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Ordinance - 22-08: Establishing Licensing for THC CITY OF SPRING PARK COUNTY OF HENNEPIN STATE OF MINNESOTA ORDINANCE NO. 22-08 AN ORDINANCE AMENDING THE SPRING PARK CITY CODE, CHAPTER 12—BUSINESSES,BY ADDING ARTICLE V. THC PRODUCTS, ESTABLISHING LICENSING FOR THE SALE OF THC PRODUCTS REGULATED BY MINNESOTA STATUTES, SECTION 151.72 THE CITY COUNCIL OF THE CITY OF SPRING PARK,MINNESOTA ORDAINS AS FOLLOWS: Section 1. The City Council of the City of Spring Park hereby amends Chapter 12 by adding a new Article V. THC Products as follows: ARTICLE V. THC PRODUCTS DIVISION 1. GENERALLY Sec. 12-50. Purpose and intent. (a) Purpose. The purpose of this section is to regulate the sale of any product that contains tetrahydrocannabinol ("THC") and meets the requirements to be sold for human or animal consumption under Minnesota Statutes, section 151.72 ("THC products") for the following reasons: (1) The city recognizes that,based on the most reliable and up-to-date scientific evidence, the introduction of legalized THC products presents a potential threat to the public health, safety, and welfare of the residents of Spring Park. (2) The city has the opportunity to be proactive and make decisions that will mitigate this threat,reduce exposure of young people to THC products, curtail the marketing of THC products to young people, and improve retailer compliance with existing laws related to THC products. (3) A local regulatory system for retailers of THC products is appropriate to ensure that such retailers comply with laws and business standards of the city of Spring Park to protect the health, safety, and welfare of our youth and other vulnerable residents. (4) Minnesota Statutes, section 151.72 requires THC product retailers to check the identification of purchasers to verify that they are at least 21 years of age, comply with certain packaging and labeling requirements to protect children and youth, and meet certain potency and serving size requirements. (5) State law further authorizes the Minnesota Board of Pharmacy to adopt product and testing standards in part to curb the illegal sale and distribution of THC products and to DOCSOPEN\SP275\1\836560.v2-11/3/22 ensure the safety and compliance of commercially available THC products in the State of Minnesota. (6) State law does not preempt municipalities from adopting and enforcing local ordinances to regulate retailers of THC products, including,but not limited to,business licensing requirements. (7) Establishing licensing requirements for retailers that desire to sell THC products will not unduly burden legitimate business activities of such retailers who sell or distribute THC products to adults but will allow the city to effectively regulate the operation of lawful businesses and discourage violations of THC product-related laws. In making these findings and enacting this section, it is the intent of the city to facilitate responsible retail activities associated with THC products by allowing legal sale and access without promoting increases in use, and to discourage violations of THC product-related laws, especially those which prohibit or discourage the marketing, sale or distribution of THC products to underage persons, as defined herein. Sec. 12-51. Definitions. The following words, terms, and phrases, when used in this article, shall have the meanings ascribed to them, except where the context clearly indicates a different meaning: Compliance checks. The system the city uses to investigate and ensure that those authorized to sell THC products are following and complying with the requirements of this article. Compliance checks shall involve the use of persons under the age of 21 as authorized by this article. Compliance checks shall also mean the use of persons under the age of 21 who attempt to THC 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 THC products. Exclusive Liquor Store. An establishment that meets the definition of exclusive liquor store in Minnesota Statutes, section 340A.101, as it may be amended from time to time. Moveable place of business. Any form of business operated out of a truck, van, automobile or other type of vehicle or transportable shelter and not a fixed address store front or other permanent type of structure authorized for sales transactions. Retail establishment. Any place of business where THC products are available for sale to the general public. Retail establishments shall include,but are not limited to, grocery stores, convenience stores,breweries, and restaurants. Retail establishment shall not include any home occupation or sales out of any dwelling. Sale. Any transfer of goods for money, trade,barter or other consideration, including giving goods away for free, whether alone or in conjunction with other goods or products. Sampling. The use or consumption of any THC product in a retail establishment by a customer or potential customer for the purpose of sampling the product before a purchase. Self-service merchandising. Open displays of THC products in any manner where any person shall have access to the THC products without the assistance or intervention of the DOCSOPEN\SP275\1\836560.v2-11/3/22 licensee or the licensee's employee. The assistance or intervention shall entail the actual physical exchange of the THC product between the customer and the licensee or employee. THC Product. Any product that contains more than trace amounts of tetrahydrocannabinol and that meets the requirements to be sold for human or animal consumption under Minnesota Statutes, section 151.72. Vending machine. Any mechanical, electric or electronic or other type of device which dispenses THC products upon the insertion of money, tokens or other form of payment directly into the machine by the person seeking to purchase the THC product. Secs. 12-53-12-60. Reserved. DIVISION 2. ADMINISTRATION AND ENFORCEMENT Sec. 12-61. Violations. (a) Notice. Upon discovery of a suspected violation, the alleged violator shall be issued, either personally or by mail, a citation that sets forth the alleged violation and which shall inform the alleged violator of the right to be heard on the accusation. (b) Hearings. If a person accused of violating this article so requests, a hearing shall be scheduled, the time and place of which shall be published and provided to the accused violator. (c) Hearing officer. The city council shall serve as the hearing officer. (d) Decision. If the hearing officer determines that a violation of this article did occur, that decision, along with the hearing officer's reasons for finding a violation and the penalty to be imposed under section 12-62, shall be recorded in writing, a copy of which shall be provided to the accused violator. Likewise, if the hearing officer finds that no violation occurred or finds grounds for not imposing any penalty, such findings shall be recorded and a copy provided to the acquitted accused violator. (e) Appeals. Appeals of any decision made by the hearing officer may be filed in the district court. (f) Misdemeanor prosecution. Nothing in this section shall prohibit the city from seeking prosecution as a misdemeanor for any alleged violation of this article. If the city elects to seek misdemeanor prosecution, no administrative penalty shall be imposed. (g) Continued violation. Each violation, and every day in which a violation occurs or continues, shall constitute a separate offense. Sec. 12-62. Penalties. (a) Licensees. Any licensee found to have violated this article, or whose employee shall have violated this article, shall be charged an administrative fine as determined by the city council. In addition, after the third offense, the license shall be suspended for not less than seven days. DOCSOPEN\SP275\1\836560.v2-11/3/22 (b) Other individuals. Other individuals found to be in violation of this article shall be charged an administrative fee as determined by the city council. (c) Misdemeanor. Nothing in this section shall prohibit the city from seeking prosecution as a misdemeanor for any violation of this article. Sec. 12-63. Exceptions and defenses. Nothing in this article shall prevent the providing of THC products to a person under the age of 21 as part of a lawfully recognized religious, spiritual or cultural ceremony. It shall be an affirmative defense to the violation of this article for a person to have reasonably relied on proof of age as described by state law. Sec. 12-64. Severability If any section or provision of this article is held invalid, such invalidity shall not affect other sections or provisions which can be given force and effect without the invalidated section or provision. Secs. 12-65-12-70. Reserved. DIVISION 3. LICENSE Sec. 12-71. Required. (a) Obtaining from city. No person shall sell or offer to sell any THC product without having obtained a license to do so from the city. All licenses issued under this section shall be valid only on the premises for which the license was issued and only for the person, to whom the license it was issued. No transfer of any license to another location or person shall be valid. (b) Application. An application for a license to sell THC 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. Upon receipt of a completed application, the city administrator/clerk/treasurer shall forward the application to the city council for action at its next regularly scheduled council meeting. If the city clerk determines that an application is incomplete, the clerk will return the application to the applicant with notice of the information necessary to make the application complete. (c) Action. The council may either approve or deny the license, or it may delay action for such reasonable period of time as necessary to complete any investigation of the application or the applicant it deems necessary. If the council approves the license, the city clerk will issue the license to the applicant. If the council denies the license, notice of the denial will be given to the applicant along with notice of the applicant's right to appeal the council's decision. DOCSOPEN\SP275\1\836560.v2-11/3/22 (d) Term. All licenses issued under this article shall be valid for one calendar year from January 1 through December 31. For any license issued after January 1 in any year, the license shall be valid from the date of issue through December 31. (e) Revocation or suspension. Any license issued under this article may be revoked or suspended. In such case, the licensee may request or hearing or appeal as provided in sections 12-61 and 12-62. (f) Transfers. All licenses issued under this article shall be valid only on the premises for which the license was issued and only for the person to whom the license was issued.No transfer of any license to another location or person shall be valid without the prior approval of the city council. (g) 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 this article. (h) Display. All licenses shall be posted and displayed in plain view of the general public on the licensed premises. (i) Renewals. The renewal of a license issued under this article shall be handled in the same manner as the original application. The request for a renewal shall be made at least 30 days but no more than 60 days before the expiration of the current license. The issuance of a license issued under this article shall be considered a privilege and not an absolute right of the applicant and shall not entitle the holder to an automatic renewal of the license. See. 12-72. Fees. No license shall be issued under this article until the appropriate license fee shall be paid in full. The fee for a license under this article shall be as listed on the appropriate license fee schedule. Sec. 12-73. Basis for denial. (a) Grounds for denying the issuance or renewal of a license under this article, include, but are not limited to, the following: (1) The applicant is under the age of 21 years. (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 THC products. (3) The applicant has had a license to sell THC products revoked within the preceding 12 months of the date of application. (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 other regulation from holding such a license. (6) The applicant is an exclusive liquor store. (7) The applicant does not operate out of a retail establishment. DOCSOPEN\SP275\1\836560.v2-11/3/22 (b) Except as may otherwise be provided by law, the existence of any particular grounds for denial does not mean that the city must deny the license. (c) If a license is mistakenly issued or renewed to a person, it shall be revoked upon the discovery that the person was ineligible for the license under this article. Secs. 12-74-12-80. Reserved. DIVISION 4. SALES RESTRICTIONS Sec. 12-81. Prohibited sales. (a) It shall be a violation of this article for any person to sell or offer to sell any THC products: (1) To any person under the age of 21 years. (2) By means of any type of vending machine. (3) By means of self-service methods whereby the customer does not need to make a verbal or written request to an employee of the licensed premises in order to receive the THC product and whereby there is not a physical exchange of the THC product between the licensee or the licensee's employee and the customer. (4) By means of providing samples of any THC product free of charge or at a nominal cost. (5) By any other means, to any other person, or in any other manner or form prohibited by federal, state or local law, ordinance provision, or other regulation. Sec. 12-82. Vending machines. It shall be unlawful for any person licensed under this article to allow the sale of THC products by means of a vending machine. Sec. 12-83. Self-service sales. All THC products shall either be stored behind a counter or other area not freely accessible to customers, or in a case or other storage unit not left open and accessible to the general public. Sec. 12-84. Responsibility. All licensees under this article shall be responsible for the actions of their employees in regard to the sale of THC products on the licensed premises; and the sale of such an item by an employee shall be considered a sale by the license holder. Nothing in this section shall be construed as prohibiting the city from also subjecting the clerk to whatever penalties are appropriate under this article, state or federal law, or other applicable law or regulation. Sec. 12-85. 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 once per year, the city shall DOCSOPEN\SP275\1\836560.v2-11/3/22 conduct compliance checks by engaging, with the written consent of their parents or guardians if the person is under the age of 18,persons over the age of 17 years, but less than 21 years, to enter licensed premises to attempt to purchase THC products. Individuals used for the purpose of compliance checks shall be supervised by city-designated law enforcement officers or other designated city personnel. No person under the age of 21 used in compliance checks shall attempt to use a false identification misrepresenting the individual's age, and all individuals under the age of 21 lawfully engaged in a compliance check shall answer all questions about the individual's age asked by the licensee or his employee and shall produce any identification, if any exists, for which he or she is asked.Nothing in this section shall prohibit compliance checks authorized by state or federal laws for educational, research or training purposes, or required for the enforcement of a particular state or federal law or other applicable law or regulation. Sec. 12-86. Other illegal acts. Unless otherwise provided, the following acts shall be a violation of this article: (1) Illegal sales. It shall be a violation of this article for any person to sell or otherwise provide any THC product to any person under the age of 21. Sec. 12-87. Signage and age verification required. (1) Signage. At each location where THC products are sold, the licensee shall display a sign in plain view to provide public notice that selling any of THC 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 under 30 years of age. (2) Age verification. At each location where THC products are sold,the licensee shall verify, by means of government-issued photographic identification containing the bearer's date of birth, that the purchaser or person attempting to make the purchase is at least 21 years of age. Verification is not required if the purchaser or person attempting to make the purchase is 30 years of age or older. It shall not constitute a defense to a violation of this subdivision that the person appeared to be 30 years of age or older. Section 2. This ordinance shall take effect following its adoption and publication. ADOPTED by the City of Spring Park this 19th day of December 2022. CITY OF;S PARK By: Jerome . Rockvam, Mayor 4inB ie Hoffman, Mt DOC SOPEN\SP275\1\836560.v2-11/3/22 AFFIDAVIT OF PUBLICATION CITY OF SPRING PARK COUNTY OF HENNEPIN STATE OF MINNESOTA )ss ORDINANCE NO.22-08 COUNTY OF CARVER NOTICE is hereby given that the City Council of the City of Spring Debbie Schwalba being duly sworn on an Park held a public meeting on Mon- oath, states or affirms that he/she is the day December 19, 2022, at 7:00 Publisher's Designated Agent of the newspa- p.m.in the COUNCIL CHAMBERS located at CITY HALL,4349 Warren per(s)known as: Ave,Spring Park,MN. Laker Pioneer The purpose was to discuss and vote on the following: with the known office of issue being located ORDINANCE No.22-08: in the county of: Establishing THC Licensing. CARVER Amending Spring Park City with additional circulation in the counties of: Code, Chapter 12 — Businesses, HENNEPIN Adding Article V. THC Products, Establishing Licensing for the Sale and has full knowledge of the facts stated of THC Products regulated by Min- below: nesota Statutes,Section 151.72 (A)The newspaper has complied with all of The Ordinance was adopted the requirements constituting qualifca- by the City Council of the City of tion as a qualified newspaper as provided Spring Park on December 19,2022. by Minn. Stat.§331A.02. (B)This Public Notice was printed and pub- A complete copy of the Ordi- nance is available at City Hall,4349 lished in said newspaper(s) once each Warren Ave,Spring Park,MN. week, for 1 successive week(s); the first insertion being on 12/24/2022 and the last .ramie Hoffman insertion being on 12/24/2022. City Clerk Published in the MORTGAGE FORECLOSURE NOTICES Laker Pioneer Pursuant to Minnesota Stat. §580.033 December 24,2022 relating to the publication of mortgage 1281643 foreclosure notices: The newspaper complies with the conditions described in §580.033, subd. 1, clause (1) or(2). If the newspaper's known office of issue is located in a county adjoining the county where the mortgaged premises or some part of the mortgaged premises described in the notice are located, a substantial portion of the newspaper's circulation is in the latter county. By: Designated Agent Subscribed and sworn to or affirmed before me on 12/24/2022 by Debbie Schwalba. Notary Public DARLENE MARIE MAD31,2024 NOTARY PUBLIC-MI My Commiss Expires Rate Information: (1)Lowest classified rate paid by commercial users for comparable space: $61.35 per column inch Ad ID 1281643