Ord No 2023- 03 An Interim Ordinance Authorizing a Study And Imposing a Moratorium on the Operation of Cannabis BusinessesCITY OF CRYSTAL
ORDINANCE #2023-03
AN INTERIM ORDINANCE AUTHORIZING A STUDY AND IMPOSING A
MORATORIUM ON THE OPERATION OF CANNABIS BUSINESSES
THE CITY OF CRYSTAL ORDAINS:
ARTICLE I. Authority and Legislative Findings.
A. The Minnesota Legislature enacted, and 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
businesses 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 certain edible cannabinoid products.
B. The Act provides local units of government certain authority related to cannabis businesses,
including the authority to (1) require local registration of certain cannabis businesses
operating retail establishments, (2) 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, (3) limit the number of
certain cannabis businesses based on the population of the community, and (4) prohibit the
operation of a cannabis business within 1,000 feet of a school, or 500 feet of a daycare,
residential treatment facility, or an attraction within a public park that is regularly used by
minors, including a playground or athletic field.
C. 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.
The City will benefit from reviewing and analyzing the OCM's model ordinances, rules,
and regulations before making any decisions relating to the regulation of cannabis
businesses in the City.
D. The Act (Minnesota Statutes, section 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
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ordinance may regulate, restrict, or prohibit the operation of cannabis businesses within the
jurisdiction or a portion thereof until January 1, 2025.
E. 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 City desires
to adopt an interim ordinance for the purpose of protecting the planning process and the
health, safety, and welfare of its citizens.
F. The City 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.
G. After providing at least 10 days' published notice, the City Council held a public hearing
and provided an opportunity for the public to be heard regarding this matter before acting
to adopt this Ordinance.
ARTICLE II. Definitions. For purposes of this Ordinance, the following terms shall have the
meaning given them in this section.
(a) "Act" means 2023 Minnesota Session Laws, Chapter 63 (H.F. No. 100).
(b) "Cannabis Business" has the meaning given the term in Minnesota Statutes, section
342.01, subdivision 14.
(c) "City" means the City of Crystal.
(d) "Edible Cannabinoid Product" has the meaning given the term in Minnesota Statutes,
section 151.72, subdivision l (f).
(e) "OCM" means the Office of Cannabis Management, established as set forth in Minnesota
Statutes, section 342.02, subd. 1.
(f) "Ordinance" means this interim ordinance, which is adopted pursuant to Minnesota
Statutes, section 342.13(e).
ARTICLE III. Study Authorized. The City Council hereby authorizes and directs the City
Manager to have City staff 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 the
other potential local regulations allowed under the Act, and report to the City Council on the
potential regulation of Cannabis Businesses. The study must include a review of the model
ordinances the OCM is directed to draft under Minnesota Statutes, section 342.13(d), an analysis
of potential setback regulations allowed under Minnesota Statues, section 342.13(c), and such
other matters as staff may determine are relevant to the City Council's consideration of this matter.
The report shall include the City staff s recommendations on whether the City Council should
adopt regulations and, if so, the recommended types of regulations.
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ARTICLE IV. Moratorium. A moratorium is hereby imposed on the establishment and operation
of a 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. 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 the City to review an application
or proposal for a business proposing to engage in the operation of a Cannabis Business.
ARTICLE V. Violation. 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.
ARTICLE VI. Exceptions. The moratorium imposed by this Ordinance does not apply to: (1) the
continued operation of a business as part of the Medical Cannabis Program administered by the
Minnesota Department of Health that was lawfully operating within the City prior to July 1, 2023;
(2) the lawful sale of Edible Cannabinoid Products in compliance with Minnesota Statutes, section
151.72 once the City's current moratorium on such sales ends; or (3) sales of Edible Cannabinoid
Products at an exclusive liquor store in accordance with Minnesota Statutes, section 340A.412,
subdivision 14. Nothing in this Article exempts a business, person, or entity that is selling Edible
Cannabinoid Products from having to comply with all requirements and prohibitions of applicable
laws and ordinances.
ARTICLE VII. 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 penalty
in the City's Municipal Code and may result in the City reporting the violation to the OCM if
relevant to OCM licensing. The City Council hereby authorizes the City Manager, in consultation
with the City Attorney, to initiate any legal action deemed necessary to secure compliance with
this Ordinance.
ARTICLE VIIL Duration. This Ordinance shall become effective on the first day of publication
after adoption and shall remain in effect until January 1, 2025. This Ordinance may be repealed
earlier upon the effective date of an ordinance adopting or amending reasonable restrictions on the
time, place, and manner of the operation of a Cannabis Business within the City or by resolution
of the City Council terminating this Ordinance prior to the expiration date.
ARTICLE IX. Severability. Every section, provision, and part of this Ordinance is declared
severable from every other section, provision, and part thereof. 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.
Adopted this 18' day of July, 2023.
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BY THE CITY COUNCIL
Jldams, Mayor
Attest: 10
Christina Serres, City Clerk
Council Adoption: July 18, 2023
Publication: July 27, 2023
Effective Date: July 27, 2023
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