Ordinance No. 1410, THC Licensing 07-10-2023
Ordinance No. 1410
Amending the Fridley City Code to Add Chapter 310, Hemp THC Products and Amend
Chapter 209, Fees
The City Council of the City of Fridley does ordain, after review, examination and staff
recommendation that the Fridley City Code be amended as follows:
Section 1
That the Fridley City Code be hereby amended by adding Chapter 310, Hemp THC Products as
follows:
Fridley City Code
Chapter 310 Hemp THC Products
310.01 Purpose
The purpose of this Chapter is to establish regulations for the sale of edible cannabinoid products
and nonintoxicating cannabinoids, as authorized in Minnesota Statues (M.S.) § 151.72, in the City
of Fridley (City). The Fridley City Council (Council) finds as follows:
1. The Minnesota Legislature’s decision to amend Minnesota Statutes § 151.72 to expressly
allow the sale of certain products derived from hemp, some of which contain
tetrahydrocannabinol (THC), created a regulatory gap regarding the licensing and sale of
products allowed to be sold under M.S. § 151.72 (Hemp THC Products).
2. The City recognizes that, based on the most reliable and up-to-date scientific evidence, the
largely unregulated Hemp THC Products presents a potential threat to the public health,
safety, and welfare of the residents of the City.
3. The City has the opportunity to make decisions that will mitigate this threat, reduce
exposure of young people to Hemp THC Products, curtail the marketing of Hemp THC
Products to young people, and improve retailer compliance with existing laws related to Hemp
THC Products.
4. A local regulatory system for retailers of Hemp THC Products is appropriate to ensure that
such retailers comply with laws and business standards of the City to protect the health, safety,
and welfare of youth and other vulnerable residents.
5. M.S. § 151.72 requires Hemp 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.
6. State law does not preempt municipalities from adopting and enforcing local ordinances to
regulate retailers of Hemp THC Products including, but not limited to, business licensing
requirements. The Governor signed HF100/SF73 (Cannabis Act) on May 30, 2023, which
provides a framework for adult-use cannabis in the State of Minnesota, and also provides that
M.S. § 151.72 will automatically repeal on March 1, 2025.
7. The Cannabis Act provides a transition period between Hemp THC Products and other
similar products authorized under the Cannabis Act, and the City finds that it is prudent to
enact a licensing framework for Hemp THC Products while the State of Minnesota develops
and implements the permanent structure for licensing products authorized under the
Cannabis Act.
8. A licensing requirement for retailers that desire to sell Hemp THC Products will not unduly
burden legitimate business activities of such retailers who sell or distribute Hemp THC
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
Hemp THC Product-related laws.
9. Limiting the sale of Hemp THC Products to hemp products shops and to tobacco products
shops in the best method for limiting access to persons under the age of 21 years.
10. The Council finds that the sale of Hemp THC Products may lead to the creation of a
nuisance situation that threatens the public welfare and limiting the number of licenses issued
by the City is in the public interest to ensure that the sale of Hemp THC Products is done in
accordance with applicable law, including M.S. § 151.72 and City requirements.
11. In making these findings and enacting this ordinance, it is the intent of the City to facilitate
responsible retail activities associated with Hemp THC Products by allowing legal sale and
access without promoting increases in use, and to discourage violations of hemp THC product-
related laws, especially those which prohibit or discourage the marketing, sale or distribution
of Hemp THC Products to persons under the age of 21 years.
310.02 Definitions
CBD: cannabidiol.
CBD products: any edible cannabinoid product or nonintoxicating cannabinoid that is labeled and
marketed as a CBD product that contains no more than trace amounts of any
tetrahydrocannabinol, that meets the requirements to be sold for human or animal consumption
under M.S. § 151.72.
Delivery sales: the sale of any hemp THC product to any person for personal consumption and not
for resale when the sale is conducted by any means other than an in-person, over-the-counter
sales transaction in a retail establishment. Delivery sale includes, but is not limited to, the sale of
any Hemp THC Products when the sale is conducted by telephone, other voice transmission, mail,
the internet, or app-based service. Delivery sale includes delivery by licensees or third parties by
any means, including curbside pick-up.
Edible cannabinoid product: has the meaning as given in M.S. § 151.72, subd. 1(f).
Hemp Products Shop: a retail establishment that:
1. Has an entrance door opening directly to the outside;
2. Greater than 90% of the retail establishment’s gross revenue is from the sale of Hemp THC
Products and CBD products, and in which the sale of other products is merely incidental;
3. Prohibits persons under the age of 21 years from entering the establishment at any time
without being accompanied by someone who is at least 21 years of age; and
4. Is in compliance with all applicable provisions of this Code.
Hemp THC product: any edible cannabinoid product or nonintoxicating cannabinoid that is not a
CBD product and that meets the requirements to be sold for human or animal consumption under
M.S. § 151.72. The term does not include CBD products or medical cannabis as defined in M.S. §
152.22, subd. 6.
Labeling: has the meaning as given in M.S. § 151.72, subd. 1(i).
Moveable place of business: any form of business operated out of a kiosk, truck, van, automobile,
or other type of vehicle or transportable shelter and not a fixed address storefront or other
permanent type of structure authorized for sales transactions.
Nonintoxicating cannabinoid: as the same meaning as given in M.S. § 151.72, subd. 1(k).
Product label: has the same meaning given the term “label” in M.S. § 151.72, subd. 1(e).
THC: tetrahydrocannabinol.
Trace amount: a product is considered to have no more than a trace amount of THC if the
manufacturer is not required by any federal or state law to identify the amount of any
tetrahydrocannabinol on the product label or if the labeling provides that the product may contain
residual or trace amounts of THC as part of the manufacturing process.
Self-service merchandising: open displays of Hemp THC Products in any manner where any person
has access to the Hemp THC Products without the assistance or intervention of the licensee or
the licensee's employee. Assistance or intervention means the actual physical exchange of the
hemp THC product between the customer and the licensee or employee.
Tobacco Products Shop: a retail establishment with a current tobacco license issued by the City
that:
1. Has an entrance door opening directly to the outside;
2. Prohibits persons under the age of 21 years from entering the establishment at any time;
3. Is in compliance with all applicable provisions of this Code; and
4. Derives more than 90% of its gross revenue from the sale of tobacco, tobacco-related
devices, and electronic delivery devices, as defined in M.S. § 609.685, and in which the sale of
other products is merely incidental.
5. The term does not include a tobacco department or section of any individual business
establishment with any type of liquor, food, or restaurant license.
Vending machine: any mechanical, electric, or electronic, or other type of device that dispenses
Hemp THC Products upon the insertion of money, tokens, or other form of payment directly into
the machine by the person seeking to purchase the hemp THC product.
Youth oriented facility: a public or private elementary, middle, or high school, or a state-licensed
child or day care program with more than ten children.
310.03 License
1. Required. No person may directly or indirectly, or by means of any device, keep for retail
sale, sell at retail, offer to sell, or otherwise dispose of Hemp THC Products at retail at any
place in the City of Fridley without first having obtained a license from the City to do so.
2. Eligibility. The City shall only issue a license to sell Hemp THC Products to a business
qualified as a hemp Products shop or a tobacco products shop that complies with the
requirements of this Chapter.
3. Manufacturing Exception. No license is required under this chapter for the manufacturing
of Hemp THC Products or the sale by a manufacturer of its products to resalers, provided the
manufacturer does not sell Hemp THC Products directly to the public.
4. CBD Products. No license is required under this Chapter to sell CBD products at a retail
establishment within the City. Retail establishments selling CBD products may be subject to
compliance checks as described in this Chapter. Retail establishments shall not include home
occupations.
5. Total Number of Licenses. The total number of licenses issued to sell Hemp THC Products
under this Chapter shall be limited to six.
310.04 Ineligible Places and Operations
The City will not issue a license under this Chapter to sell Hemp THC Products to any of the
following:
1. A business or operation that does not qualify as a Hemp THC Products Shop or a tobacco
products shop;
2. A business providing delivery sales of Hemp THC Products ;
3. A moveable place of business;
4. A vending machine;
5. A premises located within 400 feet of a Youth oriented facility. The distance to be
measured in a straight line from the nearest point of building to building;
6. An operation on any premises on which taxes, assessments, or other financial claims of the
City are delinquent and unpaid. If an action has been commenced pursuant to the provisions
of M.S. Chapter 278, questioning the amount or validity of taxes, the Council may, on
application by the licensee, 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 year after becoming due unless such one-year period is extended through no
fault of the licensee; or
7. A business that is in violation of one or more provisions of the Code.
310.05 Application Procedures
1. Application for License; Granting of License. Application for a Hemp THC Product License
must be made to the City Manager or their designee on a form provided by City, which must
include the full name and address of the applicant, the location of the building to be occupied
by the applicant in the conduct of the business, and such other information as the City
Manager or their designee may require. If the City Manager or designee determines an
application is incomplete, the City Manager will provide the applicant notice of the information
necessary to make the application complete. The City may not process an application until it
is made complete. Upon receipt of a completed application, the City Manager will forward the
application to the Public Safety Department to conduct a background investigation.
2. Fees. No license will be processed or issued under this Chapter until the appropriate fees
has been paid in full. The fees for a license under this Chapter are set forth in the Fees Chapter
of the Code.
3. Background Investigation. The Police Department shall conduct a background check of the
applicant and application, including a criminal history check pursuant to M.S. § 299C.72. The
investigation shall consider all facts and information bearing on the question of the applicant’s
fitness to receive the license and to perform the duties imposed by this Chapter. The City may
conduct such other inspections, including an inspection of the premises, as it may determine
are needed to verify the information in the application and regarding background of the
application and any manager or agent. Failure of an applicant to allow an inspection is
grounds for denial of the license. The results of any investigation must be submitted to the
City Council prior to action on the application.
4. License Decision. The Council may grant or deny a license application. The Council may
also continue its consideration of a license if it determines it needs additional information
before making its decision. Any of the following are grounds for denial of a license.
(a) The business does not qualify as a THC Hemp Products Shop or a tobacco products
shop.
(b) The applicant is under the age of 21 years old.
(c) 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 Hemp THC Products
or the operation of the licensed premises.
(d) The applicant has had a license to sell Hemp THC Products suspended or revoked
during the 12 months preceding the date of application, or the applicant has or had an
interest in another premises authorized to sell Hemp THC Products, whether in the City or
in another jurisdiction, that has had a license to sell Hemp THC Products suspended or
revoked during the same time period, provided the applicant had an interest in the
premises at the time of the revocation or suspension, or at the time of the violation that
led to the revocation or suspension.
(e) The applicant provides false or misleading information. Any false statement on an
application, or any willful omission of any information called for on such application form,
shall cause an automatic refusal of license, or if already issued, shall render any license
issued pursuant thereto void and of no effect upon written notice of the City.
(f) The proposed location does not meet all applicable zoning requirements or
requirements of this Chapter.
(g) The applicant is prohibited by federal or state law, local ordinance, or other regulation,
from holding such a license.
(h) The applicant failed to provide information required by the application or provided
false or misleading information.
(i) The proposed location constitutes an ineligible place or operation under this Chapter.
5. Term. A license issued under this Chapter becomes effective from the date on which the
license is issued through April 30.
6. Non-Transferable. All licenses issued under this Chapter are valid only on the premises for
which the license was issued and only for the person or business to whom the license was
issued. The transfer of any license to another location, business, or person is prohibited.
310.06 Operational Requirements
1. License Display. All licenses must be posted and displayed in plain view of the general public
on the licensed premises.
2. Responsibility. All licensees under this Chapter are responsible for the actions of their
employees in regard to the sale of Hemp 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.
3. Product Storage and Display. All Hemp THC Products must be stored either behind a
counter or other area not freely accessible to customers, or in a locked case or other storage
unit not left open and accessible to the general public.
4. Age Posting. Notice of the legal sales age and age verification requirement must be posted
prominently and in plain view at all times at each location where Hemp THC Products are
offered for sale. The required signage must be posted in a manner that is clearly visible to
anyone who is or is considering making a purchase.
5. Age Verification. A licensee’s employees shall verify by means of government issued
photographic identification that any purchaser of a Hemp THC Product is at least 21 years of
age in accordance with M.S. § 151.72, subd. 5c.
6. Sales. Hemp THC Products may only be sold in a direct face-to-face exchange between the
licensee’s employee and the consumer. The licensee’s employees selling Hemp THC Products
must be at least 21 years old. It is a violation of this Chapter for a licensee to give away,
dispense, sell, or offer to sell any Hemp THC Product in a manner that violates any of the
following:
(a) To a person under the age of 21 years old. It will be an affirmative defense to the violation
of this section for a person to have reasonably relied upon proof of age;
(b) Through the use of a vending machine or similar automated dispensing device;
(c) In a manner that does not comply with the requirements of M.S. § 151.72 including, but
not limited to, the packaging, labeling, and other requirements provided by that section;
(d) At any location outside of the licensed premises;
(e) By self-service, or in open displays which are accessible to the public without the
assistance or intervention of a store employee;
(f) By a mobile business, including but not limited to motorized vehicles, moveable sales
kiosks, or trailers. Licenses must be issued to fixed location businesses only;
(g) By delivery sales;
(h) By any employee under the age of 21 years;
(i) To a visibly intoxicated person;
(j) By the means of providing samples of any Hemp THC Product free of charge or at a
nominal cost; or
(k) To any other person, in any other manner or form prohibited by federal or state law or
regulation, or by local ordinance.
7. Inspections. The premises licensed under this Chapter must be open to inspection by the
City Manager or their designee during regular business hours for purposes of ensuring
compliance with this Chapter.
8. Revocation or Suspension. Any license issued under this Chapter may be revoked or
suspended by the Council for a violation of any provision of this Chapter in accordance with
this Chapter.
9. Training. Every licensee must implement a training program for employees regarding laws
relating to the sale of Hemp THC Products. Every licensee must certify that all employees have
been trained to comply with federal, state and City regulations regarding the sale of Hemp
THC Products within six months of the date a license is issued and within two weeks of hiring
a new employee.
310.07 Other Prohibited Acts
1. Non-Compliant Products. No person may sell or offer for sale a product containing THC,
including Hemp THC Products, that does not meet all the applicable requirements in M.S. §
151.72. This prohibition does not apply to a business that has a license issued by the Office of
Cannabis Management, has registered with the City as required by M.S. § 342.22, and is
otherwise is compliance with state and local laws regarding the sales of products containing
THC.
2. Presumptions. Hemp THC Products must comply with the labeling requirements in M.S. §
151.72, subd. 5 and all other applicable labeling requirements. The City may presume, for the
purposes of enforcing this Chapter, a Hemp THC Product being offered for sale or that is sold
by a licensee has been tested by an independent lab as required in M.S. § 151.72, subd. 4 and
that the information contained on the product label is accurate.
3. Purchase for Others. It is a misdemeanor violation of this Chapter for any person 21 years
of age or older to purchase or otherwise obtain any Hemp THC Product on behalf of a person
under the age of 21.
4. Under Aged Persons. It is a petty misdemeanor for any person under the age of 21 to do
any of the following:
(a) To attempt to disguise their true age by the use of a false form of identification, whether
the identification is that of another person has been modified or tampered with to
represent an age older than the actual age of the person using that identification.
(b) To attempt to purchase Hemp THC Products.
5. Electronic Delivery Devices. Hemp THC Product Shops may not sell, give away, or otherwise
furnish any electronic delivery device as defined in the Tobacco Product Shops Chapter of the
Code.
310.08 Compliance Checks
The City may from time-to-time conduct unannounced compliance checks of establishments
licensed under this Chapter and establishments selling CBD products. No person used in
compliance checks may attempt to use a form of identification that misrepresents the person’s
age. All persons lawfully engaged in a compliance check must answer all questions about their
age asked by the licensee or their employee, and produce any identification, if any exists, for which
they are asked. The City will conduct a compliance check that involves the participation of a person
at least 18 years of age, but under the age of 21 to enter the licensed premises to attempt to
purchase the Hemp THC Products. Persons used for the purpose of compliance checks will be
supervised by law enforcement or other designated personnel. Nothing in this Chapter will
prohibit compliance checks authorized by state or federal laws for businesses manufacturing,
storing, or selling Hemp THC Products under any applicable federal or state law. Persons used in
compliance checks shall not be subject to the penalties and violations outlined in this Chapter.
310.09 License Actions
1. Basis for Action. The City may suspend or revoke a license issued under this Chapter for
any of the following reasons:
(a) 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 the licensed activity,
or has had a license to sell Hemp THC Products revoked or suspended within the past five
years;
(b) Fraud, misrepresentation, bribery, or incorrect statement contained in the application
for license, or made in carrying on the licensed activity;
(c) Actions that are unauthorized or otherwise beyond the scope of the license granted;
(d) Violation of any federal, state or local regulation or provision related to Hemp THC
Products;
(e) Failure to continuously comply with all conditions required as part of the license;
(f) Failure to comply with the applicable Zoning Chapters of the Code;
(g) Failure to pay an administrative penalty imposed by the Council; or
(h) The City discovers the license was mistakenly issued to a person, it will be revoked upon
the discovery that the person was ineligible for the license under this Chapter.
2. Process. The City will provide a licensee at least 10 days’ written notice of a hearing to be
held before the Council on the potential suspension or revocation of its license. The licensee
will be provided an opportunity to be heard at the hearing. If the Council acts to suspend or
revoke the license, the City will provide the licensee a written notice of the period of
suspension, or of the revocation. All sales of Hemp THC Products must cease during a
suspension period or permanently upon revocation of the license.
310.10 Violation
Unless expressly indicated otherwise, a violation of this Chapter is a misdemeanor. The City may
also impose administrative penalties as provided in the Appeals and Administrative Citations
Chapter of the Code. Any administrative penalties may be imposed by the Council, or by
administrative citation, and will be collected in accordance with this Code. Nothing in this section
may prohibit the City from seeking prosecution as a misdemeanor for any alleged violation of this
Chapter.
Section 2
That the Fridley City Code be hereby amended by updating Chapter 209, Fees as follows:
Fridley City Code
Chapter 209 Fees
209.12 Fees
5. Licensing Fees
Code Subject Fee
308 Adult Entertainment Establishment $400
Investigation fee $400
17 Auction
Weekly permit $30
Annual permit $150
300 Beekeeping
Initial fee $100
Annual renewal fee $25
27 Billiards
First table $40
Each additional table $10
15 Bowling Alleys
Annual license $40
Per lane $10
28 Carnivals
Application fee $75
Each day $75
Required cash deposit or bond $3,000
21 Christmas Tree Lots
Annual license fee $200
Deposit $100
300 Dogs
Lifetime license $25
Duplicate license $5
Impound fee $25
Annual Dangerous Dog license $500
Potentially Dangerous Dog license $500
702 Drive-in Theaters $400
607 Entertainment $85
32 Food Establishment – Business License $45
32 Food Temporary – Business License $30
25 Golf Course, Driving Range $30
319 Haulers $100 for first truck and $40
Mixed Municipal Solid Waste License each additional truck
(Garbage Truck), Yard Waste License,
Organics License, Recycling License
310 Hemp THC Product
Annual License $1,500
Investigation Fee, Individual $200
Investigation Fee, $400
Corporation/Partnership
Administrative Penalty for $250
individuals, first violation
Administrative Penalty for $500
individuals, second violation within
12 months
Administrative Penalty for $750
individuals, third violation within
12 months
Administrative Penalty for licensee, $500
first violation
Administrative Penalty for licensee, $1,000
second violation within 36 months
24 Junk Yards $350
609 Liquor, Caterer
Annual Caterer Registration $100
Event Notification Permit (per $25
event)
604 Liquor, Consumption and Display
Annual State permit $300
One-day City permit $25
603 Liquor, On-Sale Intoxicating Holiday $100
Endorsement
603 Liquor, Lawful Gambling Endorsement $300
610 Liquor Manufacturers/Investigative Fee
Individual $200
Partnership/Corporation $400
Alteration of Business $100
Change of Officers $25
On-Sale Brewer/Distillery Taproom $600
License
Off-Sale Brewer/Distillery Growler $300
License
603 Liquor, On-Sale Intoxicating
No entertainment
(a) 0-3,000 square feet $6,000
(b) 3,001-6,000 square feet $7,000
(c) Over 6,000 square feet $8,000
With entertainment or dancing
(a) 0-3,000 square feet $7,000
(b) 3,001-6,000 square feet $8,000
(c) Over 6,000 square feet $9,000
603 Liquor, On-Sale Intoxicating Initial
Investigative Fee
Individual $200
Corporation or partnership $400
603 Liquor, On-Sale Sunday $200
603 Liquor, On-Sale Intoxicating Temporary $25
one day only
602 Liquor, 3.2% Malt Liquor Off-Sale $60
On-Sale $325
Holiday Endorsement $100
602 Liquor, 3.2% Malt Liquor, Initial
Investigative Fee
Individual $90
Corporation or partnership $180
602 Liquor, 3.2% Malt Liquor Temporary $60
603 Liquor, Wine $1,000
603 Liquor, Wine Investigative Initial Fee
Individual $200
Corporation or partnership $400
605 Liquor, Bottle Club
Annual permit $300
One day permit $25
606 Liquor, On-Sale Intoxicating Club
Per club under 200 members $300
Per club of 201-500 members $500
Per club of 501-1,000 members $650
Per club of 1,001-2,000 members $800
Per club of 2,001-4,000 members $1000
Per club of 4,001-6,000 members $2,000
Per club of over 6,000 members $3,000
606 Liquor, On-Sale Club Holiday $100
Endorsement
300 Livestock
Initial fee $100
Annual review $25
603 Managerial License (Liquor) $10
125 Massage Therapy Business License
Annual license $400
Business investigation fee for $400 (new) $200 (renewal)
corporations or partnerships
$200 (new) $100 (renewal)
Business investigation fee for
individual/sole proprietor
125 Massage Therapist
License Fee $50
Therapist Investigation Fee $25
22 Music Festivals
Per day $700
Filing fee $100
35 Mobile Food Unit
Food Truck License $50
Food Truck Fire Safety Inspection $100
Ice Cream Truck License $75
18 Motor Vehicle Body Repair Business $150
509 Motorized Vehicles Rental $50 per vehicle
300 Multiple Pet Location
License Fee $100
Renewal Fee $25
Impound Fee $25
300 Poultry
Initial fee $100
Annual renewal fee $25
Impound fee $25
220 Rental Housing Annual License
Single rental unit $100
Two rental units $150
Three rental units $210
Four rental unit $270
Five or more units $270 plus $12 per unit over
four units
License renewal late fee if more than 150% of the annual license fee
seven days late
License fee to reinstate after revocation 150% of the annual license fee
or suspension
License transfer fee $25
License reinstatement fee for
properties that were posted for not
complying with correction orders or
license renewals
1-30 days $250
31+ days $500
Renting prior to obtaining a license 125% of the annual license
Reinspection fee after second
inspection
Single, duplex, triplex $100
Four or more units $300
31 Pawn Shops
Annual license fee $3,000
Monthly transaction fee $3 per transaction
Reporting failure penalty $4 per transaction
Investigation fee $400
14 Peddlers/Solicitor $60 per peddler
23 Public Dance $75
13 Retail Gasoline Sales $60
Private Gasoline Pump $30 per location
602, 603, 606 Social Skill Game Tournament Service $100 annually
Provider
12 Tobacco License $125
12 Tobacco Product Shop
License fee $400
Investigation fee $100
104 Tree Management License $150
19 Used Motor Vehicles License $150 per year
Passed and adopted by the City Council of the City of Fridley on this 10th day of July, 2023.
______________________________________
Scott J. Lund - Mayor
______________________________________
Melissa Moore - City Clerk
First Reading: June 26, 2023
Second Reading: July 10, 2023
Publication: July 13, 2023