HomeMy WebLinkAbout2023-06 CCOCITY OF BROOKLYN CENTER
Notice is hereby given that a public hearing will be held on the 1 Ith day of September, 2023, at
7:00 p.m. or as soon thereafter as the matter may be heard during a City Council meeting at City
Hall, 6301 Shingle Creek Parkway to consider an ordinance amending Chapter 23 of the City Code
regarding the licensing of the sale of edible cannabinoid products within the City of Brooklyn
Center. Meeting materials can be accessed by visiting the City of Brooklyn Center's website at:
https://www.ci.brooklyn-center.mn.us/. A definite time for this ordinance to be considered cannot be
given as it will depend on the progression of the agenda items.
Auxiliary aids for handicapped persons are available upon request at least 96 hours in advance.
Please notify the City Clerk at 763-569-3306 to make arrangements.
ORDINANCE NO.2023-06
AN ORDINANCE AMENDING CHAPTER 23 OF THE BROOKLYN CENTER CITY
CODE REGARDING THE LICENSING OF THE SALE OF EDIBLE CANNABINOID
PRODUCTS WITHIN THE CITY
THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS
FOLLOWS:
Section 1. Brooklyn Center City Code, Chapter 23 Table of Contents, is hereby amended by adding
the following double -underlined language:
EDIBLE CANNABINOID PRODUCTS
Purpose and Intent 23-2700
Definitions ......................................... -
2701
License . . 23-2702
Restrictions . . 23-2703
Allowed Sales and Prohibited Actions . . 23-2704
Signage .23-2705
Storage . 23-2706
Compliance Checks and Inspections .............................................................. 23-2707
Violations and Penalties . . 23-2708
Exceptions and Defenses . 23-2709
Section 2. Brooklyn Center City Code, Section 23-003.5, subd. 2 is hereby amended by adding the
following double -underlined language, with the remaining language of Section 23-003.5, subd. 2
remammg unchanged.
Subdivision 2. Criminal History License Background Investigations. The Brooklyn Center
Police Department is hereby required, as the exclusive entity within the City, to do a criminal
background investigation on the applicants for the following licenses within the city:
Tobacco Sales, Sections 23-101 through 23-108
Pawnbrokers, Sections 23-601 through 23-630
Secondhand Goods Dealers, Sections 23-650 through 23-678
Taxicabs, Sections 23-701 through 23-712
Saunas or Sauna Baths, Sections 23-1600 through 23-1615
Massage Parlors, Sections 23-1700 through 23-1720
Rap Parlors, Conversation Parlors, Adult Encounter Groups, Adult Sensitivity Groups,
Escort Services, Model Services, Dating Services or Hostess Services, Sections 23-1800
through 23-1815
Charitable Gambling, Sections 23-1900 through 23-1904
Currency Exchanges, Sections 23-2201 through 23-2205
Edible Cannabinoid Products, Sections 23-2700 through 23-2709
Section 3. Brooklyn Center City Code, Section 23-006.05 is hereby amended by adding the
following double -underlined language and removing the striel language:
Section 23-006.05. PAYMENT PROPERTY TAXES REQUIRED. No license shall be
granted or renewed for tobacco related products; bowling alleys; entertainment; filling stations;
pawnbrokers; secondhand goods dealers; motor vehicle dealerships; saunas and sauna baths;
massage parlors; rap parlors, conversation parlors, adult encounter groups, adult sensitivity groups,
escort services, model services, dancing services, or hostess services; hospitality accommodations;
or -amusement devices; or Edible Cannabinoid Products for operation on any property on which
taxes, assessments, or other financial claims of the state, county, school district, or city are due,
delinquent, or unpaid. In the event a suit has been commenced under Minnesota Statutes, Section
278.01 through 278.03, questioning the amount or validity of taxes, the City Council may on
application waive strict compliance with this provision; no waiver may be granted, however, for
taxes or any portion thereof which remain unpaid for a period exceeding one (1) year after becoming
due.
Section 4. Brooklyn Center City Code, Chapter 23, is hereby amended by adding Sections 23-2700
through 23-2709 to read in their entirety as follows:
Edible Cannabinoid Products
Section 23-2700. PURPOSE AND INTENT
2
A. Minnesota Statutes, section 151.72 expressly allows the sale of certain products
that are intended to be eaten or consumed as a beverave by humans and which
contain a cannabinoid in combination with food ingredients ("Edible Cannabinoid
Products"), including Edible Cannabinoid Products which contain
tetrahvdrocannabinol
B. 2023 Session Law Chapter 63 (the "Cannabis Act") both amended regulations for
Edible Cannabinoid Products and established a framework for adult -use cannabis
in the state of Minnesota. The Cannabis Act established the Office of Cannabis
Management ("OCM") effective July 1, 2023, and the OCM will eventually issue
licenses for all cannabis products and edible hemp products, such as Edible
Cannabinoid Products, but does not cw ently require a business to obtain a license
to sell Edible Cannabinoid Products.
C. The City enacted Ordinance No an interim ordinance establishing
a temporary prohibition on the sale of Edible Cannabinoid Products, which has
expired, thereby leaving a regulatory gap between when businesses can begin
selling Edible Cannabinoid Products in the City and when businesses will be
required to obtain a state -level license to sell edible hemp products.
D. The City recognizes that, based on the most reliable and up-to-date scientific
evidence, the introduction of Edible Cannabinoid Products containing THC
presents a potential threat to the public health, safety, and welfare of the residents
of the City and has determined the establishing a licensing framework for Edible
Cannabinoid Products is in the best interest of the City and its residents.
E. State law does not preempt municipalities from adopting and enforcing local
ordinances to regulate retailers of Edible Cannabinoid Products including, but not
limited to, establishing business licensing requirements. The Cannabis Act directs
the OCM to draft administrative rules and model ordinances related to cannabis and
hemp products which may address Edible Cannabinoid Products, but the timing
and details of those regulations are uncertain. Therefore, the City Council
determines it is appropriate to adopt the regulations in this ordinance without delay.
F. In making these findings and enacting this ordinance, it is the intent of the City to
facilitate responsible retail activities associated with Edible Cannabinoid Products
by allowing legal sale and access without promoting increases in use, and to
discourage violations of Edible Cannabinoid Products -related laws, especially
those which prohibit or discourage the marketing, sale, or distribution of Edible
Cannabinoid Products to persons under the age of 21 years.
G. A licensing requirement for retail establishments that desire to sell Edible
Cannabinoid Products will not unduly burden legitimate business activities of such
retailers who sell or distribute Edible Cannabinoid Products to adults, but will allow
the City to effectively regulate the operation of lawful businesses, limit access to
persons under the age of 21 years, and discourage violations of Edible Cannabinoid
Product -related laws.
Section 23-2701. DEFINITIONS. Except as may otherwise be provided or clearly
implied by context, all terns shall be given their commonly accepted definitions. For the
purpose of Sections 23-2701 through 23-2709, the following definitions shall apply unless the
context clearly indicates or requires a different meaning:
A. "Compliance checks" means the system the City uses to investigate and ensure that
those authorized to sell covered products are following and complying with the
requirements of Sections 23-2701 through 23-2709. Compliance checks shall
involve the use of persons who have reached the age of 17, with parental or guardian
consent if under the age of 18 years, but who are under the age of 21 as authorized
by Sections 23-2701 through 23-2709. Compliance checks shall also mean the use
of persons who have reached the age of 17, with parental or guardian consent if
under the age of 18 years, but who are under the age of 21 who attempt to purchase
covered products for educational, research and training purposes as authorized by
state and federal laws. Compliance checks may also be conducted by other units of
government for the purpose of enforcing appropriate federal, state or local laws and
regulations relating to covered products.
B. "Edible Cannabinoid Product" has the same meaning as is contained in Minnesota
Statutes, section 151.72, subdivision 1 (f). For purposes of this Section, Edible
Cannabinoid Product shall not include any Exempt Product as defined in this
Section.
C. "Exclusive Liquor Store" means an establishment that meets the definition of
exclusive liquor store in Minnesota Statutes, section 340A.101, subdivision 10.
D. "Exempt Product" means an Edible Cannabinoid Product that contains less than
trace amounts of THC and which is not marketed or otherwise labeled as containing
THC. For example, an Edible Cannabinoid Product labeled and marketed as
containing cannabinoi ("CDB") but containing "0% THC" or being "THC Free"
would be considered an Exempt Product.
E. "Moveable place of business" means any form of business operated out of a
truck, van, automobile or other type of vehicle or transportable shelter and not
fixed -address storefront or other permanent type of structure authorized for
sales transactions.
F. "Retail Establishment" means anv place of business where Edible Cannabinoid
Products are available for sale to the general public. Retail establishments shall
include but are not limited to, exclusive liquor stores, grocery stores, convenience
stores tobacco stores, hemp stores, CBD stores, restaurants, and any other business
offering Edible Cannabinoid Products for sale at retail. Retail establishments shall
not include home occupations. Only businesses that are in compliance with all
applicable federal state and local laws rules regulations and ordinances
including zoning regulations, may be considered a retail establishment.
G. "Sale" means any transfer of goods for money, trade, barter or other
consideration.
H. "Self-service merchandising" means open displays of Edible Cannabinoid
Products in any manner where any person shall have access to the Edible
Cannabinoid Products without the assistance or intervention of the licensee or
the licensee's employee The assistance or intervention shall entail the actual
physical exchange of the covered products between the customer and the
licensee or employee. Self- service sales are interpreted as being any sale where
there is not an actual physical exchange of the covered product between the
cleric and the customer.
I "Vending machine" means any mechanical, electric or electronic, or other type
of device that dispenses tobacco, tobacco products or tobacco -related devices
upon the insertion of money, tokens or other f6im of payment directly into the
machine by the person seeking to purchase the covered product.
J. "Youth Oriented Facility" means a public or private elementary, middle, or
high school a state -licensed child or day care program with more than ten
children and any City park.
Section 23-2702. LICENSE
A. License Required No person shall directly or indirectly or by means of a
vending machine or similar device keep for retail sale, sell at retail, or otherwise
dispense any Edible Cannabinoid Product at any place in the City of Brooklyn
Center unless a license therefor shall first have been obtained as provided in
Sections 23-2701 through 23-2709. The City will only issue an Edible
Cannabinoid Product license to a retail establishment located within the City.
No license shall be required to sell or offer for sale any Exempt Product.
B. Application. An application for a license to sell Edible Cannabinoid Products shall
be made on a form provided by the city. The application shall contain the full name
of the applicant the applicant's residential and business addresses and telephone
numbers the name of the business for which the license is sought, and any
additional information the city deems necessary. If the City Clerk detemines that
an application is incomplete the application shall be returned to the applicant with
notice of the information necessary to make the application complete. Upon receipt
of a completed application the City Clerk shall forward the application to the
police department for investigation The police department shall conduct an
investigation of the applicant and application regarding the fitness of the
applicant to hold a license pursuant to the standards set forth in Sections 23-
2701 through 23-2709, and retort the results of its investigation to the Ciiv
Clerk within 30 days of receipt of the application.
C. Action. The City Clerk shall forward the application for consideration by the
City Council at is next regularly scheduled City Council meeting. The City
Council may either approve or deny the license, or it may delay action for a
reasonable period of time as necessary to complete any investigation of the
e__
application or the applicant it deems necessary.
D. Fees. No application for a license under Sections 23-2701 through 23-2709
shall be accepted until the appropriate license or investigation fee is paid in full.
The fee(s) shall be established by the City Council by resolution from time to
time.
E. Transfers. All licenses issued under Sections 23-2701 through 23-2709 shall
be valid only on the premises for which the license was issued and only for
the person to whom the license was issued.
F. Moveable place of business. No license shall be issued to a moveable place of
business. Only fixed -location businesses shall be eligible to be licensed under_
Sections 23-2701 through 23-2709.
G. Term. All licenses issued under this Section shall be valid until March 1 2025
or until the license holder is issued a license by the State of Minnesota Office
of Cannabis Management for the sale of lower -potency hemp edibles,
whichever occurs first.
Section 23-2703. RESTRICTIONS.
A. The following shall be grounds for denying the issuance of a license under
Sections 23-2701 through 23-2709.
1. The applicant is under 21 years of age.
2. The applicant has been convicted within the past five years of any
violation of a federal, state, or local law, ordinance provision, or other
regulation relating to Edible Cannabinoid Products.
3. The applicant has had a license to sell Edible Cannabinoid Products
revoked or suspended within the past five years.
4. The applicant fails to provide any information required on the
application, or provides false or misleading information.
5. The applicant is prohibited by federal, state, or other local law,
ordinance, or regulation from holding such a license.
6. The applicant does not meet all applicable zoning requirements.
7 The applicant proposes to sell Edible Cannabinoid Products in a manner
that does not comply with this chapter or Minnesota Statutes, section
151.72.
8. The applicant proposes to sell Edible Cannabinoid Products for any
premises that is not a retail establishment or proposed to sell Edible
Cannabinoid Products in a manner that does not comply with this
Section.
9 The applicant proposes to sell Edible Cannabinoid Products within 500
feet of a Youth Oriented Facility.
B. No license may be issued:
1. To any applicant who has fees or charges to the City or Hennepin
County that are due and unpaid.
2. For any premises for which property taxes or City utility charges are due
and unpaid.
Section 23-2704. ALLOWED SALES AND PROHIBITED ACTIONS.
A. Sales of Edible Cannabinoid Products must be made in accordance with the
following:
1 In accordance with all requirements on Minnesota Statutes, section
151.72, including, but not limited to, the requirement that the licensee
verify the age of all customers.
2. Must include a face-to-face exchange of an Edible Cannabinoid Product
between the licensee or licensee's employee and the customer. Licensee
may not engage in sales over the phone, via the internet or other remote
means, and may not delivea Edible Cannabinoid Products or engage in
curbside pickup of Edible Cannabinoid Products.
3. For on -site consumption if the following conditions are met:
a The Edible Cannabinoid Product being offered is intended to be
consumed as a beverage;
b The licensee is also licensed under Minnesota Statutes, section
340A for on -sale liquor; and
C. The licensee meets all other requirements and conditions for on -
site consumption of Edible Cannabinoid Products provided in
Minnesota Statues, section 151.72, subdivision 3 (D.
B. it shall be a violation of Sections 23-2701 through 23-2709 for any person to
sell or offer to sell any Edible Cannabinoid Product:
1. By a vending machine:
2. By self-service displays
3. By means of sampling or providing covered products free of charge or
at a nominal cost or
4. By any other means, to any person, in any other manner or form
prohibited by state or local law, ordinance provision, or other regulation.
C. No person shall sell any Edible Cannabinoid Product to any person under the
age of 21.
Section 23-2705. SIGNAGE. At each location where Edible Cannabinoid Products are
sold 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. The sign
shall provide notice that all persons responsible for selling these products must verify, by
means of photographic identification containing the bearer's date of birth, the age of any
person attempting to purchase Edible Cannabinoid Products in accordance with Minnesota
Statutes section 151.72 subdivision 5c.
Section 23-2706. STORAGE. All Edible Cannabinoid Products must be stored in
compliance with Minnesota Statutes, section 151.72.
Section 23-2707. COMPLIANCE CHECKS AND INSPECTIONS. All licensed
premises shall be open to inspection by the City police or other authorized City official during
regular business hours. From time to time, but at least twice per year, the City shall conduct
compliance checks by engaging persons over the age of 17 years, with written permission
from a parent or guardian for persons under the age of 18 years, but less than 21 years to enter
the licensed premise to attempt to purchase covered products. Persons under the age of 21
used for the purpose of compliance checks shall be supervised by City designated law
enforcement officers or other designated City personnel. No person used in compliance
checks shall attempt to use a false identification misrepresenting the person's age, and all
persons lawfully engaged in a compliance check shall answer all questions about the person's
age asked by the licensee or his or her employee and shall produce any identification, if
any exists, for which the person is asked.
Section 23-2708. VIOLATIONS AND PENALTIES.
A Licensees responsible. All licensees are responsible for the actions of their
employees in regard to the sale of Edible Cannabinoid Products on the
licensed premises and the sale of a covered product by an employee shall
be considered a sale by the licensee_ for the purposes of constituting a license
violation under this Section.
B. Misdemeanor prosecution. Nothing in this Section shall prohibit the City from
seeking prosecution as a misdemeanor for any alleged violation of Sections 23-
2701 through 23-2709.
C. Administrative penalties.
1 Licensees If a licensee or employee of a licensee sells covered
products to a person under the age of 21 years or violates any other
provision of Sections 23-2701 through 23-2709 the licensee shall be
charged an administrative penalty of $200 An administrative
penalty of $500 shall be imposed for a second violation at the same
location within 24 months after the initial violation. For a third or
subsequent violation at the same location within 24 months after the
initial violation an administrative penalty of $750 shall be imposed
and the licensee's authority to sell covered products at that location
shall be suspended for not less than 30 days. Upon a fourth violation,
the license will be revoked.
2 Other individuals. Other individuals found to be in violation of
Sections 23-2701 through 23-2709 shall be charged an
administrative fine of $50.00.
3 Statutory penalties. If the administrative penalties authorized to be
imposed by Minnesota Statutes, Section 461.12, as it may be
amended from time to time, differ from those established in this
Section, then the more severe penalty shall prevail.
D. License revocation or suspension. In addition to misdemeanor prosecution
and administrative penalties, violation of Section 23-2701 through 23-
2709 is grounds for revocation or suspension under Section 23-006.
Section 23-709 EXCEPTIONS AND DEFENSES Nothing in this Section shall
prevent the providing of an Edible Cannabinoid Product to a person under the age of 21 as
part of a lawfully recognized religious, spiritual, or cultural ceremony. It shall be an
affinnative defense to the violation of this ordinance for a person to have reasonably relied
upon proof of age.
Barb Suciu, City Clerk
Date of Publication: August 31, 2023
n "', T
April raves, Mayor
10