HomeMy WebLinkAbout01302025_PCSSMeetingPacketPLANNING COMMISSION
CITY OF BROOKLYN CENTER
SPECIAL SESSION
January 30, 2025
Optional public access to the Webex meeting is below:
Online: logis.webex.com | Phone: (312) 535-8110
Meeting Number (Access Code): 2632 860 3151
Passcode: BCPC01302025
1.Call to Order — 7 p.m.
2.Roll Call
3.Approval of Agenda
a.Motion to Approve Special Meeting Session Agenda for January 30, 2025
4.Election of Planning Commission Chairperson for Year 2025
a.Motion/Second to Nominate Commissioner(s) to serve as Chairperson;
b.Motion/Second to close all nominations;
c.Conduct election; and
d.Motion/Second to Accept the Results and Election of Chair for Year 2024.
5.Appointment of 2025 Vice-Chair by Planning Commission Chairperson
6.Chairperson’s Explanation
The Planning Commission is an advisory body. One of the Commission's functions is to hold
public hearings. In the matters concerned in these hearings, the Commission makes
recommendations to the City Council. The City Council makes all final decisions in these matters.
7.Planning Items
a.An Ordinance Adopting Comprehensive Amendments to Chapter 35 of the City Code of
Ordinances Relating to Adult-Use Cannabis (PUBLIC HEARING)
Summary: The City of Brooklyn Center is requesting comprehensive
amendments to Chapter 35 of the City Code of Ordinances
(Unified Development Ordinance) regarding the regulating of
cannabis businesses within the City of Brooklyn Center. These
amendments include the incorporation of a new section that
establishes zoning regulations for Adult-Use Cannabis
businesses, definitions, an Adult-Use Cannabis Allowable Use
Table, performance standards, and direction on temporary
Cannabis events.
8.Discussion Items
a.2025 Planning Commission Schedule and Upcoming Applications
b.City of Brooklyn Center Business and Development Updates
9.Adjournment
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Planning Commission Report
Meeting Date: January 30, 2025
Request: Ordinance Amendment (Text) to Chapter 35 – Adult-Use Cannabis
Requested Action
City staff is requesting the Planning Commission provide direction with respect to proposed amendments
to Chapter 35 of the City Code of Ordinances (Unified Development Ordinance)—refer to Exhibit A. The
proposed ordinance amendments are related to zoning requirements for Adult-Use Cannabis and Lower
Potency Hemp Edibles (LPHE) and pursuant to new Minnesota legislation regarding the same.
Local units of governments are tasked with providing guidance to potential Cannabis businesses regarding
proper zoning districts and potential buffers for schools, daycares, play areas, and residential treatments
centers. The amendments will add a new Adult-Use Cannabis section to the City’s UDO, including
definitions, zoning regulations pursuant to license type issued by the state, and and other regulations
determined by Minnesota statute Chapter 342 and related rules.
The Office of Cannabis Management (OCM) initially expected to begin issuing licenses in early 2025;
however, the initial lottery, which was to take place on December 2, 2024 was cancelled after State
Cannabis regulators notified about two-thirds (640) of the 1,817 social equity license applicants that they
would not be entered into the lottery as they did not meet the requirements of the Office of Cannabis
Management. The timeline was subsequently revised to allow the time necessary to restructure the
application process and review the rulemaking draft language.
Image 1. Revised Licensing Cycle (Office of Cannabis Management)
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The OCM has started verification of the Social Equity Applicants on January 15, 2025, and the window will
close on January 30, 2025. The license application will subsequently close for all applicants on March 14,
2025, and a new lottery is tentatively scheduled for May or June 2025. The public comment period for the
proposed cannabis rules opened on January 13, 2025, and will remain open until February 12, 2025.
As is required, a public hearing notice was published in the Brooklyn Center Sun Post on January 16,
2025—refer to Exhibit B.
Background
In July 2022, Minnesota Legislature made changes to Minnesota Statutes 151.72, that impacted the legal
sale of products containing cannabinoids derived from hemp, and allowed consumers aged 21 or older to
purchase products containing THC derived from hemp. Edible cannabinoid products could not contain
more than five milligrams of any tetrahydrocannabinol (THC) in a single serving, or more than a total of
50 mgs of THC per package. Brooklyn Center currently has 16 businesses registered with the state for the
sale of hemp-derived cannabinoids, including two municipal liquor stores and the golf course.
In June 2023, the City of Brooklyn Center authorized a study and imposed a moratorium (interim
ordinance) on the establishment of new uses, or the expansion of existing uses related to the sale of THC
products in 2022 (Ordinance No. 2022-02). Additionally, the City established an ordinance to prohibit the
use of cannabis and hemp products in public places (Ordinance No. 2023-05) and amended Chapter 23 of
the City Code to address the licensing and sale of edible cannabinoid products within the City (Ordinance
No. 2023-06). Then City Attorney Jason Hill prepared a presentation after the legalization of LPHE,
outlining legislation and further steps the City would need to follow to be compliant with State Statute.
In May 2023, the State of Minnesota passed the Adult-Use Cannabis Act, decriminalizing the possession,
use, and growth of recreational marijuana for individuals aged 21 and older, and on August 1, 2023, the
full decriminalization went into effect. The Minnesota Office of Cannabis Management (OCM) is
responsible for developing the licensing process for a total of 13 different business types and establishing
rules and logistics for retail operations, dispensaries, production, wholesale, micro/mezzo businesses, and
delivery services, including both cannabis and Lower Potency Hemp Edibles (LPHE).
Pursuant to the statutory scheme under new Minnesota Statutes Section 342, local governments have
discretion over zoning, and the registration of businesses in each district which includes the conducting
of random compliance checks on licensed businesses within the City. Local governments have the limited
authority to suspend licenses for non-compliance; however, it must notify the OCM immediately.
Office of Cannabis Management
The role of the Office of Cannabis Management (OCM) is to regulate the cannabis industry statewide and
provide guidance on the standards for the State. The OCM requires all cannabis and Lower Potency Hemp
Edible businesses to obtain a license once the State of Minnesota has established the licensing process. It
includes 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 impacts from cannabis prohibition and
usage.
The OCM released the Guide for Local Governments on Adult-Use Cannabis in August 2024; however, the
Guide was subsequently revised in November 2024, and again in early January 2025 (refer to Exhibit C).
This guide provides direction to local governments on licensing, zoning, and business types, and provides
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a model ordinance.
The Office of Cannabis Management, through Chapter 342, may establish rules and policy and exercise
regulatory authority over the Minnesota cannabis industry. The OCM also:
• Notifies cities of a license application to check for zoning compliance;
• Governs the application and licensing process for cannabis and hemp businesses, including the
specific requirements for each type of license and their respective business activities; and
•Conducts enforcement and inspection activities across Minnesota cannabis and hemp industries.
Local Control/Next Steps
Local governments may not issue outright bans on cannabis businesses, or limit operations in a manner
beyond what is provided by a state law. As a first step, City staff held a work session on adult-use cannabis
where City staff requested City Council’s authorization to proceed with proposed amendments to the
City’s Unified Development Ordinance (UDO) or Chapter 35 and provide direction with respect to
amendments relating to Adult-Use Cannabis and Lower Potency Hemp Edibles (LPHE) legislation. City staff
will work with the City’s respective Planning Commission and City Council to identify and amend, as
necessary, any City Codes to address the new provisions relating to Adult-Use Cannabis law.
City staff has been in direct contact with the City of Bloomington, and has benchmarked other city
ordinances to determine what other cities have done regarding cannabis measures, including: Brooklyn
Park, Crystal, Minneapolis, Richfield, and Roseville.
Cannabis Retail Restrictions (as laid out in MN Statutes 342.13)
Local governments may limit the number of retailers and microbusinesses/mezzobusinesses with retail
endorsements, but in no case can there be less than one retail location per 12,500 residents. State law
requires the OCM to issue a license to a city or county seeking to operate a single municipal cannabis store
if it so chooses; however, a municipal cannabis store is not included in the minimum number of
registrations required. As the City of Brooklyn Center has 33,982 residents per the 2023 Minnesota State
Demographer Estimates, the City would be expected to provide for at least three (3) of these license types.
The City of Brooklyn Center would not be obligated to seek out a business to register as a cannabis
business if it has not been approached by a potential applicant, but the City cannot prohibit the
establishment of a business if the population requirement is has not been met.
Generally, cannabis licenses allow for multiple retail locations in Minnesota to operate under a single
license, with the following limitations:
Retailers: up to 5 retail locations
Mezzobusinesses: up to 3 retail locations
Microbusinesses: up to 1 retail location
Medical cannabis combination businesses: 1 retail location per congressional district, but ability to
cultivate at more than 1 location within other limitations on cultivation
All other license types: 1 license permits the operation of 1 location
Note: Cannabis retail sales must be in standalone shops as the primary use and cannot be accessory to
another use.
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The City of Brooklyn Center will be tasked with approving text amendments to Chapter 35 of the Unified
Development Ordinance.
The City Council will have to ultimately address licensing standards and adopt an amended ordinance if it
would like to have any say in where these establishments can be located. Below are issues that need to
be addressed, which have been identified as areas where the City has the authority to provide oversight:
1.Land Use/Zoning: Identifying which zoning districts cannabis businesses can operate within. The
provided Guide for Local Governments on Adult-Use Cannabis (Exhibit C) provides some direction
on where certain license types might be located in a community, and a table of “comparable
districts,” as well as certain “municipal considerations,” such as potential nuisances like odors,
security, transportation, on-site consumption, and fleet vehicle storage.
It should be noted that any developments with certain covenants and restrictions prohibiting the
growing, delivering, transporting, distributing, or sale of cannabis would prevail unless the
restrictions were amended to allow for the use. As an example, Shingle Creek Crossing (Planned
Unit Development) has prohibitions on marijuana, whether by prescription, medical
recommendation, or otherwise.
2.Buffer Zones: Establishing buffers between cannabis businesses and sensitive locations such as
schools (maximum 1,000 feet), daycares (maximum 500 feet), and residential treatment facilities
(maximum 500 feet), or public park attractions regularly used by minors, including playgrounds
and athletic fields (maximum 500 feet). A jurisdiction can adopt buffer requirements that prohibit
the operation of a cannabis business within certain distances of other uses. Terms of
measurement are not provided for but should use a measuring system consistent with the rest of
its ordinances.
Residential treatment facilities are defined under Minnesota Statutes Section 245.462 subd. 23,
and are defined as a, “24-hour-a-day program under the treatment supervision of a mental health
professional, in a community residential setting other than an acute care hospital or regional
treatment center inpatient unit, that must be licensed as a residential treatment program for
adults with mental illness under Minn. Stat. Section Chapter 245, Minnesota Rules, parts
9520.0500 to 9520.0670, or other rules adopted by the commissioner.”
3.Limitation of Retail Registrations: The City overhauled its tobacco licensing process in 2018,
limiting the number of tobacco licenses in the City by raising the minimum age of entrance to a
tobacco establishment to 21, and outlining a smoking prohibition, where smoking by a person
shall not be permitted inside any licensed premises.
The legislative findings provided by the City Council at that time recognized that tobacco use was
identified as the cause of several serious health problems and economic consequences, and as a
means to protect minors and young adults associated with the use and initiation, with 95% of
adult smokers beginning before the age of 21. Although there is some discrepancy between the
Minnesota State Demographer’s population estimate and the 2018-2022 American Community
Survey data, approximately 30% of Brooklyn Center’s residents are under age 18.
4.Zoning Compliance: The City would be able to review an applicant’s location for compliance with
its zoning regulations during the vetting process by OCM.
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5.License Compliance Checks: Compliance Checks must be done once per year for age verification
and local ordinance requirements.
Other Considerations
Municipal Registration
The local government, as part of the registration process for cannabis retailers or other cannabis/hemp
businesses seeking a retail endorsement, may:
•Require payment of a registration fee or renewal fee, including an “initial registration fee” of $500
or half the amount of the applicable initial license fee, whichever is less, and a “renewal
registration fee” of $1,000 or half the amount of the applicable renewal license fee, whichever is
less.
•A local government may refuse a registration or license renewal in situations where 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 non-compliance with a preliminary or
renewal compliance check.
•A local government must conduct compliance checks for cannabis and hemp businesses holding
retail registrations at least once per calendar year (e.g. age verification, compliance with local
ordinance pursuant to 342.13).
Additional Information
City staff has received communication from individuals and companies regarding the establishment of
cannabis dispensaries. In 2023, the Minnesota Legislature created the Local Government Cannabis Aid,
which is funded through a 10% gross receipts tax on retail sales of cannabis products in Minnesota. From
the Cannabis Tax Revenue, 80% is deposited into the state’s General Fund and 20% is deposited into the
Local Government Cannabis Aid account. On June 30 each year, 50% of the cannabis aid account balance
is available to counties and 50% to cities. The distribution amount received will be proportional to the
number of cannabis businesses located in the city as compared to the number of cannabis businesses in
all cities.
Governor Walz recently released his proposed biennial budget on January 16, 2025. As no licensed
cannabis retailers are currently operating, no aid has been distributed. The budget, as currently proposed,
would repeal the Local Cannabis Aid Account, reallocating those funds to the general fund.
Ordinance Amendment (Text)
As previously stated, the OCM identified March 14, 2025 as the new deadline for application submittals.
The local enacted moratoria expired on December 31, 2024. It is in the City’s best interest to finalize a
regulatory structure and registration process as soon as possible to be in compliance once those
applicants become eligible to operate under their new licenses. In discussions with the City Attorney and
other City staff, it was determined that, while other City Code chapters will require amendment, the City’s
Unified Development Ordinance (Chapter 35) likely has the greatest impact and will require the most
amount of time for review and consideration in advance of the OCM’s anticipated issuance of licenses in
May or June 2025.
As proposed, the City is seeking a text amendment to Chapter 35 (Unified Development Ordinance) to
incorporate a new section (Section 35-4500) for the establishment of Adult-Use Cannabis businesses and
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their regulations. As proposed City staff, in partnership with the City Attorney, have created an allowable
use table specific to Adult-Use Cannabis establishments that denotes where certain licensure types and
uses are permitted in a zoning district, and whether they are considered a permitted use, conditional
use, or accessory use.
In reviewing requests for ordinance amendments, certain amendment criteria shall be considered as
outlined under Section 35-71304 (Amendment Criteria). The Planning Commission and City Council shall
review the necessary submittal requirements, facts, circumstances of the proposed amendment, and
make a recommendation and decision on the amendment based on, but not limited to, consideration of
the following criteria and policies:
a.Whether there is a clear and public need or benefit;
b.Whether the proposed amendment is consistent with and compatible with surrounding land use
classifications;
c.Whether all permitted uses in the proposed zoning district can be contemplated for development
of the subject property;
d.Whether there have been substantial physical or zoning classification changes in the area since
the subject property was zoned;
e.Whether there is an evident, broad public purpose in the case of City-initiated rezoning proposals;
f.Whether the subject property will bear fully the UDO development restrictions for the proposed
zoning districts;
g.Whether the subject property is generally unsuited for uses permitted in the present zoning
district, with respect to size, configuration, topography, or location;
h.Whether the rezoning will result in the expansion of a zoning district, warranted by:
1)Comprehensive Planning;
2)The lack of developable land in the proposed zoning district; or
3)The best interests of the community.
i.Whether the proposal demonstrates merit beyond the interests of an owner or owners of an
individual parcel.
j.The specific policies and recommendations of the Comprehensive Plan and other City plans;
k.The purpose and intent of this UDO, or in the case of a map amendment, whether it meets the
purpose and intent of the individual district; and
l.If applicable, the adequacy to buffer or transition between potentially incompatible districts.
City staff is specially requesting weigh in from the Planning Commission and City Council as to whether
the identified Adult-Use Cannabis business license types are consistent and compatible with surrounding
land uses and uses permitted within a designated district. City staff further requests feedback on the
minimum distancing (buffer) provisions from schools, daycare facilities that serve minors, or park
attractions, as well as Residential Treatment Facilities, which are defined as, “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 provide chemical dependency or mental health
services.”
An additional point of discussion relates to potential minimum buffering between Cannabis Oriented
Businesses, defined in Minnesota Statutes Chapter 342, which would be measured from the entrance
from each building or tenancy and not from the property lines.
City staff further requests direction as to the potential addition of a category that would regulate the siting
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of “Cannabis Colleges,” or if the respective Planning Commission and City Council prefers City staff to
interpret these as, “nonresidential educational uses including Area Learning Centers (ALC), post-
secondary schools, business schools, trade schools, and the like, but excluding public and private
elementary and secondary schools.” These uses are either a permitted or conditional use in the MX-N2,
MX-C, TOD, C, and MX-B Districts of the City.
Finally, in reviewing the current provisions of Chapter 35, it was noted that the current definition of
“Urban Agriculture,” as defined under Section 35-9200 (Definitions and Terms of Measurement), contains
language that prohibits the cultivation of marijuana, which is in conflict with the State’s new provisions
surrounding Adult-Use Cannabis. Please see below for the proposed amendment to this definition:
RECOMMENDATION
Based on the above noted findings, and in response to Section 35-71304 (Amendment Criteria) of the City
Code, City staff recommends the Planning Commission recommend City Council adoption of certain
ordinance amendments to Chapter 35 of the City Code of Ordinances to implement the provisions of
Minnesota Statutes Chapter 342, which authorizes the City of Brooklyn Center to protect the public health,
safety, and welfare of Brooklyn Center residents by regulating cannabis businesses within the legal
boundaries of Brooklyn Center.
Attachments
Exhibit A- Draft Ordinance Language Adding New Chapter to the Brooklyn Center City Code of Ordinances
Regarding the Establishment of Adult-Use Cannabis Business Zoning Regulations.
Exhibit B- Public Hearing Notice, published in the Brooklyn Center Sun Post, and dated January 16, 2025.
Exhibit C- Minnesota Office of Cannabis Management Guide for Local Governments on Adult-Use
Cannabis, last revised January 6, 2025.
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CITY OF BROOKLYN CENTER
Notice is hereby given that a public hearing will be held on the 30th day of January, 2025, at 7:00 p.m. or
as soon thereafter as the matter may be heard during the a Planning Commission meeting at City Hall, 6301
Shingle Creek Parkway to consider an ordinance related to the establishment of Adult-Use Cannabis
business zoning regulations.
ORDINANCE NO._________
AN ORDINANCE ADDING NEW CHAPTER 35-4500 TO THE BROOKLYN CENTER CITY CODE
ORDINANCES, REGARDING THE ESTABLISHMENT OF ADULT-USE CANNABIS BUSINESS
ZONING REGULATIONS
THE CITY OF BROOKLYN CENTER DOES ORDAIN AS FOLLOWS:
Article 1. The Brooklyn Center City Code, Title X, [insert name], is amended to add Chapter 35-
4500, Adult Use Cannabis Business Zoning Regulations to read in its entirety as follows:
Section 35-4500. ADULT USE CANNABIS BUSINESS ZONING REGULATIONS
Section 35-4501. GENERAL PROVISIONS.
Section 35-4502. FINDINGS, PURPOSE, AND AUTHORITY. The City Council of Brooklyn
Center makes the following legislative findings, and is authorized to adopt this ordinance as follows:
a.PURPOSE. The purpose of this ordinance is to implement the provisions of Minnesota Statutes Chapter
342, which authorizes the City of Brooklyn Center to protect the public health, safety, and welfare of
Brooklyn Center residents by regulating cannabis business within the legal boundaries of Brooklyn
Center.
b.FINDINGS. The City Council of Brooklyn Center finds and concludes that the proposed provisions are
appropriate and lawful land use regulations for Brooklyn Center, 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.
c.AUTHORITY. The City Council of Brooklyn Center has the authority to adopt this ordinance pursuant
to Minnesota Statutes Section 342.13(c), regarding the authority of a local unit of government to adopt
reasonable restrictions of time, place, and manner of the operation of a cannabis business provided that
such restrictions do not prohibit establishment or operation of cannabis businesses, and pursuant to
Minnesota Statutes Section 462.357, regarding the authority of a local authority to adopt zoning
ordinances.
Exhibit A
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Section 35-4503. DEFINITIONS. The following words, terms and phrases, when used in this
chapter, shall have the meanings ascribed to them in this chapter, except where the context clearly indicates
a different meaning:
Cannabis Cultivator. 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.
Cannabis Delivery Business. A business with a cannabis delivery service license or delivery service
endorsement from the State of Minnesota Office of Cannabis Management.
Cannabis Flower. The harvested flower, bud, leaves, and stems of a cannabis plant. Cannabis flower
includes adult-use cannabis flower and medical cannabis flower. Cannabis flower does not include cannabis
seed, hemp plant parts, or hemp-derived consumer products.
Cannabis Oriented Business. Any cannabis business governed by and defined in Minn. Stat. Chapter 342
as amended from time to time.
Cannabis Plant. All parts of the plant of the genus Cannabis that is growing or has not been harvested and
has a delta-9 tetrahydrocannabinol concentration of more than 0.3 percent on a dry weight basis.
Cannabis Product. "Cannabis product" means any of the following: cannabis concentrate; a product infused
with cannabinoids, including but not limited to tetrahydrocannabinol, extracted or derived from cannabis
plants or cannabis flower; or any other product that contains cannabis concentrate. Cannabis product
includes adult-use cannabis products, including but not limited to edible cannabis products and medical
cannabinoid products. Cannabis product does not include cannabis flower, artificially derived cannabinoid,
lower-potency hemp edibles, hemp-derived consumer products, or hemp-derived topical products.
Cannabis Retailer. A business with a cannabis retailer license, lower-potency hemp edible retailer license,
or retail endorsement from the State of Minnesota Office of Cannabis Management.
Cannabis Testing business. A business with a cannabis testing facility license or testing endorsement from
the State of Minnesota Office of Cannabis Management.
Cannabis Transportation business. A business with a cannabis transporter license or transportation
endorsement from the State of Minnesota Office of Cannabis Management.
Cannabis Wholesaling business. A business with a cannabis wholesaler license or wholesaling endorsement
from the State of Minnesota Office of Cannabis Management.
Day Care. For the purposes of this section, a location licensed with the Minnesota Department of Human
Services to provide the care of a child in a residence or other facility outside the child's own home for gain
or otherwise, on a regular basis, for any part of a 24-hour day.
Hemp Business. Either of the following licensed under this chapter: (1) lower-potency hemp edible
manufacturer; or (2) lower-potency hemp edible retailer. Hemp business does not include a person or entity
licensed under chapter 18K to grow industrial hemp for commercial or research purposes or to process
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industrial hemp for commercial purposes.
Hemp Plant. All parts of the plant of the genus Cannabis that is growing or has not been harvested and has
a delta-9 tetrahydrocannabinol concentration of no more than 0.3 percent on a dry weight basis.
Lower-Potency Hemp Edible. (a) “Lower-potency hemp edible” means any product that
(1) Is intended to be eaten or consumed as a beverage by humans;
(2) Contains hemp concentrate or an artificially derived cannabinoid, in combination with food
ingredients;
(3) Is not a drug;
(4) Does not contain a cannabinoid derived from cannabis plants or cannabis flower;
(5) Is a type of product approved for sale by the office or is substantially similar to a product
approved by the office, including by not limited to product that resemble nonalcoholic
beverages, candy, and baked goods; and
(6) Meets either the requirements in paragraph (b)
(b) A lower-potency hemp edible includes:
(1) a product that:
(i) consists of servings that contain no more than five milligrams of delta-9
tetrahydrocannabinol; no more than 25 milligrams of cannabidiol, cannabigerol,
cannabinol, or cannabichromene; any other cannabinoid authorized by the office; or any
combination of those cannabinoids that does not exceed the identified amounts;
(ii) does not contain more than a combined total of 0.5 milligrams of all other cannabinoids
per serving; and
(iii) does not contain an artificially derived cannabinoid other than delta-9
tetrahydrocannabinol, except that a product may include artificially derived cannabinoids
created during the process of creating the delta-9 tetrahydrocannabinol that is added to the
product, if no artificially derived cannabinoid is added to the ingredient containing delta-9
tetrahydrocannabinol and the ratio of delta-9 tetrahydrocannabinol to all other artificially
derived cannabinoids is no less than 20 to one; or
(2) A product that:
(i) contains hemp concentrate processed or refined without increasing the percentage of
targeted cannabinoids or altering the ratio of cannabinoids in the extracts or resins of a
hemp plant or hemp plant parts beyond the variability generally recognized for the method
used for processing or refining or by an amount needed to reduce the total THC in the hemp
concentrate; and
(ii) consists of servings that contain no more than five milligrams of total THC.
Lower-Potency Hemp Edible Retailer. A business with a lower-potency hemp edible retailer license from
the Office of Cannabis Management.
Lower-Potency Hemp Edible Manufacturer. A business with a lower-potency hemp edible manufacturer
license from the Office of Cannabis Management.
Medical Cannabis Business. Medical cannabis business means an entity licensed by the OCM to engage in
one or more of the following:(1) the cultivation of cannabis plants for medical cannabis flower; (2) the
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manufacture of medical cannabinoid products; and (3) the retail sale of medical cannabis flower and medical
cannabinoid products.
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 my operate up to one retail
location in each congressional district.
Medical Cannabis Retailer. Medical cannabis retailer means a cannabis business with a medical cannabis
retail endorsement to provide medical cannabis flower, medical cannabinoid products, and medical
cannabis paraphernalia to a patient or designated caregiver.
Office of Cannabis Management. Minnesota Office of Cannabis Management, referred to as “OCM” in this
ordinance.
Park Attraction. A facility or location within a public park that is regularly used by minors, including but
not limited to a playground or athletic field.
Residential Treatment Facility. 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.
Retail Registration. An approved registration issued by the City of Brooklyn Center to a cannabis retail
business. (See Brooklyn Center City Code Section XXX for Retail Registration Regulations.)
School. A public school, as defined in section 120A.05, subdivisions 9, 11, 13, and 17, or a nonpublic
school, or church or religious organization in which a child is provided instruction in compliance with this
section and section 120A.24 but does not include a home school.
Section 35-4504. ADULT USE CANNABIS ALLOWABLE USE TABLE.
P = PERMITTED USE, C = CONDITIONAL USE, I = INTERIM USE, A = ACCESSORY USE
Residential Commercial/ Mixed
Use
Nonresidential
Use-
Specific
Standards
R1
R2
R3
R4
R5
M X-
N1
M X-
N2
M
X-
C
TO
D
C
MX-
B
I
O
ADULT USE CANNABIS
Retailer P P P P P A A
Cultivator (Ag) C C C C C C C 35-4302 (b)
Manufacturer, Process,
Extract
P P
Wholesaler P P
Transporter P P 35-4406
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Testing Facility P P
Delivery Services A A A A A P P
Medical Cannabis
Combination Business
C C C C C C C 35-4302 (b)
Medical Cannabis Retailer P P P P P A A
LPHE Retailer P P P P P A A
LPHE Manufacturer P P
Section 35-4505. PERFORMANCE STANDARDS.
a. CANNABIS ORIENTED BUSINESS
1) Registration.
A. No individual or entity may operate a cannabis retail business within the City of Brooklyn Center
without first registering with the Brooklyn Center Rental and Business Licensing Division per
regulations outlined in Chapter XX of the Brooklyn Center Code of Ordinances.
2) Buffer Requirements.
A. Registration must not be granted within 1,000 feet of any school, daycare facility that serves
minors, or park attraction.
B. Registration must not be granted within XX feet of any Residential Treatment Facility
C. Registration must not be granted within XX feet of another registered Cannabis Oriented
Business. The measurement must be made from the entrance of each building or tenancy and not
from the property lines.
D. The buffers established in this section will be established on the date the city receives the request
from the OCM for certification pursuant to city code section XXX
E. The measurement must be made from the main entrance of each building or tenancy and not
from the property lines, except park features which will be measured from closest boundary of
the park feature.
F. Nothing in this section shall prohibit a cannabis business from continuing to operate at the same
location if a school, day care, or park feature establishes within the buffer.
b. CULTIVATION. The cultivation of all cannabis must only occur within the principal structure. Outdoor
commercial cultivation of cannabis is prohibited.
6
c. HOME OCCUPATIONS. Cannabis businesses, as defined in Minnesota Statutes, section 342.01 shall
not be permitted as home occupations.
d. LIGHTING. Performance standards for lighting shall be pursuant to Minnesota Administrative Rules
relating to Adult-Use Cannabis and Brooklyn Center City Code Section 35-5400.
e. ODOR CONTROL. A cannabis business must maintain a ventilation and filtration system sufficient to
meet the requirements for odor control established by Minnesota Statute, Administrative Rules, or City
Code.
f. STORAGE. Cannabis or Cannabis products shall not be stored outside at any time.
Section 35-4507. 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.
Section 35-4508. EFFECTIVE DATE. This ordinance shall take effect following its passage
and publication in accordance with state law.
Exhibit B
Page 1
A Guide for Local Governments
on Adult-Use Cannabis
Version 2.1 | Updated January 6, 2025
Exhibit C
Page 2
Table of Contents
Introduction ................................................................................................ 3
About OCM ................................................................................................. 4
Cannabis License Types ................................................................................ 5
Adult-Use Cannabis Law .............................................................................. 7
Cannabis Licensing Process .......................................................................... 8
General Authorities ................................................................................... 11
Zoning and Land Use .................................................................................. 13
Local Approval Process .............................................................................. 16
Inspections and Compliance Checks ........................................................... 21
Municipal Cannabis Stores ......................................................................... 22
Creating Your Local Ordinance ................................................................... 23
Additional Information – Tobacco Sales ....................................................... 24
Additional Resources ................................................................................. 25
Page 3
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, final state
regulations governing the adult-use cannabis market
have not yet been published. A draft of the rules is
available on our Rulemaking webpage
(https://mn.gov/ocm/laws/rulemaking.jsp).
The first draft of rules is based on substantial input OCM has received through surveys,
meetings, and conversations that took place since fall 2023, as well as OCM’s review of
Minnesota’s cannabis statute and cannabis rules in other states.
OCM will publish in the State Register a notice of intent to adopt rules, which will prompt
a 30-day formal comment period. Watch the OCM website for updates.
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 4
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 5
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 6
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 7
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:
o Flower - 2 oz. in public, 2 lbs. in private residence
o Concentrate - 8 g
o 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:
o May not include or appeal to those under 21 years old.
o Must include proper warning statements.
o May not include misleading claims or false statements.
o 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 8
The Cannabis Licensing Process
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
1. Applicant completes application and submit application fees. If applicable, an
applicant’s social equity applicant status may be verified.
2. Application vetted for minimum requirements by OCM.
3. Application (if qualified) entered into lottery drawing.
4. If selected in lottery, applicant completes background check process and submits
attestation of labor-peace agreement.
5. If applicant successfully completes Step 5, OCM issues preliminary approval to
applicant.
6. Once prepared for final licensure, applicant with preliminary approval submits
business location and updates application accordingly.
7. OCM forwards completed application to local government.
8. Local government completes zoning certification of 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. (This is distinct
from the retail registration approval process.)
9. OCM conducts site inspection.
10. If applicant successfully passes site inspection, OCM issues license, operations may
commence except for retail activity.*
Continued High-Level Pathway for Licensees Seeking to Conduct Retail Sales: Process for
Required Local Retail Registration from Local Governments (Retailer, Mezzobusiness)
11. Licensed business seeks local retail registration from local government.
12. Local government approves applicant for retail registration through means
determined by ordinance (see Page 19 for more information about the retail
registration process).
Page 9
The Cannabis Licensing Process (cont.)
13. Applicant pays retail registration fee to the local government (see appendix for
relevant fees in accordance with Minn. Stat., section 342.22).
14. Local government conducts compliance check for any applicable local ordinance
established pursuant to Minn. Stat., section 342.13, if desired.
15. Local government ensures tax compliance, if applicable.
16. Local government issues retail registration to licensee.
17. Licensee is able to conduct retail sales now that they have received a state license
and a local retail registration.
*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 19 for information on the local
retail registration process.
General Licensing: Microbusiness, Wholesaler, Transporter, Testing
Facility, Medical Cannabis Combination Business
1. Applicant complete application and submit application fees. If applicable, an
applicant’s social equity applicant status may be verified.
2. Application vetted for minimum requirements by OCM.
3. For qualified applicants, applicant completes background check process and submits
attestation of labor-peace agreement.
4. If applicant successfully completes Step 3, OCM issues preliminary approval to
applicant.
5. Once prepared for final licensure, selected applicant submits business location and
amends application accordingly.
6. OCM forwards completed application to local government.
7. Local government completes zoning certification of 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. (This is distinct
from the retail registration approval process.)
8. OCM conducts site inspection.
9. If applicant successfully passes site inspection, OCM issues license, operations may
commence except for retail activity.*
Page 10
The Cannabis Licensing Process (cont.)
Continued High-Level Pathway for Licensees Seeking to Conduct Retail Sales: Process for
Required Local Retail Registration from Local Governments (Microbusiness, Medical
Cannabis Combination Businesses)
10. Licensed business seeks local retail registration from local government.
11. Local government approves applicant for retail registration through means
determined by ordinance (see Page 19 for more information about the retail
registration process).
12. Applicant pays retail registration fee to the local government (see appendix for
relevant fees in accordance with Minn. Stat., section 342.22).
13. Local government conducts compliance check for any applicable local ordinance
established pursuant to Minn. Stat., section 342.13, if desired.
14. Local government ensures tax compliance, if applicable.
15. Local government issues retail registration to licensee.
16. Licensee is able to conduct retail sales now that they have received a state license
and a local retail registration.
*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 19 for information on the local
retail registration process.
Applicant Responsibility
All applicants and licensees are responsible for working with their local government to
ensure their success in the zoning certification and, if applicable based on license type,
the local retail registration process. This includes reviewing local ordinances and
understanding how the local government will be selecting applicants for a retail
registration (including if retail registrations will be limited). Local units of government
have the statutory authority to limit retail registrations if they desire, and applicants
should understand this prior to making decisions about site locations.
OCM will not facilitate communication between applicants and units of local government,
nor can it mediate disputes as they relate to local zoning compliance or retail registration.
OCM is required to ask each local unit of government where an applicant intends to
locate a business if that business has met all zoning and use requirements.
Page 11
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 24) 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 12
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 13
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 16 and 17, explains the types of activities that cannabis
businesses might undertake, as well as some recommended existing zoning categories.
Page 14
Zoning and Land Use (cont.)
Table 1: Cannabis and Hemp Business Activities
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
• 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.
Indoor:
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 businesses
convert hemp into LPHE
edible products.
Indoor:
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.
Indoor:
Industrial,
Commercial,
Production
• Need for
transportation from
facility
• Security
Page 15
Zoning and Land Use (cont.)
Table 1: Cannabis and Hemp Business Activities (continued)
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 type
allow a business
to sell cannabis
products directly
to consumers.
Indoor: 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
businesses 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
organize 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.
Page 16
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 17
Local Approval Process (cont.)
Local Retail Registration Process (342.22)
Once the licensing process begins, local government registration applies to licensed
cannabis retailers or other cannabis/hemp businesses seeking to conduct retail sales.
Several license types are authorized to conduct retail sales if they receive a retail
endorsement from OCM. Prior to conducting retail sales under their business license,
state law also requires the business receive a local retail registration.
There are five license types that are eligible to conduct cannabis retail activity and will
seek a retail registration from local governments:
• Cannabis retailers
• Microbusinesses
• Mezzobusinesses
• Medical cannabis combination businesses
• Lower-potency hemp edible retailers
Local governments must issue a retail registration after verifying that:
• The business has a valid license issued by OCM.
• The business has paid a registration fee or renewal fee to the local government.
o 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.
Page 18
Local Approval Process (cont.)
Option to Limit Retail Registrations for Cannabis Businesses:
Determining a Process
State law allows the option for a local government to place a limitation on the number of
cannabis retailers, microbusiness, and mezzobusinesses with retail endorsements allowed
within their locality via ordinance, as long as there is at least one retail location per 12,500
residents. Please see Page 13. Retail registrations for lower-potency hemp edible retailers
and medical cannabis combination businesses are required but may NOT be limited in
number by a local government.
If a local government wishes to limit the number of cannabis retailers, microbusinesses,
or mezzobusinesses via ordinance, state law does not define the process for a local
government’s selection if there are more applicants than registrations available.
Local units of government issuing retail registrations should consider how they will issue
retail registrations. Local units of government may wish to consider whether they will
accept applications during a specified application window or on a rolling basis. Local
governments may wish to consider how to accommodate to the timing of accepting
applications for retail registration as to not allocate all registrations at once. This may also
include timelines that coincide with state licensing timelines as to limit bottlenecks.
Additionally, local units of government should consider the process by which they will
determine who gets a registration, e.g., through the use of a lottery, on a first-come/first-
serve model, through a merit-based scoring system, etc. It is highly recommended that
local governments work with an attorney to determine their specific process for selection
if they wish to limit the number of retail registrations per section 342.13.
It is also important to note that local governments are not required to limit the number of
licensed cannabis retailers, microbusinesses, or mezzobusinesses, and instead local
governments can determine a process that reviews requests/applications for retail
registrations as they are received.
Page 19
Local Approval Process (cont.)
Other Considerations
Existing retail locations. Retailers in Minnesota’s medical cannabis program and lower-
potency hemp edible program may currently be operating in a local government’s
jurisdiction under active registrations. In the future, these active businesses will be
required to obtain a license from OCM and will need a local retail registration to continue
their operations. Local governments may wish to consider how businesses currently
operating will be issued retail registrations when determining if and how to limit retail
registrations.
Local zoning approval does not guarantee retail registration. Zoning certification from
local governments does not guarantee a local retail registration. This is a distinctly
separate approval process. All applicants seeking retail activity will be required to obtain a
zoning certification from the local government to be issued a state license. Local
governments may wish to monitor the number of zoning certifications they provide to
OCM to inform the likely volume of retail registration applicants.
Page 20
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 section 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 21
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 section 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 22
Municipal Cannabis Stores
As authorized in section 342.32, local governments are
permitted to apply for a cannabis retail license to establish
and operate a municipal cannabis store.
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:
• 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 23
Creating Your Local Ordinance
As authorized in section 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.
• 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 14).
• 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.
Model Ordinance
For additional guidance regarding the creation of a cannabis related ordinance, please
reference the additional resources on page 27.
Page 24
Additional Information – Tobacco Sales
Penalties Related to a Revocation or
Suspension of Tobacco License
A cannabis or hemp business license holder may also hold a
tobacco license under Minnesota Statutes Chapter 461.
However, tobacco cannot be sold in the cannabis retail
location. Under section 461.12, Minnesota law allows a
licensee’s authority to sell tobacco and related products
under the section to be suspended and possibly revoked if
the licensee also holds a cannabis or hemp business license
under Chapter 342 or is a registrant under section 151.72
and that license or registration is revoked. This penalty also
applies if the license holder is convicted of an offense under
section 151.72 or has been convicted under any other
statute for illegal sale of cannabis products.
Clarifying Cannabis Businesses Authority
Cannabis businesses will be able to sell vaporizers without
a tobacco license. Under Minnesota Statutes, section
342.27, subd. 3(a), retail licensees are permitted to sell
cannabis paraphernalia. Cannabis paraphernalia includes
“all equipment, products, and materials of any kind that
are knowingly or intentionally used primarily in ...
ingesting, inhaling, or otherwise introducing cannabis
products into the human body” [Minnesota Statutes,
section 342.01, subd. 18(2)]. Therefore, Minnesota
Statutes, section 342.27, subd. 3(a) specifically authorizes
retail licensees to sell cannabis paraphernalia, which in
this instance includes vaporizers.
Page 25
Additional Resources
OCM Toolkit for Local Partners
Please visit the 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.
Toolkit resources include:
• Appendix A: Cannabis Model Ordinance (mn.gov/ocm/lgg-appendix-a)
• Appendix B: Retail Registration Form and Checklist (mn.gov/ocm/lgg-appendix-b)
• Appendix C: Cannabis Flower and Hemp-Derived Cannabinoid Products
Inspection Checklist (mn.gov/ocm/lgg-appendix-c)
• Appendix D: Enforcement Notice from the Office of Cannabis Management
(mn.gov/ocm/lgg-appendix-d)
• Appendix E: Notice to Unlawful Cannabis Sellers (mn.gov/ocm/lgg-appendix-e)
• Appendix F: Model Guidelines on Age Verification Compliance Checks Policy and
Procedures (mn.gov/ocm/lgg-appendix-f)
• Appendix G: Cannabis and Hemp Age Compliance Check Form (mn.gov/ocm/lgg-
appendix-g)
• Appendix H: Local Unit of Government Cannabis Licensing Contact, Delegation
Form, and Accela Registration Instructions Guide (mn.gov/ocm/local-
governments/contactform.jsp)
• Appendix J: Local Approval for Early Cultivation (mn.gov/ocm/lgg-appendix-j)
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