OFFICIAL PROCEEDINGS OF A PUBLIC HEARING OF THE COUNTY BOARD LAKE COUNTY, MINNESOTA

Coun­ty Service Center, Split Rock River Room, 616 Third Avenue, Two Harbors, Minne­sota. A public hearing was convened at 2:30 p.m. for the purpose of considering comments on a proposed Lake County Cannabis Ordinance.

The following Lake County Board of Com­missioners members were present: District 1 Commissioner Joe Baltich, District 2 Commissioner Derrick L. “Rick” Gouter­mont, District 3 Commissioner Richard C. “Rick” Hogenson, District 4 Commissioner Jeremy M. Hurd, and District 5 Commis­sioner Rich Sve. County Commissioner(s) Absent: None

Lake County staff members also pres­ent: County Administrator Matthew Hud­dleston, County Attorney Lara Nygaard, County Sheriff Nathan Stadler, County Au­ditor Linda Libal, Environmental Services Director Christine McCarthy, Highway En­gineer Jason DiPiazza, Land Commission­er Nate Eide, Emergency Manager Matt Pollmann, and Clerk of the Board Laurel D. Buchanan.

Lake County Board Chairperson Rich Sve called the public hearing to order at 2:30 p.m. Lake County Administrator Matthew Huddleston provided an overview of the proposed ordinance. No public comments were received in advance of the public hearing. If approved today, the ordinance would be effective January 1, 2025.

County Commissioners had questions about allowed hours of operation, enforce­ment, residential zoning and cultivation. There was discussion regarding private roads and private driveways. Commis­sioner Sve provided clarification on the Planning Commission discussions and how they arrived at the zoning recommen­dations. County Attorney Lara Nygaard discussed that use of cannabis in a public place is a petty misdemeanor, with a fine of $300. County Sheriff Nathan Stadler had a question about the definition of a public place.

Board Chairperson Rich Sve opened the floor for public comments at 2:51 p.m. Crystal Bay Township Supervisor Mike Nikula and Silver Creek Township Super­visor Scott Krech provided comments. County Attorney Lara Nygaard advised that the State requires a license that ap­plicants would have to obtain prior to com­ing to Lake County for registering. Lake County resident Tanya Bruzek commented that she would like the most restrictive language for private roads and private driveways with shared access. Planning Commission member John Bathke was also present for the discussion. County Administrator Matthew Huddleston and Environmental Services Director Chris­tine McCarthy provided clarifications on the zoning language. Director McCarthy recommends adding language allowing the Planning Commission to deny an ap­plication if it would have an impact on a residential neighborhood.

A recess was called at 3:21 p.m. to allow time for the County Attorney, County Ad­ministrator, and Environmental Services Director to draft the language changes that were discussed. The public hearing was reconvened at 3:39 p.m. with all County Commissioners present. County Admin­istrator Matthew Huddleston reviewed the proposed additions to the ordinance. Additional language was added to the proposed draft ordinance, based on the discussion at this public hearing.

Both changes are in Section 7. Zoning Dis­tricts for cannabis businesses and hemp businesses. The first change is to para­graph A. Cultivation. Additional language includes this sentence: Cannabis busi­nesses licensed or endorsed for cultivation must have independent access to a public road to be considered for a conditional use in a residential zoning district.

The second change is to add paragraph G, with this provision. The Planning Commis­sion may deny an application for a condi­tional use or interim use in order to main­tain the essential character of a residential neighborhood.

The proposed ordinance, as amended is as follows.

COUNTY OF LAKE

STATE OF MINNESOTA

LAKE COUNTY CANNABIS ORDINANCE

ORDINANCE NO. 29

The County Board of Lake County ordains as follows:

Section 1. Definitions

Terms used in this ordinance and defined in Minn. Stat. ch. 342 (2023), as amended or recodified from time to time, have the meanings given to them in Minn. Stat. ch. 342 (2023), as amended or recodified from time to time.

Section 2. Geographic scope.

This ordinance covers all areas of the county in which Lake County exercises planning and zoning authority. It does not cover any city or town in which the city or town exercises planning and zoning au­thority.

Section 3. Use of cannabis in public.

A. For purposes of this section, the term “public place” means any public park, any other property owned, leased, or controlled by a governmental unit, and any en­closed indoor area used by the general public, including, but not limited to, restaurants; bars; any other food or liquor establishment; retail stores and other commercial establishments; educational facil­ities including public schools, as defined in Minn. Stat. § 120A.05, subd. 9, 11, and 13 (2023), as amended or recodified from time to time; hospitals; nursing homes; au­ditoriums; arenas; meeting rooms; and common areas of apartment rental buildings. It does not include a private residence, including the person’s curtilage or yard; private property not generally accessible by the public, unless the person is explicitly prohibited from consum­ing cannabis flower, cannabis prod­ucts, lower-potency hemp edibles, or hemp-derived consumer prod­ucts on the property by the owner of the property; or the premises of an establishment or event licensed to permit on-site consumption.

B. Notwithstanding section 1 of this ordinance, all other terms used in this section and defined in Minn. Stat. ch. 152 (2023), as amended and recodified from time to time, have the meanings given to them in Minn. Stat. ch. 152 (2023), as amended or recodified from time to time.

C. Pursuant to Minn. Stat. § 152.0263, subd. 5 (2023), as amended or re­codified from time to time, a person is guilty of a petty misdemeanor if the person unlawfully uses can­nabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products in a public place.

Section 4. Limit on number of licensed cannabis retailers, cannabis mezzo­businesses with a retail operations endorsement, and cannabis micro­businesses with a retail operations endorsement.

A. Pursuant to Minn. Stat. § 342.13(i) (2023), as amended or recodified from time to time, the number of licensed cannabis retailers, canna­bis mezzobusinesses with a retail operations endorsement, and can­nabis microbusinesses with a retail operations endorsement is limited to one registration in total for every 12,500 residents.

B. If the cities within Lake County have one active registration for ev­ery 12,500 residents in the county, Lake County is not obligated to reg­ister a cannabis business. If Lake County has one active registration for every 12,500 residents in the county, a city or town within Lake County is not obligated to register a cannabis business.

C. Applications for registration will be processed on a first-come, first-served basis based on the date completed applications are re­ceived by the Lake County Health Department. An application is not complete unless the applicant has a valid license from the State of Minnesota and has successfully completed the certification process, which may include obtaining an interim use permit or conditional use permit. If multiple applications are received on the same day, an online random name picker will be used to determine the order appli­cations will be processed.

Section 5. Prohibition of cannabis businesses within certain distances of schools, day care providers, residen­tial treatment facilities, and attractions within public parks.

Pursuant to Minn. Stat. § 342.13(c) (2023), as amended or recodified from time to time, the operation of a cannabis business is prohibited within 1,000 feet of a school or 500 feet of a licensed day care, resi­dential treatment facility, or an attraction within a public park that is regularly used by minors, including a playground or ath­letic field.

Section 6. Hours of operation.

Cannabis business are limited to retail sale of cannabis, cannabis flower, can­nabis products, lower-potency hemp edi­bles, or hemp-derived consumer products between the hours of 10 a.m. and 9 p.m., seven days a week.

Section 7. Zoning districts for cannabis businesses and hemp businesses.

Lake County’s Land Use Ordinance, also known as Ordinance Number 12, estab­lishes zoning districts within Lake County. Cannabis businesses and hemp business­es are allowed as set forth below, and are required to have an interim use permit for interim use or conditional use permit for conditional use, pursuant to Lake County’s Land Use Ordinance:

A. Cultivation

Cannabis businesses licensed or endorsed for cultivation are a per­mitted use in the following zoning districts:

• Manufacturing (M)

Cannabis businesses licensed or endorsed for cultivation are a con­ditional use in the following zoning districts:

• Residential 3 (R3) with five (5) or more acres

• Residential 2 (R2)

• Residential 1 (R1)

• Forest Recreation (FR)

Cannabis businesses licensed or endorsed for cultivation are prohib­ited in all other zoning districts.

Cannabis businesses licensed or endorsed for cultivation must have independent access to a public road to be considered for a con­ditional use in a residential zoning district.

B. Cannabis/Hemp Manufacturing, Processing and Extraction

Cannabis businesses licensed or endorsed for cannabis/hemp man­ufacturing, processing or extraction are a permitted use in the following zoning districts:

• Manufacturing (M)

Cannabis businesses licensed or endorsed for cannabis/hemp man­ufacturing, processing or extraction are a conditional use in the follow­ing zoning districts:

• Forest Recreation (FR)

Cannabis businesses licensed or endorsed for cannabis/hemp man­ufacturing, processing or extraction are prohibited in all other zoning districts.

C. Wholesale

Cannabis businesses licensed or endorsed for wholesale are a per­mitted use in the following zoning districts:

• Manufacturing (M)

Cannabis businesses licensed or endorsed for wholesale are a con­ditional use in the following zoning districts:

• Commercial Urban (CU)

• Commercial Rural (CR)

• Forest Recreation (FR)

Cannabis business licensed or en­dorsed for wholesale are prohibited in all other zoning districts.

D. Cannabis Retail and Lower-Poten­cy Hemp Edible Retailer

Cannabis businesses licensed or endorsed for cannabis retail are a conditional use in the following zon­ing districts:

• Resort Commercial (RC)

• Commercial Urban (CU)

• Commercial Rural (CR)

Cannabis businesses licenses or endorsed for cannabis retail are prohibited in all other zoning dis­tricts.

E. Events

Cannabis events are an interim use in the following zoning districts:

• Resort Commercial (RC)

• Commercial Urban (CU)

• Commercial Rural (CR)

• Residential 1 (R1)

• Forest Recreation (FR)

• Residential Recreation (RR)

Cannabis events are prohibited in all other zoning districts.

F. No cannabis business or hemp business shall operate as a “home business” or “home occupation” as those terms are defined in Lake County’s Land Use Ordinance.

G. The Planning Commission may deny an application for a condi­tional use or interim use in order to maintain the essential character of a residential neighborhood.

Section 8. Sale of low-potency hemp edibles

A. If low-potency hemp edibles are sold in places that admit persons under 21 years of age, those prod­ucts shall be stored in a locked case behind the counter and sep­arated by more than one foot from candy and gum that could be sold to children.

B. Low-potency hemp beverages must be in a location clearly labeled as containing products only for pur­chase and consumption by persons over 21 years.

Section 9. Certification

The Lake County Environmental Services Department shall be responsible for tak­ing action on requests for certification as to proposed cannabis businesses under Minn. Stat. §342.13(f) (2023), as amended and recodified from time to time.

Section 10. Registration, renewal and fees

A. No individual or entity may operate a state-licensed cannabis retail business within Lake County with­out first registering with Lake Coun­ty.

B. The Lake County Health Depart­ment shall be responsible for taking action on requests for registration as to cannabis microbusinesses, cannabis mezzobusinesses, can­nabis retailers, medical cannabis combination businesses, and low­er-potency hemp edible retailers under Minn. Stat. § 342.22, subd. 1 (2023), as amended or recodified from time to time.

C. A state-licensed cannabis retail business must renew their regis­tration with the Lake County Health Department annually.

D. Pursuant to Minn. Stat. § 342.22, subd. 2(a) (2023), as amended or recodified from time to time, Lake County shall impose initial retail registration fees and renewal regis­tration fees pursuant to the County Fee Schedule, adopted by the Lake County Board annually. The initial registration fee shall include the fee for initial registration and the first annual renewal. The renewal fee shall be charged at the time of the second renewal and each subse­quent annual renewal thereafter.

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

Section 11. Registration in cities and towns.

A. Lake County will issue a registra­tion as to a retail establishment lo­cated in a city or town in which the city or town does not exercise plan­ning and zoning authority if the city or town provides consent for Lake County to issue the registration, as provided in Minn. Stat. § 342.22, subd. 1(2023), as amended and recodified from time to time.

B. Lake County will not issue a regis­tration as to a retail establishment located in a city or town in which the city or town exercises planning and zoning authority.

Section 12. Civil penalty.

Pursuant to Minn. Stat. § 342.22, subd. 5(e) (2023), as amended or recodified from time to time, Lake County shall impose a civil penalty of $2,000 for each violation of Minn. Stat. § 342.22, subd. 5(e) (2023), as amended or recodified from time to time.

Section 13. Compliance checks.

A. The Lake County Sheriff’s Office shall conduct or cause to be con­ducted the compliance checks as required under Minn. Stat. § 342.22 Subd. 4, as amended or recodified from time to time.

Section 14. Cannabis events.

A. Pursuant to Minn. Stat. § 342.40, subd. 1 (2023), as amended or recodified from time to time, a can­nabis event organizer must receive Lake County’s local approval in the form of an interim use cannabis permit before holding a cannabis event. The cannabis event organiz­er must pay at the time of applica­tion for the permit a nonrefundable permit fee pursuant to the County Fee Schedule, adopted by the Lake County Board annually. The permit must require the cannabis event organizer to comply with all applicable laws, including Minn. Stat. § 342.40 (2023), as amend­ed or recodified from time to time. The Lake County Environmental Services Department shall be re­sponsible for approving or denying a permit.

B. On-site consumption is prohibited at cannabis events.

C. Cannabis events may only be held between the hours of 10 a.m. and 9:00 p.m.

D. Cannabis events must not pose any public health, safety or welfare concerns.

E. An application submitted by a cannabis event organizer with a documented history of public health, safety or welfare concerns at previous cannabis events may be denied.

Section 15. Suspension and reinstate­ment of retail registration.

Under Minn. Stat. § 342.22, subd. 5 (2023), as amended or recodified from time to time, local units of government are authorized to suspend and reinstate retail registrations of cannabis business­es and hemp businesses under certain circumstances. The Lake County Health Department shall be responsible for mak­ing recommendations to the Lake County Board as to any suspension or reinstate­ment of a retail registration issued by Lake County, and the Lake County Board shall be responsible for taking action on any such suspension or reinstatement.

Section 16. Severability.

Should any part of this ordinance be de­clared by the courts to be unconstitutional or otherwise invalid, such decision shall not affect the validity of the ordinance as a whole, or any part thereof, other than the part so declared to be unconstitutional or otherwise invalid, and to this end the pro­visions of this ordinance are severable to the fullest extent allowed by applicable law.

Section 17. Effective date.

This ordinance is effective on January 1, 2025.

The public hearing was closed at 3:41 p.m. on Tuesday, December 17, 2024.

The motion for adoption of the Ordinance, as amended, is reflected in the County Board of Commissioners meeting minutes of December 17, 2024.

ATTEST:

Laurel D. Buchanan

Clerk of the Board Rich Sve, Board Chairperson

Lake County Board of Commissioners