Minnesota’s local governments will play a key role in oversight of the state’s cannabis industry.
Local role in license 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, if applicable, retail registration before operations may commence.
Local retail registration
Once the licensing process begins, local retail registration applies to cannabis retailers or other cannabis/hemp businesses that are seeking a retail endorsement. Local governments issue a retail registration after verifying that the business:
Initial registration fees collected by a local government may be $500 or up to half the amount of the applicable initial license fee, whichever is less. Renewal registration fees may be $1,000 or up to half the amount of the applicable renewal license fee, whichever is less.
A county may issue local registrations if the respective local government transfers that authority to the county.
Local certification of zoning compliance
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.
Compliance checks
Local governments must conduct compliance checks for cannabis and hemp businesses holding retail registration at least once per calendar year. These checks must verify compliance with age verification procedures and compliance with any applicable local ordinances.
Local government complaint process
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.
Local government staff can use this workbook for guidance regarding the local government’s role in the application, licensing, and regulatory system for the cannabis industry. The guidance includes a draft model ordinance for local government staff to reference in the development of ordinances.
Local government staff can use these resources for enforcement of hemp-derived cannabinoid products and cannabis flower.
