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

Tuesday, August 27, 2024. Lake County Service Center, Split Rock River Room, 616 Third Avenue, Two Harbors, Minneso­ta. A public hearing was convened at 2:02 p.m. for the purpose of considering com­ments on an interim ordinance authorizing a study and imposing an emergency mor­atorium on the operation of cannabis busi­nesses in Lake County except for the City of Two Harbors and the City of Silver Bay.

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

Also present in the Lake County Service Center, Split Rock River Room, 616 Third Avenue, Two Harbors, Minnesota: Coun­ty Administrator Matthew Huddleston, County Auditor Linda Libal, County Sheriff Nathan Stadler, Assistant County Attorney Russ Conrow, Highway Engineer Jason DiPiazza, Environmental Services Director Christine McCarthy, Environmental Ser­vices Assistant Director Tanya Feldkamp, and Clerk of the Board Laurel D. Buchan­an. Several members of the public were also present in person and virtually.

County Administrator Matthew Huddleston provided an overview of the proposed or­dinance. If approved today, it would be ef­fective upon adoption. It was clarified that the City of Beaver Bay is included in the proposed moratorium.

Board Chairperson Rich Sve opened the floor for public comments. No public com­ments were made.

The proposed ordinance is as follows.

AN INTERIM ORDINANCE AUTHORIZING A STUDY AND IMPOSING AN EMERGENCY MORATORIUM ON THE OPERATION OF CANNABIS BUSINESSES IN LAKE COUNTY EXCEPT FOR CITY OF TWO HARBORS AND CITY OF SILVER BAY

THE LAKE COUNTY COMMISSIONERS HEREBY ORDAIN AS FOLLOWS:

SECTION 1. PURPOSE, INTENT AND STATUTORY AUTHORITY

A. This Ordinance is adopted by the Lake County Commissioners for the purpose of providing sufficient time to complete the study of the application, and impact of the 2023 Minnesota Session Laws Chapter 63 – H.F. No. 100 including en­acted Minnesota Statute Chapter 342, and H.F. No. 4757 adopted in 2024 (hereinafter “Cannabis Legis­lation”), upon Lake County; and to recommend and enact official con­trols applicable to and in the best interests of the residents health, safety, and welfare as provided for by Minnesota Statutes Chapter 342, and Minnesota Statutes sec­tion 394.34.

B. Cannabis Legislation establishes that the sale of cannabis products is subject to local planning and zoning restrictions and must com­ply with local zoning ordinances. Cannabis Legislation provides local units of government, includ­ing counties, certain authority to regulate Cannabis Businesses, including: 1) authority to require local registration of Cannabis Busi­nesses and retail establishments, 2) authority to adopt reasonable restriction on time, place and manner of operation of Cannabis Businesses, 3) authority to limit the number of Cannabis Businesses based on population, and 4) au­thority to prohibit the operation of Cannabis Businesses within spec­ified distances of schools, day care or residential treatment facilities, or within public parks, athletic fields or playgrounds.

C. Pursuant to Minnesota Statute §342.13(e), a local unit of govern­ment that is conducting studies or that has authorized a study be con­ducted or has scheduled or held a hearing to consider the adoption or amendment of reasonable re­strictions on time, place and man­ner of the operation of Cannabis Businesses is authorized 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. Minn. Stat. §342.13(e) provides specifically that “the interim ordinance may regulate, restrict, or prohibit the operation of cannabis businesses within the jurisdiction or a portion thereof until January 1, 2025”.

D. The Cannabis Legislation requires the Office of Cannabis Manage­ment (OCM) to work with local units of government to develop model ordinances relating to reasonable restriction on time, place, and man­ner of operation of Cannabis Busi­nesses. The Cannabis Legislation also requires the OCM to establish additional regulations relating to the operation of Cannabis Businesses. Given the uncertainty regarding the model ordinances, rules and regu­lations to be developed in a timely manner, given the broad scope of changes brought about by the Cannabis Legislation, and given the many obligations and responsi­bilities placed on the OCM by the Cannabis Legislation, and given legislation seeking early licensure of Cannabis Businesses, the Coun­ty desires to adopt an emergency interim ordinance for the purpose of protecting the planning process and the health, safety, and welfare of its citizens.

E. The County desires time to com­plete its study for the purpose of considering the adoption or amendment of its comprehensive plan, local planning and zoning restrictions, including reasonable restrictions on the time, place, and manner of operation of Cannabis Businesses as well as other regula­tions local units of government may adopt under the Cannabis Legisla­tion.

F. After published notice, the Lake County Board of Commissioners held a public hearing to consider the adoption of this emergency interim ordinance prohibiting the operation of Cannabis Businesses within the County until January 1, 2025, and recommended its adop­tion.

SECTION 2. DEFINITIONS

Except as may otherwise be provided or clearly implied by context, all terms shall be given their commonly accepted defi­nitions. The following words, terms, and phrases, when used in this ordinance, shall have the meanings given to them in this section.

(a) “Cannabis Business” has the mean­ing given the term in Minnesota Statutes, section 342.01, subdivision 14.

(b) “Cannabis Legislation” means 2023 Minnesota Session Laws, Chapter 63 (House File No. 100) and Minnesota Stat­utes Chapter 342.

(c) “County” means Lake County.

(d) “Edible Cannabinoid Product” has the meaning given the term in Minnesota Statutes, section 151.72, subdivision 1(f).

(e) “Local unit of government” means a home rule charter or statutory city, county, town, or other political subdivision.

(f) “OCM” means the Office of Canna­bis Management, established as set forth in Minnesota Statutes, section 342.02, subdivision 1.

(g) “This Ordinance” means this interim ordinance, which was adopted pursuant to Minnesota Statutes, section 342.13(e)

SECTION 3. STUDY AUTHORIZED

The County Board of Commissioners hereby authorizes and directs Lake Coun­ty staff to 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 Cannabis Legis­lation, and report to the County Board of Commissioners on the potential regulation of Cannabis Businesses under the Canna­bis Legislation. The study must include a review of model ordinances drafted by the OCM pursuant to Minnesota Statutes, sec­tion 342.13(d), an analysis of potential set­back regulations allowed under Minnesota Statutes, section 342.13(c), and such oth­er matters as staff may determine relevant for consideration by the County Board of Commissioners for the purpose of protect­ing the planning process and the health, safety, and welfare of its citizens. The report shall specifically include recommen­dations on whether the County Board of Commissioners should adopt regulations and the types of regulations recommended for adoption.

SECTION 4. MORATORIUM

A moratorium is hereby imposed regard­ing the operation of Cannabis Businesses within Lake County except for the City of Two Harbors and the City of Silver Bay. During the term of this Ordinance, the County shall not accept, process, nor act on any application, site plan, building permit, zoning request, nor any related proposal from any person, or entity. No Cannabis Business may be established or operate during this moratorium unless it was lawfully operating prior to this Interim Ordinance or falls within the exceptions listed in Section 5.

SECTION 5. EXCEPTIONS

The moratorium imposed by this Ordi­nance does not apply to the continued operation of Cannabis Businesses which were 1) lawfully operating within the Coun­ty as part of the Medical Cannabis Pro­gram administered by the Minnesota Dept. of Health or 2) selling Edible Cannabinoid Products in compliance with Minnesota Statute, section 151.72 prior to this Mor­atorium. 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.

SECTION 6. ENFORCEMENT

Violation of this Ordinance is a misde­meanor. The County may also enforce this Ordinance by mandamus, injunction, or other appropriate civil remedy in any court of competent jurisdiction. A violation of this Ordinance may result in the County reporting the violation to the OCM.

SECTION 7. DURATION

This Ordinance shall become effective upon adoption by the Lake County Board of Commissioners and shall remain in effect until 11:59 p.m. on December 31, 2024. 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 Businesses within the County or by resolution of the County Board of Commissioners terminat­ing this Ordinance prior to the expiration date.

SECTION 8. SEVERABILITY

If any section or provision of this Ordi­nance is held invalid, such invalidity will not affect other sections or provisions that can be given force and effect without the invalidated section or provision.

SECTION 9. EFFECTIVE DATE

This Ordinance shall be in full force and effect upon the date of its passage.

The public comment portion of the hearing was closed at 2:11 p.m.

The public hearing was closed at 2:12 p.m. on Tuesday, August 27, 2024.

The motion for adoption of the Ordinance is reflected in the County Board of Com­missioners meeting minutes of August 27, 2024.

ATTEST:

Laurel D. Buchanan

Clerk of the Board

Rich Sve, Board Chairperson

Lake County Board of Commissioners