Resolution amending the city's fee schedule by establishing Administrative Penalties for Cannabis Violations.

Adoption of the attached resolution.

Minnesota State Statute 342.22, Subd. 4, requires a local unit of government to conduct annual compliance checks of every cannabis business and hemp business with a retail registration issued by the local unit of government. Subd. 5., addresses registration suspension and cancellation; notice to the Office of Cannabis; and penalties. 

In addition to penalties that may be imposed by the City Code or State Statute, any registered retail business with a retail registration from the city found to have violated the City Code (Chap. 6, Division 10) or State Statute, or whose employees have violated the City Code or State Statute, shall be subject to administrative penalties. The proposed administrative penalties are as follows:

• First violation $500
• Second violation (on the same premise within a 36-month period) $1,000
• Third violation (on the same premise within a 36-month period) $2,000 and a retail registration suspension of at least 30 consecutive days.

For the purpose of the above, "within a 36-month period" means a period, three years in duration, which begins on the date of the occurrence of the first violation and ends three years from the date of the first violation.
In addition to the above, subject to Minnesota State Statute 342.22, Subd. 5 (e), the city may impose a civil penalty of up to $2,000 for each violation, on any cannabis retail business or lower-potency hemp edible retailer who makes any sale to a customer or patient without a valid retail registration.

The attached fee schedule reflects the above changes.