12-17-2025 Council Packet - Laserfiche WebLink

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Staff Report To: Mayor Fischer and Members of the City Council From: Heidi Heller, City Clerk/HR Manager Date: December 17, 2025 Re: Ordinance 927, Amending City Code Chapter 826, Cannabinoid Products Action To Be Considered: Motion to approve, table, or deny the following: • Adopt Ordinance 927, Amending City Code Chapter 826, Cannabinoid Products to change the requirement from licensing to retail registration, and approve publication of a summary ordinance. Background: In October 2024, the City Council adopted Ordinance 899 which added new city licensing requirements for all businesses that sold cannabinoid, or low-potency hemp edible, products. The State of Minnesota originally began a simple free registration process for these businesses when the low-potency products became legal. In mid-2025, the new Minnesota Office of Cannabis Management (OCM) began licensing cannabis businesses, and they will now also license low-potency hemp edible (LPHE) product retailers and local governments will instead issue “retail registrations” to the LPHE businesses. These new rules for local governments also do not allow a city to limit the number of LPHE registrations and caps the registration fee to half of what the state license fee is. Staff has drafted Ordinance 927 which amends City Code 826, Cannabinoid Products, to remove the licensing language and change to a retail registration. The license limit language is removed since the OCM does not permit a city to limit the number of registrations for LPHE retailers. The Fee Schedule has already been amended to account for both LPHE and cannabis retail registration fees. Staff Recommendations: Staff recommends adoption of Ordinance 927, amending City Code Chapter 826, Cannabinoid Products to change the requirement from licensing to retail registration. Attachments: • Ordinance 927 • Summary Ordinance 927