Ordinance Number 04-25
ORDINANCE NUMBER 04-25
REGULATION CANNABIS BUSINESSES
THE CITY COUNCIL OF THE CITY OF MOUNTAIN IRON, MINNESOTA DOES ORDAIN:
SECTION 1. ADMINISTRATION
(A) Findings and Purpose. The City of Mountain Iron makes the following legislative findings:
(1) The purpose of this ordinance is to implement the provisions of Minnesota Statutes, chapter 342, which authorizes the City of Mountain Iron to protect the public health, safety, welfare of the City of Mountain Iron residents by regulating cannabis businesses within the legal boundaries of the City of Mountain Iron.
(2) The City of Mountain Iron finds and concludes that the proposed provisions are appropriate and lawful land use regulations for the City of Mountain Iron, that the proposed amendments will promote the community’s interest in reasonable stability in zoning for now and in the future, and that the proposed provisions are in the public interest and for the public good.
(B) Authority & Jurisdiction. The City of Mountain Iron has the authority to adopt this ordinance pursuant to:
(1) 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.
(2) Minn. Stat. 342.22, regarding the local registration and enforcement requirements of state-licensed cannabis retail businesses and lower-potency hemp edible retail businesses.
(3) Minn. Stat. 152.0263, Subd. 5, regarding the use of cannabis in public places.
(4) Minn. Stat. 462.357, regarding the authority of a local authority to adopt zoning ordinances.
(5) Ordinance shall be applicable to the legal boundaries of the City of Mountain Iron.
(C) Severability. If any section, clause, provision, or portion of this ordinance is adjudged unconstitutional or invalid by a court of competent jurisdiction, the remainder of this ordinance shall not be affected thereby.
(D) Enforcement. The City Administrator 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 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.
(E) Definitions. Unless otherwise noted in this section, words and phrases contained in Minn. Stat. 342.01 and the rules promulgated pursuant to any of these acts, shall have the same meanings in this ordinance.
(1) Cannabis Cultivation: A cannabis business licensed to grow cannabis plants within the approved amount of space from seed or immature plant to mature plant. harvest cannabis flower from mature plant, package and label immature plants and seedlings and cannabis flower for sale to other cannabis businesses, transport cannabis flower to a cannabis manufacturer located on the same premises, and perform other actions approved by the office.
(2) Cannabis Retail Businesses: A retail location and the retail location(s) of a mezzobusinesses with a retail operations endorsement, microbusinesses with a retail operations endorsement, medical combination businesses operating a retail location, excluding lower-potency hemp edible retailers.
(3) Cannabis Retailer: 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.
(4) Daycare: A location licensed with the Minnesota Department of Human Services to provide the care of a child in a residence outside the child’s own home for gain or otherwise, on a regular basis, for any part of a 24-hour day.
(5) Lower-potency Hemp Edible: As defined under Minn. Stat. 342.01 subd. 50.
(6) Office of Cannabis Management: Minnesota Office of Cannabis Management, referred to as “OCM” in this ordinance.
(7) Place of Public Accommodation: A business, accommodation, refreshment, entertainment, recreation, or transportation facility of any kind, whether licensed or not, whose goods, services, facilities, privileges, advantages or accommodations are extended, offered, sold, or otherwise made available to the public.
(8) Preliminary License Approval: OCM pre-approval for a cannabis business license for applicants who qualify under Minn. Stat. 342.17.
(9) Public Place: A public park or trail, public street or sidewalk; any enclosed, indoor area used by the general public, including, but not limited to, restaurants; bars; any other food or liquor establishment; hospitals; nursing homes; auditoriums; arenas; gyms; meeting rooms; common areas of rental apartment buildings, and other places of public accommodation.
(10) Residential Treatment Facility: As defined under Minn. Stat. 245.462 subd. 23.
(11) Retail Registration: An approved registration issued by the City of Mountain Iron to a state- licensed cannabis retail business.
(12) School: A public school as defined under Minn. Stat. 120A.05 or a nonpublic school that must meet the reporting requirements under Minn. Stat. 120A.24.
(13) State License: An approved license issued by the State of Minnesota’s Office of Cannabis Management to a cannabis retail business.
SECTION 2. REGISTRATION OF CANNABIS BUSINESSES
(A) Consent to registering of Cannabis Businesses
(1) No individual or entity may operate a state-licensed cannabis retail business within the City of Mountain Iron without first registering with the City of Mountain Iron.
(2) Any state-licensed cannabis retail business that sells to a customer or patient without valid retail registration shall incur a civil penalty of up to $2,000 for each violation.
(3) Notwithstanding the foregoing provisions, the state shall not issue a license to any cannabis business to operate in Indian country, as defined in United States Code, title 18, section 1151, of a Minnesota Tribal government without the consent of the Tribal government.
(4) Compliance Checks Prior to Retail Registration
(5) Prior to issuance of a cannabis retail business registration, the City of Mountain Iron shall conduct a preliminary compliance check to ensure compliance with local ordinances.
(6) Pursuant to Minn. Stat. 342, within 30 days of receiving a copy of a state license application from OCM, the City of Mountain Iron 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.
(B) Registration & Application Procedure
(1) Fees.
(a) A registration fee, as established in the City of Mountain Iron’s fee schedule, shall be charged to applicants depending on the type of retail business license applied for.
(b) 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.
(c) A renewal retail registration fee shall not exceed $500 or half the amount of a renewal state license fee under Minn. Stat. 342.11, whichever is less.
(d) A medical combination business operating an adult-use retail location may only be charged a single registration fee, not to exceed the lesser of a single retail registration fee, defined under this section, of the adult-use retail business.
(2) Application Submittal. The City of Mountain Iron shall issue a retail registration to a state-licensed cannabis retail business that adheres to the requirements of Minn. Stat. 342.22.
(a) An applicant for a retail registration shall fill out an application form, as provided by the City of Mountain Iron. Said form shall include, but is not limited to:
(i) Full name of the property owner and applicant;
(ii) Address, email address, and telephone number of the applicant;
(iii) The address and parcel ID for the property which the retail registration is sought;
(iiii) Certification that the applicant complies with the requirements of local ordinances established pursuant to Minn. Stat. 342.13.
(b) The applicant shall include with the form:
(i) The registration fee as required in Section 2 (B)(1);
(ii) a copy of a valid state license or written notice of OCM license preapproval;
(c) Once an application is considered complete, the City Administrator shall inform the applicant as such, process the application fees, and forward the application to the City Council for approval or denial.
(d) The application fee shall be non-refundable once processed.
(3) Application Approval
(a) 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 2(F).
(b) 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.
(c) A state-licensed cannabis retail business application that meets the requirements of this ordinance shall be approved.
(4) Annual Compliance Checks.
(a) The City of Mountain Iron shall complete at minimum one compliance check per calendar year of every cannabis business to assess if the business meets age verification requirements, as required under Minn. Stat. 342.22 Subd. 4(b) and Minn. Stat. 342.24 and this Chapter.
(b) The City of Mountain Iron shall conduct at minimum one unannounced age verification compliance check at least once per calendar year. 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.
(c) Any failures under this section must be reported to the Office of Cannabis Management.
(5) Location Change. If a state-licensed cannabis retail business seeks to move to a new location still within the legal boundaries of the City of Mountain Iron, it shall notify the City of Mountain Iron of the proposed location change, and submit necessary information to meet all the criteria in this paragraph.
(C) Renewal of Registration.
(1) The City of Mountain Iron shall renew an annual registration of a state-licensed cannabis retail business at the same time OCM renews the cannabis retail business’ license.
(2) Renewal Fees. The City of Mountain Iron may charge a renewal fee for the registration starting at the second renewal, as established in the City of Mountain Iron’s fee schedule.
(3) Renewal Application. The application for renewal of a retail registration shall include, but is not limited to the items required under Section 2(A) of this Ordinance.
(D) Suspension of Registration
(1) When Suspension is Warranted. The City of Mountain Iron may suspend a cannabis retail business’s registration if it violates the ordinance of the City of Mountain Iron or poses an immediate threat to the health or safety of the public. The the City of Mountain Iron shall immediately notify the cannabis retail business in writing the grounds for the suspension.
(2) Notification to OCM. The City of Mountain Iron shall immediately notify the OCM in writing the grounds for the suspension. OCM will provide the City of Mountain Iron and cannabis business retailer a response to the complaint within seven calendar days and perform any necessary inspections within 30 calendar days.
(3) 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 to customers if their registration is suspended.
(E) Civil Penalties. Subject to Minn. Stat. 342.22, subd. 5(e) the City of Mountain Iron may impose a civil penalty, as specified in the City of Mountain Iron’s Fee Schedule, for registration violations, not to exceed $2,000.
(F) Limiting of Registrations. The City of Mountain Iron shall limit the number of cannabis retail businesses to five.
SECTION 3. REQUIREMENTS FOR CANNABIS BUSINESSES
(A) Minimum Buffer Requirements
(1) The City of Mountain Iron shall prohibit the operation of a cannabis business within 500 feet of a school.
(2) The City of Mountain Iron shall prohibit the operation of a cannabis business within 500 feet of a day care.
(3) The City of Mountain Iron shall prohibit the operation of a cannabis business within500 feet of a residential treatment facility.
(4) The City of Mountain Iron shall prohibit the operation of a cannabis business within 500 feet of an attraction within a public park that is regularly used by minors, including a playground or athletic field.
(5) Pursuant to Minn. Stat. 462.357 subd. 1e, nothing in Section 3.1 shall prohibit an active cannabis business or a cannabis business seeking registration from continuing operation at the same site if a school/daycare/residential treatment facility/attraction within a public park that is regularly used by minors moves within the minimum buffer zone.
(B) Zoning and Land Use
(1) Cultivation. Cannabis businesses licensed or endorsed for cultivation are permitted in the following zoning districts:
- Rural Residential
(2) Cannabis Manufacturer. Cannabis businesses licensed or endorsed for cannabis manufacturer are permitted in the following zoning districts:
- Industrial
(3) Hemp Manufacturer. Businesses licensed or endorsed for low-potency hemp edible manufacturers are permitted in the following zoning districts:
- Industrial
(4) Wholesale. Cannabis businesses licensed or endorsed for wholesale are permitted in the following zoning districts:
- Industrial
(5) Cannabis businesses licensed or endorsed for cannabis retail are permitted in the following zoning districts:
- Commercial
(6) Cannabis Transportation. Cannabis businesses licensed or endorsed for transportation are permitted in the following zoning districts:
- Industrial
(7) Cannabis Delivery. Cannabis businesses licensed or endorsed for delivery are permitted in the following zoning districts:
- Industrial
- Commercial
(C) Hours of Operation
(1) Monday-Saturday: 8 a.m.-2 a.m. the following day
(2) Sunday: 10 a.m.-2 a.m.
SECTION 4. TEMPORARY CANNABIS EVENTS
(A) License Required. A license or permit is required to be issued and approved by the City of Mountain Iron prior to holding a Temporary Cannabis Event.
(B) Registration & Application Procedure. A registration fee, as established in the City of Mountain Iron’s fee schedule, shall be charged to applicants for Temporary Cannabis Events.
(C) Application Submittal & Review. An applicant for a retail registration shall fill out an application form, as provided by the City of Mountain Iron. Said form shall include, but is not limited to:
(1) Full name of the property owner and applicant;
(2) Address, email address, and telephone number of the applicant;
(3) The applicant shall include with the form:
(a) the application fee as required in Section 2(B)(2);
(b) a copy of the OCM cannabis event license application, submitted pursuant to 342.39 subd. 2.
(D) The application shall be submitted to the City of Mountain Iron, or other designee for review. If the designee determines that a submitted application is incomplete, they shall return the application to the applicant with the notice of deficiencies.
(E) Once an application is considered complete, the designee shall inform the applicant as such, process the application fees, and forward the application to the City Council for approval or denial.
(F) The application fee shall be non-refundable once processed.
(G) A request for a Temporary Cannabis Event that meets the requirements of this Section shall be approved.
(H) A request for a Temporary Cannabis Event that does not meet the requirements of this Section shall be denied. The City Council shall notify the applicant of the standards not met and basis for denial.
SECTION 4. VIOLATION. Any person who undertakes or allows any violation of this section shall be guilty of a misdemeanor.
SECTION 5. INCONSISTENT ORDINANCES. Any inconsistent ordinance or parts thereof are hereby repealed and replaced with the provision of this ordinance.
SECTION 6. CITY CODE. This ordinance shall be incorporated into the Mountain Iron City Code as Chapter 117 Cannabis.
SECTION 7. EFFECTIVE DATE. This Ordinance becomes effective on the date of its publication, or upon the publication of a summary of the Ordinance as provided by Minn. Stat. § 412.191, subd. 4, as it may be amended from time to time, which meets the requirements of Minn. Stat. § 331A.01, subd. 10, as it may be amended from time to time.
DULY ADOPTED BY THE CITY COUNCIL THIS 7th DAY OF JULY, 2025.
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Mayor Peggy Anderson
Attested:
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City Administrator
