited by state or other local laws,
ordinances, or other regulations.
(7) That fails to meet the labelling requirements as established in Minn. Stat. §151.72
subds. 5, 5a, and 6.
(8) That fails to meet the testing requirements as established in Minn. Stat. §151.72
subd. 4.
(b) Sampling and on-site consumption.
(1) Sampling of Cannabinoid Products within an establishment selling any Cannabinoid
Product is prohibited.
(2) Cannabinoid Products may not be consumed and must remain sealed on the licensed
premises. Exceptions to this regulation include on premise consumption of Cannabinoid
Products at a food and beverage establishment that is licensed by the Minnesota
Department of Health and licensed under this article. Food and beverage
establishments selling cannabinoid products must provide product to consumers in
original packaging, complete with labeling. Such establishments must abide by all other
state and county laws regarding on-premises consumption and sales, including the
Minnesota Clean Indoor Air Act (Minn. Stat. §§144.4 11 to 144.417).
(c) Signage. The licensee shall display a sign in plain view to provide public notice that selling
any of these products to any person under the age of 21 is illegal and subject to penalties. The
notice shall be placed in a conspicuous location in the licensed establishment and shall be
readily visible to any person who is purchasing or attempting to purchase these products.
(d) Delivery. All sales of Cannabinoid Products must be completed on the licensed premises.
Delivery by the licensee or a third party to the consumer is prohibited.
(e) Testing Requirements. All manufacturer testing must comply with the requirements set forth
in Minn. Stat. § 151.72, Subd. 4, as may be amended.
(f) Labeling Requirements. All labeling must comply with the requirements set forth in Minn.
Stat. § 151.72, Subd. 5, 5a, and 6, as may be amended.
Sec. 8-476. Responsibility for sales.
Actions of their employees regarding the sale of Cannabinoid Products shall be considered an
action by the licensed owner.
Sec. 8-477. Compliance checks and testing.
(a) Compliance check. All retail areas on premises licensed under this article shall be open to
inspection by the city during regular business hours. From time to time the city may conduct
compliance checks by engaging minor persons over 15 years of age but under 21 years of age to
enter the licensed premises to attempt to purchase Cannabinoid Products.
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(b) Testing verification. The city may, from time to time, purchase products from a licensee for
laboratory testing at a laboratory of the city’s choosing at city’s cost. The sample must meet all
composition and correlated labelling requirements in Minn. Stat. §151.72 and this article.
(1) Collection. The city may, from time to time, purchase products from a licensee for
testing. The city employee or designated representative conducting the collection must
fill out the chain of custody form and place sample in a transport container with a
tamper-evident seal affixed by the collector. The chain of custody form must verify th e
time and date of sample collection and the name of the licensee. The city must
transport the batch sample to a testing laboratory for testing within 48 hours of the
sample collection.
(2) Receipt. The testing laboratory must certify upon receipt that the tamper-evident
seal is intact and that the sample was collected less than 48 hours earlier. If the tamper -
evident seal is broken or if the collection occurred more than 48 hours prior to the
laboratory’s receipt of the sample, the laboratory must not acce pt the sample for
testing. The testing laboratory shall make all efforts to eliminate risk of contamination of
the sample.
(3) Label Information. The testing laboratory will collect all information on the label
regarding the composition of the product. Such label information may include batch
number, name of product, whether it is edible or nonedible, and the stated amount or
percent of cannabinoids.
(4) Testing. The samples shall be tested for the presence, amount, and percent by
weight of individual cannabinoids, namely THC and any other cannabinoid determined
by the city.
(5) Reporting. The laboratory shall produce a report and send report to both the
licensee and the city. The laboratory will include in the report the sample’s label
information collected at intake.
(6) Within 30 days after testing of the sample, the testing laboratory must dispose of the
remaining material of the analyzed sample. If there is sufficient sample material to
retest and the sample is not yet disposed, the licensee may order a retest of the sample
at licensee’s cost if the sample failed to pass testing.
(7) Violation. It shall be considered a violation of this article if a laboratory report shows
that a product has failed to comply with the composition and correlated labelling
requirements of Minn. Stat. §151.72 and this article.
(8) Remediation. If a sample violates this section, the products identical to the sampled
product must not be sold. Additional fees may be charged in order to pay for the cost of
failed laboratory tests. If the retailer is also the manufacturer of the product, failures in
testing will result in penalties as listed in Section 8-478.
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Ordinance No. 2658-22 6
Sec. 8-478. Violation; penalty.
(a) Generally. Any violation of this article shall be grounds to revoke or suspend a license under
this article. Notwithstanding misdemeanor prosecution, the city may also seek an
administrative penalty or civil injunctive relief for violations under this article.
(b) Criminal penalty. It shall be a:
(1) Misdemeanor to sell Cannabinoid Products to a person under the age of 21 years.
(2) Misdemeanor to furnish Cannabinoid Products to a person under the age of 21
years.
(3) Misdemeanor to violate the provisions of Minn. Stat. §151.72 or this article.
(c) Administrative penalties.
(1) Presumed administrative penalties for violations: The presumed penalties for
violations of a licensee are as follows:
Type of Violation 1st
Violation
2nd Violation
within 36
months
3rd Violation
within 36
months
4th Violation
within 36
months
1. Sale of cannabinoid
products while license is
under suspension.
Revocation. N/A N/A N/A
2. Sale of cannabinoid
products to underage
person.
$500
$1,000 and
1-day
suspension.
$2,000 and
30- day
suspension.
Revocation.
3. Failed test of sample
product or misbranding if
retailer is also the
manufacturer of product.
$250 and
remaining
identical
products
must not be
sold.
$500 and
remaining
identical
products
must not be
sold.
$1,000, 1-day
suspension,
and remaining
identical
products must
not be sold.
Revocation.
4. Other violations of
Minn. Stat. 151.72 or this
article.
$250 $500 $1,000 and 1 -
day
suspension.
Revocation.
(2) The imposition of a presumptive penalty shall be communicated by a written notice
to the licensee by the director of the department responsible for issuance of a license.
The penalty may be appealed to the city manager through an administrative hearing
process by filing a written appeal to the city clerk within ten days of the notice.
(3) The city manager’s decision may be appealed to the city council by filing a written
appeal to the city clerk within ten days of receiving written notice of the city manager's
decision. Appeal of a city council decision must be made within ten days of written
notice of the decision. The city council’s decision is final.
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Ordinance No. 2658-22 7
(4) Subsequent violations: Violations occurring after the notice of hearing has been
mailed, but prior to the hearing if requested, must be treated as a separate violation,
and dealt with as a second violation unless the city manager and licensee agree in
writing to add the violation to the first appearance. The same procedure applies to the
second, third, or fourth violations.
Section 2. This ordinance shall take effect a minimum of fifteen days after its passage
and publication according to law.
First Reading October 17, 2022
Second Reading November 21, 2022
Date of Publication December 1, 2022
Date Ordinance takes effect January 1, 2023
Reviewed for administration: Adopted by the city council November 21, 2022
Kim Keller, city manager Jake Spano, mayor
Attest: Approved as to form and execution:
Melissa Kennedy, city clerk Soren Mattick, city attorney
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