11-26 Bill No. 2024-141
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Bill No. 2024-14
AN ORDINANCE ADDING A NEW SECTION 1198 TO THE RICHFIELD CODE
OF ORDINANCES REGARDING REGISTRATION OF CANNABIS AND HEMP
BUSINESSES AND RELATED REGULATIONS AND REVISING CERTAIN
DEFINITIONS IN THE LIQUOR CODE
THE CITY OF RICHFIELD DOES ORDAIN:
Section 1: Chapter XI of the Richfield Code of Ordinances is amended to add a
new Section 1198 as follows:
SECTION 1198. - CANNABIS AND HEMP BUSINESS REGULATIONS
1198.01. - Purpose and Findings.
The City of Richfield makes the following legislative findings: The purpose of this
section is to protect the public health, safety, and 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 conc ludes that
these regulations are appropriate and lawful and are in the public interest and for
the public good.
1198.03. – Definitions.
Subdivision 1. For the purposes of this section, the terms defined in this
subsection have the following meanings given them:
Subd. 2. Applicant. “Applicant” means an entity with a license issued by
the OCM that is applying for an initial registration or for registration renewal.
Subd. 3. The Act. “The Act” means Minnesota Statutes, Chapter 342, as
it may be amended from time to time.
Subd. 4. Cannabis Business. “Cannabis Business” shall have the
definition in Minnesota Statutes Section 342.01.
Subd. 5. Cannabis Retailer. “Cannabis Retailer” means every retail
cannabis business that is licensed under the Act and required to register with the
City under Minnesota Statutes, section 342.22.
Subd. 6. Hemp Business. “Hemp Business” shall have the definition in
Minnesota Statutes Section 342.01.
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Subd. 7. Lower-Potency Hemp Retailer. “Lower-Potency Hemp Retailer”
means every lower-potency hemp edible retail business that is licensed under
the Act and required to register with the City under Minnesota Statutes, section
342.22.
Subd. 8. Medical Cannabis Combination Business. “Medical Cannabis
Combination Business” means a business licensed under Minnesota Statutes,
section 342.515.
Subd. 9. OCM. “OCM” means the Office of Cannabis Management.
Subd. 10. Potential Licensee. “Potential Licensee” means an applicant
that has not received a license from the OCM.
1198.05. – Pre-License Certification of Cannabis Businesses.
Subdivision 1. The Community Development Director, or their designee,
is authorized to certify whether a proposed Cannabis Business complies with the
City’s zoning ordinances and if applicable, with state fire code and building code
pursuant to Minnesota Statutes, section 342.13.
Subd. 2. Potential licensees are responsible for making all necessary
zoning applications 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
alteration 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 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.
1198.07. – Registration of Retailers.
Retail Registration Required. Before making retail sales to customers or patients,
all Cannabis Retailers and Lower-Potency Hemp Retailers must register with the
City. Making retail sales to customers or patients without an active registration is
prohibited.
1198.09. – Cannabis Retailer Registration Limits.
Subdivision 1. Cap on number of Cannabis Retailer registrations: The City will
issue one registration per 12,500 residents in the City. Registrations issued to
businesses with a license preapproval will count toward the City’s registration
limit.
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Subd. 2. Calculation. 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. The City will update the
number of registrations available based on the most recent data available from
the state demographer on January 1 and June 1 each year. If the number of
registrations available within the City decreases because 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 registration will
be issued.
Subd. 3. Exceptions. The following businesses are not subject to the cap
on registration under subdivision 1 above:
(a)Businesses operating under a tribal compact entered into under
Minnesota Statutes, Section 3.9224 or 3.9228;
(b)Tribally issued licenses and registrations;
(c)Lower-Potency Hemp Retailer;
(d)Medical cannabis combination businesses; and
(e) Municipal cannabis store.
1198.11. – Processing Registration.
Subdivision 1. First-come, first-served. Applications for registration will be
processed on a first-come, first-served basis based on the City receiving a
complete application and payment of all fees.
Subd. 2. Complete applications. Applications will be considered complete
when all materials in subsection 1198.13 are received by the City and include all
required information.
Subd. 3. Date of pre-licensing certification. The date a pre-licensing
certification under subsection 1198.05 is issued will have no impact on the
applicant’s registration processing and is not an indication that the cap on
registrations has not been met.
1198.13. – Application for Registration.
Subdivision 1. Application. All applicants for initial registration or renewal
registration must submit a registration application provided by the City. The form
may be amended from time to time by the City, but must include or be
accompanied by:
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(a)Name of the property owner;
(b)Name, address, email address, telephone number, and date of birth of
the applicant;
(c)Address and parcel ID for the property for which the registration is
sought;
(d)Certification that the applicant complies with the requirements of this
section;
(e)The following fees, as established in the City’s fee schedule, at the time
of initial application and prior to the City’s consideration of any renewal
application:
(i)At the time of initial registration: An initial registration fee.
The initial registration fee will pay for the costs of
registration and the cost of the first year of operation.
(ii)The renewal fee for the second year of operation.
(iii)At the time of the first annual renewal (prior to the second
year of operation), no fee will be due.
(iv)At the time of the second annual renewal, and each year
thereafter, the renewal fee must be paid prior to the City
issuing any renewal registration.
(f)A copy of a valid state license or written notice of OCM license
preapproval;
(g)Acknowledgement that all property taxes and assessments are current at
the location where the retail establishment is located.
(h)A copy of a current government-issued photo I.D.
Subd. 2. Fees nonrefundable. Initial registration fees and renewal
registration fees are nonrefundable.
1198.15. – Preliminary Compliance Check.
Initial Cannabis Retailer or Lower-Potency Hemp Retailer registration shall not be
issued unless, prior to opening for operations following approval of an application
for initial registration, the applicant has passed a preliminary compliance check
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conducted by the City to ensure compliance with this section and any other
regulations established pursuant to Minnesota Statutes, section 342.13.
1198.17. – Basis for Denial.
Subdivision 1. Basis to Deny Registration. The City shall not issue a
registration or renewal for any Cannabis Retailer or Lower-Potency Hemp
Retailer if any of the following conditions are true:
(a)The applicant has not submitted a complete application.
(b)The applicant does not comply with the requirements of this section.
(c)The applicant does not comply with applicable zoning and land use
regulations.
(d)The applicant is found to not comply with the requirements of the Act , this
section, the building code, or the fire code at the preliminary compliance
check.
(e)The maximum number of registrations, pursuant to subsection 1198.09,
have been issued by the City.
(f)The applicant does not have a valid license from the OCM.
(g)The applicant is not current on all property taxes and assessments at the
location where the retail establishment is located.
1198.19. – Issuance of Registration or Renewal.
The City shall issue the registration or renewal if the applicant meets the
requirements of this section, including that none of the reasons for denial in
subsection 1198.17 are true.
1198.21. – Registration Nontransferable.
A registration is not transferable to another person, entity, or location.
1198. 23. – Enforcement.
Subdivision 1. Generally. The City Council may impose a fine or suspend
a registration under this section on a finding that the registered business has
failed to comply with an applicable statute, regulation, or ordinance, including a
violation of this section.
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Subd. 2. Notice and Right to Hearing. Prior to imposing a fine or
suspending any registration under this section, 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.
Subd. 3. Delivery of Notice. 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 written
response must be submitted within ten (10) days of receipt o f the notice, or the
right to a hearing will be waived.
Subd. 4. Council Hearing. Provided a timely request for a hearing is
submitted by the registered business, the City Council will hold a hearing before
taking final action to fine or suspend a registration. The City Council 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.
Subd. 5. Council Action. If a timely request for a hearing is not received,
the matter shall be submitted to the City Council for imposition of the fine and/or
suspension.
Subd. 6. Emergency. If, in the discretion of the City’s Public Safety
Director, or their designee, 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 a s prescribed in this
subsection.
Subd. 7. Reinstatement. The City may reinstate a registration if it
determines that the violations have been resolved. The City shall reinstate the
registration if the OCM determines the violations have been resolved.
Subd. 8. Report to OCM. All enforcement actions under this section will
be reported to the OCM.
1198.25. – Penalties.
Subdivision 1. Misdemeanor. Any person who violates this section is
guilty of a misdemeanor and, upon conviction, is subject to a fine and
imprisonment as prescribed by state law. Each day each violation continues or
exists, constitutes a separate offense.
Subd. 2. Civil Penalty. The City may impose a civil penalty, as authorized
by Minnesota Statutes, section 342.22, of up to $2,000 for each violation of this
section.
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Subd. 3. Action Against Business License. Violation of this section shall
be grounds for enforcement against any business license issued by the City of
Richfield.
1198. 27. – Cannabis Retailer Operating Regulations.
Subdivision 1. Compliance Checks. The City shall complete, at a
minimum, one compliance check per calendar year of every registered business
to assess if the business meets age verification requirements, as required under
Minnesota Statutes, section 342.22, subd. 4(b) and this section. Any failures
under this section are a basis for enforcement action and must be reported to the
OCM.
Subd. 2. Hours of Operation. Cannabis businesses are limited to retail
sale of cannabis, cannabis flower, cannabis products, lower-potency hemp
edibles, or hemp-derived consumer products to between the hours of 10:00 a.m.
to 9:00 p.m. Monday through Thursday; 10:00 a.m. to 10:00 p.m. Friday and
Saturday; and 10:00 a.m. to 9:00 p.m. on Sunday.
Subd. 3. Display of License and Registration. All licenses and
registrations must be posted and displayed in plain view of the general public on
the premises.
1198.29. – Lower-Potency Hemp Retailer Operating Regulations.
Subdivision 1. 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 Minnesota
Statutes, section 342.22, subd. 4(b) and this section. Any failures under this
section are a basis for enforcement action and must be reported to the OCM.
Subd. 2. Display of License and Registration. All licenses and
registrations must be posted and displayed in plain view of the general public on
the premises.
Subd. 3. Hours of Operation. The hours of operation limitations in
subsection 1198.27, subd. 2 do not apply to lower-potency hemp retailers.
SECTION 2: The following definitions in subsection 1202.01 (Liquor) of the
Richfield Code of Ordinances are amended as follows for consistency with
zoning regulations:
Subd. 3. "Brewer" means a person who manufactures produces malt liquor for
sale.
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Subd. 15. "Micro-brewery" means a facility that produces for sale, distribution,
and consumption beer, ale, malt liquor, or other beverages made from malt by
fermentation and containing not less than one -half of one percent alcohol by
volume, and which possesses the appropriate Federal, State, and Municipal
licenses and which produces not more than 3,500 barrels of malt liquor in a
calendar year. A micro-brewery may must include a taproom or brewpub.
Subd. 16. "Micro-distillery" means a facility that produces Ethyl Alcohol, hydrated
oxide or ethyl, spirits of wine, rum, brandy, gin, or other distilled spirits, including
all dilutions and mixtures thereof, for non-industrial use in total quantity not to
exceed 40,000 gallons in a calendar year. A distillery may must include a cocktail
room.
SECTION 3: This ordinance is effective on January 1, 2025.
Adopted by the City Council of the City of Richfield on this 26th day of
November, 2024.
Mary B. Supple, Mayor
ATTEST:
Michelle Friedrich, City Clerk