HomeMy WebLinkAbout#14 - Cannabis Ordinance1
STAFF REPORT
DATE: 12/3/2024 REGULAR AGENDA
TO: Planning Commission
FROM: Nathan Fuerst, AICP, Consulting Planner
AGENDA ITEM: Cannabis Regulations – Draft Registration and Land Use Standards
REVIEWED BY: Jason Stopa, Community Development Director
Sophia Jensen, City Planner
Joseph Sathe, Kennedy & Graven
BACKGROUND:
In 2023, Chapter 342 of Minnesota State Statues was established legalizing cannabis for
recreational adult use and the sale, possession, use, and growth of cannabis. The same statute also
created the Office of Cannabis Management (OCM), a new State agency that regulates cannabis
use and businesses in Minnesota. The OCM is currently finalizing rules and standards for
licensing and use of facilities that will deal with cannabis. The OCM recently closed the
application period for Social Equity Applicants and received over 1,800 applications.
Licenses are anticipated to be issued shortly after the rules are finalized in 2025. To avoid the
possibility of creating legal nonconforming uses, city staff are proposing that the City adopt
registration and land use standards before January 1, 2025.
On November 12, 2024, the City Council and several Planning Commissioners were present for a
joint workshop and provided staff with direction on regulations for cannabis and hemp businesses.
On November 25, 2024, the Planning Commission held a public hearing and discussed the
proposed regulations.
Given feedback received through the review process, the following general changes have been
made to staff’s proposed ordinances:
• Staff have drafted Ordinance 2024-20, and ordinance creating a registration process for
cannabis and hemp retail businesses.
• Ordinance 2024-21 was amended as follows:
o Cultivation in greenhouses is prohibited, buildings mut be compliant with design
standards.
o Requirement added for temporary cannabis events to be held indoors.
ISSUE BEFORE THE CITY:
The City Council is asked to review the proposed ordinances. If it seeks to adopt the standards, it
should do so or advise staff on changes for a future meeting.
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REGISTRATION VS. LICENSING:
The OCM will issue and manage licenses for cannabis businesses. Retail operations for cannabis
must register with local units of government before making retail sales to customers or patients.
Currently, local government units are required to allow for one registration for every 12,500
residents. The statute specifies these registrants as cannabis retailers, cannabis mezzobusinesses
with a retail operations endorsement, and cannabis microbusinesses with a retail operations
endorsement. This minimum of one applies only to cannabis retailer registration. It is currently
unclear if the City will be able to limit non-retailer uses to any capacity, however, staff believes
uses that are not required to register cannot be prohibited.
The pros and cons of registering locally vs with Washington County are generally laid out below:
Pros:
1. Local control on the number of registrants, Lake Elmo can limit to up to two retail
businesses.
2. Local control on process of registration such as background checks, enforcement, etc.
Cons:
1. Use of limited staff resources for processing registrations.
2. County registration process or potentially the number of retail registrants in Lake Elmo
are out of the City’s control.
PROPOSED ORDINANCE UPDATES:
All cannabis businesses are required to comply with local zoning ordinances. Upon receipt of an
application for a license, the OCM will reach out to local governments to certify zoning
compliance during their application process. Cities without zoning controls in place will have a
difficult time responding that uses do or do not comply with their ordinance.
Per State law, cities may place reasonable restrictions on the time, place, and manner of a
cannabis business but may not outright ban one. A city is required to issue a retail registration to a
cannabis retailer and/or any cannabis business seeking a retail endorsement if complaint with the
City’s rules.
Cannabis Businesses and Uses
Minnesota State Statute defines the term “cannabis business.” This term means the following uses:
1. cannabis microbusiness;
2. cannabis mezzobusiness;
3. cannabis cultivator;
4. cannabis manufacturer;
5. cannabis retailer;
6. cannabis wholesaler;
7. cannabis transporter;
8. cannabis testing facility;
9. cannabis event organizer;
10. cannabis delivery service;
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11. medical cannabis cultivator;
12. medical cannabis processor;
13. medical cannabis retailer; and
14. medical cannabis combination business.
These “businesses” correlate with the types of licenses that will be available from the OCM.
Without amendments to the Zoning Ordinance, cannabis uses may be grouped in with existing
land use classifications. The figure on the following page is intended to provide an assessment of
land use elements associated with each type of cannabis businesses.
Use
Grow Sell to Consume Manufacture/ Process Packaging Wholesale Research/ Laboratory Indoor Outdoor Customers Other Businesses License Type Microbusiness X X X X X X X
Mezzobusiness X X X X X X
Cultivator X X X X X
Manufacturer X X X
Retailer X
Wholesaler X
Testing X
Event X
Transporter N/A
Delivery Services N/A
Cannabis Retail Business Registration
Application Fees: Application fees are limited by State Statute. The draft ordinance adopts the
highest fee permitted which is $500 (and sometimes less) for initial registration, and $1000 (and
sometimes less) for renewal. State law allows for the first renewal to be made without a fee.
Application Procedure: The City will create a form and applicants will need to supply all required
information. The City will require certification that the business is compliant with zoning
standards. Where the retail business operation requires Conditional Use Permit, the City will not
issue its registration unless or until the business has received approval of a CUP.
Annual Compliance Checks: State law requires the City to perform compliance checks on
registered retailers. This includes age verification compliance checks by individuals, in
coordination with law enforcement, that are between the age of 17 and 21 who attempt to purchase
products.
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Number of Retail Businesses: The only cannabis business which the City is permitted by state
statute to limit per number of registered business is the retail sale of cannabis products. This type
of business can be limited to 1 per every 12,500 residents of a City, Township, or County.
It may be possible to limit retail registrations to zero if there are enough licensed retailers in the
county to satisfy the 1 business per 12,500 resident ratio county-wide.
Micro and Mezzobusinesses
Microbusiness and mezzobusinesses are the two unique use names within cannabis. These uses
can be compared to something like a small winery or brewery; however, on-site consumption of
intoxicating products is only allowed by state licenses for microbusinesses. Microbusinesses and
mezzobusinesses are allowed to cultivate, manufacture/process, package, and sell with their
license. Businesses licensed as microbusinesses or mezzobusinesses can operate multiple locations
and the cultivation and manufacturing part of the license can be located separately from the retail
location. As such, the uses may have multiple parts of a singular building that make up a single
structure such as a warehouse type facility for storage and processing and a greenhouse for
cultivation, but these all serve the principal use of microbusiness or mezzobusiness.
Draft Zoning Standards
Staff are recommending the following changes at this time:
• Establishment of definitions for cannabis and hemp uses.
• Revision of land use tables in Mixed Use, Business, and Industrial Districts to regulate the
specific cannabis business uses.
• Establishment of performance standards for cannabis businesses and the process for
temporary cannabis events.
Zoning District Use Table Amendments
Changes to allow low potency hemp product sales in the Village Districts in LEC 105.12.780:
V-LDR V-MDR V-HDR VMX
Accessory Uses:
Lower-potency hemp edible sales N N N P
[remainder of page intentionally blank]
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Changes to allow cannabis businesses in Commercial Districts in LEC 105.12.870 and
105.12.920:
LC CC C BP MU-C MU-BP
Sales of Merchandise:
Cannabis Cultivation N N N C N N
Cannabis Event, Temporary N N P P P P
Cannabis Mezzobusiness N N N C N C
Cannabis Microbusiness N N N C N C
Cannabis Sales N N C C C C
Cannabis Wholesaling N N N C N C
Lower-Potency Hemp
Edible Manufacturing
N N N C N C
Lower-Potency Hemp
Edible Sales
N N C C C C
Accessory Uses:
Cannabis Delivery N N C C C C
District Abbreviations:
LC = Limited Commercial, CC = Convenience Commercial, C = Commercial, BP = Business
Park/Light Manufacturing District, MU-C = Mixed Use Commercial, MU-BP = Mixed Use
Business Park
Buffers/Setbacks
State statute allows cities to adopt restrictions if they choose by prohibiting registrations within:
• 1,000 feet of a school
• 500 feet of a daycare
• 500 feet of a residential treatment facility
• 500 feet from an attraction in a public park regularly used by minors, such as a playground
or athletic field.
Staff have drafted an ordinance with all buffers adopted as the most restrictive option. However,
the buffers from daycare and residential treatment facilities are more difficult to administer and
may be less of a concern for public safety.
Odor Control
OCM has left odor control to be controlled at the local level aside from Minnesota Pollution
Control Standards for nuisances. The draft standards include a condition that odor control systems
be installed for uses where odor would be expected as part of the regular businesses (indoor
cultivation, manufacturing, wholesaling). In researching standards for this, some communities
require verification from a qualified industrial hygienist that appropriate odor control systems have
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been installed and continual monitoring was required. If the Council wishes to require this, the
standards should be modified to reflect this.
Lighting
All uses will be required to meet the standards within the City Code for outdoor lighting, however,
indoor cultivation has a specific need for lighting to facilitate plant growth. At this time, staff are
recommending not to permit greenhouses as light impacts on neighboring properties are expected
in winter months. All buildings and sites will therefore need to comply with applicable design
standards.
Outdoor Use Prohibitions
The draft ordinance restricts outdoor storage to only the daily parking of vehicles. This standard
will apply to all cannabis businesses. As part of a cultivator, microbusiness, and mezzobusiness
license, cultivation is allowed and can either be indoor cultivation (greenhouses, hydroponics) or
outdoor cultivation. Outdoor cultivation is not expected to be largely utilized as the growing
conditions in Minnesota are not optimal for cannabis. The draft ordinance does not allow outdoor
cultivation.
Cannabis Testing Facilities
Although not currently recommended, the City may want to consider regulating cannabis testing
facilities separately from the “Research, and testing” use that exists within the code as a
conditional use in Business Parks and Mixed-Use Business Parks. It is not yet known how
prevalent cannabis testing facilities will be in the Twin Cities metro area.
Temporary Cannabis Events
The City is encouraged to consider proactively adopting standards for Temporary Cannabis
Events. It is staff’s opinion that this use must be permitted somewhere in the City. The standards
proposed are summarized below:
• Permit required – a permit is required for such events to allow the City time to process a
request.
• Application and Fees – application and fee requirements are established.
• Process – a permit application would initiate a review process with city council approval of
permits for temporary cannabis events.
• Standards:
o OCM license is required for the business.
o Temporary Cannabis Events are only permitted at approved Cannabis Cultivation,
Cannabis Mezzobusiness, Cannabis Microbusiness, Cannabis Retail, and Low
Potency Hemp Retail Locations.
o Temporary Cannabis Events may not be held outdoors.
o Temporary Cannabis Events must last no more than four consecutive calendar
days.
o No more than four Temporary Cannabis Events may be conducted at a single
location in a calendar year.
o Hours of operation for a Temporary Cannabis Event are limited to 10:00 AM to
5:00 PM.
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Public Hearing
A public hearing notice was published in the City’s official paper. No written public comments
have been received. The noticed public hearing was held at the City’s Planning Commission
meeting on November 25, 2024.
One verbal comment was provided at the public hearing. That commenter was appreciative of the
public review process and made remarks favoring the limitation of cannabis business uses strictly
to commercial districts. Design standards that were discussed by staff and the commission were
seen as favorable.
Draft Ordinance Timeline
Staff propose the following timeline for review and approval of an ordinance before the new year:
• November 12, 2024 – Joint workshop between Planning Commission and City Council
• November 25, 2024 – Public Hearing at Planning Commission
• December 3, 2024 – City Council Review of draft ordinance
Planning Commission Recommendation:
The Planning Commission discussed this item at its regular meeting on November 25, 2025. The
Planning Commission found that the suggested land use standards were acceptable. It was
suggested that temporary cannabis events take place indoors, and staff have revised the ordinance
accordingly.
Ultimately, the Planning Commission voted unanimously to recommend the ordinances to the City
Council for approval.
Recommendation:
Staff suggest adoption of the revised ordinances. The City Council can do so through the
following example motions:
“Move to Adopt Ordinance 2024-20 establishing registration requirements for cannabis
retail businesses”
“Move to Adopt Ordinance 2024-21 establishing land use and performance standards for
cannabis and hemp businesses.”
“Move to Adopt Resolution 2024-130 authorizing summary publication of Ordinances 2024-
20 and 2024-21.”
ATTACHMENTS:
• Draft Ordinance – Land Use Standards
• Draft Ordinance – Registration Standards
• Draft Resolution – Authorizing Summary Publication of Land Use and Registration rules
• A Guide for Local Minnesota Governments of Adult Use Cannabis, Version 1.4
CITY OF LAKE ELMO
COUNTY OF WASHINGTON
STATE OF MINNESOTA
ORDINANCE NO. 2024-20
AN ORDINANCE AMENDING THE LAKE ELMO CITY CODE TITLE 1 AND 105 TO REGULATE
CANNABIS BUSINESSES
SECTION 1. The City Council of the City of Lake Elmo hereby amends Title 1, General Provisions;
Chapter 1.08: Definitions by changing the following section (Proposed language is underlined; deleted
language is shown with strikethrough):
Cannabis business means a business licensed by the Office of Cannabis Management (OCM) as a cannabis
business as defined by Minnesota Statutes, section 342.01.
Cannabis cultivation means a cannabis business that conducts an operation pursuant to Minnesota Statutes,
section 342.30, as it may be amended.
Cannabis delivery means a cannabis business that conducts an operation pursuant to Minnesota Statutes,
section 342.42, as it may be amended.
Cannabis event means a temporary cannabis event lasting no more than four days operating pursuant to
Minnesota Statutes, section 342.39, as it may be amended.
Cannabis mezzobusiness means a cannabis business that conducts an operation pursuant to Minnesota Statutes,
section 342.29, as it may be amended.
Cannabis microbusiness means a cannabis business that conducts an operation pursuant to Minnesota Statutes,
section 342.28, as it may be amended.
Cannabis sales means the sale of cannabis plants and seedlings, adult-use cannabis flower, and adult use
cannabis products directly to consumers pursuant to Minnesota Statutes, section 342.27.
Cannabis manufacturing means a cannabis business that conducts an operation pursuant to Minnesota Statutes,
section 342.31, as it may be amended.
Hemp business means a business licensed by the Office of Cannabis Management (OCM) as a hemp business
as defined by Minnesota Statutes, section 342.01.
Lower-potency hemp edible manufacturing means a hemp business that conducts an operation pursuant to
Minnesota Statute Section 342.45, as it may be amended.
Lower-potency hemp edible sales means a hemp business that conducts an operation pursuant to Minnesota
Statute Section 342.46, as it may be amended.
Residential Treatment Facility means any facility licensed or regulated by the Minnesota Department of
Human Services that provides 24-hour-a-day care, lodging, or supervision outside a person’s home and which
also provides chemical dependency or mental health services.
SECTION 2. The City Council of the City of Lake Elmo hereby amends Title 105, Chapter 105.12
Zoning Code, Section 780, Table 11-1: Permitted and Conditional Uses, Village Districts, (Proposed
language is underlined):
V-LDR V-MDR V-HDR VMX Standard
Accessory Uses:
Lower-potency hemp edible sales N N N P 105.12.1490
SECTION 3. The City Council of the City of Lake Elmo hereby amends Title 105, Chapter 105.12
Zoning Code, Section 870, Table 14-1: Permitted, Conditional and Interim Uses, Mixed-Use
Commercial and Mixed-Use Business Park Districts (Proposed language is underlined):
MU-C MU-BP Standard
Sales of Merchandise:
Cannabis cultivation N N 105.12.1490
Cannabis event, temporary P N 105.12.1490
Cannabis mezzobusiness N N 105.12.1490
Cannabis microbusiness N N 105.12.1490
Cannabis sales C N 105.12.1490
Cannabis wholesaling N N 105.12.1490
Lower-potency hemp edible manufacturing N N 105.12.1490
Lower-potency hemp edible sales C N 105.12.1490
Accessory Uses:
Cannabis delivery C N 105.12.1490
SECTION 4. The City Council of the City of Lake Elmo hereby amends Title 105, Chapter 105.12
Zoning Code, Section 920, Table 12-1: Permitted, Conditional and Interim Uses, (Proposed language is
underlined):
LC CC C BP Standard
Sales of Merchandise:
Cannabis cultivation N N N C 105.12.1490
Cannabis event, temporary N N P P 105.12.1490
Cannabis mezzobusiness N N N C 105.12.1490
Cannabis microbusiness N N N C 105.12.1490
Cannabis sales N N C C 105.12.1490
Cannabis wholesaling N N N C 105.12.1490
Lower-potency hemp edible manufacturing N N N C 105.12.1490
Lower-potency hemp edible sales N N C C 105.12.1490
Accessory Uses:
Cannabis delivery N N C C 105.12.1490
SECTION 5. The City Council of the City of Lake Elmo hereby amends Title 105, General Provisions;
Chapter 105.12 Zoning Code, Article XXI, Design and Performance Standards, Restrictions on
Nuisance and Hazardous Activities by renumbering Section 1490, Penalty, to 1500.
SECTION 6. The City Council of the City of Lake Elmo hereby amends Title 105, General Provisions;
Chapter 105.12 Zoning Code, Article XXI, Design and Performance Standards, Restrictions on
Nuisance and Hazardous Activities by adding a section 1490 (Proposed language is underlined):
(a) Applicability. The standards within this subsection shall apply to the following uses:
(1) Cannabis Cultivation
(2) Cannabis Events, Temporary
(3) Cannabis Manufacturing
(4) Cannabis, Mezzobusiness
(5) Cannabis, Microbusiness
(6) Cannabis Sales
(7) Cannabis Wholesaling
(8) Lower-Potency Hemp Edible Manufacturing
(9) Lower-Potency Hemp Edible Sales
(b) Buffers
(1) Any cannabis business must be setback 1,000 feet from schools as established by Minnesota
Statute Section 342.13(c)
(2) Any cannabis business must be setback 500 feet from a day care center as established by
Minnesota Statute Section 342.13(c)
(3) Any cannabis business must be setback 500 feet from a residential treatment facility as
established by Minnesota Statute Section 342.13(c)
(4) Any cannabis business must be setback 500 feet from an attraction within a public park that is
regularly used by minors, including a playground or athletic field.
(c) Development Standards
(1) Must be licensed by the State of Minnesota and in compliance with the standards set by
Minnesota Statutes, Minnesota Rules, and the Office of Cannabis Management.
(2) The facility shall be secured as required by Minnesota Statutes, Minnesota Rules, and the Office
of Cannabis Management.
(3) All operations, including but not limited to cultivation, manufacturing, storage, and sales must
occur within a fully enclosed building or facility meeting applicable requirements of the Lake
Elmo Design Standards Manual.
(4) Outdoor operations are prohibited. Cultivation within greenhouses is prohibited. All cannabis
businesses must take place in a building.
(5) Outdoor storage beyond the daily parking of vehicles is prohibited.
(6) The facility shall not produce noxious or nuisance causing odors, subject to the following
conditions:
a. The facility shall be ventilated so that all odors cannot be detected by a person with a normal
sense of smell at the exterior of the facility or at any adjoining use or property.
b. Growing cannabis must comply with all applicable laws and shall not produce noxious or
dangerous gases or odors or otherwise create a danger to any person or entity in or near the
facilities.
c. An odor maintenance plan must be submitted to the City and approved by the City.
d. At the City Council’s discretion, the applicant may be required to provide plans that show
appropriate odor control systems so as not to produce any noxious or dangerous gases or
odors or create any dangers to any person or entity in or near the facility.
(7) All mechanical, odor suppression equipment, and trash enclosures must be screened.
(8) Lighting
a. All site lighting must meet City Code requirements. All light fixtures must be downward
directed with cut-offs and be architecturally designed to match the overall design of the
building.
b. The specifications of all light fixtures must be provided to the City with the application for a
conditional use permit.
c. A photometric plan must be submitted to the City with the application for a conditional use
permit indicating light measure at the property line.
(9) Water and Wastewater
a. Management of wastewater shall be in accordance with the Minnesota Statutes, Minnesota
Rules, standards set by the Office of Cannabis Management, standards set by the Minnesota
Pollution Control Agency, and local ordinances. Where multiple standards exist, the more
restrictive of the standards shall apply.
b. Water use within the site shall be designed to maximize the amount of water reuse possible.
(10) Signs
a. Signs shall be in compliance with the Minnesota Statutes, Minnesota Rules, standards set by
the Office of Cannabis Management and the City Code. Whenever a more restrictive
standard exists, the more restrictive standard shall apply.
(d) Temporary Cannabis Events – In Business and Industrial Districts, a Temporary Cannabis Event may
only be permitted as follows:
(1) License or Permit Required for Temporary Cannabis Events. A license or permit is required to be
issued and approved by the City of Lake Elmo prior to holding a Temporary Cannabis Event.
(2) Registration & Application Procedure. A registration fee, as established in the City of Lake
Elmo’s fee schedule, shall be charged to applicants for Temporary Cannabis Events.
(3) Application Submittal & Review. The City of Lake Elmo shall require an application for
Temporary Cannabis Events.
(4) An applicant for a Temporary Cannabis Event shall fill out an application form, as provided by
the City of Lake Elmo. Said form shall include, but is not limited to:
a. Full name of the property owner and applicant;
b. Address, email address, and telephone number of the applicant;
c. A site plan including the location of the event, the set-up, location of parking, dates of the
proposed event, hours of operation, lighting, signage, and any other information deemed
necessary by the City.
(5) The applicant shall include with the form:
a. The application fee as established in the City of Lake Elmo’s fee schedule.
b. A copy of the Office of Cannabis Management cannabis event license application, submitted
pursuant to Minnesota Statutes 342.39 subd. 2.
(6) The application shall be submitted to the City for review. If the City determines that a submitted
application is incomplete, they shall return the application to the applicant with the notice of
deficiencies.
(7) Once an application is considered complete, the City shall inform the applicant as such, process
the application fees, and forward the application to the City Council for approval or denial.
(8) The application fee shall be non-refundable once processed.
(9) The application for a license for a Temporary Cannabis Event shall meet the following standards:
a. Must be licensed by the State of Minnesota and in compliance with the standards set by the
Office of Cannabis Management.
b. Temporary Cannabis Events may only be held at approved Cannabis Cultivation, Cannabis
Mezzobusiness, Cannabis Microbusiness, Cannabis Retail, and Low Potency Hemp Retail
Locations.
c. Temporary Cannabis Events must be held indoors.
d. Temporary Cannabis Events must last no more than four consecutive calendar days.
e. No more than four Temporary Cannabis Events may be conducted at a single location in a
calendar year.
f. Hours of operation for a Temporary Cannabis Event are limited to 10:00 AM to 5:00 PM.
(10) A request for a Temporary Cannabis Event that meets the requirements of this Section shall be
approved.
(11) A request for a Temporary Cannabis Event that does not meet the requirements of this Section
shall be denied. The City shall notify the applicant of the standards not met and basis for denial.
SECTION 7. Effective Date. This ordinance shall become effective immediately upon adoption and
publication in the official newspaper of the City of Lake Elmo.
SECTION 8. Adoption Date. This Ordinance 2024-20 was adopted on this 3rd day of December 2024, by a
vote of __ Ayes and ___Nays.
LAKE ELMO CITY COUNCIL
_________________________________
Charles Cadenhead, Mayor
ATTEST:
______________________________
Julie Johnson, City Clerk
This Ordinance 2024-20 was published on the ____ day of ___________________, 2024.
CITY OF LAKE ELMO
COUNTY OF WASHINGTON
STATE OF MINNESOTA
ORDINANCE NO. 2024-21
AN ORDINANCE AMENDING THE LAKE ELMO CITY CODE TITLE 11 TO REGULATE THE
POSSESSION, SALE, AND CONSUMPTION OF CANNABIS
SECTION 1. The City Council of the City of Lake Elmo hereby amends Title 11 Business Regulations
by adding a Chapter 11.28: Cannabis Businesses.
SECTION 2. The City Council of the City of Lake Elmo hereby amends Title 11 Business
Regulations; Chapter 11.28 Cannabis Businesses by adding a Section 11.28.010 Administration
(Proposed language is underlined):
(a) Finding and Purpose. The purpose of this ordinance is to implement the provisions of Minnesota
Statutes, chapter 342, which authorizes the City of Lake Elmo (hereinafter “City”) to protect the public
health, safety, welfare of City residents by regulating cannabis businesses. The City finds and concludes
the proposed provisions are appropriate and lawful land use regulations, will promote the community's
interest, and are in the public interest and for the public good.
(b) Severability. If any section, clause, provision, or portion of this ordinance is adjudged unconstitutional
or invalid by a court of competent jurisdiction, the remainder of this ordinance shall not be affected
thereby.
(c) Definitions.
Applicant means an entity with a license or endorsement issued by the OCM that is applying for an initial
registration or for registration renewal.
The Act means Minnesota Statutes, Chapter 342, as is may be amended from time to time.
Cannabis Business has the same meaning as defined in Minnesota Statutes, section 342.01.
Cannabis Retailer means a business with a cannabis retailer license or cannabis retail endorsement from
OCM.
Retailer means every business that is licensed under the Act and required to register with the City under
Minnesota Statutes, section 342.22. Including cannabis businesses and lower-potency hemp edible
retailers.
OCM means the Minnesota Office of Cannabis Management.
Potential Licensee means an entity that has not received a license from the OCM and is seeking a pre-
license certification.
SECTION 3. The City Council of the City of Lake Elmo hereby amends Title 11 Business Regulations;
Chapter 11.28 Cannabis and Hemp Businesses by adding a Section 11.28.020 Pre-License Zoning
Approval (Proposed language is underlined):
(a) The City Administrator is authorized to certify whether a proposed Cannabis Business complies with the
City’s zoning ordinances, this Chapter, and if applicable, with state fire code and building code pursuant
to Minnesota Statutes, section 342.13.
(b) Potential licensees are responsible for obtaining all necessary zoning approvals prior to the City receiving
the request for certification from the OCM. If a potential licensee fails to obtain necessary zoning
approvals prior to the City receiving a request for certification, the City will inform the OCM that the
potential licensee does not meet zoning and land use laws. If, at the time the City receives a request for
zoning certification, there are no further intended alterations to the building where the business is to be
conducted, the City will also certify compliance with building and fire code regulations, provided that
the potential licensee has obtained inspections prior the City’s receipt of a request for certification from
the OCM. Building and fire code inspections will be valid for 1 year from completion.
SECTION 4. The City Council of the City of Lake Elmo hereby amends Title 11 Business
Regulations; Chapter 11.28 Cannabis Businesses by adding a Section 11.28.030 Registration of
Cannabis Businesses (Proposed language is underlined):
(a) Retail Registration Required
(1) No individual or entity may operate a retailer within the City of Lake Elmo without first
registering with the City.
(2) Any retailer that sells to a customer or patient without valid retail registration shall incur a civil
penalty of up to $2,000 for each violation.
(b) Compliance Checks Prior to Registration
(1) Prior to issuance of a cannabis retail business registration, the City shall conduct a preliminary
compliance check to ensure compliance with local ordinances.
(c) Registration & Application Procedure
(1) Processing Registrations. Applications will be processed on a first-come, first-served basis based
on the City receiving a complete application. Applications will be considered complete when all
materials in LEC 11.28.030 (C)(3) are received by the city and include all required information
and the fee described in LEC 11.28.030(c)(2) is received
(2) Fees. A registration fee, as established in the City’s fee schedule, shall be charged to applicants
depending on the type of retail business license applied for.
(3) Application Submittal. The applicant must submit a registration application or renewal form
provided by the City. The form may be amended from time to time by the City Clerk, but must
include or be accompanied by:
a. An applicant for a retail registration shall fill out an application form, as provided by the
City of Lake Elmo. Said form shall include, but is not limited to:
1. Full name of property owner and applicant.
2. Address, email address, and telephone number of the applicant.
3. The address and parcel ID for the property which the retail registration is sought.
4. Certification that the applicant complies with the requirements of local ordinances
established pursuant to 342.13.
b. The applicant shall include with the form:
1. The registration fee as required in LEC 11.28.030(c)(2), above.
2. A copy of a valid state license or written notice of OCM license preapproval.
c. Once an application is considered complete, the City shall inform the applicant as such,
process the application fees, and forward the application to the City Council for approval or
denial.
d. The application fee shall be non-refundable once processed.
(4) Reasons for Denial. The City shall not issue a registration or renewal if any of the following
conditions are true:
a. The applicant has not submitted a complete application.
b. The applicant does not comply with the requirements of this Chapter.
c. The applicant does not comply with applicable zoning and land use regulations.
d. The applicant is found to not comply with the requirements of the Act or this Chapter at the
preliminary compliance check.
e. The applicant is not current on all property taxes and assessments at the location where the
retailer is located.
f. The maximum number of registrations, pursuant to LEC 11.28.040(a)(1), have been issued
by the City or within Washington County.
g. The applicant does not have a valid license from the OCM.
(5) Application Approval.
a. A retailer application shall not be approved or renewed if the applicant is unable to meet the
requirements of this ordinance, including land use standards established in Title 105 Zoning.
b. A retailer application that meets the requirements of this ordinance, including land use
standards established in Title 105 Zoning, shall be approved.
(6) Annual Compliance Checks.
a. The City shall complete at minimum one compliance check per calendar year of every
retailer to assess if the business meets age verification requirements, as required under
Minn. Stat. Chapter 342 and this ordinance.
b. The City shall conduct at minimum one unannounced age verification compliance check at
least once per calendar year.
1. Age verification compliance checks shall involve persons at least 17 years of age but
under the age of 21 who, with the prior written consent of a parent or guardian if the
person is under the age of 18, attempt to purchase adult-use cannabis flower, adult-use
cannabis products, lower-potency hemp edibles, or hemp-derived consumer products
under the direct supervision of a law enforcement officer or an employee of the local
unit of government.
c. Any failures under this section must be reported to the Office of Cannabis Management.
(7) Location Change.
a. If a retailer seeks to move to a new location still within the legal boundaries of City, it shall
notify City of the proposed location change, and submit necessary information to meet all
the criteria in Lake Elmo City Code without the need for a new registration or fee.
(h) Suspension of Registration
(1) Generally. The City Council may impose a fine or suspend a registration under this chapter on
a finding that the registered business has failed to comply with the requirements of this chapter
or any applicable statute or regulation.
(2) Notice and Right to Hearing. Prior to imposing a penalty or suspending any registration under
this chapter, the City shall provide the registered business with written notice of the alleged
violations and inform the registered business of his or her right to a hearing on the alleged
violation.
a. Notice shall be delivered in person or by regular mail to the address of the registered
business and shall inform the registered business of its right to a hearing. The notice will
indicate that a response must be submitted within ten (10) business days of receipt of the
notice, or the right to a hearing will be waived.
b. The registered business will be given an opportunity for a hearing before the City
Administrator, or designee, before final action to fine or suspend a registration. Provided,
the registered business has submitted a written application for appeal within 10 business
days after the notice was served. The City Administrator, or designee, shall give due regard
to the frequency and seriousness of the violations, the ease with which such violations could
have been cured or avoided and good faith efforts to comply and shall issue a decision to
fine or suspend the registration only upon written findings. Within ten (10) business days
of the City Administrator’s, or designee’s, order, the decision may be appealed to the City
Council.
c. If no request for a hearing is received within ten (10) business days following the service
of the notice, the matter shall be submitted to the City Council for imposition of the fine or
suspension of the registration.
(3) Emergency. If, in the discretion of the City, a registered business poses an imminent threat to
the health or safety of the public, the City may immediately suspend the registration and provide
notice of the right to hold a subsequent hearing as prescribed in part (2) of this section.
(4) Reinstatement. The City may reinstate a registration if it determines that the violations have
been resolved. The City shall reinstate a registration if the OCM determines the violations have
been resolved.
SECTION 5. The City Council of the City of Lake Elmo hereby amends Title 11 Business
Regulations; Chapter 11.28 Cannabis Businesses by adding a Section 11.28.040 Requirements for
Cannabis Businesses (Proposed language is underlined):
(a) Number of Retailers
(1) The City Council can choose to limit the number of cannabis retail businesses, or cannabis
businesses with retail endorsements, to one registration per 12,500 residents, pursuant to Minn.
Stat. 342.13, subd. h, as may be amended, or allow no registrations citywide if there are more
than one retail registration per 12,500 residents of Washington County, pursuant to Minn. Stat.
342.13, subd. ii, as may be amended.
(b) Minimum Buffer Requirements
(1) To receive a retail registration, a cannabis business must be compliant with the minimum buffer
requirements established for such uses in Section 105.12.1490.
(2) The buffer minimum buffer requirements will be measured from the potential licensee’s
proposed business location based on the location of schools, day cares, residential treatment
facilities, and park features on the date the city receives the request from the OCM for
certification pursuant to LEC 11.28.020.
(3) Nothing in this section shall prohibit a cannabis business from continuing to operate at the same
location if a school, day care, residential treatment facility, or park feature establishes within the
buffer.
SECTION 6. The City Council of the City of Lake Elmo hereby amends Title 11 Business Regulations;
Chapter 11.28 Cannabis Businesses by adding a Section 11.28.040 Use in Public Spaces (Proposed language
is underlined):
No person shall use cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer
products in a public place, per LEC 9.32.085, or a place of public accommodation unless the premises is an
establishment or an event licensed to permit on-site consumption of adult-use.
SECTION 7. The City Council of the City of Lake Elmo hereby amends Title 11 Business Regulations;
Chapter 11.28 Cannabis Businesses by adding a Section 11.28.050 Penalties Administration and
Enforcement (Proposed language is underlined):
Any violation of the provisions of this chapter or failure to comply with any of its requirements constitutes a
misdemeanor and is punishable as defined by law. Each day each violation continues or exists, constitutes a
separate offense. Violations of this ordinance can occur regardless of whether or not a permit is required for a
regulated activity listed in this ordinance.
Violation of this Chapter shall be grounds for enforcement against any business license issued by the City of Lake
Elmo.
SECTION 8. Effective Date. This ordinance shall become effective immediately upon adoption and
publication in the official newspaper of the City of Lake Elmo.
SECTION 9. Adoption Date. This Ordinance 2024-21 was adopted on this 3rd day of December 2024, by a
vote of __ Ayes and ___Nays.
LAKE ELMO CITY COUNCIL
_________________________________
Charles Cadenhead, Mayor
ATTEST:
______________________________
Julie Johnson, City Clerk
This Ordinance 2024-21 was published on the ____ day of ___________________, 2024.
CITY OF LAKE ELMO
COUNTY OF WASHINGTON
STATE OF MINNESOTA
RESOLUTION NO. 2024-130
RESOLUTION AUTHORIZING PUBLICATION OF A SUMMARY OF ORDINANCE
2024-20 AND ORDINANCE 2024-21
WHEREAS, the Lake Elmo City Council has adopted Ordinance No. 2024-20, an
ordinance that amends Title 11 of the Lake Elmo City Code by creating registration requirements
for cannabis retail businesses; and
WHEREAS, the Lake Elmo City Council has adopted Ordinance No. 2024-21, an
ordinance that amends the City’s Zoning Code, Chapter 105 of the Lake Elmo City Code, by
creating land use and performance standards for cannabis and hemp businesses.
WHEREAS, the ordinances are related; and
WHEREAS, the ordinances are lengthy; and
WHEREAS, Minnesota Statutes, section 412.191, subd. 4, allows publication by title and
summary in the case of lengthy ordinances or those containing charts or maps; and
WHEREAS, the City Council believes that the following summary would clearly inform
the public of the intent and effect of the ordinances.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Elmo
that the City Clerk shall cause the following summary of Ordinance No. 2024-20 and Ordinance
No. 2024-21 to be published in the official newspaper in lieu of the entire ordinance:
Public Notice
The City Council of the City of Lake Elmo has adopted Ordinance No. 2024-20, an ordinance that
amends the Lake Elmo City Code to create registration requirements for cannabis retail businesses.
Additionally, The City Council of the City of Lake Elmo has adopted Ordinance No. 2024-21, an
ordinance amends the Lake Elmo City Code to create land use and performance standards for
cannabis and hemp businesses. Together, these ordinances establish a process and standards for
registration, review, and establishment of cannabis and hemp businesses in Lake Elmo.
The full text of Ordinance 2024-20 and Ordinance No. 2024-21 are available for inspection at
Lake Elmo City Offices during regular business hours.
[remainder of page intentionally blank]
Resolution 2024-130
BE IT FURTHER RESOLVED by the City Council of the City of Lake Elmo that the City
Administrator keep a copy of the ordinance at City Hall for public inspection and that a full copy of
the ordinance be placed in a public location within the City.
Dated: December 3rd, 2024
___________________________________
Charles Cadenhead, Mayor
ATTEST:
____________________________________
Julie Johnson, City Clerk
A Guide for Local Governments
on Adult-Use Cannabis
Version 1.4
Updated August 2024
Table of Contents
Introduction ............................................................... 3
About OCM ............................................................... 4
Cannabis License Types ............................................. 5
Adult-Use Cannabis Law ........................................... 7
Cannabis Licensing Process........................................ 8
General Authorities .................................................. 10
Zoning and Land Use ................................................ 12
Local Approval Process ............................................. 15
Inspections and Compliance Checks ........................ 18
Municipal Cannabis Stores ...................................... 19
Creating Your Local Ordinance ............................... 20
Additional Resources ................................................ 21
Introduction
This guide serves as a general overview of Minnesota’s new adult-use cannabis law, and
how local governments can expect to be involved. The guide also provides important
information about Minnesota’s new Office of Cannabis Management (OCM), and the
office’s structure, roles, and responsibilities. While medical cannabis continues to play an
important role in the state’s cannabis environment, this guide is primarily focused on the
adult-use cannabis law and marketplace.
The following pages outline the variety of cannabis business licenses that will be issued,
provide a broad summary of important aspects of the adult-use cannabis law, and cover a
wide range of expectations and authorities that relate to local governments. This guide also
provides best practices and important requirements for developing a local cannabis
ordinance.
Chapter 342 of Minnesota law
was established by the State
Legislature in 2023 and was
updated in 2024. Mentions of
“adult-use cannabis law” or “the
law” throughout this guide refer
to Chapter 342 and the changes
made to it.
As of this guide’s date of
publication, state regulations
governing the adult-use
cannabis market have not yet
been published—this document
will be updated when such
regulations become effective.
This guide is not a substitute for legal advice, nor does it seek to provide legal advice. Local governments and
municipal officials seeking legal advice should consult an attorney.
Page 3
About OCM
Minnesota’s Office of Cannabis Management is the state regulatory office created to
oversee the implementation and regulation of the adult-use cannabis market, the medical
cannabis market, and the consumer hemp industry. Housed within OCM are the Division
of Medical Cannabis (effective July 1, 2024), which operates the medical cannabis
program, and the Division of Social Equity, which promotes development, stability, and
safety in communities that have experienced a disproportionate, negative impact from
cannabis prohibition and usage.
OCM, through Chapter 342, is tasked with establishing rules and policy and exercising its
regulatory authority over the Minnesota cannabis industry. In its duties, OCM is mandated
to:
Promote public health and welfare.
Protect public safety.
Eliminate the illicit market for cannabis flower and cannabis products.
Meet the market demand for cannabis flower and cannabis products.
Promote a craft industry for cannabis flower and cannabis products.
Prioritize growth and recovery in communities that have experienced a
disproportionate, negative impact from cannabis prohibition.
OCM governs the application and licensing process for cannabis and hemp businesses,
specific requirements for each type of license and their respective business activities, and
conducts enforcement and inspection activities across the Minnesota cannabis and hemp
industries.
Page 4
License Types
Minnesota law allows for 13 different types of business licenses, each fulfilling a unique role
in the cannabis and hemp supply chain. In addition to license types below, OCM will also
issue endorsements to license holders to engage in specific activities, including producing,
manufacturing, and sale of medical cannabis for patients.
Microbusiness
Microbusinesses may cultivate cannabis and manufacture cannabis products and hemp
products, and package such products for sale to customers or another licensed cannabis
business. Microbusiness may also operate a single retail location.
Mezzobusiness
Mezzobusinesses may cultivate cannabis and manufacture cannabis products and hemp
products, and package such products for sale to customers or another licensed cannabis
business. Mezzobusiness may also operate up to three retail locations.
Cultivator
Cultivators may cultivate cannabis and package such cannabis for sale to another licensed
cannabis business.
Manufacturer
Manufacturers may manufacture cannabis products and hemp products, and package such
products for sale to a licensed cannabis retailer.
Retailer
Retailers may sell immature cannabis plants and seedlings, cannabis, cannabis products,
hemp products, and other products authorized by law to customers and patients.
Wholesaler
Wholesalers may purchase and/or sell immature cannabis plants and seedlings, cannabis,
cannabis products, and hemp products from another licensed cannabis business.
Wholesalers may also import hemp-derived consumer products and lower-potency hemp
edibles.
Page 5
License Types (continued)
Transporter
Transporters may transport immature cannabis plants and seedlings, cannabis, cannabis
products, and hemp products to licensed cannabis businesses.
Testing Facility
Testing facilities may obtain and test immature cannabis plants and seedlings, cannabis,
cannabis products, and hemp products from licensed cannabis businesses.
Event Organizer
Event organizers may organize a temporary cannabis event lasting no more than four days.
Delivery Service
Delivery services may purchase cannabis, cannabis products, and hemp products from
retailers or cannabis business with retail endorsements for transport and delivery to
customers.
Medical Cannabis Combination Business
Medical cannabis combination businesses may cultivate cannabis and manufacture
cannabis and hemp products, and package such products for sale to customers, patients,
or another licensed cannabis business. Medical cannabis combination businesses may
operate up to one retail location in each congressional district.
Lower-Potency Hemp Edible Manufacturer
Lower-potency hemp edible manufacturers may manufacture and package lower-potency
hemp edibles for consumer sale, and sell hemp concentrate and lower-potency hemp
edibles to other cannabis and hemp businesses.
Lower-Potency Hemp Edible Retailer
Lower-potency hemp edible retailers may sell lower-potency hemp edibles to customers.
Each license is subject to further restrictions on allowable activities. Maximum cultivation
area and manufacturing allowances vary by license type. Allowable product purchase,
transfer, and sale between licensees are subject to restrictions in the law.
Page 6
The Adult-Use Cannabis Law
Minnesota’s new adult-use cannabis law permits the personal use, possession, and
transportation of cannabis by those 21 years of age and older, and allows licensed
businesses to conduct cultivation, manufacturing, transport, delivery, and sale of cannabis
and cannabis products.
For Individuals
Possession limits:
Flower - 2 oz. in public, 2 lbs. in private residence
Concentrate - 8 g
Edibles (including lower-potency hemp) - 800 mg THC
Consumption only allowed on private property or at licensed businesses with on-site
consumption endorsements. Consumption not allowed in public.
Gifting cannabis to another individual over 21 years old is allowed, subject to
possession limits.
Home cultivation is limited to four mature and four immature plants (eight total) in a
single residence. Plants must be in an enclosed and locked space.
Home extraction using volatile substances (e.g., butane, ethanol) is not allowed.
Unlicensed sales are not allowed.
For Businesses
Advertising:
May not include or appeal to those under 21 years old.
Must include proper warning statements.
May not include misleading claims or false statements.
Billboards are not allowed.
The flow of all products through the supply chain must be
tracked by the state-authorized tracking system.
All products sold to consumers and patients must be
tested for contaminants.
Home delivery is allowed by licensed businesses.
Page 7
The Cannabis Licensing Process
An applicant will take the following steps to proceed from application to active licensure.
As described, processes vary depending on social equity status and/or whether the type of
license being sought is capped or uncapped in the general licensing process.
License Preapproval: Early Mover Process for Social
Equity Applicants
The license preapproval process is a one-time application process available for verified social
equity applicants. State law requires OCM to open the application window on July 24,
2024, and close the window on August 12, 2024. The preapproval process is available for
the following license types, and all are capped in this process: microbusiness, mezzobusiness,
cultivator, retailer, wholesaler, transporter, testing facility, and delivery service.
Applicant’s social equity applicant (SEA) status verified.
Complete application and submit application fees.
Application vetted for minimum requirements by OCM.
Application (if qualified) entered into lottery drawing.
If selected in lottery, OCM completes background check of selected applicant and
issues license preapproval.
Applicant with license preapproval* submits business location and amends application
accordingly.
OCM forwards completed application to local government.
Local government completes certification of zoning compliance.
OCM conducts site inspection.
When regulations are adopted, license becomes active, operations may commence.
*For social equity applicants with license preapproval for microbusiness, mezzobusiness, or
a cultivator license, they may begin growing cannabis plants prior to the adoption of rules if
OCM receives approval from local governments in a form and manner determined by the
office. This is only applicable to cultivation and does not authorize retail sales or other
endorsed activities of the licenses prior to the adoption of rules.
Preapproval steps:
Page 8
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
The Cannabis Licensing Process (cont.)
The general licensing process will align with the adoption of rules and OCM will share more
information about the timing of general licensing process. The general licensing process
includes social equity applicants and non-social equity applicants.
General Licensing: Cultivator, Manufacturer, Retailer, Mezzobusiness
Complete application and submit application fees.
Application vetted for minimum requirements by OCM.
Application (if qualified) entered into lottery drawing.
If selected in lottery, OCM completes background check of selected applicant and
issues preliminary approval.
Applicant with preliminary approval submits business location and amends application
accordingly.
OCM forwards completed application to local government.
Local government completes certification of zoning compliance.
OCM conducts site inspection.
License becomes active, operations may commence.*
General Licensing: Microbusiness, Wholesaler, Transporter, Testing
Facility, Event Organizer
Complete application and submit application fees.1.
Application vetted for minimum requirements by OCM.2.
For qualified applicants, OCM completes background check of vetted applicant and
issues preliminary approval.
3.
Selected applicant submits business location and amends application accordingly.4.
OCM forwards completed application to local government.5.
Local government completes certification of zoning compliance.6.
OCM conducts site inspection.7.
License becomes active, operations may commence.*8.
1.
2.
3.
4.
5.
6.
7.
8.
9.
*For businesses seeking a retail endorsement (microbusiness, mezzobusiness, and retailer),
a valid local retail registration is required prior to the business commencing any retail sales.
See Page 16 for information on the local retail registration process.
Page 9
General Authorities
Local governments in Minnesota have various means of oversight over the cannabis market,
as provided by the adult-use cannabis law. Local governments may not issue outright bans on
cannabis business, or limit operations in a manner beyond what is provided by state law.
Cannabis Retail Restrictions (342.13)
Local governments may limit the number of retailers and microbusiness/mezzobusinesses
with retail endorsements allowed within their locality, as long as there is at least one retail
location per 12,500 residents. Local units of government are not obligated to seek out a
business to register as cannabis business if they have not been approached by any potential
applicants, but cannot prohibit the establishment of a business if this population
requirement is not met. Local units of government may also issue more than the minimum
number of registrations. Per statutory direction, a municipal cannabis store (Page 19)
cannot be included in the minimum number of registrations required. For population
counts, the state demographer estimates will likely be utilized.
Tribal Governments (342.13)
OCM is prohibited from and will not issue state licenses to businesses in Indian Country
without consent from a tribal nation. Tribal nations hold the authority to license tribal
cannabis businesses on tribal lands – this process is separate than OCM’s licensing
process and authority. Subject to compacting, Tribal nations may operate cannabis
businesses off tribal lands. There will be more information available once the compacting
processes are complete.
Taxes (295.81; 295.82)
Retail sales of taxable cannabis products are subject to the state and local sales and use tax
and a 10% gross receipts tax. Cannabis gross receipts tax proceeds are allocated as follows:
20% to the local government cannabis aid account and 80% to the state general fund.
Local taxes imposed solely on sale of cannabis products are prohibited.
Cannabis retailers will be subject to the same real property tax classification as all other
retail businesses. Real property used for raising, cultivating, processing, or storing cannabis
plants, cannabis flower, or cannabis products for sale will be classified as commercial and
industrial property.
Page 10
General Authorities (cont.)
Retail Timing Restrictions (342.13)
Local governments may prohibit retail sales of cannabis between the hours of 8 a.m. and
10 a.m. Monday-Saturday, and 9 p.m. and 2 a.m. the following day.
Operating Multiple Locations with One License
Certain cannabis licenses allow for multiple retail locations to be operated under a single
license, with the following limitations:
Retailers: up to five retail locations.
Mezzobusinesses: up to three retail locations.
Microbusinesses: up to one retail location.
Medical cannabis combination businesses: one retail location per congressional
district. Additionally, medical cannabis combination businesses may cultivate at more
than one location within other limitations on cultivation.
For all other license types, one license permits the operation of one location. Each retail
location requires local certification and/or registration.
Page 11
Zoning and Land Use
Buffer Guidelines (342.13)
State law does not restrict how a local government conducts its zoning designations for
cannabis businesses, except that they may prohibit the operation of a cannabis business
within 1,000 feet of a school, or 500 feet of a day care, residential treatment facility, or
an attraction within a public park that is regularly used by minors, including playgrounds
and athletic fields.
Zoning Guidelines
While each locality conducts its zoning differently, a few themes have emerged across the
country. For example, cannabis manufacturing facilities are often placed in industrial
zones, while cannabis retailers are typically found in commercial/retail zones. Cannabis
retail facilities align with general retail establishments and are prohibited from allowing
consumption or use onsite, and are also required to have plans to prevent the visibility of
cannabis and hemp-derived products to individuals outside the retail location. Industrial
hemp is an agricultural product, and should be zoned as such.
Cannabis businesses should be zoned under existing zoning ordinances in accordance with
the license type or endorsed activities held by the cannabis business. Note that certain
types of licenses may be able to perform multiple activities which may have different
zoning analogues. In the same way municipalities may zone a microbrewery that
predominately sells directly to onsite consumers differently than a microbrewery that sells
packaged beer to retailers and restaurants, so too might a municipality wish to zone two
microbusinesses based on the actual activities that each business is undertaking. Table 1,
included on Pages 13 and 14, explains the types of activities that cannabis businesses might
undertake, as well as, some recommended existing zoning categories.
Page 12
Endorsed Activity
License Type
Eligible to Do
Endorsed Activity
Description of Activity Comparable
Districts
Municipal
Considerations
Cultivation
Cultivator
Mezzobusiness
Microbusiness
Medical Cannabis
Combination
"Cultivation" means any
activity involving the planting,
growing, harvesting, drying,
curing, grading, or trimming
of cannabis plants, cannabis
flower, hemp plants, or hemp
plant parts.
Indoor:
Industrial,
Commercial,
Production
Outdoor:
Agricultural
Odor
Potential need for
transportation from
facility
Waste, water, and
energy usage
Security
Cannabis
Manufacturing,
Processing,
Extraction
Manufacturer
Mezzobusiness
Microbusiness
Medical Cannabis
Combination
This group of endorsed
activities turn raw, dried
cannabis and cannabis parts
into other types of cannabis
products, e.g. edibles or
topicals.
Industrial,
Commercial,
Production
Odor
Potential need for
transportation from
facility
Waste, water, and
energy usage
Security
Hemp
Manufacturing
Lower-Potency
Hemp Edible
(LPHE)
Manufacturing
These business convert hemp
into LPHE edible prodcuts.
Industrial,
Commercial,
Production
Odor
Waste, water, and
energy
Wholesale
Wholesale
Cultivator
Manufacturer
Mezzobusiness
Microbusiness
Medical Cannabis
Combination
This activity and license type
allows a business to purchase
from a business growing or
manufacturing cannabis or
cannabis products and sell to
a cannabis business engaged
in retail.
Industrial,
Commercial,
Production
Need for
transportation from
facility
Security
Page 13
Zoning and Land Use (cont.)
Table 1: Cannabis and Hemp Business Activities
Page 14
Endorsed Activity
License Type
Eligible to Do
Endorsed Activity
Description of
Activity
Comparable
Districts
Municipal
Considerations
Cannabis Retail
Retailer
Mezzobusiness
Microbusiness
Medical Cannabis
Combination
This endorsed
activity and license
types allow a business
to sell cannabis and
cannabis products
directly to
consumers.
Retail,
Neighborhood
Shopping Districts,
Light Industrial,
Existing districts
where off-sale liquor
or tobacco sales are
allowed.
Micros may offer
onsite consumption,
similar to breweries.
Micros and Mezzos
may include multiple
activities: cultivation,
manufacture, and/or
retail.
Transportation Cannabis
Transporter
This license type
allows a company to
transport products
from one license
type to another.
Fleet based business
that will own multiple
vehicles, but not
necessarily hold a
substantial amount
of cannabis or
cannabis products.
Delivery Cannabis Delivery
This license type
allows for
transportation to the
end consumer.
Fleet based business
that will own multiple
vehicles, but not
necessarily hold a
substantial amount
of cannabis or
cannabis products.
Events Event Organizer
This license entitles
license holder to
organizer a
temporary event
lasting no more than
four days.
Anywhere that the
city permits events
to occur, subject to
other restrictions
related to cannabis
use.
On site
consumption.
Retail sales by a
licensed or endorsed
retail business
possible.
Zoning and Land Use (cont.)
Table 1: Cannabis and Hemp Business Activities (continued)
Local Approval Process
Local governments play a critical role in the licensing
process, serving as a near-final approval check on
cannabis businesses nearing the awarding of a state
license for operations. Once an applicant has been
vetted by OCM and is selected for proceeding in the
verification process, they are then required to receive
the local government’s certification of zoning
compliance and/or local retail registration before
operations may commence.
Local Certification of Zoning Compliance (342.13;
342.14)
Following OCM’s vetting process, local governments must certify that the applicant with
preliminary approval has achieved compliance with local zoning ordinances prior to the
licensee receiving final approval from OCM to commence operations.
During the application and licensing process for cannabis businesses, OCM will notify a
local government when an applicant intends to operate within their jurisdiction and request
a certification as to whether a proposed cannabis business complies with local zoning
ordinances, and if applicable, whether the proposed business complies with state fire code
and building code.
According to Minnesota’s cannabis law, a local unit of government has 30 days to respond
to this request for certification of compliance. If a local government does not respond to
OCM’s request for certification of compliance within the 30 days, the cannabis law allows
OCM to issue a license. OCM may not issue the final approval for a license if the local
government has indicated they are not in compliance.
OCM will work with local governments to access the licensing software system to
complete this zoning certification process.
Page 15
Local Approval Process (cont.)
Local Retail Registration Process (342.22)
Once the licensing process begins, local government registration applies to cannabis
retailers or other cannabis/hemp businesses seeking a retail endorsement. Local
governments must issue a retail registration after verifying that:
The business has a valid license or license preapproval issued by OCM.
The business has paid a registration fee or renewal fee to the local government;
Initial registration fees collected by a local government may be $500 or half the
amount of the applicable initial license fee, whichever is less, and renewal
registration fees may be $1,000 or half the amount of the applicable renewal
license fee, whichever is less.
The business is found to be in compliance with Chapter 342 and local ordinances.
If applicable, the business is current on all property taxes and assessments for the
proposed retail location.
Local registrations may also be issued by counties if the respective local government
transfers such authorities to the county.
Determining a Process for Limiting Retail Registrations
If a local government wishes to place a limitation on the number of retailers and
microbusiness/mezzobusinesses with retail endorsements allowed within their locality (as
long as there is at least one retail location per 12,500 residents, see Page 10), state law
does not define the process for a local government’s selection if there are more applicants
than registrations available. A few options for this process include the use of a lottery, a
first-come/first-serve model, a rolling basis, and others. Local governments should work
with an attorney to determine their specific process for selection if they wish to limit the
number of licensed cannabis retailers per 342.13. Local governments are not required to
limit the number of licensed cannabis retailers.
Page 16
Local Approval Process (cont.)
Local governments are permitted specific authorities for registration refusal and
registration suspension, in addition to—and not in conflict with—OCM authorities.
Registration and Renewal Refusals
Local governments may refuse the registration
and/or certification of a license renewal if the
license is associated with an individual or business
who no longer holds a valid license, has failed to pay
the local registration or renewal fee, or has been
found in noncompliance in connection with a
preliminary or renewal compliance check.
Local Registration Suspension (342.22)
Local governments may suspend the local retail registration of a cannabis business or
hemp business if the business is determined to not be operating in compliance with a
local ordinance authorized by 342.13 or if the operation of the business poses an
immediate threat to the health and safety of the public. The local government must
immediately notify OCM of the suspension if it occurs. OCM will review the
suspension and may reinstate the registration or take enforcement action.
Expedited Complaint Process (342.13)
Per state law, OCM will establish an expedited complaint process during the rulemaking
process to receive, review, read, and respond to complaints made by a local unit of
government about a cannabis business. Upon promulgation of rules, OCM will publish
the complaint process.
At a minimum, the expedited complaint process shall require the office to provide an
initial response to the complaint within seven days and perform any necessary
inspections within 30 days. Within this process, if a local government notifies OCM
that a cannabis business poses an immediate threat to the health or safety of the public,
the office must respond within one business day.
Page 17
Inspections & Compliance Checks
Local governments are permitted specific business inspection and compliance check
authorities, in addition to—and not in conflict with—OCM authorities.
Inspections and Compliance Checks (342.22)
Local governments must conduct compliance
checks for cannabis and hemp businesses
holding retail registration at least once per
calendar year. These compliance checks must
verify compliance with age verification
procedures and compliance with any applicable
local ordinance established pursuant to 342.13.
OCM maintains inspection authorities for all
cannabis licenses to verify compliance with
operation requirements, product limits, and
other applicable requirements of Chapter 342.
Page 18
Municipal Cannabis Stores
State law requires OCM issue a license to a
city or county seeking to operate a single
municipal cannabis store if the city or
county:
As authorized in Chapter 342.32, local
governments are permitted to apply for
a cannabis retail license to establish and
operate a municipal cannabis store.
Submits required application information to OCM,
Meets minimum requirements for licensure, and
Pays applicable application and license fee.
A municipal cannabis store will not be included in the total count of retail licenses issued by
the state under Chapter 342.
A municipal cannabis store cannot be counted as retail registration for purposes of
determining whether a municipality’s cap on retail registrations imposed by ordinance.
Page 19
Creating Your Local Ordinance
Local governments may not prohibit the possession,
transportation, or use of cannabis, or the establishment
or operation of a cannabis business licensed under state
law.
Local governments may adopt reasonable restrictions on
the time, place, and manner of cannabis business
operations (see Page 11).
Local governments may adopt interim ordinances to
protect public safety and welfare, as any studies and/or
further considerations on local cannabis activities are
being conducted, until January 1, 2025. A public hearing
must be held prior to adoption of an interim ordinance.
If your local government wishes to operate a municipal
cannabis store, the establishment and operation of such
a facility must be considered in a local ordinance.
As authorized in 342.13, a local government may adopt a local ordinance regarding
cannabis businesses. Establishing local governments’ ordinances on cannabis businesses in
a timely manner is critical for the ability for local cities or towns to establish local control as
described in the law, and is necessary for the success of the statewide industry and the
ability of local governments to protect public health and safety. The cannabis market’s
potential to create jobs, generate revenue, and contribute to economic development at
the local and state level is supported through local ordinance work. The issuance of local
certifications and registrations to prospective cannabis businesses is also dependent on
local ordinances.
Model Ordinance
For additional guidance regarding the creation of a cannabis related ordinance, please
reference the addendum in this packet.
Page 20
Additional Resources
OCM Toolkit for Local Partners
Please visit OCM webpage (mn.gov/ocm/local-governments/) for additional information,
including a toolkit of resources developed specifically for local government partners. The
webpage will be updated as additional information becomes available and as state
regulations are adopted.
These resources are also included in the addendum of this packet.
Toolkit resources include:
Appendix A: Model Ordinance
Appendix B: Retail Registration Form and Checklist
Appendix C: Hemp Flower and Hemp-Derived Cannabinoid Product Checklist
Appendix D: Enforcement Notice from the Office of Cannabis Management
Appendix E: Notice to Unlawful Cannabis Sellers
Local Organizations
There are several organizations who also have developed resources to support local
governments regarding the cannabis industry. Please feel free to contact the
following for additional resources:
League of Minnesota Cities
Association of Minnesota Counties
Minnesota Public Health Law Center
Page 21
Appendix A: Model Ordinance
Cannabis Model Ordinance
The following model ordinance is meant to be used as a resource for cities, counties, and townships within
Minnesota. The italicized text in red is meant to provide commentary and notes to jurisdictions considering
using this ordinance and should be removed from any ordinance formally adopted by said jurisdiction.
Certain items are not required to be included in the adopted ordinance: ‘OR’ and (optional) are placed
throughout for areas where a jurisdiction may want to consider one or more choices on language.
Section 1 Administration
Section 2 Registration of Cannabis Business
Section 3 Requirements for a Cannabis Business (Time, Place, Manner)
Section 4 Temporary Cannabis Events
Section 5 Lower Potency Hemp Edibles
Section 6 Local Government as a Retailer
Section 7 Use of Cannabis in Public
AN ORDINANCE OF THE (CITY/COUNTY OF ______) TO REGULATE CANNABIS
BUSINESSES
The (city council/town board/county board) of (city/town/county) hereby ordains:
Section 1. Administration
1.1 Findings and Purpose
(insert local authority) makes the following legislative findings:
The purpose of this ordinance is to implement the provisions of Minnesota Statutes,
chapter 342, which authorizes (insert local authority) to protect the public health, safety,
welfare of (insert local here) residents by regulating cannabis businesses within the legal
boundaries of (insert local here).
(insert local authority) finds and concludes that the proposed provisions are appropriate
and lawful land use regulations for (insert local here), that the proposed amendments will
promote the community's interest in reasonable stability in zoning for now and in the
future, and that the proposed provisions are in the public interest and for the public good.
1.2 Authority & Jurisdiction
A county can adopt an ordinance that applies to unincorporated areas and cities that have
delegated authority to impose local zoning controls.
(insert local authority) has the authority to adopt this ordinance pursuant to:
a) Minn. Stat. 342.13(c), regarding the authority of a local unit of government to
adopt reasonable restrictions of the time, place, and manner of the operation of
a cannabis business provided that such restrictions do not prohibit the
establishment or operation of cannabis businesses.
b) Minn. Stat. 342.22, regarding the local registration and enforcement
requirements of state-licensed cannabis retail businesses and lower-potency
hemp edible retail businesses.
c) Minn. Stat. 152.0263, Subd. 5, regarding the use of cannabis in public places.
d) Minn. Stat. 462.357, regarding the authority of a local authority to adopt zoning
ordinances.
Ordinance shall be applicable to the legal boundaries of (insert local here).
(Optional) (insert city here) has delegated cannabis retail registration authority to (insert county here).
However, (insert city here) may adopt ordinances under Sections (2.6, 3 and 4) if (insert county here) has
not adopted conflicting provisions.
1.3 Severability
If any section, clause, provision, or portion of this ordinance is adjudged unconstitutional
or invalid by a court of competent jurisdiction, the remainder of this ordinance shall not
be affected thereby.
1.4 Enforcement
The elected body of a jurisdiction can choose to designate an official to administer and
enforce this ordinance.
The (insert name of local government or designated official) is responsible for the
administration and enforcement of this ordinance. Any violation of the provisions of this
ordinance or failure to comply with any of its requirements constitutes a misdemeanor
and is punishable as defined by law. Violations of this ordinance can occur regardless of
whether or not a permit is required for a regulated activity listed in this ordinance.
1.5 Definitions
1. Unless otherwise noted in this section, words and phrases contained in Minn. Stat. 342.01
and the rules promulgated pursuant to any of these acts, shall have the same meanings in
this ordinance.
2. Cannabis Cultivation: A cannabis business licensed to grow cannabis plants within the
approved amount of space from seed or immature plant to mature plant. harvest
cannabis flower from mature plant, package and label immature plants and seedlings
and cannabis flower for sale to other cannabis businesses, transport cannabis flower to a
cannabis manufacturer located on the same premises, and perform other actions
approved by the office.
3. Cannabis Retail Businesses: A retail location and the retail location(s) of a
mezzobusinesses with a retail operations endorsement, microbusinesses with a retail
operations endorsement, medical combination businesses operating a retail location,
(and/excluding) lower-potency hemp edible retailers.
4. Cannabis Retailer: Any person, partnership, firm, corporation, or association, foreign or
domestic, selling cannabis product to a consumer and not for the purpose of resale in any
form.
5. Daycare: A location licensed with the Minnesota Department of Human Services to
provide the care of a child in a residence outside the child's own home for gain or
otherwise, on a regular basis, for any part of a 24-hour day.
6. Lower-potency Hemp Edible: As defined under Minn. Stat. 342.01 subd. 50.
7. Office of Cannabis Management: Minnesota Office of Cannabis Management, referred to
as “OCM” in this ordinance.
8. Place of Public Accommodation: A business, accommodation, refreshment,
entertainment, recreation, or transportation facility of any kind, whether licensed or not,
whose goods, services, facilities, privileges, advantages or accommodations are extended,
offered, sold, or otherwise made available to the public.
9. Preliminary License Approval: OCM pre-approval for a cannabis business license for
applicants who qualify under Minn. Stat. 342.17.
10. Public Place: A public park or trail, public street or sidewalk; any enclosed, indoor area
used by the general public, including, but not limited to, restaurants; bars; any other food
or liquor establishment; hospitals; nursing homes; auditoriums; arenas; gyms; meeting
rooms; common areas of rental apartment buildings, and other places of public
accommodation.
11. Residential Treatment Facility: As defined under Minn. Stat. 245.462 subd. 23.
12. Retail Registration: An approved registration issued by the (insert local here) to a state-
licensed cannabis retail business.
13. School: A public school as defined under Minn. Stat. 120A.05 or a nonpublic school that
must meet the reporting requirements under Minn. Stat. 120A.24.
14. State License: An approved license issued by the State of Minnesota’s Office of Cannabis
Management to a cannabis retail business.
Section 2. Registration of Cannabis Businesses
A city or town can delegate authority for registration to the County. A city or town can still adopt specific
requirement regarding zoning, buffers, and use in public places, provided said requirements are not in
conflict with an ordinance adopted under the delegated authority granted to the County.
2.1 Consent to registering of Cannabis Businesses
No individual or entity may operate a state-licensed cannabis retail business within (insert
local here ) without first registering with (insert local here).
Any state-licensed cannabis retail business that sells to a customer or patient without valid
retail registration shall incur a civil penalty of (up to $2,000) for each violation.
Notwithstanding the foregoing provisions, the state shall not issue a license to any
cannabis business to operate in Indian country, as defined in United States Code, title 18,
section 1151, of a Minnesota Tribal government without the consent of the Tribal
government.
2.2 Compliance Checks Prior to Retail Registration
A jurisdiction can choose to conduct a preliminary compliance check prior to issuance of
retail registration.
Prior to issuance of a cannabis retail business registration, (insert local here) (shall/shall
not) conduct a preliminary compliance check to ensure compliance with local ordinances.
Pursuant to Minn. Stat. 342, within 30 days of receiving a copy of a state license
application from OCM, (insert local here) shall certify on a form provided by OCM whether
a proposed cannabis retail business complies with local zoning ordinances and, if
applicable, whether the proposed business complies with the state fire code and building
code.
2.3 Registration & Application Procedure
2.3.1 Fees.
(insert local here) shall not charge an application fee.
A registration fee, as established in (insert local here )’s fee schedule, shall be charged to
applicants depending on the type of retail business license applied for.
An initial retail registration fee shall not exceed $500 or half the amount of an initial state
license fee under Minn. Stat. 342.11, whichever is less. The initial registration fee shall
include the initial retail registration fee and the first annual renewal fee.
Any renewal retail registration fee imposed by (insert local here) shall be charged at the
time of the second renewal and each subsequent renewal thereafter.
A renewal retail registration fee shall not exceed $1,000 or half the amount of a renewal
state license fee under Minn. Stat. 342.11, whichever is less.
A medical combination business operating an adult-use retail location may only be
charged a single registration fee, not to exceed the lesser of a single retail registration fee,
defined under this section, of the adult-use retail business.
2.3.2 Application Submittal.
The (insert local here) shall issue a retail registration to a state-licensed cannabis retail
business that adheres to the requirements of Minn. Stat. 342.22.
(A) An applicant for a retail registration shall fill out an application form, as provided
by the (insert local here). Said form shall include, but is not limited to:
i. Full name of the property owner and applicant;
ii. Address, email address, and telephone number of the applicant;
iii. The address and parcel ID for the property which the retail registration is
sought;
iv. Certification that the applicant complies with the requirements of local
ordinances established pursuant to Minn. Stat. 342.13.
v. (Insert additional standards here)
(B) The applicant shall include with the form:
i.the registration fee as required in [Section 2.3.1];
ii.a copy of a valid state license or written notice of OCM
license preapproval;
iii.(Insert additional standards here)
(C)Once an application is considered complete, the (insert local government
designee) shall inform the applicant as such, process the application fees, and
forward the application to the (insert staff/department, or elected body that will
approve or deny the request) for approval or denial.
(D)The application fee shall be non-refundable once processed.
2.3.3 Application Approval
(A)(Optional) A state-licensed cannabis retail business application shall not be
approved if the cannabis retail business would exceed the maximum number of
registered cannabis retail businesses permitted under Section 2.6.
(B)A state-licensed cannabis retail business application shall not be approved or
renewed if the applicant is unable to meet the requirements of this ordinance.
(C)A state-licensed cannabis retail business application that meets the requirements
of this ordinance shall be approved.
2.3.4 Annual Compliance Checks.
The (insert local here) shall complete at minimum one compliance check per calendar
year of every cannabis business to assess if the business meets age verification
requirements, as required under [Minn. Stat. 342.22 Subd. 4(b) and Minn. Stat. 342.24]
and this/these [chapter/section/ordinances].
The (insert local here ) shall conduct at minimum one unannounced age verification
compliance check at least once per calendar year.
Age verification compliance checks shall involve persons at least 17 years of age but under
the age of 21 who, with the prior written consent of a parent or guardian if the person is
under the age of 18, attempt to purchase adult-use cannabis flower, adult-use cannabis
products, lower-potency hemp edibles, or hemp-derived consumer products under the
direct supervision of a law enforcement officer or an employee of the local unit of
government.
Any failures under this section must be reported to the Office of Cannabis Management.
2.3.5 Location Change
A jurisdiction may decide to treat location changes as a new registration, or alternatively
treat a location change as allowable subject to compliance with the rest of the registration
process.
A state-licensed cannabis retail business shall be required to submit a new application for
registration under Section 2.3.2 if it seeks to move to a new location still within the legal
boundaries of (insert local here).
or
If a state-licensed cannabis retail business seeks to move to a new location still within the
legal boundaries of (insert local here), it shall notify (insert local here) of the proposed
location change, and submit necessary information to meet all the criteria in this
paragraph.
2.4 Renewal of Registration
The (insert local here) shall renew an annual registration of a state-licensed cannabis retail
business at the same time OCM renews the cannabis retail business’ license.
A state-licensed cannabis retail business shall apply to renew registration on a form
established by (insert local here).
A cannabis retail registration issued under this ordinance shall not be transferred.
2.4.1 Renewal Fees.
The (insert local here) may charge a renewal fee for the registration starting at the second
renewal, as established in (insert local here)’s fee schedule.
2.4.2 Renewal Application.
The application for renewal of a retail registration shall include, but is not limited to:
• Items required under Section 2.3.2 of this Ordinance.
• Insert additional items here
2.5 Suspension of Registration
2.5.1 When Suspension is Warranted.
The (insert local here) may suspend a cannabis retail business’s registration if it violates
the ordinance of (insert local here) or poses an immediate threat to the health or safety
of the public. The (insert local here) shall immediately notify the cannabis retail business
in writing the grounds for the suspension.
2.5.2 Notification to OCM.
The (insert local here) shall immediately notify the OCM in writing the grounds for the
suspension. OCM will provide (insert local here) and cannabis business retailer a response
to the complaint within seven calendar days and perform any necessary inspections within
30 calendar days.
2.5.3 Length of Suspension.
A jurisdiction can wait for a determination from the OCM before reinstating a registration.
The suspension of a cannabis retail business registration may be for up to 30 calendar
days, unless OCM suspends the license for a longer period. The business may not make
sales to customers if their registration is suspended.
The (insert local here ) may reinstate a registration if it determines that the violations have
been resolved.
The (insert local here) shall reinstate a registration if OCM determines that the violation(s)
have been resolved.
2.5.4 Civil Penalties.
Subject to Minn. Stat. 342.22, subd. 5(e) the (insert local here) may impose a civil penalty,
as specified in the (insert local here)’s Fee Schedule, for registration violations, not to
exceed $2,000.
2.6 Limiting of Registrations
A jurisdiction may choose to set a limit on the number of retail registrations within its
boundaries. The jurisdiction may not however, limit the number of registrations to fewer
than one per 12,500 residents.
(Optional) The (insert local here) shall limit the number of cannabis retail businesses to
no fewer than one registration for every 12,500 residents within (insert local legal
boundaries here).
(Optional) If (insert county here) has one active cannabis retail businesses registration for
every 12,500 residents, the (insert local here) shall not be required to register additional
state-licensed cannabis retail businesses.
(Optional) The (insert local here) shall limit the number of cannabis retail businesses to
(insert number <= minimum required).
Section 3. Requirements for Cannabis Businesses
State Statutes note that jurisdictions may “adopt reasonable restrictions on the time, place, and manner
of the operation of a cannabis business.” A jurisdiction considering other siting requirements (such as a
buffer between cannabis businesses, or a buffer from churches) should consider whether there is a basis
to adopt such restrictions.
3.1 Minimum Buffer Requirements
A jurisdiction can adopt buffer requirements that prohibit the operation of a cannabis
business within a certain distance of schools, daycares, residential treatment facilities, or
from an attraction within a public park that is regularly used by minors, including a
playground or athletic field. Buffer requirements are optional. A jurisdiction cannot
adopt larger buffer requirements than the requirements here in Section 3.1. A jurisdiction
should use a measuring system consistent with the rest of its ordinances, e.g. from lot
line or center point of lot.
(Optional) The (insert local here) shall prohibit the operation of a cannabis business within
[0-1,000] feet of a school.
(Optional) The (insert local here) shall prohibit the operation of a cannabis business within
[0-500] feet of a day care.
(Optional) The (insert local here) shall prohibit the operation of a cannabis business within
[0-500] feet of a residential treatment facility.
(Optional) The (insert local here) shall prohibit the operation of a cannabis business within
[0-500] feet of an attraction within a public park that is regularly used by minors, including
a playground or athletic field.
(Optional) The (insert local here) shall prohibit the operation of a cannabis retail business
within [X] feet of another cannabis retail business.
Pursuant to Minn. Stat. 462.357 subd. 1e, nothing in Section 3.1 shall prohibit an active
cannabis business or a cannabis business seeking registration from continuing operation
at the same site if a (school/daycare/residential treatment facility/attraction within a
public park that is regularly used by minors) moves within the minimum buffer zone.
3.2 Zoning and Land Use
For jurisdictions with zoning, said jurisdiction can limit what zone(s) Cannabis businesses
can operate in. As with other uses in a Zoning Ordinance, a jurisdiction can also
determine if such use requires a Conditional or Interim Use permit. A jurisdiction cannot
outright prohibit a cannabis business. A jurisdiction should amend their Zoning
Ordinance and list what zone(s) Cannabis businesses are permitted in, and whether they
are permitted, conditional, or interim uses. While each locality conducts its zoning
differently, a few themes have emerged across the country. For example, cannabis
manufacturing facilities are often placed in industrial zones, while cannabis retailers are
typically found in commercial/retail zones. Cannabis retail facilities align with general
retail establishments and are prohibited from allowing consumption or use onsite and
are also required to have plans to prevent the visibility of cannabis and hemp-derived
products to individuals outside the retail location. Cannabis businesses should be zoned
under existing zoning ordinances in accordance with the license type or endorsed
activities held by the cannabis business.
3.2.1. Cultivation.
Cannabis businesses licensed or endorsed for cultivation are permitted as a (type of use)
in the following zoning districts:
• (Insert zoning districts use is permitted in here)
• (Insert zoning districts use is permitted in here)
3.2.1. Cannabis Manufacturer.
Cannabis businesses licensed or endorsed for cannabis manufacturer are permitted as a
(type of use) in the following zoning districts:
• (Insert zoning districts use is permitted in here)
• (Insert zoning districts use is permitted in here)
3.2.1. Hemp Manufacturer.
Businesses licensed or endorsed for low-potency hemp edible manufacturers permitted
as a (type of use) in the following zoning districts:
• (Insert zoning districts use is permitted in here)
• (Insert zoning districts use is permitted in here)
3.2.1. Wholesale.
Cannabis businesses licensed or endorsed for wholesale are permitted as a (type of use)
in the following zoning districts:
• (Insert zoning districts use is permitted in here)
• (Insert zoning districts use is permitted in here)
3.2.1. Cannabis Retail.
Cannabis businesses licensed or endorsed for cannabis retail are permitted as a (type of
use) in the following zoning districts:
• (Insert zoning districts use is permitted in here)
• (Insert zoning districts use is permitted in here)
3.2.1. Cannabis Transportation.
Cannabis businesses licensed or endorsed for transportation are permitted as a (type of
use) in the following zoning districts:
• (Insert zoning districts use is permitted in here)
• (Insert zoning districts use is permitted in here)
3.2.1. Cannabis Delivery.
Cannabis businesses licensed or endorsed for delivery are permitted as a (type of use) in
the following zoning districts:
• (Insert zoning districts use is permitted in here)
• (Insert zoning districts use is permitted in here)
3.3 Hours of Operation
State law limits the retail sale of cannabis flower, cannabis products, lower-potency hemp
edibles, or hemp-derived consumer products to the hours of:
• Monday-Saturday: 8 a.m.-2 a.m. the following day
• Sunday: 10 a.m.-2 a.m.
A local jurisdiction may adopt an ordinance prohibiting sales for any period between the
hours of 8 a.m.-10 a.m. and between 9 p.m.-2 a.m. the following day, seven days a week.
(Optional) Cannabis businesses are limited to retail sale of cannabis, cannabis flower,
cannabis products, lower-potency hemp edibles, or hemp-derived consumer products
between the hours of (insert time here) and (insert time here).
3.4 (Optional) Advertising
Cannabis businesses are permitted to erect up to two fixed signs on the exterior of the
building or property of the business, unless otherwise limited by (insert local here)’s sign
ordinances.
Section 4. Temporary Cannabis Events
Any individual or business seeking to obtain a cannabis event license must provide OCM information
about the time, location, layout, number of business participants, and hours of operation. A cannabis
event organizer must receive local approval, including obtaining any necessary permits or licenses issued
by a local unit of government before holding a cannabis event.
4.1 License or Permit Required for Temporary Cannabis Events
4.1.1 License Required.
A cannabis event organizer license entitles the license holder to organize a temporary
cannabis event lasting no more than four days. A jurisdiction should determine what type
of approval is consistent with their existing ordinances for events.
A license or permit is required to be issued and approved by (insert local here) prior to
holding a Temporary Cannabis Event.
4.1.2 Registration & Application Procedure
A registration fee, as established in (insert local here)’s fee schedule, shall be charged to
applicants for Temporary Cannabis Events.
4.1.3 Application Submittal & Review.
The (insert local here) shall require an application for Temporary Cannabis Events.
(A) An applicant for a retail registration shall fill out an application form, as provided
by the (insert local here). Said form shall include, but is not limited to:
i. Full name of the property owner and applicant;
ii. Address, email address, and telephone number of the applicant;
iii. (Insert additional standards here)
(B) The applicant shall include with the form:
i. the application fee as required in (Section 4.1.2);
ii. a copy of the OCM cannabis event license application, submitted pursuant
to 342.39 subd. 2.
The application shall be submitted to the (insert local authority), or other designee for
review. If the designee determines that a submitted application is incomplete, they shall
return the application to the applicant with the notice of deficiencies.
(C) Once an application is considered complete, the designee shall inform the
applicant as such, process the application fees, and forward the application to the
(insert staff/department, or elected body that will approve or deny the request) for
approval or denial.
(D) The application fee shall be non-refundable once processed.
(E) The application for a license for a Temporary Cannabis Event shall meet the
following standards:
A jurisdiction may establish standards for Temporary cannabis events which the event
organizer must meet, including restricting or prohibiting any on-site consumption. If
there are public health, safety, or welfare concerns associated with a proposed cannabis
event, a jurisdiction would presumably be authorized to deny approval of that event.
• Insert standards here
(G) A request for a Temporary Cannabis Event that meets the requirements of this
Section shall be approved.
(H) A request for a Temporary Cannabis Event that does not meet the requirements
of this Section shall be denied. The (insert city/town/county) shall notify the
applicant of the standards not met and basis for denial.
(Optional) Temporary cannabis events shall only be held at (insert local place).
(Optional) Temporary cannabis events shall only be held between the hours of (insert start
time) and (insert stop time).
Section 5. (Optional) Lower-Potency Hemp Edibles
A jurisdiction can establish different standards or requirements regarding Low-Potency Edibles. A
jurisdiction can consider including the following section and subsections in their cannabis ordinance.
5.1 Sale of Low-Potency Hemp Edibles
The sale of Low-Potency Edibles is permitted, subject to the conditions within this
Section.
5.2 Zoning Districts
If sales are permitted, a jurisdiction can limit what zone(s) the sales of Low-Potency
Edibles can take place in. A jurisdiction can also determine if such activity requires a
Conditional or Interim Use permit.
Low-Potency Edibles businesses are permitted as a (type of use) in the following zoning
districts:
• (Insert zoning districts use is permitted in here)
• (Insert zoning districts use is permitted in here)
5.3 (Optional) Additional Standards
5.3.1 Sales within Municipal Liquor Store.
A jurisdiction that already operates a Municipal Liquor Store may sell Low-Potency
Edibles within the same store.
The sale of Low-Potency Edibles is permitted in a Municipal Liquor Store.
5.3.2 Age Requirements.
A jurisdiction is able to restrict the sale of Low-Potency Edibles to locations such as bars.
The sale of Low-Potency Edibles is permitted only in places that admit persons 21 years
of age or older.
5.3.3 Beverages.
The sale of Low-Potency Hemp Beverages is permitted in places that meet requirements
of this Section.
5.3.4 Storage of Product.
A jurisdiction is able to set requirements on storage and sales of Low-Potency Edibles.
Low-Potency Edibles shall be sold behind a counter, and stored in a locked case.
Section 6. (Optional) Local Government as a Cannabis Retailer
(insert local here) may establish, own, and operate one municipal cannabis retail business
subject to the restrictions in this chapter.
The municipal cannabis retail store shall not be included in any limitation of the number
of registered cannabis retail businesses under Section 2.6.
(insert local here) shall be subject to all same rental license requirements and procedures
applicable to all other applicants.
Section 7. Use in Public Places
No person shall use cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived
consumer products in a public place or a place of public accommodation unless the premises is an
establishment or an event licensed to permit on-site consumption of adult-use.
Appendix B: Retail Registration Form
and Checklist
Retail Registration Form and Checklist
Local Unit of Government:
Business Name:
Business Address:
Minnesota Cannabis Business License Number:
Registration Period
Initial Renewal
Cannabis Microbusiness ($0.00) Cannabis Microbusiness ($1000.00)
Cannabis Mezzobusiness ($500.00) Cannabis Mezzobusiness ($1000.00)
Cannabis Retailer ($500.00) Cannabis Retailer ($1000.00)
Is Applicant Current on All Property Tax and Assessments at Retail Location:
No Yes
Preliminary Local Ordinance Compliance: Pass Fail
Notes:
The above named applicant having paid the appropriate fees, being current on all
applicable tax obligations, and having passed a preliminary compliance review, is
authorized to engage in retail cannabis sales in the above named jurisdiction.
Approved By:
Title:
Date:
Appendix C: Hemp Flower and Hemp-
Derived Cannabinoid Product Checklist
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 1
Office of Cannabis Management
Department of Health
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist
Minnesota Statute 18K.02, Definitions
Minnesota Statute 152.01, Subdivision 9
Minnesota Statute 151.72, Sale of Certain Cannabinoid Products
Minnesota Statute 152.0264, Cannabis Sale Crimes
Minnesota Statute 342.09, Personal Adult Use of Cannabis
Question Yes No Comments Additional Information
Business License and Registration Compliance
Is the business registered with
the Minnesota Department of
Health?
All businesses selling hemp-derived cannabinoid products must
be registered. See Hemp-Derived Cannabinoid Products
(www.health.state.mn.us/people/cannabis/edibles/index.html)
If the business offers on-site
consumption, do they have a
liquor license?
Local authorities issue on-site consumption licenses. These are
required for all businesses permitting on-site consumption of
THC.
Product Compliance – All Products
Does the business ensure that all
sales are made to persons 21
years old or older?
Only persons 21 years of age or older may purchase hemp-
derived cannabinoid products, with the exception of topicals.
These products may be sold to anyone.
Does the business have all edible
cannabinoid products, except
beverages, behind the counter or
in a locked cabinet?
Businesses must ensure all edible cannabinoid products are
secure and inaccessible to customers.
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 2
Question Yes No Comments Additional Information
Only delta-8 and delta-9 are
allowed for human consumption.
Does the business sell edibles or
beverages with any other
intoxicating cannabinoids?
MDH has identified products containing many different
intoxicating cannabinoids, such as HHC, THC-O, THC-P, PHC,
delta-10, delta-11, delta-8p, delta-9p, etc. The product must
contain only delta-8 and/or delta-9.
Does the business sell any edible
products that are similar to a
product marketed to or
consumed by children?
Edible products that appear similar to candy or snacks
marketed toward or consumed by children are not allowed.
Does the label on the edible or
beverage state “Keep out of
reach of children”?
All products must include the warning label “Keep out of reach
of children.”
Is the manufacturer’s name,
address, website, and contact
phone number included on the
label or provided through a QR
code?
If not, the product is not in compliance.
Does the QR code on the product
bring the user to a Certificate of
Analysis on the website, which
includes the name of the
independent testing laboratory,
cannabinoid profile, and product
batch number?
All products must be tested by batch in an independent,
accredited laboratory. The results must include the
cannabinoid profile.
Does the label on the product
indicate the cannabinoids by
serving and in total?
The label must indicate the potency by individual serving as
well as in total.
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 3
Question Yes No Comments Additional Information
Does the label on the product
make any claim the product
offers any kind of health benefit?
Health claims are not permitted on hemp or cannabis products
unless approved by the FDA. At this time, there is not an
approved statement.
Does the label on the product
state that the product does not
claim to diagnose, treat, cure or
prevent any disease?
The manufacturer cannot claim the product will provide any
health benefit unless the product has been formally approved
by the FDA.
Does the business sell CBD (or
other forms of cannabidiol) in
the form of a softgel, tablet, or
tincture?
Non-intoxicating cannabinoids may only be sold in the form of
an edible, beverage, or topical. Therefore, softgels and tablets
cannot be sold. Tinctures must be labeled as either an edible or
beverage and comply with the edible or beverage
requirements.
Product Compliance – Edibles
Does the edible product contain
more than 5 mg delta-8 and/or
delta-9 per serving?
Edibles may not exceed 5 mg delta-8 and/or delta-9 per
serving.
Does the edible product
package/container contain more
than 50 mg total THC (delta-8
and/or delta-9)?
Edibles may not exceed 50 mg total delta-8 or delta-9 per
package. The edible cannot contain any other form of THC or
intoxicating cannabinoid.
Are all the edible product’s
servings clearly marked,
wrapped, or scored on the
product?
Edible product servings must be clearly distinguished on the
product. Bulk products that require the consumer to measure
are not allowed.
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 4
Question Yes No Comments Additional Information
Does the business sell any edible
products in the shape of bears,
worms, fruits, rings, ribbons?
Edibles in shapes that appeal to children are not allowed.
Is the edible product in a child-
proof, tamper-evident, opaque
container?
All edibles must be in a container that is child-resistant and
tamper evident. If the container is clear, the business must
place the edible into an opaque bag at the point of sale. Clear
bags are not allowed.
Product Compliance - Beverages
Does the beverage product
contain more than 5 mg delta-8
or delta-9 per serving?
Beverages may not exceed 5 mg delta-8 and/or delta-9 per
serving.
Does the beverage product
contain more than 2 servings?
Beverages cannot exceed two servings, regardless of the THC
potency.
Is the beverage product in an
opaque container?
If the beverage is in a clear container, the business must place
the beverage in an opaque bag at the point of sale.
Product Compliance – Smokables (non-flower)
Does the business sell vapes, pre-
rolls, dabs, or other smokable
products which contain more
than 0.3% THC?
A product’s certificate of analysis will show the concentration
of THC the product contains. The certificate typically is found
through the QR code on the product package. In MDH’s
experience, most vapes contain 50% - 90%+ THC.
Pre-rolls may consist of raw hemp flower. These products are
not regulated by 151.72. However, if a pre-roll is labeled as
“infused” or “coated” have additional cannabinoids applied to
the material, of which the product typically exceeds the 0.3%
THC limit.
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 5
Question Yes No Comments Additional Information
Does the business sell vapes, pre-
rolls, dabs, or other smokeable
products that contain other
intoxicating cannabinoids, such
as HHC?
MN Statutes do not allow any cannabinoid, other than delta-8
or delta-9, to be sold if the cannabinoid is intended to alter the
structure or function of the body. HHC is a cannabinoid known
to have potency greater than THC.
Does the business sell vapes, pre-
rolls, dabs, or other smokable
products which contain CBD?
Non-intoxicating cannabinoids cannot be smoked, vaped, or
inhaled.
Product Compliance – Flower
Does the business sell raw hemp
flower?
Raw hemp flower must contain 0.3% or less of delta-9 on a dry
weight basis. Products exceeding 0.3% delta-9 dry weight are
marijuana, and are illegal for sale.
THC-A is the non psychoactive precursor to delta-9. Once
heated THC-A converts to delta-9. In that process some
amount of THC-A is lost.
To determine whether, once heated, the hemp flower will
exceed the allowable 0.3% of delta-9, one can use a
decarboxylation formula which takes into account the
conversion of THC-A into delta-9.
That formula is as follows:
Total THC = (0.877 X THC-A) + d-9 THC)
Raw flower must include a certificate of analysis to show
testing below 0.3% delta-9.
• A lack of a certificate of analysis would constitute an
illegal sale.
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 6
Question Yes No Comments Additional Information
• A certificate of analysis showing that under the
decarboxylation formula that delta-9 would exceed
the 0.3% threshold would also indicate the flower is
cannabis and not hemp and therefore being sold
illegally.
Product Compliance – On-Site Consumption
If the business offers on-site
consumption, do they serve the
edible or beverage in its original
packaging?
The business may not pour out or remove an edible from its
original packaging.
If the business offers on-site
consumption, do they mix a
cannabis-infused beverage with
alcohol?
The business may not mix cannabis-infused products with
alcohol.
If the business offers on-site
consumption, do they permit
customers to remove from the
premises products which have
been removed from their original
packaging?
Products which have been removed from their original
packaging cannot be removed from the premises by the
customer.
NOTE: If a person suspects that a hemp-derived cannabinoid product is being sold in violation of Minnesota law, they can use the complaint
form at Submitting Hemp-Derived Cannabinoid Product Complaints (www.health.state.mn.us/people/cannabis/edibles/complaints.html).
Appendix D: Enforcement Notice from
the Office of Cannabis Management
Enforcement Notice 1
Enforcement Notice from the Office of Cannabis
Management
Dear Registered Hemp Derived Cannabinoid Business:
The Office of Cannabis Management (OCM), established in 2023, is charged with developing and implementing
the operational and regulatory systems to oversee the cannabis industry in Minnesota as provided in Minnesota
Statutes Chapter 342.
When Minnesota legalized the sale of adult-use of cannabis flower, cannabis products, and lower-potency hemp
edibles/ hemp-derived consumer products, the Minnesota Legislature included statutory provisions, Minnesota
Statutes, chapter 152.0264, making the sale of cannabis illegal until a business is licensed by OCM. The Office of
Cannabis Management has not yet issued licenses for the cultivation, manufacture, wholesale, transportation or
retail sale of cannabis, therefore any retail sales of cannabis products, including cannabis flower, are illegal.
The Office of Cannabis Management has received complaints of retailers selling cannabis flower under the label
of hemp flower. Under an agreement between The Minnesota Department of Health (MDH) and OCM,
inspectors from MDH will begin to examine any flower products being sold during their regular inspections to
determine whether they are indeed hemp flower or cannabis flower.
In distinguishing between hemp and cannabis flower, OCM, consistent with federal rules and regulations related
to hemp under 7 CFR 990.1, will consider the total concentration of THC post- decarboxylation, which is the
process by which THC-A is converted into Delta-9 to produce an intoxicating effect. The examination of raw
flower products will include reviewing the certificate of analysis for compliance in several areas, including:
Compliance with the requirement that raw flower listed for sale includes a Certificate of Analysis (COA).
Products for sale without a COA will constitute an illegal sale.
A COA that affirms concentrations of 0.3% or less of Delta-9 on a dry weight basis. Products exceeding 0.3%
Delta-9 dry weight are considered marijuana and are therefore illegal to sell.
A COA that confirms that the total levels of Delta-9 and THC-A after the decarboxylation process do not exceed
0.3%. A COA that indicates the raw flower will exceed 0.3 percent Delta-9 post-decarboxylation, or a subsequent
test conducted by an independent laboratory utilized by OCM that confirms Delta-9 in excess of 0.3 percent will
be considered illegal.
Minnesota Statutes, Chapter 342 governs Minnesota’s cannabis market, and empowers OCM to ensure
regulatory compliance. Minnesota Statutes, chapter 342.09, subdivision 4 prohibits the retail sale of cannabis
flower and cannabis products “without a license issued under this chapter that authorizes the sale.”
Enforcement Notice 2
To date, the Office of Cannabis Management has not issued any cannabis licenses, applications for licenses are
expected to be available in the first half of 2025. As such, selling cannabis is a clear violation of law. Be aware
that under Minnesota Statutes, 342.09, subdivision 6, OCM may assess fines in excess of a $1 million for
violations of this law. Likewise, under Minnesota Statutes, chapter 342.19, OCM is empowered to embargo any
product that it has “probable cause to believe . . . is being distributed in violation of this chapter or rules
adopted under this chapter[.]” Furthermore, violations of law may be considered in future licensing decisions
made by OCM.
As inspectors enter the field, we encourage you to review the products you are currently selling to ensure they
fall within the thresholds outlined above. If you have any questions related to the products you are selling,
please send an email to cannabis.info@state.mn.us.
Thank you for your attention to this matter.
Charlene Briner
Interim Director
Office of Cannabis Management
Appendix E: Notice to Unlawful
Cannabis Sellers
Notice to Unlawful Cannabis Sellers
This notice is to inform you that your current course of action may run afoul of Minnesota law, and
continuing this course of action may result in civil actions and potential criminal prosecution. To avoid
such outcomes, you should immediately cease and desist any plans to engage in the unlicensed sale of
cannabis and cannabis products.
Minnesota Statutes, Chapter 342 (www.revisor.mn.gov/statutes/cite/342) governs Minnesota’s
cannabis market, and empowers OCM to ensure regulatory compliance. Minnesota Statutes, chapter
342.09, subdivision 4 (www.revisor.mn.gov/statutes/cite/342.09#stat.342.09.4) prohibits the retail sale
of cannabis flower and cannabis products “without a license issued under this chapter that authorizes
the sale.” To date the Office of Cannabis Management has not issued any retail, or other, cannabis
licenses. As such, your plan to sell cannabis in a retail setting at this date would be in flagrant violation
of the law. Be aware that under Minnesota Statutes, 342.09, subdivision 6
(www.revisor.mn.gov/statutes/cite/342.09#stat.342.09.6), OCM may assess fines in excess of a
$1,000,000 for violations of this law.
Likewise, under Minnesota Statutes, chapter 342.19 (www.revisor.mn.gov/statutes/cite/342.19), OCM
is empowered to embargo any product that it has “probable cause to believe . . . is being distributed in
violation of this chapter or rules adopted under this chapter[.]” It is believed that products attempted
to be sold at your retail location might be distributed in violation of the law, and would therefore be
subject to embargo by OCM. Under Minnesota Statutes, chapter 342.19, subd. 2
(www.revisor.mn.gov/statutes/cite/342.19#stat.342.19.2), once embargoed OCM “shall release the
cannabis plant, cannabis flower, cannabis product, artificially derived cannabinoid, lower-potency
hemp edible, or hemp-derived consumer product when this chapter and rules adopted under this
chapter have been complied with or the item is found not to be in violation of this chapter or rules
adopted under this chapter.”
While Minnesota has legalized the sale of adult-use of cannabis flower, cannabis products, lower-potency
hemp edibles, or hemp-derived consumer products, the legislature did add new statutory provisions,
Minnesota Statutes, chapter 152.0264 (www.revisor.mn.gov/statutes/cite/152.0264), making illegal the
unlawful sale of cannabis. As there are not yet any licenses issued by OCM for the cultivation,
manufacture, wholesale, transportation, or retail of cannabis, any sales of cannabis products in excess of
the limits in 152.0264 is illegal.
If you are only planning to sell cannabinoid products that are derived from hemp, you should ensure that
the sale of those products is consistent with Minnesota Statutes, chapter 151.72
(www.revisor.mn.gov/statutes/cite/151.72), including but not limited to the requirement that your
business be registered with the Commissioner of Health, and that all products are in compliance with the
relevant statutes.
Finally, in addition to the state laws outlined above, please be aware that any retail location must be in
compliance with local government ordinances and zoning requirements.
OCM takes seriously its charge to enforce Minnesota Statutes, Chapter 342, and its responsibility to
ensure a safe and legal cannabis market. In order to avoid the above-described actions, all attempts to
open a cannabis retail dispensary in Minnesota without the appropriate license should be ceased.