The County of Lake of the Woods HEREBY ORDAINS

AN INTERIM ORDINANCE AUTHORIZING A STUDY AND IMPOSING A MORATORIUM ON OPERATION OF CANNABIS BUSINESSES WITHIN THE COUNTY OF LAKE OF THE WOODS AND PROHIBITING THE USE OF CANNABIS IN PUBLIC PLACE

The County of Lake of the Woods HEREBY ORDAINS:

WHEREAS, the Minnesota Legislature enacted, and the Governor signed, 2023 Minnesota Session Laws, Chapter 63-H.F. No. 100 (the “Act” and established as Minnesota Statutes Chapter 342), effective in relevant part, August 1, 2023 which is an act, inter alia “relating to cannabis; establishing the Office of Cannabis Management; establishing an advisory council; requiring reports relating to cannabis use and sales; legalizing and limiting the possession and use of cannabis and certain hemp products by adults; providing for the licensing, inspection, and regulation of cannabis businesses and hemp businesses; establishing licensing fees; requiring testing of cannabis flower, cannabis products, and certain hemp products; requiring labeling of cannabis flower, cannabis products, and certain hemp products; limiting the advertisement of cannabis flower, cannabis products, cannabis businesses, and hemp businesses; providing for the cultivation of cannabis in private residences; transferring regulatory authority for the medical cannabis program; providing for Tribal medical programs; taxing the sale of cannabis flower, cannabis products, and certain hemp products; establishing grant and loan programs; clarifying the prohibition on operating a motor vehicle while under the influence of certain products and chemicals; amending criminal penalties; establishing expungement procedures for certain individuals; requiring reports on expungements; providing for expungement of certain evictions; clarifying the rights of landlords and tenants regarding use of certain forms of cannabis; establishing labor standards for the use of cannabis flower, cannabis products, and certain hemp products by employees and testing of employees; providing for the temporary regulation of certain edible cannabinoid products; providing for professional licensing protections; providing for local registration of certain cannabis businesses operating retail establishments; amending the scheduling of marijuana and tetrahydrocannabinols; classifying data; making miscellaneous cannabis-related and hemp-related changes and additions;

WHEREAS, the Minnesota Legislature recently adopted Conference Committee Report on HF 4757 related to cannabis regulation within the State of Minnesota. The legislation requires the Office of Cannabis Management (OCM) to begin accepting applications for social equity applicants beginning on July 24, 2024 and closing on August 12, 2024;

WHEREAS, OCM is in the process of adopting final rules for operation of cannabis related businesses, which rules are not expected to be adopted until early in 2025;

WHEREAS, the social equity exception reflects a change from the original legislation, which prohibited all cannabis operations, including cultivation until OCM adopted final rules;

WHEREAS, Minnesota Statutes §342.13 authorizes local units of government to adopt an interim ordinance to regulate, restrict, or prohibit the operation of a cannabis business within the jurisdiction until January 1, 2025 if the local unit of government is conducting studies or has authorized a study to be conducted or has scheduled a hearing for the purpose of considering adoption or amendment of reasonable restrictions on the time, place, and manner of the operation of a cannabis business for the purpose of protecting the planning process and the health, safety, and welfare of its citizens;

WHEREAS, Lake of the Woods County (the “County”), as the local unit of government, will be conducting studies to determine reasonable restrictions on the time, place, and manner of the operation of cannabis businesses, and the County seeks to review OMC model ordinances, rules, and regulations to assist in developing regulations; and

WHEREAS, due to the significant changes in Minnesota law resulting from enactment of the Act, and revisions and due to the lack of currently available OCM rules, the County wishes to adopt an interim ordinance for the purposes of protecting the planning process and the health, safety, and welfare of its citizens; and

WHEREAS, the County held a public hearing on August 6th, 2024 at 10:00 am in the Commissioners Room in the Lake of the Woods County Courthouse, Baudette, Minnesota regarding the consideration and adoption of the interim ordinance prohibiting the operation of cannabis businesses with the County of Lake of the Woods until January 1, 2025, or until the interim ordinance is repealed, whichever occurs first. The County also considered the prohibition of cannabis in public places. Following public hearing the County Board of Commissioners of Lake of the Woods County ordained as follows:

SECTION 1. AUTHORIZATION OF STUDY. The Lake of the Woods County Board hereby authorizes and directs County Staff and legal counsel to conduct a study regarding the adoption or amendment of reasonable restrictions on the time, place, and manner of the operation of cannabis businesses in the County of Lake of the Woods, together with the study of any other recommended and authorized local regulations as set forth in the Act and Minnesota Statues Chapter 342 as amended. Staff and counsel shall review OCM model ordinances and rules when available. Staff and counsel shall provide recommendations to the County Board regarding the adoption of regulations.

SECTION 2. MORATORIUM. The County of Lake of the Woods hereby imposes a moratorium on the operation of any cannabis business within the County. No business, person, or entity may establish or operate a cannabis business within the jurisdictional boundaries of the County of Lake of the Woods until January 1, 2025 or until ordinances regulating such cannabis business become effective, or until the Lake of the Woods County Board of Commissioners rescinds this interim ordinance. During the moratorium, it will be deemed a violation of this Ordinance for any business, person, or entity to establish or operate a cannabis business within the County.

Exceptions: The moratorium imposed by this Interim Ordinance does not apply to: (1) the continued lawful operation of a business as part of the Medical Cannabis Program administered by the Minnesota Department of Health and lawfully operating prior to July 1, 2023; (2) the lawful sale of Edible Cannabinoid Products in compliance with Minnesota Statutes §151.72; or (3) sales of Edible Cannabinoid Products at an exclusive liquor store in accordance with Minnesota Statutes §340A.412, subd 14.

SECTION 3. USE OF CANNABIS IN PUBLIC PLACES PROHIBITED.

A. It is unlawful to use by ingestion, smoking, or vaping any cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products, as defined in Minn. Stats. §342.01, in public places anywhere in the County.

B. As used in this section, public places include all areas contained within the County boundaries, including all County parks and camping locations, except the following:

1. Private residences, including the curtilage and yard;

2. Private property not generally accessible by the public unless a 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.

SECTION 4. ENFORCEMENT. This interim ordinance may be enforced by criminal prosecution as set forth in Minnesota law. Further, the County may enforce this interim ordinance by injunction or other civil remedy in district court.

SECTION 5. EFFECTIVE DATE AND EXPIRATION DATE. This ordinance shall be in full force and effect from and after its passage and publication according to law and shall expire upon the earlier of the following events: (a) adoption of ordinances regulating such uses; (b)until Lake of the Woods County Board of Commissioners rescinds or terminates the interim ordinance establishing a moratorium; (c) or until January 1st 2025.