Provisions relating to local unit of government's regulation of cannabis businesses modified.

A bill for an act

relating to cannabis; modifying provisions relating to local unit of government's

regulation of cannabis businesses; amending Minnesota Statutes 2024, section

342.22, subdivision 4; Minnesota Statutes 2025 Supplement, sections 342.13;

342.14, subdivision 6.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2025 Supplement, section 342.13, is amended to read:

342.13 LOCAL CONTROL.

(a) A local unit of government may not prohibit the possession, transportation, or use

of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived

consumer products authorized under this chapter.

(b) Except as provided in section
342.22
, a local unit of government may not prohibit

the establishment or operation of a cannabis business or hemp business licensed under this

chapter.

(c)
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By ordinance,
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a local unit of government may adopt reasonable restrictions on 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. A local unit of

government 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 a playground or athletic field.

(d) The office shall work with local units of government to:

(1) develop model ordinances for reasonable restrictions on the time, place, and manner

of the operation of a cannabis business;

(2) develop standardized forms and procedures for the issuance of a retail registration

pursuant to section
342.22
; and

(3) develop model policies and procedures for the performance of compliance checks

required under section
342.22
.

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(e) If a local unit of government is conducting studies or has authorized a study to be

conducted or has held or has scheduled a hearing for the purpose of considering adoption

or amendment of reasonable restrictions on the time, place, and manner of the operation of

a cannabis business, the governing body of the local unit of government may adopt an

interim ordinance applicable to all or part of its jurisdiction for the purpose of protecting

the planning process and the health, safety, and welfare of its citizens. Before adopting the

interim ordinance, the governing body must hold a public hearing. The interim ordinance

may regulate, restrict, or prohibit the operation of a cannabis business within the jurisdiction

or a portion thereof until January 1, 2025.

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(f)
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(e)
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Within 30 days of receiving a copy of an application from the office, a local unit

of government shall certify on a form provided by the office whether a proposed cannabis

business complies with local zoning ordinances and, if applicable, whether the proposed

business complies with the State Fire Code and
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the State
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Building Code. The office
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may
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must
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not issue a license
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to an applicant
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if the local unit of government informs the office

that the
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proposed
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cannabis business does not
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meet
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comply with
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local zoning
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and
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ordinances,
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land use laws
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, the State Fire Code, or the State Building Code and submits evidence of the

proposed cannabis business's lack of compliance
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. If the local unit of government does not

provide the certification
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under this paragraph
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to the office within 30 days of receiving a

copy of an application from the office, the office may
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waive the requirement for local

government certification and may
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issue a license
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to the applicant. Regardless of whether

the office has waived local government certification, the proposed cannabis business's

location must meet the requirements of this chapter
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.

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(g)
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(f)
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The office by rule shall establish an expedited complaint process to receive,

review, and respond to complaints made by a local unit of government about a cannabis

business. 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. Nothing in this paragraph prohibits a local unit of government from enforcing

a local ordinance. If a local unit of government notifies the office that a cannabis business

other than a cannabis retailer, cannabis microbusiness, cannabis mezzobusiness or

lower-potency hemp edible retailer with a retail operations endorsement, or medical cannabis

combination business operating a retail location poses an immediate threat to the health or

safety of the public, the office must respond within one business day and may take any

action described in section
342.19
or
342.21
.

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(h)
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(g)
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A local government unit that issues a cannabis retailer registration under section

342.22
may, by ordinance, limit the number of licensed cannabis retailers, cannabis

mezzobusinesses with a retail operations endorsement, and cannabis microbusinesses with

a retail operations endorsement to no fewer than one registration
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, plus one additional

registration
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for every 12,500 residents.
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After each increment of 12,500 residents, the number

of required registrations must be rounded up to the next whole number of registrations.
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(i) If a county has one active registration for every 12,500 residents, a city or town within

the county is not obligated to register a cannabis business.

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(h) A county that has consent from a city or town to issue retail registrations for the

jurisdiction according to section 342.22, subdivision 1, may develop a process, in consultation

with the consenting city or town, for issuing retail registrations throughout the county that

meets the required minimum in paragraph (g) and limits the number of registrations allowed

in each city or town that has delegated authority to the county.

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(j)
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(i)
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Nothing in this section shall prohibit a local government unit from allowing licensed

cannabis retailers in excess of the minimums set in paragraph
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(h)
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(g)
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.

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(k)
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(j)
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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.

Sec. 2.

Minnesota Statutes 2025 Supplement, section 342.14, subdivision 6, is amended

to read:

Subd. 6.

Completed application; final authorization; issuance of license.

(a) Within

18 months of receiving notice of preliminary license approval, an applicant must provide:

(1) the address and legal property description of the location where the business will

operate;

(2) the name of the local unit of government where the business will be located; and

(3) if applicable, an updated description of the location where the business will operate,

an updated security plan, and any other additional information required by the office.

(b) Upon receipt of the information required under paragraph (a) from an applicant that

has received preliminary license approval, the office must:

(1) forward a copy of the application to the local unit of government in which the business

operates or intends to operate with a form for certification as to whether a proposed cannabis

business complies with local zoning ordinances and, if applicable, whether the proposed

business complies with the state fire code and building code;

(2) schedule a site inspection; and

(3) require the applicant to pay the applicable license fee.

(c) The office may deny final authorization if:

(1) an applicant fails to submit any required information;

(2) the applicant submits a materially false statement about the applicant or fails to

provide any required information;

(3) the office confirms that the cannabis business for which the office granted a

preliminary license approval does not meet local zoning and land use laws;

(4) the applicant fails to pay the applicable license fee;
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or
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(5) the office determines that the applicant is disqualified from holding the license or

would operate in violation of the provisions of this chapter
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.
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; or
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(6) the applicant fails to demonstrate that the proposed cannabis business's location

complies with local zoning ordinances, the State Fire Code, or the State Building Code.

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(d) Within 90 days of receiving the information required under paragraph (a) and the

results of any required background check, the office shall grant final authorization and issue

the appropriate license or send the applicant a notice of rejection setting forth specific

reasons that the office did not approve the application.

Sec. 3.

Minnesota Statutes 2024, section 342.22, subdivision 4, is amended to read:

Subd. 4.

Compliance checks.

(a) A local unit of government shall conduct compliance

checks of every cannabis business and hemp business with a retail registration issued by

the local unit of government. During a compliance check, a local unit of government shall

assess a business's compliance with age verification requirements and compliance with any

applicable local ordinance established pursuant to section
342.13
.

(b) A local unit of government must conduct unannounced age verification compliance

checks of every cannabis business and hemp business at least once each calendar year. Age

verification compliance checks must 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.

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(c) A local government with retail registration authority that performs compliance checks

must annually submit data regarding compliance checks to the office. The data must include:

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(1) the name of the cannabis business and the business's address, license number, and

type of business under chapter 342;

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(2) the results of the compliance check, including whether the business was compliant

with any applicable local ordinances;

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(3) the date and time of the compliance check;

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(4) a description of any specific violation of a local ordinance, including any failure to

request documentation for age verification, an age verification method that violates this

chapter, or any other violation of a local ordinance; and

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(5) any warnings, fines, suspensions, or other actions taken by the local government in

response to the business's violation of a local ordinance.

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(d) A local government may provide the office with data from a compliance check before

the annual submission date. A local government may provide the office with data from a

compliance check by notifying the office of a suspended retail registration according to

subdivision 5, paragraph (a).

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