Title
AN ORDINANCE AMENDING SECTION 8A-4 TO EXCLUDE COMBINATION BUSINESSES OPERATING A RETAIL LOCATION FROM THE MAXIMUM NUMBER OF REGISTRATIONS REQUIREMENTS FOR CANNABIS RETAIL BUSINESSES.
Body
CITY PROPOSAL:
The city of Duluth does ordain:
Section 1. That Section 8A-4 (j) of Chapter 8 of the Duluth City Code be amended as follows:
Sec. 8A-4. Retail Registration of Cannabis Businesses.
(a) Retail registration required. No individual or entity may operate an OCM state-licensed cannabis retail business within the city without first registering with the city.
(b) Application.
(1) An application for registration of a cannabis retail business shall be made on a form provided by the city and in accordance with Chapter 31 of this Code. The application must contain the following:
(A) The full name of the applicant;
(B) The applicant's residential and business addresses;
(C) Tax property identification number for the property which the retail registration is sought;
(D) Telephone numbers, e-mail address, and the name of the business for which the registration is sought;
(E) A copy of OCM license preapproval; and
(F) Any additional information the city deems necessary.
(2) If the city clerk determines that an application is incomplete, they shall return the application to the applicant with notice of the information necessary to make the application complete.
(3) A business applicant, at the time of application, shall furnish the city with a list of all persons that have an interest of five (5) percent or more in the business. The list shall name all owners and show the interest held by each, either individually or beneficially for others.
(4) It is the duty of each business registration holder to notify the city clerk in writing of any change in ownership in the business. Any change in the ownership or control of the business shall be deemed equivalent to a transfer of the registration, and any such registration shall be revoked thirty (30) days after any such change in ownership or control unless the registration holder has notified the city clerk of the change in ownership by submitting a new registration application for the new owners, and the city clerk has approved the transfer of the registration by appropriate action.
(5) Any time an additional investigation is required because of a change in ownership or control of a business, the business registration holder shall pay an additional investigation fee to be determined by the city.
(6) The city may at any reasonable time examine the transfer records and minute books of any business registration holder to verify and identify the owners, and the city may examine the business records of any other business registration holder to the extent necessary to disclose the interest which persons other than the business registration holder have in the registered business.
(7) The city may revoke any registration issued upon its determination that a change of ownership of a business registration holder has actually resulted in the change of control of the registered business so as materially to affect the integrity and character of its management and its operation, but no such action shall be taken until after a hearing by the Alcohol-Gambling and Tobacco Commission on notice to the business registration holder.
(c) Zoning pre-approval and preliminary compliance checks.
(1) Prior to issuance of a cannabis retail business registration, the city may conduct a preliminary compliance check to ensure compliance with local ordinances established pursuant to Minn. Stat. §342.13.
(2) Pursuant to Minn. Stat. §342, within 30 days of receiving a copy of a state license application from OCM, the city 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.
(d) Action. The city may either approve or deny the registration application, or it may delay action for a reasonable time to complete any investigation of the application or the applicant it deems necessary. A state-licensed cannabis retail business application shall not be approved or renewed if the applicant is unable to meet the requirements of this chapter. If the city approves the registration, the city clerk shall issue the registration to the applicant. If the city denies the application, notice of the denial shall be given to the applicant along with notice of the applicant's right to appeal the city's decision. If a registration application is denied, the earliest an applicant may reapply is 12 months from the date the registration is denied.
(e) Term. All registrations issued under this article shall be valid for one calendar year from the date of issue.
(f) Revocation or suspension. Any registration issued under this Article may be revoked or suspended as provided in this Section.
(g) Transfers prohibited. All registrations issued under this article shall be valid only on the premises for which the registration was issued and only for the person or business to whom the registration was issued. The transfer of any registration to another location, business, or person is prohibited.
(h) Display. All registrations shall be posted and displayed in plain view of the general public on the registered premises.
(i) Renewals. The renewal of a registration 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 registration. The issuance of a registration issued under this Section is a privilege and does not entitle the registration holder to automatic renewal of the registration.
(j) Maximum number of registrations. The maximum number of retail cannabis registrations issued by the city at any time is limited to one (1) per twelve-thousand five hundred (12,500) residents. 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 this chapter. When the maximum number of registrations has been issued, the city may place persons seeking registration on a waiting list and allow them to apply on a first-come, first-served basis, as registrations are not renewed or are revoked. A new applicant who has purchased a business location holding a valid city registration will be entitled to first priority, provided the new applicant meets all application requirements in this chapter. Pursuant to Minn. Stat. 342.13(j), the limit set in this section shall only apply to cannabis retailers, cannabis mezzobusinesses with a retail operations endorsement, and cannabis microbusinesses with a retail operations endorsement, and shall exclude medical combination businesses operating a retail location.
(k) Registration Fees. No registration shall be issued under this Section until the appropriate registration fee is paid in full. The fee for a registration under this Section shall be established by the city and adopted in the city fee schedule, and may be amended from time to time.
(l) Background and Financial Investigations. The city may conduct a background and financial investigation on all new applications. The city may conduct a background and financial investigation on an application for a renewal of a registration if the city determines it is in the public interest to do so.
(m) Minimum Buffer Requirements. The city shall not issue a registration authorizing retail cannabis sales to any business located in a prohibited alcohol license and sales area under Sec. 8-68 of this Code.
(n) Ineligibility and Basis for Denial, Suspension, or Revocation of Registration.
(1) Ineligibility
(A) Movable place of business. No registration shall be issued to a movable place of business. Only fixed location businesses shall be eligible for retail registration under this Chapter.
(B) City location required. A person who does not have, or at the time of the issuance of the registration does not plan to have, at least one permanent physical premises in the city at which the registered business will be located shall ineligible for registration under this Chapter.
(2) Grounds for Denial, Suspension, or Revocation. Grounds for suspending, revoking, or denying the issuance or renewal of a registration under this Chapter include, but are not limited to, the following:
(A) The applicant is under the age of 21 years.
(B) The applicant is prohibited by federal, state, or other local law, ordinance, or other regulation from holding a valid license issued through OCM.
(C) The applicant has had a city registration or OCM-issued license to sell cannabis 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 licensed products, whether in the city or in another jurisdiction, that has had a city registration or OCM-issued license to sell cannabis 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.
(D) The applicant is a business that does not have an operating officer or manager who is eligible pursuant to the provisions of this chapter.
(E) The applicant is the spouse of a person ineligible for registration pursuant to this chapter or who, in the judgement of the city, is not the real party in interest or beneficial owner of the business to be operated, under the registration.
(F) The applicant or registrant fails to provide required information to the city; denies city officials responsible for verifying compliance with this chapter access to the registered premises or necessary business records; or provides false or misleading information to the city.
(G) No registration shall be granted or renewed for operation on any premises on which real estate taxes, assessments, or other financial claims of the city or of the state are due, delinquent, or unpaid. If an action has been commenced pursuant to the provisions of Minn. Stats. Ch. 278, questioning the amount or validity of taxes, the city may, on application by the business registration holder, 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 business registration holder.
Section 2. That this ordinance shall take effect 30 days after its passage and publication.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this ordinance is to exclude medical combination business operating a retail location from the maximum number of registration requirements for cannabis retail business in Section 8A-4(j) of the Duluth City Code.