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(November 14, 2024)

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CHISAGO COUNTY
ORDINANCE # 2024-1107-1

An ordinance relating to the regulation and registration of cannabis retail businesses and lower-potency hemp edible retailer businesses.

The Chisago County Board of Commissioners Ordains:

Section 1. ADMINISTRATION

Subsection 1.1: Findings and Purpose. The Chisago County Board of Commissioners makes the following legislative findings:

The purpose of this ordinance is to implement the provisions of Minnesota Statutes, chapter 342, which authorizes County Board of Chisago County to protect the public health, safety, welfare of Chisago County residents by regulating cannabis and lower-potency hemp edible businesses within the legal boundaries of Chisago County.

The Chisago County Board of Commissioners finds and concludes that the proposed provisions are appropriate and lawful regulations for Chisago County, that they are in the public interest and for the public good.

Subsection 1.2. Authority. The Chisago County Board of Commissioners has the authority to adopt this ordinance pursuant to:

(A) Minn. Stat. 342.13(c), regarding the authority of a local unit of government to adopt reasonable restrictions of the time, place, and manner of the operation of
a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses.

(B) Minn. Stat. 342.22, regarding the local registration and enforcement requirements of state-licensed cannabis retail businesses and lower-potency hemp edible retail businesses.

(C) Minn. Stat. 342.27, regarding the general requirements of state-licensed cannabis retail businesses.

Subsection 1.3. Jurisdiction. This ordinance shall be applicable to all places within the legal boundaries of Chisago County for which a city or town that lies within the boundaries of Chisago County has delegated authority to Chisago County for purposes of cannabis and hemp retailer registration.

Subsection 1.4. Severability. If any section or portion of this Ordinance shall be found unconstitutional or otherwise invalid or unenforceable by a court of competent jurisdiction, that finding shall not serve as an invalidation or affect the validity and enforceability of any other section or provision of this Ordinance.

Subsection 1.5. Administration and Enforcement. The Chisago County Auditor/Treasurer in coordination with Chisago County Health and Human Services and the Chisago County Sheriff’s Office is responsible for the administration and enforcement of this ordinance. Any violation of the provisions of this ordinance or failure to comply with any of its requirements constitutes a public nuisance and a misdemeanor and is punishable as defined by law. Violations of this ordinance can occur regardless of whether or not a permit is required for a regulated activity listed in this ordinance. All rights and remedies accruing to the County, at law or in equity, in preventing and abating public nuisances accrue with respect to violations occurring hereunder.

Subsection 1.6. Definitions and Interpretations. Except as may otherwise be provided or clearly implied by context, all terms shall be given their commonly accepted definitions. The singular shall include the plural and the plural shall include the singular. The masculine shall include the feminine and neuter, and vice-versa. The term “shall” means mandatory and the term “may” means permissive.

The definitions set forth in Minn. Stat. §342.01 are hereby adopted and incorporated into this ordinance, as amended from time to time.

The following terms shall have these definitions given to them:

(A) “Board” means the Chisago County Board of Commissioners.

(B) “Cannabis Retail Business” means a retail location and the retail location(s) of mezzobusinesses with a retail operations endorsement, microbusinesses with a retail operations endorsement, medical combination businesses operating a retail location, and lower-potency hemp edible retailers.

(C) “Cannabis Retailer” means any person, partnership, firm, corporation, or association, foreign or domestic, selling cannabis product to a consumer and not for the purpose of resale in any form.

(D) "County” means the County of Chisago.

(E) “Daycare” means an individual, organization, childcare center, or facility licensed with the Minnesota Department of Human Services, pursuant to Minn. Stat. §245A, or subsequent provisions regulating the licensure, to provide for the care of a child in a location outside the child's own home for gain or otherwise, on a regular basis, for any part of a 24-hour day.

(F) “Residential Treatment Facility” means a 24-hour-a-day program for persons under the treatment supervision of a mental health professional or substance use disorder professional, licensed by the Minnesota Department of Human Services, pursuant to Minn. Stat. §245A, or subsequent provisions regulating the licensure, in a community residential setting other than an acute care hospital or regional treatment center inpatient unit.

(G)“Retail Registration” means an approved registration issued by Chisago County to a state-licensed cannabis retail business, consistent with Minn. Stat. §342.22.

(H) “School” means a public school including elementary, middle, and secondary school as defined under Minn. Stat. § 120A.05 or a nonpublic school that must meet the reporting requirements under Minn. Stat. § 120A.24.

(I) “State License” means an approved license issued by the State of Minnesota's Office of Cannabis Management to a cannabis retail business.

The provisions of this Ordinance shall be considered minimum requirements and shall be liberally construed in favor of Chisago County and shall not be deemed a limitation or repeal of any other powers granted by Minnesota Statutes.

Section 2. Requirements for Cannabis Retail Businesses

Subsection 2.1. Land Use Buffer

(A) Cannabis Product sales are prohibited from locating or operating within the following prescribed buffer distances. Measurements shall be made in a straight line, without regard to city or county boundaries, intervening structures, or objects, from the nearest point of the approved premises containing the cannabinoid use to the nearest point of the following prescribed facility or building:

a. 500 feet of a school (including public/nonpublic school, college, or university)
b. 500 feet of a licensed childcare/daycare
c. 500 feet of a residential treatment facility
d. 500 feet of an attraction within a public park that is regularly used by minors, including a playground or athletic field
e. 500 feet from one cannabis retail business to another cannabis retail business
f. 500 feet of a local or regional public trail that is regularly used by minors
g. 500 feet of a hospital, clinic, assisted senior living facility, rehabilitation facility, or psychiatric or counseling center, office, or business
h. 500 feet of a residential home, group home, or ground floor apartment
i. 1,000 feet of a place of worship, church, or religious institution; community center; fairgrounds; event center; residential shelter, or similar place of public accommodation or gathering place as determined by the Zoning Administrator.

(B)Nothing in the land use buffer section shall prohibit an active cannabis business or a cannabis business seeking registration or licensing renewal from continuing operation at the same site if the above buffered uses move within the minimum buffer zone.

Subsection 2.2. Hours of Operation for Retail Businesses

A cannabis retail business with a license or endorsement authorizing the retail sale of cannabis flower or cannabis products, excluding lower-potency hemp edible retail businesses, may not:

(A) Sell cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products for any period between 10:00 p.m. and 8:00 a.m. the following day, or between 8:00 a.m. and 10:00 a.m. on Sundays.

(B) Be open to the public or sell any other products at times when the cannabis business is prohibited from selling cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products.

(C)
Subsection 2.3. Advertising

All cannabis retail businesses must comply with Minn. Stat. § 342.64. Cannabis retail businesses are permitted to erect up to two fixed signs on the exterior of the building or property of the business, consistent with applicable state law and the Chisago County Zoning Ordinance, Section 1.17.1

Subsection 2.4. Prohibitions on Price Discounting and Coupons

No cannabis retail business shall accept or redeem any coupon, price promotion, or other instrument or mechanism, whether in paper, digital, electronic, mobile, or any other form, that provides any licensed products to a client, customer, consumer or patient at no cost or at a price that is less than the non-discounted, standard price listed by a retailer on the item or on any related shelving, posting, advertising, or display at the location where the item is sold or offered for sale, including all applicable taxes.

Section 3. Registration of Cannabis Retail Businesses

Chisago County shall be the cannabis retail business registration authority for those local units of government that have delegated their registration authority to Chisago County.

Subsection 3.1. Consent to Registering of Cannabis Retail Businesses

No individual or entity may operate a state-licensed cannabis retail business within Chisago County without first registering with the local unit of government in which the business is located, or with Chisago County when the local unit of government has delegated registration authority to Chisago County.

Any state-licensed cannabis retail business that sells to a customer or patient without valid retail registration shall incur a civil penalty "in an amount established in the Chisago County Fee Schedule

Subsection 3.2. Compliance Checks Prior to Retail Registration

Prior to issuance of a cannabis retail business registration, Chisago County may conduct a preliminary compliance check to ensure compliance with applicable laws.
Subsection 3.3. Limiting of Registrations

(A) Individual City or Town Limit for Registrations – For each city or town within Chisago County that has delegated their authority to register cannabis retail businesses to Chisago County, Chisago County limits the number of registrations for licensed cannabis retailers, cannabis mezzobusinesses with a retail operations endorsement, and cannabis microbusinesses with a retail operations endorsement to no more than one for every 12,500 residents for each separate city or town based upon that city or town’s population as determined by the most recent Minnesota State Demographer estimate.

(B) Countywide Limit for Registrations - Excluding those cities and towns which have not delegated registration authority to Chisago County, if Chisago County has one active cannabis retail registration for every 12,500 residents within the non-excluded areas of the county based on the total population of Chisago County in those non-excluded areas as determined by the most recent Minnesota State Demographer estimate, then Chisago County shall not be required to register additional state-licensed cannabis retail businesses for any city or town for which Chisago County has been delegated authority to register cannabis retail businesses; provided the number of active cannabis retail registrations within the entirety of the county meets or exceeds one for every 12,500 residents based on the entire population of the county as a whole.

(C) Exception - This subsection does not apply to lower-potency hemp edible retail businesses, medical combination businesses operating a retail location, or municipal cannabis retail businesses within Chisago County, and registrations for these businesses are not included the calculations for registration limits.
Subsection 3.4. Registration & Application Procedure

(A) Fees

Chisago County shall not charge an application fee. See Minn. Stat. § 342.22, subd. 2(b).

A registration fee, as established in Chisago County's fee schedule, shall be charged to applicants depending on the type of retail business for which a license is sought.

An initial retail registration fee shall not exceed $500 or half the amount of an initial state license fee under Minn. Stat. § 342.11, whichever is less. The initial registration fee shall include the initial retail registration fee and the first annual renewal fee.

Any renewal retail registration fee imposed by Chisago County shall be charged at the time of the second annual renewal and each subsequent annual renewal thereafter.

A renewal retail registration fee shall not exceed $1,000 or half the amount of a renewal state license fee under Minn. Stat. § 342.11, whichever is less.

(B) Application Submittal

Chisago County, for those applicants in locations where the local unit of government has delegated registration authority to Chisago County, shall issue a retail registration to a state-licensed cannabis retail business that adheres to the requirements of Minn. Stat. § 342.22.

1) An applicant for a retail registration shall fill out an application form, as provided by Chisago County. Said form shall include, but is not limited to:

i. Full name of the applicant;
ii. Full name of the property owner, as well as mailing address, email address and telephone number of the property owner, if property owner is different from the applicant;
iii. Address, email address, and telephone number of the applicant;
iv. The address and parcel ID for the property which the retail registration is sought;
v. Certification that the applicant complies with the requirements of local ordinances established pursuant to Minn. Stat. § 342.13; and

2) The applicant shall include with the form:

i. The application fee as required in Section 3.4.A above;
ii. A copy of a valid state license or written notice of OCM license preapproval;
iii. A copy of the lease agreement or other contract authorizing applicant to occupy the retail location if the applicant is not the owner of the property;
iv. Verification that applicant is current on all applicable property taxes and assessments at the location where the retail establishment is located;
v. A copy of the documentation showing compliance with state fire and building codes, if applicable to the business; and
vi. A certificate of liability insurance.

3) Once an application is considered complete, Chisago County shall inform the applicant as such, process the application fees, and forward the application to the Chisago County Board of Commissioners for approval or denial. A complete application is an application that contains all information and documentation as required pursuant to 1) and 2), above.

4) The County shall review a completed application once the County makes a determination that the application is complete. The County shall review completed application in the order in which such application is received and determined complete. 

If Chisago County does not issue a registration because of the limits pursuant to Section 3.3, the application will be placed on a waitlist so long as the applicant maintains a valid state license or written notice of OCM license preapproval. When a registration becomes available, Chisago County shall review the waitlist for applicants in the order they were received.

5) The application fee shall be non-refundable once processed.

(C) Application Approval

1) 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 Section 3.3.

2) A state-licensed cannabis retail business application shall not be approved or renewed if the applicant is unable to meet the requirements of this ordinance.

3) A state-licensed cannabis retail business application that meets the requirements of this ordinance shall be approved, except as provided in clause (1) above.

(D) Annual Compliance Checks

Chisago County Sheriff’s Office shall complete at minimum one unannounced age verification compliance check per calendar year of every cannabis retail business that Chisago County registers to assess if the business meets age verification requirements, as required under Minn. Stat. § 342.22 Subd. 4 and Minn. Stat. § 342.24, Subd. 1 and this Ordinance.

Age verification compliance checks shall involve persons at least 17 years of age but under the age of 21 who, with the prior written consent of a parent or guardian if the person is under the age of 18, attempt to purchase adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, or hemp-derived consumer products under the direct supervision of a law enforcement officer or an employee of the local unit of government.

The following are violations of an age verification compliance check:

1) Employment of or contracting with an individual under 21 years of age if the individual’s scope of work involves handling cannabis plants, cannabis flowers, artificially derived cannabinoids, or cannabinoid products.

2) Allowing an individual under 21 years of age to enter the business premises unless the individual is a person enrolled in the Registry Program.

3) Selling or giving cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products to an individual under 21 years of age unless the individual is enrolled in the Registry Program and the cannabis business holds a medical cannabis retail endorsement.

Any violation of an age verification compliance checks under this section must be reported to the Office of Cannabis Management.

(E) Location Change

If a state-licensed cannabis retail business seeks to move to a new location still within the legal boundaries of Chisago County, it shall notify Chisago County of the proposed location change and submit necessary information to meet all the criteria in Section 3.4.B.

(F) Registrations Non-Transferrable

A retail registration issued under this Ordinance may not be transferred to another license holder. Minn. Stat. § 342.22, subd. 3(d).

(G) Registration Mistakenly Issued or Renewed

If a registration is mistakenly issued or renewed to any person or entity, it will be suspended upon the discovery of ineligibility for registration under this Ordinance or state or other local law, ordinance or other regulation. Any suspension will comply with the requirements of Minn. Stat. § 342.22, Subd. 5, as amended from time to time.

(H) License Holder Responsibility

Every cannabis retail business license holder is responsible for conduct on the licensed premises and any sale of cannabis, hemp, or products containing cannabis or hemp by an employee is the act of the License Holder for the purposes of all provisions of this Ordinance except enforcement of criminal penalties.

Subsection 3.5. Renewal of Registration

Chisago County shall renew an annual registration of a state-licensed cannabis retail business, for which Chisago County has been delegated registration authority, at the same time OCM renews the cannabis retail business' license.

A state-licensed cannabis retail business shall apply to renew registration on a form established by Chisago County.

A cannabis retail registration issued under this ordinance shall not be transferred.

(A) Renewal Fees

Chisago County may charge a renewal fee for the registration starting at the second renewal, as established in Chisago County's fee schedule.

(B) Renewal Application

The application for renewal of a retail registration shall include but is not limited to items required under Section 3.4.B of this Ordinance.

Subsection 3.6. Suspension of Registration

(A) When Suspension is Warranted

Chisago County may suspend a cannabis retail business's registration if the business is registered by Chisago County, and it violates an ordinance of Chisago County pursuant to Minn. Stat. § 342.13 or poses an immediate threat to the health or safety of the public.

(B) Notifications

1) License Holder - Chisago County shall immediately notify the cannabis retail business in writing, by way of personal service or certified mail, of the basis for a complaint, the alleged violations, and the grounds for the suspension.

2) OCM - Chisago County shall immediately notify the OCM in writing of the Chisago County’s complaint, the alleged violations, and the grounds for the suspension. OCM will provide Chisago County and the cannabis business retailer a response to the complaint within seven calendar days and perform any necessary inspections within 30 calendar days.

(C) Length of Suspension

The suspension of a cannabis retail business registration may be for up to 30 calendar days, unless OCM suspends the license for a longer period. The business may not make sales, distributions or conveyances of any cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products to customers or patients if their registration is suspended.

Chisago County may reinstate a registration if it determines that the violation(s) have been resolved.

Chisago County shall reinstate a registration if OCM determines that the violation(s) have been resolved.

Subsection 3.7. Civil Penalties

(A) Violation

No cannabis retailer, cannabis mezzobusiness, cannabis microbusiness, medical cannabis combination business, or lower-potency hemp edible retailer may make any sale to a customer or patient without a valid retail registration with Chisago County and a valid license with any applicable endorsement from OCM. Subject to Minn. Stat. § 342.22, subd. 5(e) Chisago County may impose a civil penalty as specified in Chisago County’s Fee Schedule for violations of this Ordinance in addition to any other authorized penalties or consequences.

(B) Notice

No civil penalty shall take effect until the retail license holder has received notice personally or by certified mail of the alleged violation and of the opportunity for a hearing before the Board of Commissioners. Such notice must be in writing and must identify the alleged violation(s), the sanction, and advise the recipient that they have a right to request a hearing before the Board of Commissioners. The request for hearing must be received by the County within 10 business days of receipt of the notice or such right to a hearing shall terminate.

(C) Appeal Rights

A license holder who received notice of a civil penalty must submit a request for a hearing to challenge the allegation within 10 calendar days of the date they receive the notice. Failure to submit a timely request for a hearing shall result in a waiver of all appeal rights, and the civil penalty will be implemented on the 11th day after the date the notice was received by the license holder. If there is a timely request for a hearing on the civil penalty, the penalty shall be stayed pending the resolution of the appeal process.

(D) Appeal Hearing

If the license holder timely requests a hearing on the civil penalty, a hearing shall be scheduled, the time and place of which shall be provided to the license holder. The hearing shall be held within 30 calendar days of the date the request for hearing was received, when practicable.

1) The records of Chisago County, OCM, any police reports relating to the violation, and all reliable hearsay shall be admissible for consideration by the hearing officer without further foundation.

2) Chisago County may be represented by the Chisago County Attorney’s Office. The alleged violator may be represented by private legal counsel. The alleged violator does not have the right to an attorney at public expense.

3) At the hearing, both the alleged violator and Chisago County may present the testimony of witnesses, cross-examine witnesses, and present documentary evidence.

4) The burden of proof shall be upon Chisago County. The standard of proof shall be a preponderance of the evidence.

5) The scope of the hearing may include whether violation(s) occurred and the appropriate sanction.

(E) Hearing Officer

The Chisago County Board may act as the hearing officer or may appoint an independent hearing officer.

(F) Decision

The hearing officer shall prepare written findings and submit them to the Chisago County Board, unless the Chisago County Board is the hearing officer in which case they shall prepare written findings, within 30 calendar days of the close of the hearing. The findings shall state whether by a preponderance of evidence a violation occurred. If a violation is found, a civil penalty as provided in the Chisago County Fee Schedule shall be imposed on a per violation basis. The findings shall be served by first class U.S. mail on the license holder and Chisago County.

(G) Costs

If a civil penalty is upheld by the hearing officer, the license holder who requested the hearing shall pay Chisago County’s actual expenses incurred in holding the hearing up to a maximum amount specified in the Chisago County Fee Schedule.

(H) Further Appeals

Appeals of any decision made by the County Board shall be filed by a petition for a writ of certiorari to the Court of Appeals and served on all parties not more than 30 days after the date the findings were issued.

Subsection 3.8. Civil Remedies

In the event of a violation or threatened violation of this Ordinance, Chisago County, in addition to other remedies, may initiate civil court actions or civil administrative proceedings to prevent, restrain, correct, or abate such violations or threatened violations. It shall be the duty of the County Attorney to review evidence of such violations, or threatened violations, and take such action as may be warranted and necessary.

Subsection 3.9. Criminal Penalties

Any person who violates any of the provisions of this Ordinance, or who fails or refuses to comply with the provisions of this Ordinance shall be guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fine not to exceed $1,000 or by imprisonment for up to 90 days, or both. If a different criminal penalty is set forth in state law, the state penalty shall apply.

Section 4. Effective Date. This ordinance shall take effect upon its passage and publication, as required by law.

Approved and adopted by the Chisago County Board of Commissioners this 6th day of November in the year of 2024.

Chisago County Board of Commissioners

Marlys Dunne,
Chisago County Board Chair

Attested by: ____________________
Chase Burnham
Chisago County Administrator

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