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HomeMy WebLinkAbout2024.11.25 CCP WORKCouncil/E D A Work S ession City Hall Council Chambers November 25, 2024 AGE NDA AC T I V E D I S C US S IO N I T E M S 1.Brooklyn Center Community S afety and Violence Prevention Commission - City staff seeks direction and approval from the Council on the details for the permanent Brooklyn Center Community Safety and Violence Prevention Commission as outline in Resolution No. 2021-73 (The Daunte Wright and Kobe Dimock-Heisler Community Safety and Violence Prevention Act). 2.Adult-Use Cannabis L egislation City staff is requesting City Council authorize the Planning Commission to proceed with proposed amendments to the City’s UD O and provide direction with respect to amendments regarding the new Adult-Use Cannabis and L ower Potency Hemp Edibles (L P HE ) legislation. As local governments have some jurisdiction, the purpose of the amendments are to adopt new zoning standards relating to land use and buffers. Given the impending issuance of cannabis licenses in 2025, City staff proceeded with submittal of a public hearing notice for amendments to Chapter 35 of the City Code of Ordinances at the December 14, 2024 Planning Commission meeting. C ouncil/E DA Work Session DAT E:11/25/2024 TO :C ity C ouncil F R O M:D r. Reggie Edwards, City Manager T H R O U G H :N/A BY:O C P H S , B C P D, B C F D, Recrea+on S U B J E C T:Brooklyn C enter C ommunity S afety and V iolence P reven+on C ommis s ion Requested Council A con: - C ity staff seeks direcon and approval from the C ouncil on the details for the permanent Brookly n C enter C ommunity S afety and V iolence P revenon C ommission as outline in Resoluon No. 2021-73 (The D aunte Wright and Kobe D imock-H eisler C ommunity S afety and V iolence P revenon A ct). B ackground: City Council reques ted that s taff pres ent for dis cus s ion on the permanent Brooklyn Center Community S afety and V iolence P reven+on Commission prior to making appointment recommenda+ons. B udget I ssues: The implementa+on of the P ublic S afety and V iolence P reven+on C ommis s ion repres ents a s trategic inves tment in community well-being. W hile the propos ed budget provisions are non-fis cal, they are designed to achieve significant community cos t s avings and deliver impac:ul outcomes in the following areas : 1. Emergency Response Efficiency: By fos tering community-driven strategies , the Commission aims to reduce reliance on law enforcement for non-emergency incidents , lowering the as s ociated cos ts of police response w hile increasing community trus t and public safety outcomes . 2. H ealth Care C ost Reducon: P roac+ve violence preven+on and mental health interven+ons can s ignificantly decrease emergency room visits and long-term medical expenses caused by violence-related injuries, allevia+ng the financial burden on healthcare sys tems . 3. Judicial and Correcons Cost M igaon: Early interven+on strategies w ill divert at-ris k individuals from the criminal jus +ce s ystem, reducing court, deten+on, and correc+onal facility cos ts , while focus ing on rehabilita+on and community integra+on. 4. Workforce Producvity G ains: By addressing violence and public s afety concerns, the ini+a+ve fos ters a safer environment that s upports community members’ ability to w ork, learn, and thrive without disrup+on, benefi+ng local economic grow th. 5. Long-Term Community I nvestments: The C ommis s ion’s role in developing preventa+ve s trategies supports s us tainable economic growth by improving neighborhood s tability, increasing property values, and enhancing the quality of life for all residents . This ini+a+ve reflects the C ity ’s commitment to innova+ve public safety approaches that priori+z e cost- effec+ve, community-focus ed solu+ons . The Commission's work aligns with our s hared goals of equity, s afety, and s us tainability for the long-term benefit of Brooklyn C enter residents . I nclusive C ommunity Engagement: I n alignment with Res olu+on 2021-73, the implementa+on of a P ublic S afety and V iolence P reven+on Commission represents a vital step in fos tering a s afe and inclusive community. This ini+a+ve directly res ponds to our collec+ve commitment to equity, transparency, and community collabora+on. B y grounding this effort in inclusive engagement metrics, the C ommission can ensure its strategies resonate with and upliD the community it serves. T his approach aligns with the C ity ’s broader goal of addressing systemic inequi+es while fostering a safer, more unified community. A nracist/Equity Policy Effect: This res olu+on sets a precedent for trans forming public safety through an an+racist and equity lens, leading to: I ncreas ed trus t between residents and city leaders hip. Tangible improvements in the quality of life for marginalized communi+es . A s us tainable framework for addressing the root causes of violence and s ystemic inequi+es . By adop+ng and implemen+ng Resolu+on 2021-73, the City is taking a bold s tep toward building a more just, equitable, and inclusive community. S trategic Priories and Values: Maintain a s trong financial pos i+on, Maintain and enhance public places, I mprove community and employee safety, P rovide quality s ervices w ith fair and equitable treatment, S trengthen community and employee engagement in key decisions, Be an effec+ve partner with other public en++es, S trengthen and diversify bus iness development and housing, I mprove employees’ experience AT TA C H M E N TS : D escrip+on U pload D ate Type S cope of B C Community S afety and V iolence P reven+on C ommis s ion 11/22/2024 Backup M aterial A dvis ory Board P P T P res enta+on 11/22/2024 Backup M aterial 1 Scope of the Brooklyn Center Community Safety and Violence Prevention Commission Purpose: The Brooklyn Center Community Safety and Violence Prevention Commission (CSVPC) will serve as a community-driven advisory body to the City of Brooklyn Center, providing recommendations on public safety initiatives, policies, and practices. Grounded in national best practices and metrics, the commission will promote and make recommendations on holistic approaches to community safety, violence prevention, and justice, while advancing equitable and sustainable outcomes for all residents. Objectives: The Commission’s primary objectives should include: 1. Review and Recommend Public Safety Policies: Assess and make recommendations regarding existing public safety policies, programs, and practices in the City of Brooklyn Center. This includes evaluating the effectiveness of current law enforcement approaches and proposing alternatives where applicable, with a focus on non-violent crisis intervention, prevention, and community-based strategies. 2. Community Engagement and Collaboration: Foster transparent, ongoing dialogue between city leaders, law enforcement, community members, and stakeholders to build trust, enhance community-led safety initiatives, and ensure that community voices are at the center of decision-making processes. 3. Promote Equity in Public Safety: Ensure that public safety policies and practices are equitable and do not disproportionately impact marginalized or underserved populations. This includes providing recommendations for addressing racial disparities in public safety outcomes, particularly as they relate to law enforcement interactions, incarceration, and the justice system. 4. Violence Prevention Strategies: Develop and recommend community-based violence prevention strategies that focus on addressing the root causes of violence, including poverty, mental health, substance use, housing instability, and lack of access to social services. 5. Monitor Public Safety Metrics: Work in alignment with national metrics and best practices to measure the effectiveness of public safety policies and initiatives. Regularly review and report on public safety data, including crime rates, use of force incidents, community satisfaction with law enforcement, and other relevant indicators in collaboration with the City’s public safety departments. 6. Support the Development of Expanded Response Models: Explore and support the implementation of non-law enforcement response models, including but not limited to mental health crisis intervention teams, violence interveners, and social service programs designed to provide holistic responses to non-violent incidents. 2 Roles and Responsibilities: • Provide Recommendations to the City Council: The Commission will submit regular recommendations to the Brooklyn Center City Council on policies and practices related to public safety and violence prevention. These recommendations will be evidence-based, considering national best practices and community input. • Facilitate Community Forums and Workshops: Organize public forums, listening sessions, and workshops to engage community members, gather feedback, and foster ongoing conversations about public safety. The Commission will actively work to ensure diverse voices, particularly from underrepresented communities, are included in these dialogues. • Collaborate with Other City Departments and Agencies: The Commission will collaborate with relevant city departments, local law enforcement, public health agencies, and community-based organizations to support the implementation of recommended policies and programs. • Develop an Annual Report: The Commission will produce an annual report detailing its recommendations, the status of implemented changes, and an evaluation of public safety metrics. This report will be made available to the public and shared with the City Council. Membership: • The Commission will be composed of 9 members, appointed by the Mayor (utilizing council input as desired). Membership will reflect a broad cross-section of the Brooklyn Center community, including residents, business owners, faith-based leaders, educators, youth representatives, and experts in public safety, mental health, social services and related fields. The majority of Commissioners must be City residents. (Consideration for “at large representation and city staff representation as “non-voting members”). City staff (OCPHS, BCPD, BCFD, Recreation) will review applications and forward recommendations to City Clerk for Mayor/Council review and appointment (recommend interview and application edits) • Qualifications: Members should have demonstrated interest or have direct experience in public safety, the criminal justice system, community engagement, public health, violence prevention, and/or social justice. The Commission will prioritize members who represent communities most affected by public safety issues and/or hold public safety or public health credentials. • Term Length: Members will serve two-year terms, with the option for reappointment for an additional term. To ensure continuity, initial appointments will be staggered so that approximately half of the members’ terms expire in alternating years. 3 Meetings: • The Commission will meet quarterly or as needed, depending on the urgency and scope of issues under review. • Special meetings or subcommittees may be formed to focus on specific areas such as youth engagement, mental health crisis response, or community-police relations. National & Local Examples of Similar Commissions: Eugene, Oregon’s Civilian Review Board (CRB): This board reviews police department actions and policies, especially focusing on equity, transparency, and the handling of complaints. They emphasize civilian oversight and foster ongoing dialogue between law enforcement and the community, similar to the objectives of Brooklyn Center's CSVPC. Eugene, Oregon’s Civilian Review Board (CRB) • Commission Make-Up: o The CRB consists of 5–7 volunteer members appointed by the City Council, representing a diverse range of community perspectives. Members are typically residents who demonstrate a commitment to public safety, accountability, and transparency. o The board includes individuals with experience or expertise in fields such as law, social work, public safety, or community advocacy. • Key Outcomes: o Transparency and Accountability: The CRB reviews internal police investigations, especially cases involving use of force and misconduct complaints. This board has increased transparency by providing independent oversight and reporting findings to the public. o Enhanced Public Trust: The CRB’s reviews have resulted in increased community confidence in how complaints against police officers are handled. By reviewing both the investigation process and outcomes, they promote community trust in law enforcement’s accountability. o Policy Recommendations: The CRB provides recommendations to the police department for policy changes, including those focused on reducing racial disparities, increasing de-escalation tactics, and improving community relations. 4 Minneapolis, Minnesota’s Office of Violence Prevention: Minneapolis has implemented a community- led violence prevention strategy that includes initiatives such as community-based outreach, mental health support, and violence interrupters. The initiative focuses on addressing the root causes of violence and fostering community resilience, aligning closely with the goals of Brooklyn Center’s CSVPC. Minneapolis, Minnesota’s Office of Violence Prevention (OVP) • Commission Make-Up: o The OVP is staffed by professionals with expertise in public health, social services, violence prevention, and community engagement. o It works closely with a Community Advisory Board made up of community leaders, service providers, and individuals with lived experience related to violence, with the aim to ensure the program remains community-centered. • Key Outcomes: o Group Violence Intervention (GVI) Strategy: A data-driven strategy focusing on individuals most at risk for involvement in violence. The program offers social services, mentorship, and opportunities for personal development, which has been credited with helping reduce gang-related shootings and homicides. o Next Step Hospital-based Intervention: This initiative provides immediate support and resources to individuals who have been injured due to violence. It helps survivors transition to non-violent lifestyles and prevents retaliation. o Youth Violence Prevention: The OVP runs youth-focused initiatives that aim to stop violence before it starts by providing young people with mentorship, education, and employment opportunities. o Community Empowerment: The office has successfully mobilized neighborhood-based organizations and residents to take an active role in reducing violence in their communities. Los Angeles, California’s Civilian Oversight Commission: This commission provides oversight of the Los Angeles County Sheriff’s Department, with a focus on transparency, public engagement, and addressing inequities in law enforcement practices. The commission reviews and recommends policies, fostering a model of accountability and community involvement. Los Angeles, California’s Civilian Oversight Commission (COC) • Commission Make-Up: o The COC is made up of nine commissioners, appointed by the Board of Supervisors. The commissioners represent a cross-section of the community, including civil rights 5 attorneys, criminal justice advocates, public health professionals, and retired law enforcement officers. o The commission has the support of an Inspector General’s office, which conducts investigations and audits of the Los Angeles County Sheriff’s Department (LASD). • Key Outcomes: o Policy and Practice Reviews: The commission has reviewed and recommended changes to LASD policies on the use of force, mental health response, and training programs. For instance, it has advocated for improved de-escalation tactics and trauma-informed care approaches for dealing with vulnerable populations. o Public Transparency: Through public meetings, the COC has increased transparency between the sheriff’s department and the community. These meetings allow for public input on key issues, such as police accountability, use of force, and misconduct cases. o Independent Investigations: The COC, in collaboration with the Inspector General, has played a critical role in pushing for independent investigations into high-profile incidents, including officer-involved shootings and allegations of excessive force. o Focus on Mental Health: The commission has pushed for greater investment in mental health resources and non-police responses to mental health crises. Richmond, California’s Office of Neighborhood Safety (ONS): The ONS is a violence prevention program that works directly with individuals most at risk for involvement in violence. They focus on holistic support, such as mentoring, employment assistance, and crisis intervention, which is in line with Brooklyn Center's aim to develop community-based, non-law enforcement safety strategies. Richmond, California’s Office of Neighborhood Safety (ONS) • Commission Make-Up: o The ONS is a division within the city’s government, staffed by professionals in public health, violence prevention, and community engagement. It collaborates with violence interrupters, known as "Neighborhood Change Agents," who are community members trained to mediate conflicts and prevent violence. o The ONS also works with other city departments and nonprofit organizations to coordinate services for at-risk individuals. • Key Outcomes: o Reduction in Gun Violence: Since its inception, the ONS has contributed to a significant decrease in gun violence and homicides in Richmond, particularly among young men at high risk of being involved in shootings. o Operation Peacemaker Fellowship: This innovative mentorship program targets individuals most at risk of engaging in violent crime. Participants, called “fellows,” 6 receive mentorship, life coaching, and financial incentives for achieving personal and community goals. o Crisis Intervention: ONS has successfully implemented conflict mediation and crisis intervention strategies to prevent retaliatory violence following violent incidents. o Employment and Education Opportunities: By providing access to job training, education, and mental health services, ONS has helped participants reintegrate into society and reduce their involvement in violent crime. St. Cloud, Minnesota’s Police Advisory Board • Commission Make-Up: o Composed of diverse community members, including individuals with lived experiences, representatives from underrepresented groups, and stakeholders in public safety. o Works collaboratively with the St. Cloud Police Department to provide recommendations on policing practices and community engagement. • Key Outcomes: o Policy Recommendations: The board has provided insights leading to reforms in police-community relations, including training on implicit bias and de-escalation techniques. o Community Engagement: Facilitates regular listening sessions to ensure the voices of all community members, particularly those from marginalized groups, are heard and considered. o Crisis Intervention Training: Advocates for enhanced officer training in mental health response, contributing to a decrease in force-related incidents. o Trust Building: Establishes a bridge between law enforcement and the community, fostering trust through transparency and accountability. Duluth, Minnesota’s Police Advisory Board • Commission Make-Up: o The board is composed of local community members, business leaders, youth representatives, and advocates from various social services organizations. o Partners with the Duluth Police Department advise on policies and practices that address public safety with an equity and inclusion lens. 7 • Key Outcomes: o Equity in Policing: Developed and implemented a framework for equitable policing practices, leading to increased community trust. o Neighborhood Engagement: Initiates localized outreach programs in historically underserved areas to strengthen relationships between officers and residents. o Mental Health Support Integration: Works closely with the Duluth Police Department to incorporate mental health professionals into response teams for behavioral health-related calls. o Data-Driven Decision Making: Promotes the use of disaggregated data to track policing impacts and adjust strategies to reduce disparities in outcomes for vulnerable populations. These examples demonstrate a range of successful outcomes and structures that align with the objectives of Brooklyn Center’s Community Safety and Violence Prevention Commission. They emphasize the importance of community engagement, transparency, and holistic approaches to violence prevention and public safety. National Metrics for Success: The Commission will measure its impact based on national public safety and community wellness indicators, including: 1. Reduction in violent crime rates and use of force incidents in the city. 2. Increased community trust and satisfaction with public safety services. 3. Successful implementation of alternative response models, such as mental health crisis teams. 4. Improvement in racial and socioeconomic equity in public safety outcomes. 5. Community engagement levels in forums, workshops, and decision-making processes. Reporting and Accountability: • The Commission will submit annual updates to the City Council, including progress on key initiatives and any emerging challenges. • Annual reports will provide a detailed analysis of the year’s work, highlighting achievements, areas for improvement, and recommendations for the following year. 8 Conclusion: The Community Safety and Violence Prevention Commission will be a key driver in public safety in Brooklyn Center. By centering community voices and focusing on prevention, equity, and innovation, the Commission will ensure that Brooklyn Center’s approach to public safety is responsive to the needs of its residents and reflective of national best practices. Community Advisory and Review Boards Background •There are approximately 18,000 law enforcement agencies in the United States. •As of 2019 there were estimated to be about 150- 200 Civilian Review Boards in the United States. •There are approximately 422 law enforcement agencies in Minnesota. •Only three Civilian Review Boards were found in Minnesota. •National Association for Civilian Oversight of Law Enforcement (NACOLE) is the leading professional organization identifying best practices and resources for review boards. 2 Goals of Review Boards 1. To improve public trust in law enforcement 2. Ensuring public input in the police complaint process 3. Promoting fair and thorough investigations 4. Increased transparency in the complaint process 5. Deterring police misconduct (Office of Justice Programs, 2016) 3 Types of Review Boards 1. Investigation Focused 2. Review Focused 3. Auditor/Monitor Focused 4 Investigation Focused Review Board Model •Conducts independent investigations of police complaints. o Investigations may parallel or replace Internal Affairs (IA) investigations. •Investigations typically completed by civilian investigators. •Organization typically operates separately of Law Enforcement. Examples: San Francisco, CA; Washington, D.C.; and San Diego County, CA 5 Review Focused Review Board Model •Generally made up of a citizen-volunteer review board and often include police officers. •Typically reviews completed IA and complaint investigations. •Usually makes complaint finding recommendations to Chief. •May receive complaints from the community. •This is the most common type of review board. Examples: St Paul, MN; Indianapolis, IN; and Albany, NY 6 Auditor/Monitor Focused Review Board Model •May participate in the IA investigation process. •May evaluate and review police policies and practices and make recommendations for change. •May also evaluate for larger patterns of misconduct. •Members are typically well-trained in analytics and tend to be experts in policing. Examples: San Jose, CA; Los Angeles, CA; and New Orleans, LA 7 Types of Review Boards 8 Investigation Focused Agencies Review Focused Agencies Auditor/Monitor Agencies Receive Complaints Frequently Frequently Frequently Decide How to Handle a Complaint Frequently Rarely Sometimes Review Police Investigations Sometimes Frequently Frequently Conducts Independent Investigations Frequently Rarely Sometimes Types of Review Boards 9 Investigation Focused Agencies Review Focused Agencies Auditor/Monitor Agencies Recommend Findings Frequently Frequently Frequently Recommend Discipline Sometimes Sometimes Sometimes Have Civilians on a Board Frequently Frequently Frequently Have Paid Professional Staff Frequently Sometimes Frequently Costs Most Expensive Least Expensive 2 nd Most Expensive Continued Term: 3-Year terms; no members can serve more than two terms in lifetime. Other Duties: Advise on department policy and prepare an annual report. Budget: About $16,000 (2019) and members receive $50 per meeting attended. Meeting Frequency: Minimum of quarterly and up to twice a month. Meetings are subject to open meeting law. 10 City of St. Paul Agency Size: 629 Officers Review Board Type: Review Focused Authority: Ordinance; Ord. No. 102 Dept. Responsibility: Human Rights Department (full-time Review Coordinator) Final Discipline Authority: Chief of Police Board Size: 9 Community Members. Officers were removed from the panel in late 2017/early 2018 11 City of St. Paul Continued •Complaints can be received through the Police Department or the Human Rights Department. •Initial complaints are reviewed by a Senior Commander and assessed for completeness and a policy violation. •Investigations are completed by St. Paul Internal Affairs. 12 St. Paul Complaint Process Police Civilian Internal Affairs Review Board (PCIARC) •Review Board reviews all IA investigations involving external complaints regardless of nature and internal complaints related to: o Excessive Use of Force o Inappropriate Use of Firearms o Discrimination o Racial Profiling o Improper Conduct/Procedures o Poor Public Relations o Any other complaints referred to the group by Human Right Department, Mayor or Chief of Police 13 St. Paul Complaint Process Police Civilian Internal Affairs Review Board (PCIARC) Continued •Review Board reviews the investigative file to include Body-worn video and makes a recommendation to the Chief for complaint disposition and discipline, if any. Recommendation then forwarded to the Chief of Police. Board does not receive the IA Investigators recommendation. If the board sustains a complaint they are provided access to the officer’s file to help inform a discipline decision. •Complainant may offer testimony during the hearing. If this occurs the officer(s) may also offer testify. •In 2019 the Chief of Police modified the PCIARC’s discipline recommendation 7 times. 14 St. Paul Complaint Process Police Civilian Internal Affairs Review Board (PCIARC) Continued •Possible Dispositions include •Unfounded-Allegation is false or not factual •Exonerated- Incident complained of occurred, but was lawful and proper •Not Sustained- Insufficient evidence to either prove or disprove the allegation •Sustained- The allegation is supported by sufficient evidence •Policy Failure- The allegation is factual. The officer followed proper department procedures, which have been proven to be faulty. •Recommended discipline may include: •Oral Reprimand •Retraining •Written Reprimand •Suspension- not more than 30 days •Demotion •Termination 15 St. Paul Complaint Process Police Civilian Internal Affairs Review Board (PCIARC) Continued •Board Member Selection •Made by the Mayor based off recommendations from the Human Rights Department. •Training (prior to assuming board duties): o Topics related to police work o Investigation o Relevant Law o Cultural Competency o Racial Equity o Implicit Bias o Participate in Ride Along with Patrol Officers 16 St. Paul PICARC Board Selection Police Civilian Internal Affairs Review Board (PCIARC) St. Paul PICARC Board Selection Police Civilian Internal Affairs Review Board (PCIARC) •Failure to complete the required training, data practices violation or missing more than three trainings will result in removal from the Board. 17 Continued 18 Agency Size: Approx. 800 Review Board Type: Investigative and Review-focused Authority: Ordinance Ord. No. 172 Dept. Responsibility: Department of Civil Rights Final Discipline Authority: Chief of Police Board Size: Minimum of seven members; four appointed by Council, and three appointed by mayor. Individual review panels consist of two citizen and two officers at Commander level. Panels rotate members based off meeting availability. City of Minneapolis 19 Term: 2-4 years Other Duties: Prepares Annual Report Budget: Members receive $50 per meeting, OPCR budget is $1,036,000. OPCR consists of 5-6 full-time staff. Meeting Frequency: Minimum once per month and may meet more as necessary. City of Minneapolis Continued Minneapolis Complaint Process Office of Police Conduct Review (OPCR) •Complaints may be made through the OPCR or Minneapolis PD. •Complaints internal and external are then forwarded to MPD IA. •A preliminary investigation is conducted. This primarily consists of collecting data such as body-worn camera, CAD data etc.… •Preliminary investigation is forwarded to IA Commander and Director of OPCR (civilian) for review. •Complaints may be either dismissed, result in non-disciplinary coaching, mediation (rare) or to an Investigation. 20 Minneapolis Complaint Process Office of Police Conduct Review (OPCR) •If the complaint is investigated then the complaint may be investigated by sworn MPD investigators or non-sworn OPCR investigators. •OPCR will not investigate: o Complaints involving an officer(s) and/or civilian staff related protected class discrimination (such as harassment based on gender, race, sexuality etc.…). o Complaints that are more than 270 days old or more. o Complaints only involving civilian Minneapolis Staff. •Complaints are decided to either go to a civilian or sworn investigator based on background experience and any subject matter expertise the investigator possesses. 21 Continued Minneapolis Complaint Process Office of Police Conduct Review (OPCR) •After an investigation is completed the following can occur: o Complaint may be dismissed, result in mediation or sent to the Precinct Commander for Coaching or; o The case may go to the OPCR review panel if the complaint involves: 22 Continued Use of excessive force Inappropriate language or attitude Harassment Discrimination of police services based on color, creed, religion Theft Failure to provide timely police protection Retaliation Criminal Misconduct (non-review for criminal charges) Minneapolis Complaint Process Office of Police Conduct Review (OPCR) •Review panel determines merit or no merit on the complaint and forwards to the Office of the Chief of Police or the investigation may be sent back to IA for further investigation. •Merit- Recommendation indicating that a preponderance of the evidence supports an allegation in a complaint. •No Merit- Recommendation indicating that a preponderance of the evidence does not support an allegation in a complaint. •Discipline recommendation is decided by police personnel usually at the Chief/Deputy Chief level. 23 Continued Minneapolis Review Board Board Member Selection Seven members are appointed by the Council (4) and Mayor (3). Training Failure to complete the required training, by majority of City Council vote, incompetence, misconduct or neglect of duty will result in removal from the board. 24 Minneapolis Review Board Training Continued… •Attend annual training session arranged by Civil Rights Department •Police Use of Force Training •Data Practices Act •Open Meeting Law •Ethics and Conflict of interest •Public Employee Labor Relations Act (PELRA) •Complete portions on Minneapolis PD Citizen’s Academy within two years of appointment. 25 Continued 26 Agency Size: 111 Review Board Type: Review-focused Authority: Ordinance; Ord. No. 260 Dept. Responsibility: Police Department Final Discipline Authority: Chief of Police Board Size: 9 (6 Citizens and 3 Officers) Term: Three years for both citizens and officers. No officer may serve more than two terms. City of St. Cloud 27 Other Duties: Annual Report Budget: Board members are not paid. Meeting Frequency: As Needed (Board met three times in 2019) City of St. Cloud Continued St. Cloud Complaint Process •Civilian Review Board will review all external complaints and internal complaints related to: •Excessive Force •Inappropriate Use of Firearms •Discrimination •Other cases presented to the board at the discretion of the Chief of Police •The Board does not review internal complaints unless they meet the above categories. 28 Continued St. Cloud Complaint Process Complaints are filed with the police department. •A preliminary investigation is done and then given to the Chief of Police. •If the Chief determines more information is needed then an IA is completed. •If the Chief determines no further information is needed then the complaint and preliminary findings go to the review board. •The board then may concur with the Chief or send back the complaint for further investigation. 29 St. Cloud Complaint Process •Review board does not recommend discipline. They only propose a complaint finding. •Review board does not have access to the officer’s file. •In the past 5 years the review board and Chief of Police have agreed on all complaint findings. 30 St. Cloud Complaint Process Board Member Selection •Citizen members are appointed by the Mayor and approved by the Council. All officers shall be recommended to the Mayor for appointment. Two members must represent Law Enforcement Labor Services (LELS). At least one officer and one supervisor. •Chief appoints a review coordinator to prep for meetings. 31 Continued St. Cloud Complaint Process Training (prior to assuming board duties) •Topics related to police work •Investigations •Relevant Law •Cultural Diversity •Officer Ride Along 32 Continued St. Cloud Complaint Process Training Continued… Failure to complete necessary training, violating data practices or non-attendance of three or more meetings may cause termination of appointment as recommended by the Chief of Police and concurred by the mayor. 33 Continued Department Comparison 34 St. Paul Minneapolis St. Cloud Brooklyn Center Agency Size 629 Officers Est. 800 111 49 Ordinance Yes; Ord. No. 102 Yes; Ord. No. 172 Yes; Ord. No. 260 * None as of yet Department of Responsibility Human Rights Civil Rights Police Department Police Department Final Discipline Authority Chief of Police Chief of Police Chief of Police Chief of Police Size of Board 9 7 (2 Civilians and 2 Officers) 9 (3 Officers) 7 (2 officers and selection by each council member) Term Lengths 3-Year Terms or 2 Lifetime Terms 2-4 Years 3 Years TBD Department Comparison 35 St. Paul Minneapolis St. Cloud Brooklyn Center Frequency of Meetings Quarterly (Min. or Twice per Month (Max.) Once per Month or More as Necessary As Needed As needed Training Required Yes Yes Yes Yes Other Duties Advise on Policy and Annual Report Prepares Annual Report Annual Report Annual Report (other TBD) Budget $16,000 / $50 per member per meeting $50 per meeting OPCR $1,036,000 Unpaid TBD Type of Board Review-focused Investigative and Review- focused Review-focused Review-focused Continued Notable Findings 1. St. Cloud and St. Paul both require the Chief and review board chair to meet within 5 days if the Chief disagrees with the boards complaint findings. Goal of this is an attempt to understand each others concerns. 2. Approximate national citizen complaint sustain rate is about 10%. No research was found to conclude that review boards sustain complaints at a higher rate than departments do. (Walker) 3. The Minnesota Police Officers Discipline Procedures Act (PODPA, MN. Stat. 626.89 Subd. 17) prohibits review boards from making a finding of fact on a complaint or imposing a discipline. Review boards recommendations are not binding. 36 Continued… Notable Findings 4. The complaints St. Cloud, Minneapolis and St Paul’s review board look at appear consistent with what other national review boards handle. •If a Brooklyn Center review board were to have the same criteria. 23 complaints would have been reviewed in 5.4 years or just over 4 complaints a year (External complaints only). •If you were to include internal complaints the board would have reviewed 27 complaints over 5.4 years or about 5 complaints a year. 5. Actual case discussions in Minneapolis, St. Paul and St. Cloud are closed to the public (Mn. Stat. 13D.05 Subd. 2). 37 Continued •Must be willing to be impartial to ensure fairness. •Communicate effectively with others. •Make group decisions. •Maintain confidentiality and be trusted with sensitive data. •Commit time to attend meetings, attend trainings and review documentation. •No minimum education needed. •Resident of city. •Complete background check (necessary in order to review sensitive CJIS data). 38 Board Member Selection Criteria •At least 18 years of age. •Must be willing to handle public scrutiny when making decisions. •Complete application and potential interview or supplemental questions. (St Paul PCIARC, Mpls) 39 Board Member Selection Criteria Continued Staff Time •All cities have a board coordinator. In Minneapolis and St. Paul this person is outside the police department and prepares meetings, handles administrative tasks during meetings, prepares recommendations and finding letters and assists with outreach and the annual report. In St. Cloud this appears to be a collateral duty for a department employee. •Officer time to attend review board meetings (Complaint investigator or an officer speaking on his/her behalf). •Minneapolis and St. Paul pay their commissioners $50 a meeting. Overall costs to be determined by amount of meetings and number of commissioners. St. Cloud does not pay commissioners. 40 Anticipated Costs Training Costs To be determined based on identified training criteria and training time. Equipment St. Paul provides commissioners with laptops and two weeks prior to the meeting. All investigative material is pre-loaded onto the laptop for commissioner review prior to the meeting. This is more efficient than printing multiple copies of a file. Cost per computer is about $1,000-1,500 (BC IT). 41 Anticipated Costs Continued •Ordinance should be well defined to explain role of review board and what complaints they will review. This has been an issue in other cities. •Given the low volume of complaints what other tasks would a review board perform? •Policy Recommendations (non-binding)? •Community Outreach? •Public reading of Annual Report and overview/explanation of complaint process? 42 Additional Consideration •Trust is Paramount o Officers, even in a minority role, should be on the panel in order to ensure buy-in with this process. Without officers on the panel increased police-community relations and cross dialogue becomes difficult to achieve. (21st Century Policing) •Current Brooklyn Center Policy requires all complaint investigations be completed within three months of the department becoming aware of the allegation. Extensions may be granted by the Chief of Police (Personnel Complaints, 1010.6.5). o Does the added step of a review board give a perception of a delay in accountability? o Does the delay in complaint resolution adversely impact complainant/officer satisfaction? 43 Additional Consideration Continued Resources NACOLE Website https://www.nacole.org/about_us Recommended Training Criteria https://www.nacole.org/recommended_training_for_board_and_commission_members 44 Resources 45 Review Board Agency Websites •Albany, NY https://www.albanycprb.org/ •Indianapolis, IN https://www.indy.gov/agency/citizens-police- complaint-office •Los Angeles, CA https://www.oig.lacity.org/ •New Orleans, LA http://nolaipm.gov/main/?page=home •San Diego County, CA https://www.sandiegocounty.gov/clerb/ •San Francisco, CA https://sfgov.org/dpa •San Jose, CA https://www.sanjoseca.gov/your- government/appointees/independent-police-auditor •St. Paul, MN https://www.stpaul.gov/departments/human-rights-equal- economic-opportunity/police-civilian-internal-affairs- review-3 •Washington, D.C. https://policecomplaints.dc.gov/ Continued Resources Ordinances •St. Paul https://library.municode.com/mn/st._paul/codes/c ode_of_ordinances?nodeId=PTIIIADCO_TITVCOCO_ CH102POVIINAFRECO •Minneapolis http://minneapolis- mn.elaws.us/code/coor_title9_ch172 •St Cloud https://ci.stcloud.mn.us/DocumentCenter/View/36 7/260-St-Cloud-Police-Citizens-Review- Board?bidId= Statutes •PELRA https://npelra.org/ •PODPA https://www.revisor.mn.gov/statutes/cite/626.89 46 Continued C ouncil/E DA Work Session DAT E:11/25/2024 TO :C ity C ouncil F R O M:D r. Reggie Edwards, City Manager T H R O U G H :J esse A nders on, C ommunity D evelopment D irector BY:G inny M cI ntosh, P lanning M anager S U B J E C T:A dult-Use Cannabis L egis la3on Requested Council A con: City s taff is reques 3ng C ity C ouncil authoriz e the P lanning Commission to proceed with propos ed amendments to the City ’s U D O and provide direc3on w ith res pect to amendments regarding the new A dult- Use Cannabis and L ow er Potency H emp Edibles (L P H E ) legisla3on. A s local governments have some juris dic3on, the pur pos e of the amendments ar e to adopt new zoning s tandards r ela3ng to land us e and buffers. G iven the impending is s uance of cannabis licens es in 2025, City staff proceeded with s ubmi<al of a public hearing no3ce for amendments to C hapter 35 of the City C ode of O rdinances at the D ecember 14, 2024 P lanning C ommis s ion mee3ng. B ackground: S ec3on 35-71300 of the C ity ’s U nified D ev elopment O r dinance (U D O ) outlines that an amendment to the U D O may be ini3ated by the C ity C ouncil, the P lanning C ommis s ion, or a C ity P roperty O w ner. C ity planning s taff had ini3 ally requested a special mee3ng of the P lanning C ommis s ion to dis cus s upcoming changes s urrounding regulatory changes by the M innes ota O ffice of C annabis M anagement (O C M ) to adult-us e cannabis ; how ev er, w hen s taff was unable to obtain a quorum, s taff w as directed by the City A<orney to hold a w ork ses s ion w ith C ity C ouncil as a firs t s tep in addressing propos ed amendments to the C ity ’s U D O. I t is expected there will be addi3onal required amendments to other City Code chapters to addres s changes to adult-cannabis us e, of w hich poten3ally include C hapter 23 (G eneral L icensing), C hapter 11 (L iquor), Chapter 13 (Parks and Recreaon), and C hapter 19 (P ublic Nuisances and Pey Offenses). The immediacy s urrounding the request for a work ses s ion is related to the fact that the an3cipated amendments to the City ’s U D O will take longer to address, and it is an3cipated that licenses w ill begin to be issued in early 2025. S hould the C ity C ouncil w ant to purs ue a registra3on proces s , C ouncil w ill need to s eparately adopt a registra3on proces s by ordinance amendment for the regis tra3on of any new cannabis bus iness—this impacts Chapter 23. I . B ackground I n J uly 2022, Minnes ota L egis lature made changes to M innesota S tatutes 151.72, that impacted the legal s ale of products containing cannabinoids derived from hemp, and allow ed consumers aged 21 or older to purchas e products containing T H C derived from hemp. Edible cannabinoid products could not contain more than five milligrams of any tetrahydrocannabinol (T H C) in a s ingle s erving, or more than a total of 50 mgs of T H C per package. Brooklyn Center currently has 16 busines s es regis tered with the s tate for the s ale of hemp-derived cannabinoids , including tw o municipal liquor stores and the golf course. I n 2023, the S tate of M innesota passed the A dult U s e C annabis A ct, legaliz ing the pos s ession, us e, and grow th of recrea3onal marijuana for individuals aged 21 and older. The Minnes ota O ffice of C annabis Management (O C M) is responsible for developing the licensing proces s for a total of 13 different busines s types and es tablishing rules and logis 3cs for retail opera3ons, dis pensaries , produc3on, w holesale, micro/mezzo busines s es, and delivery s ervices , including both cannabis and low-potency hemp edibles (L P H E). The C ity of Brooklyn C enter authorized a study and impos ed a moratorium (interim ordinance) on the establis hment of new uses , or the expansion of exis 3ng us es related to the s ale of T H C products in 2022 (O rdinance No. 2022-02). A ddi3onally, the City establis hed an ordinance to prohibit the use of cannabis and hemp products in public places (O rdinance No. 2023-05), and amended Chapter 23 of the C ity C ode to address the licensing and sale of edible cannabinoid products w ithin the C ity was adopted (O rdinance No. 2023-06). At the 3me, then City A<orney Jas on H ill had prepared a pres enta3on aHer the legaliz a3on of L P H E, outlining legisla3on and further steps the C ity would need to follow to be compliant w ith S tate S tatute. P urs uant to the s tatutory scheme under new M innesota S tatutes S ec3on 342, local governments have dis cre3on over z oning, registra3on of bus inesses in each dis trict, and conduc3ng random compliance checks on licensed bus inesses w ithin the C ity. L ocal governments have the limited authority to s us pend licenses for non-compliance; however, it must no3fy the O C M immediately. The S tate of M innesota has iden3fied January 1, 2025, as the date cannabis licens es will begin to be is s ued, and any local enacted moratoria is to expire. Recent ar3cles publis hed on November 19, 2024, noted that the O C M is an3cipated to have its first licens e lo<ery for social equity license applicants the week of D ecember 2, 2024. W hile C ity staff believes applica3ons w ill not come through un3l early 2025, it is in the City ’s bes t interest to finaliz e the regulatory s tructure and registra3on proces s before the s tate begins is s uing licens es. I I . O ffice of C annabis M anagement The role of the O ffice of Cannabis M anagement (O C M ) is to regulate the cannabis indus try s tatew ide and provide guidance on the standards for the S tate. The O C M requires all cannabis and low er potency hemp bus inesses to obtain a license once the S tate of Minnes ota has establis hed the licensing proces s , and includes the D ivis ion of Medical C annabis (effec3ve July 1, 2024), w hich operates the medical cannabis program, and the D ivis ion of S ocial Equity, which promotes development, s tability, and safety in communi3es that have experienced a dis propor3onate, nega3ve impact from cannabis prohibi3on and us age. The O C M released a G uide for Local G overnments on A dult Use Cannabis in A ugus t 2024 (a<ached). This guide provides direc3on on licensing, zoning, busines s types , and a model ordinance. The O C M also provided a F irst D raH of P ropos ed C annabis Rules . The O ffice of C annabis Management, through Chapter 342, is tas ked with es tablishing rules and policy and exercising regulatory authority over the M innesota cannabis indus try. The O C M further: G overns the applica3on and licens ing process for cannabis and hemp busines s es, including the s pecific requirements for each type of license and their respec3ve busines s ac3vi3es; and Conducts enforcement and inspec3on ac3vi3es acros s Minnes ota cannabis and hemp indus tries . The O C M is further tasked w ith no3fying ci3es of an applica3on for z oning compliance. I I I . L ocal Control/N ext S teps Local governments may not is s ue outright bans on cannabis bus iness, or limit opera3ons in a manner beyond w hat is provided by a s tate law. W ith that s aid, City s taff w ill be working w ith the C ity ’s res pec3ve P lanning C ommis s ion and C ity C ouncil to iden3fy and amend, as necessary, any City Codes to address the new provisions rela3ng to adult-us e cannabis law. City s taff w as recently in communica3on with the city of Bloomington regarding w hat meas ures they had taken regarding cannabis , and has reviewed documenta3on from Bloomington, Brooklyn Park, Crystal, Minneapolis, Richfield, and Ros eville. C annabis Retail Restricons (as laid out in M N S tatutes 342.13) Local governments may limit the number of retailers and microbus inesses /mezzobusines s es with retail endors ements, but in no case can there be less than one retail loca3on per 12,500 residents . A s the City of Brooklyn Center has 33,982 res idents per the 2023 Minnes ota S tate D emographer Es3mates, the C ity w ould be expected to provide for at least three (3) of these license types . The C ity of Brooklyn C enter would not be obligated to seek out a busines s to register as a cannabis busines s if it has not been approached by a poten3al applicant, but the City cannot prohibit the es tablishment of a bus iness if the popula3on requirement is not met. G enerally, cannabis licenses allow for mul3ple retail loca3ons in Minnes ota to operate under a s ingle license, with the follow ing limita3ons : Retailers: up to 5 retail loca3ons M ezzobusinesses: up to 3 retail loca3ons M icrobusinesses: up to 1 retail loca3on M edical cannabis combinaon businesses: 1 retail loca3on per congres s ional district, but ability to cul3vate at more than 1 loca3on within other limita3ons on cul3va3on A ll other license types: 1 license permits the opera3on of 1 loca3on Cannabis retail s ales must be in standalone s hops as the primary use and cannot be accessory to another us e. N ote: S tate law requires the O C M to is s ue a license to a city or county s eeking to operate a single municipal cannabis s tore. This store is not included in the minimum number of regis tra3ons required. Brooklyn Center w ill be tas ked with approving text amendments to C hapter 35 of the Unified D evelopment O rdinance. The C ity C ouncil w ill have to addres s licensing s tandards and ul3mately adopt an amended ordinance if it would like to have any say in where these establis hments can be located. Below are is s ues that need to be addressed, which have been iden3fied as areas w here the City has the authority to provide oversight: Land Use/Zoning: I den3fying which zoning dis tricts cannabis busines s es can operate w ithin. The provided G uide for L ocal G over nments on A dult-U se C annabis prov ides some dir ec3 on on w here certain licens e ty pes might be located in a community, and a table of “comparable dis tricts,” as well as certain “municipal cons ider a3 ons ,” such as poten3al nuis ances like odors , s ecurity, transporta3on, on-site cons ump3on, and fleet vehicle storage. I t s hould be noted that any developments w ith certain covenants and res tric3 ons prohibi3ng the grow ing, delivering, transpor3ng, dis tribu3 ng, or s ale of cannabis w ould prevail unles s the res tric3ons were amended to allow for the us e. A s an example, S hingle C reek Cros s ing (P lanned U nit D evelopment) has prohibi3ons on marijuana, whether by pres crip3 on, medical recommenda3on, or otherwise. B uffer Z ones: Establis hing buffers between cannabis busines s es and s ensi3ve loca3ons s uch as s chools (maximum 1 ,000 feet), daycares (maximum 5 0 0 feet), and residen3al treatment facili3es (maximum 500 feet), or public park a<rac3ons regularly us ed by minors , including play gr ounds and athle3c fields (maximum 500 feet). A jur is dic3on can adopt buffer r equir ements that prohibit the opera3on of a cannabis bus iness w ithin cer tain dis tances of other us es. Terms of meas urement ar e not provided for but should us e a measuring sys tem cons is tent with the res t of its ordinances. Residen3al tr eatment facili3 es are defined under M innesota S tatutes 245.4 6 2 s ubd. 23, and are defined as a, “2 4 -hour-a-day program under the tr eatment s uperv is ion of a mental health profes s ional, in a community res iden3 al seNng other than an acute care hos pital or regional treatment center inpa3ent unit, that mus t be licens ed as a residen3al treatment program for adults w ith mental illnes s under chapter 2 4 5 I , M innes ota R ules , parts 9 5 2 0 .0500 to 9520.0670, or other rules adopted by the commissioner.” Limit Retail Registraons: The C ity overhauled its tobacco licens ing proces s in 2018, limi3ng the number of tobacco licenses in the C ity by raising the minimum age of entr ance to a tobacco establis hment to 2 1 , and outlining a s moking prohibi3on, w her e s moking by a pers on s hall not be permi<ed ins ide any licens ed premis es. The legis la3v e findings prov ided by the City C ouncil at that 3me recognized that tobacco use was iden3fied as the cause of several serious health problems and economic consequences, and as a means to protect minors and young adults associated with the use and ini3a3on, with 95% of adult smokers beginning before the age of 21. Although there is so me discrepancy between the Minnesota State Demographer’s popula3on es3mate and the 2018-2022 American C ommunity Survey data, approximately 30% of B rooklyn C enter’s residents are 19 years of age or less. Z oning C ompliance: The City w ould be able to review an applicant ’s loca3on for compliance w ith its z oning regula3ons during the veNng proces s by O C M. Compliance C hecks: C ompliance C heck s mus t be done once per y ear for age verifica3on and local ordinance requirements. I V. Implicaons The implica3ons of not ac3ng with has te on the ordinance amendments could mean that applicants can choos e where in the C ity of Brooklyn C enter they want to place their bus inesses , and w ithout cons idera3on to the complementarines s of the use in certain districts , or proximity of a loca3on to vulnerable popula3ons. W ithout z oning regula3ons , the City w ould have very li<le regula3on over the 3me, place, and manner of cannabis retail, manufacturing, cul3va3on, etc. V. O ther C onsideraons M unicipal Registraon The local government, as part of the regis tra3on process for cannabis retailers or other cannabis /hemp bus inesses s eeking a retail endors ement, may: Require payment of a registra3on fee or renew al fee, including an “ini3al registra3on fee” of $500 or half the amount of the applicable ini3al license fee, whichever is les s , and a “renew al regis tra3on fee” of $1,000 or half the amount of the applicable renewal license fee, whichever is les s . A local government may refus e a registra3on or licens e renew al in situa3ons where the licens e is associated with an individual or busines s w ho no longer holds a valid license, has failed to pay the local regis tra3on or renewal fee, or has been found in non-compliance w ith a preliminary or renewal compliance check. A nnual M unicipal C ompliance C hecks A local government mus t conduct: Compliance checks for cannabis and hemp bus inesses holding retail registra3ons at least once per calendar year (e.g. age verifica3on, compliance w ith local ordinance pursuant to 342.13). V I . A ddional I nformaon To date, C ity staff has received communica3on from individuals and companies regarding the establis hment of cannabis dis pensaries . I n 2023, the M innesota Legislature created the L ocal G overnment C annabis A id, which is funded through a 10% gros s receipts tax on retail sales of cannabis products in Minnes ota. F rom the C annabis Tax Revenue, 80% is deposited into the state’s G eneral F und and 20% is depos ited into the Local G overnment Cannabis A id account. O n June 30 each year, 50% of the cannabis aid account balance is available to coun3es and 50% to ci3es . The dis tribu3on amount received will be propor3onal to the number of cannabis bus inesses located in the city as compared to the number of cannabis busines s es in all ci3es . V I I . Policy I ssues 1. D oes the City Council have any concerns or ques 3ons regarding the designa3on of certain zoning dis tricts for each of the 13 cannabis licens e types? 2. D oes the City Council have any concerns or ques 3ons regarding the adop3on of certain buffering requirements that prohibit the opera3on of a cannabis bus iness within a certain distance of schools, daycares, res iden3al treatment facili3es, or from an a<rac3on w ithin a public park that is regularly used by minors ? 3. A jurisdic3on such as the C ity of B rooklyn C enter may choose to set a limit on the number of cannabis retail registra3ons within its boundaries. T he jurisdic3on may not, however, limit the number of registra3ons to fewer than one per 12,500 residents. I f the C ity is in receipt of mul3ple applica3ons, a jurisdic3on may elect to issue. I s the C ity C ouncil interested in imposing a limit on the number of cannabis retail loca3ons? B udget I ssues: There may be budget considera3ons surrounding the cost of upda3ng City Code chapters as neces s ary to comply w ith the new s tatute requirements s urrounding adult-use cannabis . A nracist/Equity Policy Effect: S trategic Priories and Values: AT TA C H M E N TS : D escrip3on U pload D ate Type C ouncil Memo - A dult U s e C annabis 11/19/2024 Cover Memo A G uide for Local G overnments on A dult-U s e C annabis (M N O C M)11/19/2024 Backup M aterial O rdinance No. 2022-02 (Moratorium on U s es Related to S ale of T H C)11/19/2024 Backup M aterial O rdinance No. 2023-05 (A mending C hapter 19 to P rohibit U s e of C annabis and H emp in P ublic P laces )11/19/2024 Backup M aterial O rdinance No. 2023-06 (A mending C hapter 23 Regarding L icensing and S ale of Edible C annabinoid P roducts )11/19/2024 Backup M aterial DATE: November 25, 2024 TO: Dr. Reggie Edwards, City Manager THROUGH: Jesse Anderson, Community Development Director FROM: Ginny McIntosh, Planning Manager SUBJECT: Adult-Use Cannabis Legislation I. Requested Direction City staff is requesting City Council authorize the Planning Commission to proceed with proposed amendments to the City’s UDO and provide direction with respect to amendments regarding the new Adult-Use Cannabis and Lower Potency Hemp Edibles (LPHE) legislation. As local governments have some jurisdiction, the purpose of the amendments are to adopt new zoning standards relating to land use and buffers. Section 35-71300 of the City’s Unified Development Ordinance (UDO) outlines that an amendment to the UDO may be initiated by the City Council, the Planning Commission, or a City Property Owner. City planning staff had initially requested a special meeting of the Planning Commission to discuss upcoming changes surrounding regulatory changes by the Minnesota Office of Cannabis Management (OCM) to adult-use cannabis; however, when staff was unable to obtain a quorum, staff was directed by the City Attorney to hold a work session with City Council as a first step in addressing proposed amendments to the City’s UDO. Given the impending issuance of cannabis licenses in 2025, City staff proceeded with submittal of a public hearing notice for amendments to Chapter 35 of the City Code of Ordinances at the December 14, 2024 Planning Commission meeting. It is expected there will be additional required amendments to other City Code chapters to address changes to adult-cannabis use, of which potentially include Chapter 23 (General Licensing), Chapter 11 (Liquor), Chapter 13 (Parks and Recreation), and Chapter 19 (Public Nuisances and Petty Offenses). The immediacy surrounding the request for a work session is related to the fact that the anticipated amendments to the City’s UDO will take longer to address, and it is anticipated that licenses will begin to be issued in early 2025. Should the City Council want to pursue a registration process, Council will need to separately adopt a registration process by ordinance amendment for the registration of any new cannabis business—this impacts Chapter 23. II. Background In July 2022, Minnesota Legislature made changes to Minnesota Statutes 151.72, that impacted the legal sale of products containing cannabinoids derived from hemp, and allowed consumers aged 21 or older to purchase products containing THC derived from hemp. Edible cannabinoid products could not contain more than five milligrams of any tetrahydrocannabinol (THC) in a single serving, or more than a total of 50 mgs of THC per package. Brooklyn Center currently has 16 businesses registered with the state for the sale of hemp-derived cannabinoids, including two municipal liquor stores and the golf course. In 2023, the State of Minnesota passed the Adult Use Cannabis Act, legalizing the possession, use, and growth of recreational marijuana for individuals aged 21 and older. The Minnesota Office of Cannabis Management (OCM) is responsible for developing the licensing process for a total of 13 different business types and establishing rules and logistics for retail operations, dispensaries, production, wholesale, micro/mezzo businesses, and delivery services, including both cannabis and low-potency hemp edibles (LPHE). The City of Brooklyn Center authorized a study and imposed a moratorium (interim ordinance) on the establishment of new uses, or the expansion of existing uses related to the sale of THC products in 2022 (Ordinance No. 2022-02). Additionally, the City established an ordinance to prohibit the use of cannabis and hemp products in public places (Ordinance No. 2023-05), and amended Chapter 23 of the City Code to address the licensing and sale of edible cannabinoid products within the City was adopted (Ordinance No. 2023-06). At the time, then City Attorney Jason Hill had prepared a presentation after the legalization of LPHE, outlining legislation and further steps the City would need to follow to be compliant with State Statute. Pursuant to the statutory scheme under new Minnesota Statutes Section 342, local governments have discretion over zoning, registration of businesses in each district, and conducting random compliance checks on licensed businesses within the City. Local governments have the limited authority to suspend licenses for non-compliance; however, it must notify the OCM immediately. The State of Minnesota has identified January 1, 2025, as the date cannabis licenses will begin to be issued, and any local enacted moratoria is to expire. Recent articles published on November 19, 2024, noted that the OCM is anticipated to have its first license lottery for social equity license applicants the week of December 2, 2024. While City staff believes applications will not come through until early 2025, it is in the City’s best interest to finalize the regulatory structure and registration process before the state begins issuing licenses. III. Office of Cannabis Management The role of the Office of Cannabis Management (OCM) is to regulate the cannabis industry statewide and provide guidance on the standards for the State. The OCM requires all cannabis and lower potency hemp businesses to obtain a license once the State of Minnesota has established the licensing process, and includes the Division of Medical Cannabis (effective July 1, 2024), which operates the medical cannabis program, and the Division of Social Equity, which promotes development, stability, and safety in communities that have experienced a disproportionate, negative impact from cannabis prohibition and usage. The OCM released a Guide for Local Governments on Adult Use Cannabis in August 2024 (attached). This guide provides direction on licensing, zoning, business types, and a model ordinance. The OCM also provided a First Draft of Proposed Cannabis Rules. The Office of Cannabis Management, through Chapter 342, is tasked with establishing rules and policy and exercising regulatory authority over the Minnesota cannabis industry. The OCM further: • Governs the application and licensing process for cannabis and hemp businesses, including the specific requirements for each type of license and their respective business activities; and • Conducts enforcement and inspection activities across Minnesota cannabis and hemp industries. The OCM is further tasked with notifying cities of an application for zoning compliance. IV. Local Control/Next Steps Local governments may not issue outright bans on cannabis business, or limit operations in a manner beyond what is provided by a state law. With that said, City staff will be working with the City’s respective Planning Commission and City Council to identify and amend, as necessary, any City Codes to address the new provisions relating to adult-use cannabis law. City staff was recently in communication with the city of Bloomington regarding what measures they had taken regarding cannabis, and has reviewed documentation from Bloomington, Brooklyn Park, Crystal, Minneapolis, Richfield, and Roseville. Cannabis Retail Restrictions (as laid out in MN Statutes 342.13) Local governments may limit the number of retailers and microbusinesses/mezzobusinesses with retail endorsements, but in no case can there be less than one retail location per 12,500 residents. As the City of Brooklyn Center has 33,982 residents per the 2023 Minnesota State Demographer Estimates, the City would be expected to provide for at least three (3) of these license types. The City of Brooklyn Center would not be obligated to seek out a business to register as a cannabis business if it has not been approached by a potential applicant, but the City cannot prohibit the establishment of a business if the population requirement is not met. Generally, cannabis licenses allow for multiple retail locations in Minnesota to operate under a single license, with the following limitations: Retailers: up to 5 retail locations Mezzobusinesses: up to 3 retail locations Microbusinesses: up to 1 retail location Medical cannabis combination businesses: 1 retail location per congressional district, but ability to cultivate at more than 1 location within other limitations on cultivation All other license types: 1 license permits the operation of 1 location Cannabis retail sales must be in standalone shops as the primary use and cannot be accessory to another use. Note: State law requires the OCM to issue a license to a city or county seeking to operate a single municipal cannabis store. This store is not included in the minimum number of registrations required. Brooklyn Center will be tasked with approving text amendments to Chapter 35 of the Unified Development Ordinance. The City Council will have to address licensing standards and ultimately adopt an amended ordinance if it would like to have any say in where these establishments can be located. Below are issues that need to be addressed, which have been identified as areas where the City has the authority to provide oversight: • Land Use/Zoning: Identifying which zoning districts cannabis businesses can operate within. o The provided Guide for Local Governments on Adult-Use Cannabis provides some direction on where certain license types might be located in a community, and a table of “comparable districts,” as well as certain “municipal considerations,” such as potential nuisances like odors, security, transportation, on-site consumption, and fleet vehicle storage. It should be noted that any developments with certain covenants and restrictions prohibiting the growing, delivering, transporting, distributing, or sale of cannabis would prevail unless the restrictions were amended to allow for the use. As an example, Shingle Creek Crossing (Planned Unit Development) has prohibitions on marijuana, whether by prescription, medical recommendation, or otherwise. • Buffer Zones: Establishing buffers between cannabis businesses and sensitive locations such as schools (maximum 1,000 feet), daycares (maximum 500 feet), and residential treatment facilities (maximum 500 feet), or public park attractions regularly used by minors, including playgrounds and athletic fields (maximum 500 feet). o A jurisdiction can adopt buffer requirements that prohibit the operation of a cannabis business within certain distances of other uses. Terms of measurement are not provided for but should use a measuring system consistent with the rest of its ordinances. Residential treatment facilities are defined under Minnesota Statutes 245.462 subd. 23, and are defined as a, “24-hour-a-day program under the treatment supervision of a mental health professional, in a community residential setting other than an acute care hospital or regional treatment center inpatient unit, that must be licensed as a residential treatment program for adults with mental illness under chapter 245I, Minnesota Rules, parts 9520.0500 to 9520.0670, or other rules adopted by the commissioner.” • Limit Retail Registrations: The City overhauled its tobacco licensing process in 2018, limiting the number of tobacco licenses in the City by raising the minimum age of entrance to a tobacco establishment to 21, and outlining a smoking prohibition, where smoking by a person shall not be permitted inside any licensed premises. The legislative findings provided by the City Council at that time recognized that tobacco use was identified as the cause of several serious health problems and economic consequences, and as a means to protect minors and young adults associated with the use and initiation, with 95% of adult smokers beginning before the age of 21. Although there is some discrepancy between the Minnesota State Demographer’s population estimate and the 2018-2022 American Community Survey data, approximately 30% of Brooklyn Center’s residents are 19 years of age or less. • Zoning Compliance: The City would be able to review an applicant’s location for compliance with its zoning regulations during the vetting process by OCM. • Compliance Checks: Compliance Checks must be done once per year for age verification and local ordinance requirements. V. Implications The implications of not acting with haste on the ordinance amendments could mean that applicants can choose where in the City of Brooklyn Center they want to place their businesses, and without consideration to the complementariness of the use in certain districts, or proximity of a location to vulnerable populations. Without zoning regulations, the City would have very little regulation over the time, place, and manner of cannabis retail, manufacturing, cultivation, etc. VI. Other Considerations Municipal Registration The local government, as part of the registration process for cannabis retailers or other cannabis/hemp businesses seeking a retail endorsement, may: • Require payment of a registration fee or renewal fee, including an “initial registration fee” of $500 or half the amount of the applicable initial license fee, whichever is less, and a “renewal registration fee” of $1,000 or half the amount of the applicable renewal license fee, whichever is less. o A local government may refuse a registration or license renewal in situations where the license is associated with an individual or business who no longer holds a valid license, has failed to pay the local registration or renewal fee, or has been found in non- compliance with a preliminary or renewal compliance check. Annual Municipal Compliance Checks A local government must conduct: • Compliance checks for cannabis and hemp businesses holding retail registrations at least once per calendar year (e.g. age verification, compliance with local ordinance pursuant to 342.13). VII. Additional Information To date, City staff has received communication from individuals and companies regarding the establishment of cannabis dispensaries. In 2023, the Minnesota Legislature created the Local Government Cannabis Aid, which is funded through a 10% gross receipts tax on retail sales of cannabis products in Minnesota. From the Cannabis Tax Revenue, 80% is deposited into the state’s General Fund and 20% is deposited into the Local Government Cannabis Aid account. On June 30 each year, 50% of the cannabis aid account balance is available to counties and 50% to cities. The distribution amount received will be proportional to the number of cannabis businesses located in the city as compared to the number of cannabis businesses in all cities. VIII. Policy Issues 1. Does the City Council have any concerns or questions regarding the designation of certain zoning districts for each of the 13 cannabis license types? 2. Does the City Council have any concerns or questions regarding the adoption of certain buffering requirements that prohibit the operation of a cannabis business within a certain distance of schools, daycares, residential treatment facilities, or from an attraction within a public park that is regularly used by minors? 3. A jurisdiction such as the City of Brooklyn Center may choose to set a limit on the number of cannabis retail registrations within its boundaries. The jurisdiction may not, however, limit the number of registrations to fewer than one per 12,500 residents. If the City is in receipt of multiple applications, a jurisdiction may elect to issue Is the City Council interested in imposing a limit on the number of cannabis retail locations? A Guide for Local Governments on Adult-Use Cannabis Version 1.4 Updated August 2024 Table of Contents Introduction ............................................................... 3 About OCM ............................................................... 4 Cannabis License Types ............................................. 5 Adult-Use Cannabis Law ........................................... 7 Cannabis Licensing Process........................................ 8 General Authorities .................................................. 10 Zoning and Land Use ................................................ 12 Local Approval Process ............................................. 15 Inspections and Compliance Checks ........................ 18 Municipal Cannabis Stores ...................................... 19 Creating Your Local Ordinance ............................... 20 Additional Resources ................................................ 21 Introduction This guide serves as a general overview of Minnesota’s new adult-use cannabis law, and how local governments can expect to be involved. The guide also provides important information about Minnesota’s new Office of Cannabis Management (OCM), and the office’s structure, roles, and responsibilities. While medical cannabis continues to play an important role in the state’s cannabis environment, this guide is primarily focused on the adult-use cannabis law and marketplace. The following pages outline the variety of cannabis business licenses that will be issued, provide a broad summary of important aspects of the adult-use cannabis law, and cover a wide range of expectations and authorities that relate to local governments. This guide also provides best practices and important requirements for developing a local cannabis ordinance. Chapter 342 of Minnesota law was established by the State Legislature in 2023 and was updated in 2024. Mentions of “adult-use cannabis law” or “the law” throughout this guide refer to Chapter 342 and the changes made to it. As of this guide’s date of publication, state regulations governing the adult-use cannabis market have not yet been published—this document will be updated when such regulations become effective. This guide is not a substitute for legal advice, nor does it seek to provide legal advice. Local governments and municipal officials seeking legal advice should consult an attorney. Page 3 About OCM Minnesota’s Office of Cannabis Management is the state regulatory office created to oversee the implementation and regulation of the adult-use cannabis market, the medical cannabis market, and the consumer hemp industry. Housed within OCM are the Division of Medical Cannabis (effective July 1, 2024), which operates the medical cannabis program, and the Division of Social Equity, which promotes development, stability, and safety in communities that have experienced a disproportionate, negative impact from cannabis prohibition and usage. OCM, through Chapter 342, is tasked with establishing rules and policy and exercising its regulatory authority over the Minnesota cannabis industry. In its duties, OCM is mandated to: Promote public health and welfare. Protect public safety. Eliminate the illicit market for cannabis flower and cannabis products. Meet the market demand for cannabis flower and cannabis products. Promote a craft industry for cannabis flower and cannabis products. Prioritize growth and recovery in communities that have experienced a disproportionate, negative impact from cannabis prohibition. OCM governs the application and licensing process for cannabis and hemp businesses, specific requirements for each type of license and their respective business activities, and conducts enforcement and inspection activities across the Minnesota cannabis and hemp industries. Page 4 License Types Minnesota law allows for 13 different types of business licenses, each fulfilling a unique role in the cannabis and hemp supply chain. In addition to license types below, OCM will also issue endorsements to license holders to engage in specific activities, including producing, manufacturing, and sale of medical cannabis for patients. Microbusiness Microbusinesses may cultivate cannabis and manufacture cannabis products and hemp products, and package such products for sale to customers or another licensed cannabis business. Microbusiness may also operate a single retail location. Mezzobusiness Mezzobusinesses may cultivate cannabis and manufacture cannabis products and hemp products, and package such products for sale to customers or another licensed cannabis business. Mezzobusiness may also operate up to three retail locations. Cultivator Cultivators may cultivate cannabis and package such cannabis for sale to another licensed cannabis business. Manufacturer Manufacturers may manufacture cannabis products and hemp products, and package such products for sale to a licensed cannabis retailer. Retailer Retailers may sell immature cannabis plants and seedlings, cannabis, cannabis products, hemp products, and other products authorized by law to customers and patients. Wholesaler Wholesalers may purchase and/or sell immature cannabis plants and seedlings, cannabis, cannabis products, and hemp products from another licensed cannabis business. Wholesalers may also import hemp-derived consumer products and lower-potency hemp edibles. Page 5 License Types (continued) Transporter Transporters may transport immature cannabis plants and seedlings, cannabis, cannabis products, and hemp products to licensed cannabis businesses. Testing Facility Testing facilities may obtain and test immature cannabis plants and seedlings, cannabis, cannabis products, and hemp products from licensed cannabis businesses. Event Organizer Event organizers may organize a temporary cannabis event lasting no more than four days. Delivery Service Delivery services may purchase cannabis, cannabis products, and hemp products from retailers or cannabis business with retail endorsements for transport and delivery to customers. Medical Cannabis Combination Business Medical cannabis combination businesses may cultivate cannabis and manufacture cannabis and hemp products, and package such products for sale to customers, patients, or another licensed cannabis business. Medical cannabis combination businesses may operate up to one retail location in each congressional district. Lower-Potency Hemp Edible Manufacturer Lower-potency hemp edible manufacturers may manufacture and package lower-potency hemp edibles for consumer sale, and sell hemp concentrate and lower-potency hemp edibles to other cannabis and hemp businesses. Lower-Potency Hemp Edible Retailer Lower-potency hemp edible retailers may sell lower-potency hemp edibles to customers. Each license is subject to further restrictions on allowable activities. Maximum cultivation area and manufacturing allowances vary by license type. Allowable product purchase, transfer, and sale between licensees are subject to restrictions in the law. Page 6 The Adult-Use Cannabis Law Minnesota’s new adult-use cannabis law permits the personal use, possession, and transportation of cannabis by those 21 years of age and older, and allows licensed businesses to conduct cultivation, manufacturing, transport, delivery, and sale of cannabis and cannabis products. For Individuals Possession limits: Flower - 2 oz. in public, 2 lbs. in private residence Concentrate - 8 g Edibles (including lower-potency hemp) - 800 mg THC Consumption only allowed on private property or at licensed businesses with on-site consumption endorsements. Consumption not allowed in public. Gifting cannabis to another individual over 21 years old is allowed, subject to possession limits. Home cultivation is limited to four mature and four immature plants (eight total) in a single residence. Plants must be in an enclosed and locked space. Home extraction using volatile substances (e.g., butane, ethanol) is not allowed. Unlicensed sales are not allowed. For Businesses Advertising: May not include or appeal to those under 21 years old. Must include proper warning statements. May not include misleading claims or false statements. Billboards are not allowed. The flow of all products through the supply chain must be tracked by the state-authorized tracking system. All products sold to consumers and patients must be tested for contaminants. Home delivery is allowed by licensed businesses. Page 7 The Cannabis Licensing Process An applicant will take the following steps to proceed from application to active licensure. As described, processes vary depending on social equity status and/or whether the type of license being sought is capped or uncapped in the general licensing process. License Preapproval: Early Mover Process for Social Equity Applicants The license preapproval process is a one-time application process available for verified social equity applicants. State law requires OCM to open the application window on July 24, 2024, and close the window on August 12, 2024. The preapproval process is available for the following license types, and all are capped in this process: microbusiness, mezzobusiness, cultivator, retailer, wholesaler, transporter, testing facility, and delivery service. Applicant’s social equity applicant (SEA) status verified. Complete application and submit application fees. Application vetted for minimum requirements by OCM. Application (if qualified) entered into lottery drawing. If selected in lottery, OCM completes background check of selected applicant and issues license preapproval. Applicant with license preapproval* submits business location and amends application accordingly. OCM forwards completed application to local government. Local government completes certification of zoning compliance. OCM conducts site inspection. When regulations are adopted, license becomes active, operations may commence. *For social equity applicants with license preapproval for microbusiness, mezzobusiness, or a cultivator license, they may begin growing cannabis plants prior to the adoption of rules if OCM receives approval from local governments in a form and manner determined by the office. This is only applicable to cultivation and does not authorize retail sales or other endorsed activities of the licenses prior to the adoption of rules. Preapproval steps: Page 8 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The Cannabis Licensing Process (cont.) The general licensing process will align with the adoption of rules and OCM will share more information about the timing of general licensing process. The general licensing process includes social equity applicants and non-social equity applicants. General Licensing: Cultivator, Manufacturer, Retailer, Mezzobusiness Complete application and submit application fees. Application vetted for minimum requirements by OCM. Application (if qualified) entered into lottery drawing. If selected in lottery, OCM completes background check of selected applicant and issues preliminary approval. Applicant with preliminary approval submits business location and amends application accordingly. OCM forwards completed application to local government. Local government completes certification of zoning compliance. OCM conducts site inspection. License becomes active, operations may commence.* General Licensing: Microbusiness, Wholesaler, Transporter, Testing Facility, Event Organizer Complete application and submit application fees.1. Application vetted for minimum requirements by OCM.2. For qualified applicants, OCM completes background check of vetted applicant and issues preliminary approval. 3. Selected applicant submits business location and amends application accordingly.4. OCM forwards completed application to local government.5. Local government completes certification of zoning compliance.6. OCM conducts site inspection.7. License becomes active, operations may commence.*8. 1. 2. 3. 4. 5. 6. 7. 8. 9. *For businesses seeking a retail endorsement (microbusiness, mezzobusiness, and retailer), a valid local retail registration is required prior to the business commencing any retail sales. See Page 16 for information on the local retail registration process. Page 9 General Authorities Local governments in Minnesota have various means of oversight over the cannabis market, as provided by the adult-use cannabis law. Local governments may not issue outright bans on cannabis business, or limit operations in a manner beyond what is provided by state law. Cannabis Retail Restrictions (342.13) Local governments may limit the number of retailers and microbusiness/mezzobusinesses with retail endorsements allowed within their locality, as long as there is at least one retail location per 12,500 residents. Local units of government are not obligated to seek out a business to register as cannabis business if they have not been approached by any potential applicants, but cannot prohibit the establishment of a business if this population requirement is not met. Local units of government may also issue more than the minimum number of registrations. Per statutory direction, a municipal cannabis store (Page 19) cannot be included in the minimum number of registrations required. For population counts, the state demographer estimates will likely be utilized. Tribal Governments (342.13) OCM is prohibited from and will not issue state licenses to businesses in Indian Country without consent from a tribal nation. Tribal nations hold the authority to license tribal cannabis businesses on tribal lands – this process is separate than OCM’s licensing process and authority. Subject to compacting, Tribal nations may operate cannabis businesses off tribal lands. There will be more information available once the compacting processes are complete. Taxes (295.81; 295.82) Retail sales of taxable cannabis products are subject to the state and local sales and use tax and a 10% gross receipts tax. Cannabis gross receipts tax proceeds are allocated as follows: 20% to the local government cannabis aid account and 80% to the state general fund. Local taxes imposed solely on sale of cannabis products are prohibited. Cannabis retailers will be subject to the same real property tax classification as all other retail businesses. Real property used for raising, cultivating, processing, or storing cannabis plants, cannabis flower, or cannabis products for sale will be classified as commercial and industrial property. Page 10 General Authorities (cont.) Retail Timing Restrictions (342.13) Local governments may prohibit retail sales of cannabis between the hours of 8 a.m. and 10 a.m. Monday-Saturday, and 9 p.m. and 2 a.m. the following day. Operating Multiple Locations with One License Certain cannabis licenses allow for multiple retail locations to be operated under a single license, with the following limitations: Retailers: up to five retail locations. Mezzobusinesses: up to three retail locations. Microbusinesses: up to one retail location. Medical cannabis combination businesses: one retail location per congressional district. Additionally, medical cannabis combination businesses may cultivate at more than one location within other limitations on cultivation. For all other license types, one license permits the operation of one location. Each retail location requires local certification and/or registration. Page 11 Zoning and Land Use Buffer Guidelines (342.13) State law does not restrict how a local government conducts its zoning designations for cannabis businesses, except that they may prohibit the operation of a cannabis business within 1,000 feet of a school, or 500 feet of a day care, residential treatment facility, or an attraction within a public park that is regularly used by minors, including playgrounds and athletic fields. Zoning Guidelines While each locality conducts its zoning differently, a few themes have emerged across the country. For example, cannabis manufacturing facilities are often placed in industrial zones, while cannabis retailers are typically found in commercial/retail zones. Cannabis retail facilities align with general retail establishments and are prohibited from allowing consumption or use onsite, and are also required to have plans to prevent the visibility of cannabis and hemp-derived products to individuals outside the retail location. Industrial hemp is an agricultural product, and should be zoned as such. Cannabis businesses should be zoned under existing zoning ordinances in accordance with the license type or endorsed activities held by the cannabis business. Note that certain types of licenses may be able to perform multiple activities which may have different zoning analogues. In the same way municipalities may zone a microbrewery that predominately sells directly to onsite consumers differently than a microbrewery that sells packaged beer to retailers and restaurants, so too might a municipality wish to zone two microbusinesses based on the actual activities that each business is undertaking. Table 1, included on Pages 13 and 14, explains the types of activities that cannabis businesses might undertake, as well as, some recommended existing zoning categories. Page 12 Endorsed Activity License Type Eligible to Do Endorsed Activity Description of Activity Comparable Districts Municipal Considerations Cultivation Cultivator Mezzobusiness Microbusiness Medical Cannabis Combination "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis plants, cannabis flower, hemp plants, or hemp plant parts. Indoor: Industrial, Commercial, Production Outdoor: Agricultural Odor Potential need for transportation from facility Waste, water, and energy usage Security Cannabis Manufacturing, Processing, Extraction Manufacturer Mezzobusiness Microbusiness Medical Cannabis Combination This group of endorsed activities turn raw, dried cannabis and cannabis parts into other types of cannabis products, e.g. edibles or topicals. Industrial, Commercial, Production Odor Potential need for transportation from facility Waste, water, and energy usage Security Hemp Manufacturing Lower-Potency Hemp Edible (LPHE) Manufacturing These business convert hemp into LPHE edible prodcuts. Industrial, Commercial, Production Odor Waste, water, and energy Wholesale Wholesale Cultivator Manufacturer Mezzobusiness Microbusiness Medical Cannabis Combination This activity and license type allows a business to purchase from a business growing or manufacturing cannabis or cannabis products and sell to a cannabis business engaged in retail. Industrial, Commercial, Production Need for transportation from facility Security Page 13 Zoning and Land Use (cont.) Table 1: Cannabis and Hemp Business Activities Page 14 Endorsed Activity License Type Eligible to Do Endorsed Activity Description of Activity Comparable Districts Municipal Considerations Cannabis Retail Retailer Mezzobusiness Microbusiness Medical Cannabis Combination This endorsed activity and license types allow a business to sell cannabis and cannabis products directly to consumers. Retail, Neighborhood Shopping Districts, Light Industrial, Existing districts where off-sale liquor or tobacco sales are allowed. Micros may offer onsite consumption, similar to breweries. Micros and Mezzos may include multiple activities: cultivation, manufacture, and/or retail. Transportation Cannabis Transporter This license type allows a company to transport products from one license type to another. Fleet based business that will own multiple vehicles, but not necessarily hold a substantial amount of cannabis or cannabis products. Delivery Cannabis Delivery This license type allows for transportation to the end consumer. Fleet based business that will own multiple vehicles, but not necessarily hold a substantial amount of cannabis or cannabis products. Events Event Organizer This license entitles license holder to organizer a temporary event lasting no more than four days. Anywhere that the city permits events to occur, subject to other restrictions related to cannabis use. On site consumption. Retail sales by a licensed or endorsed retail business possible. Zoning and Land Use (cont.) Table 1: Cannabis and Hemp Business Activities (continued) Local Approval Process Local governments play a critical role in the licensing process, serving as a near-final approval check on cannabis businesses nearing the awarding of a state license for operations. Once an applicant has been vetted by OCM and is selected for proceeding in the verification process, they are then required to receive the local government’s certification of zoning compliance and/or local retail registration before operations may commence. Local Certification of Zoning Compliance (342.13; 342.14) Following OCM’s vetting process, local governments must certify that the applicant with preliminary approval has achieved compliance with local zoning ordinances prior to the licensee receiving final approval from OCM to commence operations. During the application and licensing process for cannabis businesses, OCM will notify a local government when an applicant intends to operate within their jurisdiction and request a certification as to whether a proposed cannabis business complies with local zoning ordinances, and if applicable, whether the proposed business complies with state fire code and building code. According to Minnesota’s cannabis law, a local unit of government has 30 days to respond to this request for certification of compliance. If a local government does not respond to OCM’s request for certification of compliance within the 30 days, the cannabis law allows OCM to issue a license. OCM may not issue the final approval for a license if the local government has indicated they are not in compliance. OCM will work with local governments to access the licensing software system to complete this zoning certification process. Page 15 Local Approval Process (cont.) Local Retail Registration Process (342.22) Once the licensing process begins, local government registration applies to cannabis retailers or other cannabis/hemp businesses seeking a retail endorsement. Local governments must issue a retail registration after verifying that: The business has a valid license or license preapproval issued by OCM. The business has paid a registration fee or renewal fee to the local government; Initial registration fees collected by a local government may be $500 or half the amount of the applicable initial license fee, whichever is less, and renewal registration fees may be $1,000 or half the amount of the applicable renewal license fee, whichever is less. The business is found to be in compliance with Chapter 342 and local ordinances. If applicable, the business is current on all property taxes and assessments for the proposed retail location. Local registrations may also be issued by counties if the respective local government transfers such authorities to the county. Determining a Process for Limiting Retail Registrations If a local government wishes to place a limitation on the number of retailers and microbusiness/mezzobusinesses with retail endorsements allowed within their locality (as long as there is at least one retail location per 12,500 residents, see Page 10), state law does not define the process for a local government’s selection if there are more applicants than registrations available. A few options for this process include the use of a lottery, a first-come/first-serve model, a rolling basis, and others. Local governments should work with an attorney to determine their specific process for selection if they wish to limit the number of licensed cannabis retailers per 342.13. Local governments are not required to limit the number of licensed cannabis retailers. Page 16 Local Approval Process (cont.) Local governments are permitted specific authorities for registration refusal and registration suspension, in addition to—and not in conflict with—OCM authorities. Registration and Renewal Refusals Local governments may refuse the registration and/or certification of a license renewal if the license is associated with an individual or business who no longer holds a valid license, has failed to pay the local registration or renewal fee, or has been found in noncompliance in connection with a preliminary or renewal compliance check. Local Registration Suspension (342.22) Local governments may suspend the local retail registration of a cannabis business or hemp business if the business is determined to not be operating in compliance with a local ordinance authorized by 342.13 or if the operation of the business poses an immediate threat to the health and safety of the public. The local government must immediately notify OCM of the suspension if it occurs. OCM will review the suspension and may reinstate the registration or take enforcement action. Expedited Complaint Process (342.13) Per state law, OCM will establish an expedited complaint process during the rulemaking process to receive, review, read, and respond to complaints made by a local unit of government about a cannabis business. Upon promulgation of rules, OCM will publish the complaint process. At a minimum, the expedited complaint process shall require the office to provide an initial response to the complaint within seven days and perform any necessary inspections within 30 days. Within this process, if a local government notifies OCM that a cannabis business poses an immediate threat to the health or safety of the public, the office must respond within one business day. Page 17 Inspections & Compliance Checks Local governments are permitted specific business inspection and compliance check authorities, in addition to—and not in conflict with—OCM authorities. Inspections and Compliance Checks (342.22) Local governments must conduct compliance checks for cannabis and hemp businesses holding retail registration at least once per calendar year. These compliance checks must verify compliance with age verification procedures and compliance with any applicable local ordinance established pursuant to 342.13. OCM maintains inspection authorities for all cannabis licenses to verify compliance with operation requirements, product limits, and other applicable requirements of Chapter 342. Page 18 Municipal Cannabis Stores State law requires OCM issue a license to a city or county seeking to operate a single municipal cannabis store if the city or county: As authorized in Chapter 342.32, local governments are permitted to apply for a cannabis retail license to establish and operate a municipal cannabis store. Submits required application information to OCM, Meets minimum requirements for licensure, and Pays applicable application and license fee. A municipal cannabis store will not be included in the total count of retail licenses issued by the state under Chapter 342. A municipal cannabis store cannot be counted as retail registration for purposes of determining whether a municipality’s cap on retail registrations imposed by ordinance. Page 19 Creating Your Local Ordinance Local governments may not prohibit the possession, transportation, or use of cannabis, or the establishment or operation of a cannabis business licensed under state law. Local governments may adopt reasonable restrictions on the time, place, and manner of cannabis business operations (see Page 11). Local governments may adopt interim ordinances to protect public safety and welfare, as any studies and/or further considerations on local cannabis activities are being conducted, until January 1, 2025. A public hearing must be held prior to adoption of an interim ordinance. If your local government wishes to operate a municipal cannabis store, the establishment and operation of such a facility must be considered in a local ordinance. As authorized in 342.13, a local government may adopt a local ordinance regarding cannabis businesses. Establishing local governments’ ordinances on cannabis businesses in a timely manner is critical for the ability for local cities or towns to establish local control as described in the law, and is necessary for the success of the statewide industry and the ability of local governments to protect public health and safety. The cannabis market’s potential to create jobs, generate revenue, and contribute to economic development at the local and state level is supported through local ordinance work. The issuance of local certifications and registrations to prospective cannabis businesses is also dependent on local ordinances. Model Ordinance For additional guidance regarding the creation of a cannabis related ordinance, please reference the addendum in this packet. Page 20 Additional Resources OCM Toolkit for Local Partners Please visit OCM webpage (mn.gov/ocm/local-governments/) for additional information, including a toolkit of resources developed specifically for local government partners. The webpage will be updated as additional information becomes available and as state regulations are adopted. These resources are also included in the addendum of this packet. Toolkit resources include: Appendix A: Model Ordinance Appendix B: Retail Registration Form and Checklist Appendix C: Hemp Flower and Hemp-Derived Cannabinoid Product Checklist Appendix D: Enforcement Notice from the Office of Cannabis Management Appendix E: Notice to Unlawful Cannabis Sellers Local Organizations There are several organizations who also have developed resources to support local governments regarding the cannabis industry. Please feel free to contact the following for additional resources: League of Minnesota Cities Association of Minnesota Counties Minnesota Public Health Law Center Page 21 Appendix A: Model Ordinance Cannabis Model Ordinance The following model ordinance is meant to be used as a resource for cities, counties, and townships within Minnesota. The italicized text in red is meant to provide commentary and notes to jurisdictions considering using this ordinance and should be removed from any ordinance formally adopted by said jurisdiction. Certain items are not required to be included in the adopted ordinance: ‘OR’ and (optional) are placed throughout for areas where a jurisdiction may want to consider one or more choices on language. Section 1 Administration Section 2 Registration of Cannabis Business Section 3 Requirements for a Cannabis Business (Time, Place, Manner) Section 4 Temporary Cannabis Events Section 5 Lower Potency Hemp Edibles Section 6 Local Government as a Retailer Section 7 Use of Cannabis in Public AN ORDINANCE OF THE (CITY/COUNTY OF ______) TO REGULATE CANNABIS BUSINESSES The (city council/town board/county board) of (city/town/county) hereby ordains: Section 1. Administration 1.1 Findings and Purpose (insert local authority) makes the following legislative findings: The purpose of this ordinance is to implement the provisions of Minnesota Statutes, chapter 342, which authorizes (insert local authority) to protect the public health, safety, welfare of (insert local here) residents by regulating cannabis businesses within the legal boundaries of (insert local here). (insert local authority) finds and concludes that the proposed provisions are appropriate and lawful land use regulations for (insert local here), that the proposed amendments will promote the community's interest in reasonable stability in zoning for now and in the future, and that the proposed provisions are in the public interest and for the public good. 1.2 Authority & Jurisdiction A county can adopt an ordinance that applies to unincorporated areas and cities that have delegated authority to impose local zoning controls. (insert local authority) has the authority to adopt this ordinance pursuant to: a) Minn. Stat. 342.13(c), regarding the authority of a local unit of government to adopt reasonable restrictions of 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. b) Minn. Stat. 342.22, regarding the local registration and enforcement requirements of state-licensed cannabis retail businesses and lower-potency hemp edible retail businesses. c) Minn. Stat. 152.0263, Subd. 5, regarding the use of cannabis in public places. d) Minn. Stat. 462.357, regarding the authority of a local authority to adopt zoning ordinances. Ordinance shall be applicable to the legal boundaries of (insert local here). (Optional) (insert city here) has delegated cannabis retail registration authority to (insert county here). However, (insert city here) may adopt ordinances under Sections (2.6, 3 and 4) if (insert county here) has not adopted conflicting provisions. 1.3 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. 1.4 Enforcement The elected body of a jurisdiction can choose to designate an official to administer and enforce this ordinance. The (insert name of local government or designated official) is responsible for the administration and enforcement of this ordinance. Any violation of the provisions of this ordinance or failure to comply with any of its requirements constitutes a misdemeanor and is punishable as defined by law. Violations of this ordinance can occur regardless of whether or not a permit is required for a regulated activity listed in this ordinance. 1.5 Definitions 1. Unless otherwise noted in this section, words and phrases contained in Minn. Stat. 342.01 and the rules promulgated pursuant to any of these acts, shall have the same meanings in this ordinance. 2. Cannabis Cultivation: A cannabis business licensed 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. 3. Cannabis Retail Businesses: A retail location and the retail location(s) of a mezzobusinesses with a retail operations endorsement, microbusinesses with a retail operations endorsement, medical combination businesses operating a retail location, (and/excluding) lower-potency hemp edible retailers. 4. Cannabis Retailer: Any person, partnership, firm, corporation, or association, foreign or domestic, selling cannabis product to a consumer and not for the purpose of resale in any form. 5. Daycare: A location licensed with the Minnesota Department of Human Services to provide the care of a child in a residence outside the child's own home for gain or otherwise, on a regular basis, for any part of a 24-hour day. 6. Lower-potency Hemp Edible: As defined under Minn. Stat. 342.01 subd. 50. 7. Office of Cannabis Management: Minnesota Office of Cannabis Management, referred to as “OCM” in this ordinance. 8. Place of Public Accommodation: A business, accommodation, refreshment, entertainment, recreation, or transportation facility of any kind, whether licensed or not, whose goods, services, facilities, privileges, advantages or accommodations are extended, offered, sold, or otherwise made available to the public. 9. Preliminary License Approval: OCM pre-approval for a cannabis business license for applicants who qualify under Minn. Stat. 342.17. 10. Public Place: A public park or trail, public street or sidewalk; any enclosed, indoor area used by the general public, including, but not limited to, restaurants; bars; any other food or liquor establishment; hospitals; nursing homes; auditoriums; arenas; gyms; meeting rooms; common areas of rental apartment buildings, and other places of public accommodation. 11. Residential Treatment Facility: As defined under Minn. Stat. 245.462 subd. 23. 12. Retail Registration: An approved registration issued by the (insert local here) to a state- licensed cannabis retail business. 13. School: A public school as defined under Minn. Stat. 120A.05 or a nonpublic school that must meet the reporting requirements under Minn. Stat. 120A.24. 14. State License: An approved license issued by the State of Minnesota’s Office of Cannabis Management to a cannabis retail business. Section 2. Registration of Cannabis Businesses A city or town can delegate authority for registration to the County. A city or town can still adopt specific requirement regarding zoning, buffers, and use in public places, provided said requirements are not in conflict with an ordinance adopted under the delegated authority granted to the County. 2.1 Consent to registering of Cannabis Businesses No individual or entity may operate a state-licensed cannabis retail business within (insert local here ) without first registering with (insert local here). Any state-licensed cannabis retail business that sells to a customer or patient without valid retail registration shall incur a civil penalty of (up to $2,000) for each violation. Notwithstanding the foregoing provisions, the state shall not issue a license to any cannabis business to operate in Indian country, as defined in United States Code, title 18, section 1151, of a Minnesota Tribal government without the consent of the Tribal government. 2.2 Compliance Checks Prior to Retail Registration A jurisdiction can choose to conduct a preliminary compliance check prior to issuance of retail registration. Prior to issuance of a cannabis retail business registration, (insert local here) (shall/shall not) conduct a preliminary compliance check to ensure compliance with local ordinances. Pursuant to Minn. Stat. 342, within 30 days of receiving a copy of a state license application from OCM, (insert local here) shall certify on a form provided by OCM whether a proposed cannabis retail business complies with local zoning ordinances and, if applicable, whether the proposed business complies with the state fire code and building code. 2.3 Registration & Application Procedure 2.3.1 Fees. (insert local here) shall not charge an application fee. A registration fee, as established in (insert local here )’s fee schedule, shall be charged to applicants depending on the type of retail business license applied for. An initial retail registration fee shall not exceed $500 or half the amount of an initial state license fee under Minn. Stat. 342.11, whichever is less. The initial registration fee shall include the initial retail registration fee and the first annual renewal fee. Any renewal retail registration fee imposed by (insert local here) shall be charged at the time of the second renewal and each subsequent renewal thereafter. A renewal retail registration fee shall not exceed $1,000 or half the amount of a renewal state license fee under Minn. Stat. 342.11, whichever is less. A medical combination business operating an adult-use retail location may only be charged a single registration fee, not to exceed the lesser of a single retail registration fee, defined under this section, of the adult-use retail business. 2.3.2 Application Submittal. The (insert local here) shall issue a retail registration to a state-licensed cannabis retail business that adheres to the requirements of Minn. Stat. 342.22. (A) An applicant for a retail registration shall fill out an application form, as provided by the (insert local here). Said form shall include, but is not limited to: i. Full name of the property owner and applicant; ii. Address, email address, and telephone number of the applicant; iii. The address and parcel ID for the property which the retail registration is sought; iv. Certification that the applicant complies with the requirements of local ordinances established pursuant to Minn. Stat. 342.13. v. (Insert additional standards here) (B) The applicant shall include with the form: i.the registration fee as required in [Section 2.3.1]; ii.a copy of a valid state license or written notice of OCM license preapproval; iii.(Insert additional standards here) (C)Once an application is considered complete, the (insert local government designee) shall inform the applicant as such, process the application fees, and forward the application to the (insert staff/department, or elected body that will approve or deny the request) for approval or denial. (D)The application fee shall be non-refundable once processed. 2.3.3 Application Approval (A)(Optional) A state-licensed cannabis retail business application shall not be approved if the cannabis retail business would exceed the maximum number of registered cannabis retail businesses permitted under Section 2.6. (B)A state-licensed cannabis retail business application shall not be approved or renewed if the applicant is unable to meet the requirements of this ordinance. (C)A state-licensed cannabis retail business application that meets the requirements of this ordinance shall be approved. 2.3.4 Annual Compliance Checks. The (insert local here) shall complete at minimum one compliance check per calendar year of every cannabis business to assess if the business meets age verification requirements, as required under [Minn. Stat. 342.22 Subd. 4(b) and Minn. Stat. 342.24] and this/these [chapter/section/ordinances]. The (insert local here ) shall conduct at minimum one unannounced age verification compliance check at least once per calendar year. 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 local unit of government. Any failures under this section must be reported to the Office of Cannabis Management. 2.3.5 Location Change A jurisdiction may decide to treat location changes as a new registration, or alternatively treat a location change as allowable subject to compliance with the rest of the registration process. A state-licensed cannabis retail business shall be required to submit a new application for registration under Section 2.3.2 if it seeks to move to a new location still within the legal boundaries of (insert local here). or If a state-licensed cannabis retail business seeks to move to a new location still within the legal boundaries of (insert local here), it shall notify (insert local here) of the proposed location change, and submit necessary information to meet all the criteria in this paragraph. 2.4 Renewal of Registration The (insert local here) shall renew an annual registration of a state-licensed cannabis retail business at the same time OCM renews the cannabis retail business’ license. A state-licensed cannabis retail business shall apply to renew registration on a form established by (insert local here). A cannabis retail registration issued under this ordinance shall not be transferred. 2.4.1 Renewal Fees. The (insert local here) may charge a renewal fee for the registration starting at the second renewal, as established in (insert local here)’s fee schedule. 2.4.2 Renewal Application. The application for renewal of a retail registration shall include, but is not limited to: • Items required under Section 2.3.2 of this Ordinance. • Insert additional items here 2.5 Suspension of Registration 2.5.1 When Suspension is Warranted. The (insert local here) may suspend a cannabis retail business’s registration if it violates the ordinance of (insert local here) or poses an immediate threat to the health or safety of the public. The (insert local here) shall immediately notify the cannabis retail business in writing the grounds for the suspension. 2.5.2 Notification to OCM. The (insert local here) shall immediately notify the OCM in writing the grounds for the suspension. OCM will provide (insert local here) and cannabis business retailer a response to the complaint within seven calendar days and perform any necessary inspections within 30 calendar days. 2.5.3 Length of Suspension. A jurisdiction can wait for a determination from the OCM before reinstating a registration. The suspension of a cannabis retail business registration may be for up to 30 calendar days, unless OCM suspends the license for a longer period. The business may not make sales to customers if their registration is suspended. The (insert local here ) may reinstate a registration if it determines that the violations have been resolved. The (insert local here) shall reinstate a registration if OCM determines that the violation(s) have been resolved. 2.5.4 Civil Penalties. Subject to Minn. Stat. 342.22, subd. 5(e) the (insert local here) may impose a civil penalty, as specified in the (insert local here)’s Fee Schedule, for registration violations, not to exceed $2,000. 2.6 Limiting of Registrations A jurisdiction may choose to set a limit on the number of retail registrations within its boundaries. The jurisdiction may not however, limit the number of registrations to fewer than one per 12,500 residents. (Optional) The (insert local here) shall limit the number of cannabis retail businesses to no fewer than one registration for every 12,500 residents within (insert local legal boundaries here). (Optional) If (insert county here) has one active cannabis retail businesses registration for every 12,500 residents, the (insert local here) shall not be required to register additional state-licensed cannabis retail businesses. (Optional) The (insert local here) shall limit the number of cannabis retail businesses to (insert number <= minimum required). Section 3. Requirements for Cannabis Businesses State Statutes note that jurisdictions may “adopt reasonable restrictions on the time, place, and manner of the operation of a cannabis business.” A jurisdiction considering other siting requirements (such as a buffer between cannabis businesses, or a buffer from churches) should consider whether there is a basis to adopt such restrictions. 3.1 Minimum Buffer Requirements A jurisdiction can adopt buffer requirements that prohibit the operation of a cannabis business within a certain distance of schools, daycares, residential treatment facilities, or from an attraction within a public park that is regularly used by minors, including a playground or athletic field. Buffer requirements are optional. A jurisdiction cannot adopt larger buffer requirements than the requirements here in Section 3.1. A jurisdiction should use a measuring system consistent with the rest of its ordinances, e.g. from lot line or center point of lot. (Optional) The (insert local here) shall prohibit the operation of a cannabis business within [0-1,000] feet of a school. (Optional) The (insert local here) shall prohibit the operation of a cannabis business within [0-500] feet of a day care. (Optional) The (insert local here) shall prohibit the operation of a cannabis business within [0-500] feet of a residential treatment facility. (Optional) The (insert local here) shall prohibit the operation of a cannabis business within [0-500] feet of an attraction within a public park that is regularly used by minors, including a playground or athletic field. (Optional) The (insert local here) shall prohibit the operation of a cannabis retail business within [X] feet of another cannabis retail business. Pursuant to Minn. Stat. 462.357 subd. 1e, nothing in Section 3.1 shall prohibit an active cannabis business or a cannabis business seeking registration from continuing operation at the same site if a (school/daycare/residential treatment facility/attraction within a public park that is regularly used by minors) moves within the minimum buffer zone. 3.2 Zoning and Land Use For jurisdictions with zoning, said jurisdiction can limit what zone(s) Cannabis businesses can operate in. As with other uses in a Zoning Ordinance, a jurisdiction can also determine if such use requires a Conditional or Interim Use permit. A jurisdiction cannot outright prohibit a cannabis business. A jurisdiction should amend their Zoning Ordinance and list what zone(s) Cannabis businesses are permitted in, and whether they are permitted, conditional, or interim uses. While each locality conducts its zoning differently, a few themes have emerged across the country. For example, cannabis manufacturing facilities are often placed in industrial zones, while cannabis retailers are typically found in commercial/retail zones. Cannabis retail facilities align with general retail establishments and are prohibited from allowing consumption or use onsite and are also required to have plans to prevent the visibility of cannabis and hemp-derived products to individuals outside the retail location. Cannabis businesses should be zoned under existing zoning ordinances in accordance with the license type or endorsed activities held by the cannabis business. 3.2.1. Cultivation. Cannabis businesses licensed or endorsed for cultivation are permitted as a (type of use) in the following zoning districts: • (Insert zoning districts use is permitted in here) • (Insert zoning districts use is permitted in here) 3.2.1. Cannabis Manufacturer. Cannabis businesses licensed or endorsed for cannabis manufacturer are permitted as a (type of use) in the following zoning districts: • (Insert zoning districts use is permitted in here) • (Insert zoning districts use is permitted in here) 3.2.1. Hemp Manufacturer. Businesses licensed or endorsed for low-potency hemp edible manufacturers permitted as a (type of use) in the following zoning districts: • (Insert zoning districts use is permitted in here) • (Insert zoning districts use is permitted in here) 3.2.1. Wholesale. Cannabis businesses licensed or endorsed for wholesale are permitted as a (type of use) in the following zoning districts: • (Insert zoning districts use is permitted in here) • (Insert zoning districts use is permitted in here) 3.2.1. Cannabis Retail. Cannabis businesses licensed or endorsed for cannabis retail are permitted as a (type of use) in the following zoning districts: • (Insert zoning districts use is permitted in here) • (Insert zoning districts use is permitted in here) 3.2.1. Cannabis Transportation. Cannabis businesses licensed or endorsed for transportation are permitted as a (type of use) in the following zoning districts: • (Insert zoning districts use is permitted in here) • (Insert zoning districts use is permitted in here) 3.2.1. Cannabis Delivery. Cannabis businesses licensed or endorsed for delivery are permitted as a (type of use) in the following zoning districts: • (Insert zoning districts use is permitted in here) • (Insert zoning districts use is permitted in here) 3.3 Hours of Operation State law limits the retail sale of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products to the hours of: • Monday-Saturday: 8 a.m.-2 a.m. the following day • Sunday: 10 a.m.-2 a.m. A local jurisdiction may adopt an ordinance prohibiting sales for any period between the hours of 8 a.m.-10 a.m. and between 9 p.m.-2 a.m. the following day, seven days a week. (Optional) Cannabis businesses are limited to retail sale of cannabis, cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products between the hours of (insert time here) and (insert time here). 3.4 (Optional) Advertising Cannabis businesses are permitted to erect up to two fixed signs on the exterior of the building or property of the business, unless otherwise limited by (insert local here)’s sign ordinances. Section 4. Temporary Cannabis Events Any individual or business seeking to obtain a cannabis event license must provide OCM information about the time, location, layout, number of business participants, and hours of operation. A cannabis event organizer must receive local approval, including obtaining any necessary permits or licenses issued by a local unit of government before holding a cannabis event. 4.1 License or Permit Required for Temporary Cannabis Events 4.1.1 License Required. A cannabis event organizer license entitles the license holder to organize a temporary cannabis event lasting no more than four days. A jurisdiction should determine what type of approval is consistent with their existing ordinances for events. A license or permit is required to be issued and approved by (insert local here) prior to holding a Temporary Cannabis Event. 4.1.2 Registration & Application Procedure A registration fee, as established in (insert local here)’s fee schedule, shall be charged to applicants for Temporary Cannabis Events. 4.1.3 Application Submittal & Review. The (insert local here) shall require an application for Temporary Cannabis Events. (A) An applicant for a retail registration shall fill out an application form, as provided by the (insert local here). Said form shall include, but is not limited to: i. Full name of the property owner and applicant; ii. Address, email address, and telephone number of the applicant; iii. (Insert additional standards here) (B) The applicant shall include with the form: i. the application fee as required in (Section 4.1.2); ii. a copy of the OCM cannabis event license application, submitted pursuant to 342.39 subd. 2. The application shall be submitted to the (insert local authority), or other designee for review. If the designee determines that a submitted application is incomplete, they shall return the application to the applicant with the notice of deficiencies. (C) Once an application is considered complete, the designee shall inform the applicant as such, process the application fees, and forward the application to the (insert staff/department, or elected body that will approve or deny the request) for approval or denial. (D) The application fee shall be non-refundable once processed. (E) The application for a license for a Temporary Cannabis Event shall meet the following standards: A jurisdiction may establish standards for Temporary cannabis events which the event organizer must meet, including restricting or prohibiting any on-site consumption. If there are public health, safety, or welfare concerns associated with a proposed cannabis event, a jurisdiction would presumably be authorized to deny approval of that event. • Insert standards here (G) A request for a Temporary Cannabis Event that meets the requirements of this Section shall be approved. (H) A request for a Temporary Cannabis Event that does not meet the requirements of this Section shall be denied. The (insert city/town/county) shall notify the applicant of the standards not met and basis for denial. (Optional) Temporary cannabis events shall only be held at (insert local place). (Optional) Temporary cannabis events shall only be held between the hours of (insert start time) and (insert stop time). Section 5. (Optional) Lower-Potency Hemp Edibles A jurisdiction can establish different standards or requirements regarding Low-Potency Edibles. A jurisdiction can consider including the following section and subsections in their cannabis ordinance. 5.1 Sale of Low-Potency Hemp Edibles The sale of Low-Potency Edibles is permitted, subject to the conditions within this Section. 5.2 Zoning Districts If sales are permitted, a jurisdiction can limit what zone(s) the sales of Low-Potency Edibles can take place in. A jurisdiction can also determine if such activity requires a Conditional or Interim Use permit. Low-Potency Edibles businesses are permitted as a (type of use) in the following zoning districts: • (Insert zoning districts use is permitted in here) • (Insert zoning districts use is permitted in here) 5.3 (Optional) Additional Standards 5.3.1 Sales within Municipal Liquor Store. A jurisdiction that already operates a Municipal Liquor Store may sell Low-Potency Edibles within the same store. The sale of Low-Potency Edibles is permitted in a Municipal Liquor Store. 5.3.2 Age Requirements. A jurisdiction is able to restrict the sale of Low-Potency Edibles to locations such as bars. The sale of Low-Potency Edibles is permitted only in places that admit persons 21 years of age or older. 5.3.3 Beverages. The sale of Low-Potency Hemp Beverages is permitted in places that meet requirements of this Section. 5.3.4 Storage of Product. A jurisdiction is able to set requirements on storage and sales of Low-Potency Edibles. Low-Potency Edibles shall be sold behind a counter, and stored in a locked case. Section 6. (Optional) Local Government as a Cannabis Retailer (insert local here) may establish, own, and operate one municipal cannabis retail business subject to the restrictions in this chapter. The municipal cannabis retail store shall not be included in any limitation of the number of registered cannabis retail businesses under Section 2.6. (insert local here) shall be subject to all same rental license requirements and procedures applicable to all other applicants. Section 7. Use in Public Places No person shall use cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products in a public place or a place of public accommodation unless the premises is an establishment or an event licensed to permit on-site consumption of adult-use. Appendix B: Retail Registration Form and Checklist Retail Registration Form and Checklist Local Unit of Government: Business Name: Business Address: Minnesota Cannabis Business License Number: Registration Period Initial Renewal Cannabis Microbusiness ($0.00) Cannabis Microbusiness ($1000.00) Cannabis Mezzobusiness ($500.00) Cannabis Mezzobusiness ($1000.00) Cannabis Retailer ($500.00) Cannabis Retailer ($1000.00) Is Applicant Current on All Property Tax and Assessments at Retail Location: No Yes Preliminary Local Ordinance Compliance: Pass Fail Notes: The above named applicant having paid the appropriate fees, being current on all applicable tax obligations, and having passed a preliminary compliance review, is authorized to engage in retail cannabis sales in the above named jurisdiction. Approved By: Title: Date: Appendix C: Hemp Flower and Hemp- Derived Cannabinoid Product Checklist Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 1 Office of Cannabis Management Department of Health Hemp Flower and Hemp-Derived Cannabinoid Product Checklist Minnesota Statute 18K.02, Definitions Minnesota Statute 152.01, Subdivision 9 Minnesota Statute 151.72, Sale of Certain Cannabinoid Products Minnesota Statute 152.0264, Cannabis Sale Crimes Minnesota Statute 342.09, Personal Adult Use of Cannabis Question Yes No Comments Additional Information Business License and Registration Compliance Is the business registered with the Minnesota Department of Health? All businesses selling hemp-derived cannabinoid products must be registered. See Hemp-Derived Cannabinoid Products (www.health.state.mn.us/people/cannabis/edibles/index.html) If the business offers on-site consumption, do they have a liquor license? Local authorities issue on-site consumption licenses. These are required for all businesses permitting on-site consumption of THC. Product Compliance – All Products Does the business ensure that all sales are made to persons 21 years old or older? Only persons 21 years of age or older may purchase hemp- derived cannabinoid products, with the exception of topicals. These products may be sold to anyone. Does the business have all edible cannabinoid products, except beverages, behind the counter or in a locked cabinet? Businesses must ensure all edible cannabinoid products are secure and inaccessible to customers. Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 2 Question Yes No Comments Additional Information Only delta-8 and delta-9 are allowed for human consumption. Does the business sell edibles or beverages with any other intoxicating cannabinoids? MDH has identified products containing many different intoxicating cannabinoids, such as HHC, THC-O, THC-P, PHC, delta-10, delta-11, delta-8p, delta-9p, etc. The product must contain only delta-8 and/or delta-9. Does the business sell any edible products that are similar to a product marketed to or consumed by children? Edible products that appear similar to candy or snacks marketed toward or consumed by children are not allowed. Does the label on the edible or beverage state “Keep out of reach of children”? All products must include the warning label “Keep out of reach of children.” Is the manufacturer’s name, address, website, and contact phone number included on the label or provided through a QR code? If not, the product is not in compliance. Does the QR code on the product bring the user to a Certificate of Analysis on the website, which includes the name of the independent testing laboratory, cannabinoid profile, and product batch number? All products must be tested by batch in an independent, accredited laboratory. The results must include the cannabinoid profile. Does the label on the product indicate the cannabinoids by serving and in total? The label must indicate the potency by individual serving as well as in total. Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 3 Question Yes No Comments Additional Information Does the label on the product make any claim the product offers any kind of health benefit? Health claims are not permitted on hemp or cannabis products unless approved by the FDA. At this time, there is not an approved statement. Does the label on the product state that the product does not claim to diagnose, treat, cure or prevent any disease? The manufacturer cannot claim the product will provide any health benefit unless the product has been formally approved by the FDA. Does the business sell CBD (or other forms of cannabidiol) in the form of a softgel, tablet, or tincture? Non-intoxicating cannabinoids may only be sold in the form of an edible, beverage, or topical. Therefore, softgels and tablets cannot be sold. Tinctures must be labeled as either an edible or beverage and comply with the edible or beverage requirements. Product Compliance – Edibles Does the edible product contain more than 5 mg delta-8 and/or delta-9 per serving? Edibles may not exceed 5 mg delta-8 and/or delta-9 per serving. Does the edible product package/container contain more than 50 mg total THC (delta-8 and/or delta-9)? Edibles may not exceed 50 mg total delta-8 or delta-9 per package. The edible cannot contain any other form of THC or intoxicating cannabinoid. Are all the edible product’s servings clearly marked, wrapped, or scored on the product? Edible product servings must be clearly distinguished on the product. Bulk products that require the consumer to measure are not allowed. Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 4 Question Yes No Comments Additional Information Does the business sell any edible products in the shape of bears, worms, fruits, rings, ribbons? Edibles in shapes that appeal to children are not allowed. Is the edible product in a child- proof, tamper-evident, opaque container? All edibles must be in a container that is child-resistant and tamper evident. If the container is clear, the business must place the edible into an opaque bag at the point of sale. Clear bags are not allowed. Product Compliance - Beverages Does the beverage product contain more than 5 mg delta-8 or delta-9 per serving? Beverages may not exceed 5 mg delta-8 and/or delta-9 per serving. Does the beverage product contain more than 2 servings? Beverages cannot exceed two servings, regardless of the THC potency. Is the beverage product in an opaque container? If the beverage is in a clear container, the business must place the beverage in an opaque bag at the point of sale. Product Compliance – Smokables (non-flower) Does the business sell vapes, pre- rolls, dabs, or other smokable products which contain more than 0.3% THC? A product’s certificate of analysis will show the concentration of THC the product contains. The certificate typically is found through the QR code on the product package. In MDH’s experience, most vapes contain 50% - 90%+ THC. Pre-rolls may consist of raw hemp flower. These products are not regulated by 151.72. However, if a pre-roll is labeled as “infused” or “coated” have additional cannabinoids applied to the material, of which the product typically exceeds the 0.3% THC limit. Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 5 Question Yes No Comments Additional Information Does the business sell vapes, pre- rolls, dabs, or other smokeable products that contain other intoxicating cannabinoids, such as HHC? MN Statutes do not allow any cannabinoid, other than delta-8 or delta-9, to be sold if the cannabinoid is intended to alter the structure or function of the body. HHC is a cannabinoid known to have potency greater than THC. Does the business sell vapes, pre- rolls, dabs, or other smokable products which contain CBD? Non-intoxicating cannabinoids cannot be smoked, vaped, or inhaled. Product Compliance – Flower Does the business sell raw hemp flower? Raw hemp flower must contain 0.3% or less of delta-9 on a dry weight basis. Products exceeding 0.3% delta-9 dry weight are marijuana, and are illegal for sale. THC-A is the non psychoactive precursor to delta-9. Once heated THC-A converts to delta-9. In that process some amount of THC-A is lost. To determine whether, once heated, the hemp flower will exceed the allowable 0.3% of delta-9, one can use a decarboxylation formula which takes into account the conversion of THC-A into delta-9. That formula is as follows: Total THC = (0.877 X THC-A) + d-9 THC) Raw flower must include a certificate of analysis to show testing below 0.3% delta-9. • A lack of a certificate of analysis would constitute an illegal sale. Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 6 Question Yes No Comments Additional Information • A certificate of analysis showing that under the decarboxylation formula that delta-9 would exceed the 0.3% threshold would also indicate the flower is cannabis and not hemp and therefore being sold illegally. Product Compliance – On-Site Consumption If the business offers on-site consumption, do they serve the edible or beverage in its original packaging? The business may not pour out or remove an edible from its original packaging. If the business offers on-site consumption, do they mix a cannabis-infused beverage with alcohol? The business may not mix cannabis-infused products with alcohol. If the business offers on-site consumption, do they permit customers to remove from the premises products which have been removed from their original packaging? Products which have been removed from their original packaging cannot be removed from the premises by the customer. NOTE: If a person suspects that a hemp-derived cannabinoid product is being sold in violation of Minnesota law, they can use the complaint form at Submitting Hemp-Derived Cannabinoid Product Complaints (www.health.state.mn.us/people/cannabis/edibles/complaints.html). Appendix D: Enforcement Notice from the Office of Cannabis Management Enforcement Notice 1 Enforcement Notice from the Office of Cannabis Management Dear Registered Hemp Derived Cannabinoid Business: The Office of Cannabis Management (OCM), established in 2023, is charged with developing and implementing the operational and regulatory systems to oversee the cannabis industry in Minnesota as provided in Minnesota Statutes Chapter 342. When Minnesota legalized the sale of adult-use of cannabis flower, cannabis products, and lower-potency hemp edibles/ hemp-derived consumer products, the Minnesota Legislature included statutory provisions, Minnesota Statutes, chapter 152.0264, making the sale of cannabis illegal until a business is licensed by OCM. The Office of Cannabis Management has not yet issued licenses for the cultivation, manufacture, wholesale, transportation or retail sale of cannabis, therefore any retail sales of cannabis products, including cannabis flower, are illegal. The Office of Cannabis Management has received complaints of retailers selling cannabis flower under the label of hemp flower. Under an agreement between The Minnesota Department of Health (MDH) and OCM, inspectors from MDH will begin to examine any flower products being sold during their regular inspections to determine whether they are indeed hemp flower or cannabis flower. In distinguishing between hemp and cannabis flower, OCM, consistent with federal rules and regulations related to hemp under 7 CFR 990.1, will consider the total concentration of THC post- decarboxylation, which is the process by which THC-A is converted into Delta-9 to produce an intoxicating effect. The examination of raw flower products will include reviewing the certificate of analysis for compliance in several areas, including: Compliance with the requirement that raw flower listed for sale includes a Certificate of Analysis (COA). Products for sale without a COA will constitute an illegal sale. A COA that affirms concentrations of 0.3% or less of Delta-9 on a dry weight basis. Products exceeding 0.3% Delta-9 dry weight are considered marijuana and are therefore illegal to sell. A COA that confirms that the total levels of Delta-9 and THC-A after the decarboxylation process do not exceed 0.3%. A COA that indicates the raw flower will exceed 0.3 percent Delta-9 post-decarboxylation, or a subsequent test conducted by an independent laboratory utilized by OCM that confirms Delta-9 in excess of 0.3 percent will be considered illegal. Minnesota Statutes, Chapter 342 governs Minnesota’s cannabis market, and empowers OCM to ensure regulatory compliance. Minnesota Statutes, chapter 342.09, subdivision 4 prohibits the retail sale of cannabis flower and cannabis products “without a license issued under this chapter that authorizes the sale.” Enforcement Notice 2 To date, the Office of Cannabis Management has not issued any cannabis licenses, applications for licenses are expected to be available in the first half of 2025. As such, selling cannabis is a clear violation of law. Be aware that under Minnesota Statutes, 342.09, subdivision 6, OCM may assess fines in excess of a $1 million for violations of this law. Likewise, under Minnesota Statutes, chapter 342.19, OCM is empowered to embargo any product that it has “probable cause to believe . . . is being distributed in violation of this chapter or rules adopted under this chapter[.]” Furthermore, violations of law may be considered in future licensing decisions made by OCM. As inspectors enter the field, we encourage you to review the products you are currently selling to ensure they fall within the thresholds outlined above. If you have any questions related to the products you are selling, please send an email to cannabis.info@state.mn.us. Thank you for your attention to this matter. Charlene Briner Interim Director Office of Cannabis Management Appendix E: Notice to Unlawful Cannabis Sellers Notice to Unlawful Cannabis Sellers This notice is to inform you that your current course of action may run afoul of Minnesota law, and continuing this course of action may result in civil actions and potential criminal prosecution. To avoid such outcomes, you should immediately cease and desist any plans to engage in the unlicensed sale of cannabis and cannabis products. Minnesota Statutes, Chapter 342 (www.revisor.mn.gov/statutes/cite/342) governs Minnesota’s cannabis market, and empowers OCM to ensure regulatory compliance. Minnesota Statutes, chapter 342.09, subdivision 4 (www.revisor.mn.gov/statutes/cite/342.09#stat.342.09.4) prohibits the retail sale of cannabis flower and cannabis products “without a license issued under this chapter that authorizes the sale.” To date the Office of Cannabis Management has not issued any retail, or other, cannabis licenses. As such, your plan to sell cannabis in a retail setting at this date would be in flagrant violation of the law. Be aware that under Minnesota Statutes, 342.09, subdivision 6 (www.revisor.mn.gov/statutes/cite/342.09#stat.342.09.6), OCM may assess fines in excess of a $1,000,000 for violations of this law. Likewise, under Minnesota Statutes, chapter 342.19 (www.revisor.mn.gov/statutes/cite/342.19), OCM is empowered to embargo any product that it has “probable cause to believe . . . is being distributed in violation of this chapter or rules adopted under this chapter[.]” It is believed that products attempted to be sold at your retail location might be distributed in violation of the law, and would therefore be subject to embargo by OCM. Under Minnesota Statutes, chapter 342.19, subd. 2 (www.revisor.mn.gov/statutes/cite/342.19#stat.342.19.2), once embargoed OCM “shall release the cannabis plant, cannabis flower, cannabis product, artificially derived cannabinoid, lower-potency hemp edible, or hemp-derived consumer product when this chapter and rules adopted under this chapter have been complied with or the item is found not to be in violation of this chapter or rules adopted under this chapter.” While Minnesota has legalized the sale of adult-use of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products, the legislature did add new statutory provisions, Minnesota Statutes, chapter 152.0264 (www.revisor.mn.gov/statutes/cite/152.0264), making illegal the unlawful sale of cannabis. As there are not yet any licenses issued by OCM for the cultivation, manufacture, wholesale, transportation, or retail of cannabis, any sales of cannabis products in excess of the limits in 152.0264 is illegal. If you are only planning to sell cannabinoid products that are derived from hemp, you should ensure that the sale of those products is consistent with Minnesota Statutes, chapter 151.72 (www.revisor.mn.gov/statutes/cite/151.72), including but not limited to the requirement that your business be registered with the Commissioner of Health, and that all products are in compliance with the relevant statutes. Finally, in addition to the state laws outlined above, please be aware that any retail location must be in compliance with local government ordinances and zoning requirements. OCM takes seriously its charge to enforce Minnesota Statutes, Chapter 342, and its responsibility to ensure a safe and legal cannabis market. In order to avoid the above-described actions, all attempts to open a cannabis retail dispensary in Minnesota without the appropriate license should be ceased. CITY OF BROOKLYN CENTER Notice is hereby given that a public hearing will be held on the 22nd day of August,2022, at 7:00 p.m. or as soon thereafter as the matter may be heard at City Hall, 6301 Shingle Creek Parkway,to consider an interim ordinance authorizing a study and imposing a moratorium on the establishment of new uses or the expansion of existing uses related to the sale of THC products. Auxiliary aids for handicapped persons are available upon request at least 96 hours in advance. Please contact the City Clerk at 763-569-3300 to make arrangements. CITY OF BROOKLYN CENTER SUMMARY PUBLICATION Ordinance No. 2022-02 AN INTERIM ORDINANCE AUTHORIZING A STUDY AND IMPOSING A MORATORIUM ON THE ESTABLISHMENT OF NEW USES OR THE EXPANSION OF EXISTING USES RELATED TO THE SALE OF THC PRODUCTS The Brooklyn Center City Council adopted the above-referenced interim ordinance establishing a moratorium on the sale of cannabinoid products, as that term is now defined in state law. The 2022 Legislature adopted an amendment to Minnesota Statutes, section 151.72 which permits the retail sale of edible cannabinoid products as of July 1, 2022. The act authorizes the Minnesota Board of Pharmacy to enforce the law but provides no guidance regarding regulation. Brooklyn Center, like most cities, is unprepared to regulate the sale of these products. The interim ordinance declares a moratorium on such sales and authorizes a study to determine if and how the City wishes to regulate sales. Medical cannabis and hemp products which could be sold legally before July 1, 2022, are exempt from the moratorium. The ordinance is in effect 30 days from this publication. The full text of the ordinance is available on the City's website and can be obtained by contacting City Hall. Adopted this 22nd day of August, 2022. 6"'W ike Elliott, Mayor ATTEST: htl 1,21//i /' t City Clerk Date of Publication: September 1, 2022 Effective Date: October 1, 2022 CITY OF BROOKLYN CENTER Please take notice that the City Council of the City of Brooklyn Center will hold a public hearing on Monday, August 28, 2023 at approximately 7:00 p.m. at Brooklyn Center City Hall, located at 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota. Said public hearing will include a second reading and proposed adoption of an ordinance prohibiting the use of cannabis and hemp products in public places within the City of Brooklyn Center. Meeting materials can be accessed by visiting the City of Brooklyn Center's website at: hLtps://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 persons with disabilities are available upon request at least 96 hours in advance. Please contact the City Cleric at (763) 569-3300 to make arrangements. ORDINANCE NO. 2023-05 AN ORDINANCE AMENDING CHAPTER 19 OF THE BROOKLYN CENTER CITY CODE TO PROHIBIT THE USE OF CANNABIS AND HEMP PRODUCTS IN PUBLIC PLACES THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAINS AS FOLLOWS: Section 1. Brooklyn Center City Code, Chapter 19 Table of Contents, is hereby amended by adding the following double -underlined language: PROHIBITING USE OF CANNABIS AND HEMP PRODUCTS IN PUBLIC PLACES Definitions . 19-4000 Use of Cannabis and Hemb Prohibited in Public Places . 19-4001 Penalties . . 19-4002 Section 2. Brooklyn Center City Code, Chapter 19, is hereby amended by adding Sections 19- 4000 through 19-4002 as follows: Section 19-4000. DEFINITIONS. For purposes of this section, the following definitions shall apply in the interpretation and enforcement of Sections 19-4000 through 19-4002. Cannabis flower," "cannabis products," "lower -potency hemp edibles," and hemp -derived consumer products" shall have the definitions given to them in Minnesota Statutes, section 342,01, as it may be amended from time to time. 2. "Public place" is defined as any indoor or outdoor area that is used or held out for use by the public whether owned or operated by public or private interests. Pursuant to Minnesota Statutes, section 152.0263, subd. 5, "public place" does not include the following: (i) a private residence, including the person's curtilage or yard; (ii) private property not generally accessible by the public; and (iii) the premises of an establishment or event licensed to permit on -site consumption of cannabis flower, cannabis products, lower -potency hemp edibles, or hemp -derived consumer products. Section 19-4001. USE OF CANNABIS AND HEMP PROHIBITED IN PUBLIC PLACES. No person shall use cannabis flower, cannabis products, lower -potency hemp edibles, or hemp -derived consumer products in a public place. Section 19-4002. PENALTIES. A violation of this section shall be considered a petty misdemeanor notwithstanding any other penalty provision in the city code, and, upon conviction, the violator shall be punished by a fine not to exceed $200. Section 3. Severability. Should any section or part of this ordinance be declared by a court of competent jurisdiction to be invalid, such decision will not affect the validity of the ordinance as a whole or any part other than the part declared invalid. Section 4. Effective Date. This Ordinance shall become effective after adoption and upon thirty 30) days following its legal publication. Adopted this 28th day of August, 2023. ATTEST: We2l City Clerk Date of Publication: September 7, 2023 Effective Date: October 7 2023 2 2,A.,,J April draves, Mayor CITY 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 thee__ 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