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Interim Ordinance 1411 Cannabis Business 7-24-2023 Interim Ordinance No. 1411 Authorizing a Study and Imposing a Moratorium on the Establishment and Operation of Cannabis Businesses Within the City of Fridley The City Council of the City of Fridley does ordain, after review, examination and staff recommendation that a moratorium on cannabis businesses be enacted as follows: Section 1. Legislative Findings and Authority 1. The Minnesota Legislature recently enacted, and the Governor signed, 2023 Minnesota Session Laws, Chapter 63 – H.F. No. 100 (Act), which is comprehensive legislation relating to cannabis including, but not limited to, the establishment of the Office of Cannabis Management (OCM), legalizing and limiting the possession and use of cannabis and certain hemp products by adults, providing for the licensing, inspection, and regulation of cannabis and hemp businesses, taxing the sale of cannabis flower, cannabis products, and certain hemp products, establishing grant and loan programs, amending criminal penalties, providing for expungement of certain convictions, and providing for the temporary regulation of Edible Cannabinoid Products and Nonintoxicating Cannabinoids. 2. The Act provides local units of government certain authority related to Cannabis Businesses, including the authority to (i) require local registration of certain Cannabis Businesses operating retail establishments, (ii) adopt reasonable restrictions on the time, place, and manner of the operation of Cannabis Businesses, provided that such restrictions do not prohibit the establishment or operation of a Cannabis Business, (iii) limit the number of certain Cannabis Businesses based on the population of the community, and (iv) 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 a playground or athletic field. 3. The Act requires the OCM, which was established effective July 1, 2023, to work with local governments to develop model ordinances for reasonable restrictions on the time, place, and manner of the operation of Cannabis Businesses. The Act also requires the OCM to establish additional rules and regulations relating to the operation of Cannabis Businesses. It is anticipated that the City of Fridley (City) will benefit from reviewing and analyzing the OCM’s model ordinances, rules and regulations before making any decisions related to the regulation of Cannabis Businesses in the City. 4. The Act (Minnesota Statutes (M.S.) § 342.13(e)) expressly allows a local unit of government that is conducting studies or has authorized a study to be conducted or has held or scheduled a hearing for the purpose of considering adoption or amendment of reasonable restrictions on the time, place and manner of the operation of Cannabis Businesses to adopt an interim ordinance applicable to all or part of its jurisdiction for the purpose of protecting the planning process and the health, safety, and welfare of its citizens. The interim ordinance may regulate, restrict, or prohibit the operation of Cannabis Businesses within the jurisdiction or a portion thereof until January 1, 2025. 5. Given the uncertainty regarding the model ordinances to be developed by the OCM and the broad scope of the changes to Minnesota law brought about by the Act, the Fridley City Council (Council) desires to adopt an interim ordinance for the purpose of protecting the planning process and the health, safety, and welfare of its citizens. 6. The Council desires to conduct a study for the purpose of considering the adoption or amendment of reasonable restrictions on the time, place and manner of the operation of Cannabis Businesses as well as the other regulations local units of government may adopt under the Act. 7. On July 10, 2023, after providing at least 10 days published notice, the Council held a public hearing regarding the consideration and adoption of an interim ordinance prohibiting the operation of Cannabis Businesses within the City until January 1, 2025. Section 2. Definitions Act: 2023 Minnesota Session Laws, Chapter 63 (H.F. No. 100). Cannabis Business: the meaning given the term in M.S. § 342.01, subd. 14. City: City of Fridley, a Minnesota municipal corporation. Edible Cannabinoid Product: has the meaning given the term in M.S. § 151.72, subd. 1(f). Nonintoxicating Cannabinoid: has the meaning given the term in M.S. § 151.72, subd 1(k). OCM: the Office of Cannabis Management, established as set forth in M.S. § 342.02, subd. 1. Ordinance: this interim ordinance, which is adopted pursuant to M.S. § 342.13(e). Section 3. Study Authorized The Council hereby authorizes and directs City staff to conduct a study regarding the adoption or amendment of reasonable restrictions on the time, place, and manner of the operation of Cannabis Businesses, as well as other potential local regulations allowed under the Act, and report to the Council on the potential regulation of Cannabis Businesses. The study may include a review of any model ordinances that OCM is directed to draft under M.S. § 342.13(d), an analysis of potential setback regulations allowed under M.S. § 342.13(c), and such other matters as staff may determine are relevant to the city council’s consideration of this matter. The report may also include City staff’s recommendations on whether the Council should adopt regulations and, if so, the recommended types of regulations. Section 4. Moratorium A moratorium is hereby imposed on the operation of any Cannabis Business within the City. During the term of this Ordinance, no business, person, or entity may establish or operate a Cannabis Business within the jurisdictional boundaries of the City. Accordingly, during the period that this Ordinance is in effect, the City shall not accept, process, or act on any application, site plan, building permit, zoning request, or other approval, including any requested confirmation, certification, approval, or other request from the OCM or other governmental entity requesting City review of any application or proposal for a business proposing to engage in the operation of a Cannabis Business. During the term of the moratorium, it is a violation of this Ordinance for any business, person, or entity to establish or operate a Cannabis Business within the City. Section 5. Exceptions The moratorium imposed by this Ordinance does not apply to: (i) the continued operation of a duly established business as part of the Medical Cannabis Program administered by the Minnesota Department of Health; or (ii) the sale of Edible Cannabinoid Products and Nonintoxicating Cannabinoids, provided, however, that nothing in this Ordinance exempts a business, person, or entity from complying with all other requirements and prohibitions of applicable laws and ordinances related to such exceptions. For example, as of the effective date of this Ordinance, the sale of certain cannabinoids is currently prohibited within the City pursuant to Interim Ordinance 1408 and the City requires a license to sell certain Edible Cannabinoid Products and Nonintoxicating Cannabinoids pursuant to the Hemp THC Products Chapter of the Fridley City Code (Code). Section 6. Enforcement Violation of this Ordinance is a misdemeanor. The City may also enforce this Ordinance by mandamus, injunction, or other appropriate civil remedy in any court of competent jurisdiction. A violation of this Ordinance is also subject to the City’s general penalties prescribed in the Code and may further result in the City reporting violations to the OCM, if relevant to OCM licensing. The Council hereby authorizes City staff and consultants to initiate any legal action deemed necessary to secure compliance with this Ordinance. Section 7. Severability Every section, provision, and part of this Ordinance is declared severable from every other section, provision, and part. If any section, provision, or part of this Ordinance is held to be invalid by a court of competent jurisdiction, such judgment shall not invalidate any other section, provision, or part of this Ordinance. Section 8. Effective Date and Term This Ordinance shall become effective on August 11, 2023. This Ordinance will remain in effect until January 1, 2025, or until the Council expressly repeals it, whichever occurs first. th Passed and adopted by the City Council of the City of Fridley the 24 day of July, 2023. ________________________________ Scott J. Lund, Mayor Attest: ____________________________ Melissa Moore, City Clerk Public Hearing: July 10, 2023 First reading: July 10, 2023 Second reading: July 24, 2023 Publication: July 27, 2023 Effective: August 10, 2023