Local Governments Overview

Minnesota’s local governments will play a key role in oversight of the state’s cannabis industry.

Local role in cannabis business license approval process

Local governments play a critical role in the licensing process, providing an approval check on cannabis businesses seeking a state license. Once an applicant has been preliminarily approved for a license, they are required to obtain local government certification of zoning compliance and state fire and building code, and, if applicable, retail registration before operations may begin. Local government staff can review the resources below for more information about the licensing process for cannabis businesses. 

Local certification of zoning compliance of proposed cannabis businesses

During the application and licensing process for cannabis businesses, OCM will notify the local government when a preliminarily approved applicant submits their site location to the office, and OCM will request confirmation from the local government that the proposed cannabis business complies with local zoning ordinances, and if applicable, if it complies with state fire and building codes. 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 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 that they are not in compliance. 

Local retail registration for cannabis and hemp businesses 

Under state law, local retail registration applies to cannabis and hemp businesses that are seeking a retail endorsement and intending to conduct sales of cannabis and lower-potency hemp products to consumers. Per Minnesota Statutes, section 342.22, local governments issue a retail registration after verifying that the business: 

  • Has a valid license or preliminary license approval issued by OCM. 
  • Paid a registration fee or renewal fee to the local government. 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. 
  • Is found in compliance with state law and local ordinances. 
  • Is current on all property taxes and assessments for the proposed retail location. 

A county may issue local registrations if the respective local government provides consent to the county. There is more information regarding local retail registration available in the guide below. 

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. A process for submitting compliance check information to OCM is under development. 

Local government complaint process

Local governments should utilize this complaint reporting form to share information, concerns, or complaints about cannabis and hemp businesses under the local government expedited complaint process (Minnesota Statutes section 342.13).

Local government toolkit

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 and lower-potency hemp industries.

Local government staff can use these resources for developing ordinances, for retail registration compliance checks, and for further guidance around using Accela and the licensing process.