03. Cannabis and Hemp Discussion Staff Report
Date of Meeting: July 24, 2024
For: Honorable Mayor and Council
From: Kyle Morell, City Administrator
Subject: Cannabis and Hemp Discussion
Background:
Christina Benson of Eckberg and Lammers gave staff the attached PowerPoint Presentation to help
explain the various types of licenses available for the growing, manufacturing, production, and sales
of cannabis and hemp products. She also completed the attached zoning assessment, which shows
where a business with any of these licenses can operate within the City.
The presentation and zoning assessments are meant to help begin the discussion of what the City’s
future cannabis ordinance and zoning code will look like once cannabis and hemp are legal in 2025.
The last four slides of the presentation were added by staff with assistance from Christina and Eric
Larson to help facilitate a discussion on what our future ordinance will look like and what changes
are needed to the zoning code. City Planner TJ Hofer has been involved in the discussion and will
also be at the meeting. His involvement at this early stage is needed to help facilitate the changes to
the zoning code.
The Office of Cannabis Management has created a model ordinance, which can be found in
Appendix A of the Local Government Guide to Adult-Use Cannabis. As the last slide shows, this is
the first discussion that will help staff draft ordinance language to present to the Council at a future
Council meeting.
Attachments:
Eckberg and Lammers PowerPoint Presentation
Zoning Assessment – Hemp Businesses
Zoning Assessment Cannabis Businesses
Office of Cannabis Management Local Government Guide to Adult-Use Cannabis
Cannabis and Hemp Overview
Attorney Christina Benson
2023
Cannabinoids
Any edible cannabinoid or nonedible cannabinoid product authorized
for sale in 2022. Once the new laws are fully in effect in 2025,
this category of product will be incorporated into “lower potency
hemp products”.
Lower Potency Hemp Edible
Products that are derived from hemp and contain no more than 5 milligrams
of delta-9 tetrahydrocannabinol (THC) concentration intended to be
eaten or consumed as a beverage. New State lower-potency
hemp retailer license program begins once OCM issues rules.
Hemp
Plant with less than 0.3 percent delta-9 tetrahydrocannabinol (THC)
concentration. New State lower-potency hemp retailer license program
begins once OCM issues rules.
Cannabis
Plant with more than 0.3 percent delta-9 tetrahydrocannabinol
(THC) concentration. New State cannabis business license
program begins end of 2024; preliminary licenses
applications now
Cannabis Business
Retail, cultivation, manufacture, transport, testing facility,
event, and delivery service.
Hemp Business
Lower-potency hemp edible manufacturer or lower-potency
hemp edible retailer. Does not include a person or entity
license by MN Dept. of Agriculture to grow or process
industrial hemp.
Number of Licenses
Social Equity All Other
2024
•grow cannabis plants and harvest
•make concentrate
•manufacture artificially derived cannabinoids;
•manufacture adult-use cannabis products, lower-potency hemp edibles, and hemp-derived
consumer products for public consumption;
•package and label adult-use cannabis flower, adult-use cannabis products, lower-potency
hemp edibles, and hemp-derived consumer products for sale to customers;
•sell immature cannabis plants and seedlings, adult-use cannabis flower, adult-use cannabis
products, lower-potency hemp edibles, hemp-derived consumer products, and other
products authorized by law to other cannabis businesses and to customers;
•operate an establishment that permits on-site consumption of edible cannabis products and
lower-potency hemp edibles;
•perform other actions approved by the office.
Cannabis Microbusiness
•grow cannabis plants and harvest
•make concentrate
•manufacture artificially derived cannabinoids;
•manufacture adult-use cannabis products, lower-potency hemp edibles, and hemp-
derived consumer products for public consumption;
•process medical cannabinoid products;
•package and label adult-use cannabis flower, adult-use cannabis products, lower-
potency hemp edibles, and hemp-derived consumer products for sale to
customers;
•sell immature cannabis plants and seedlings, adult-use cannabis flower, adult-use
cannabis products, lower-potency hemp edibles, hemp-derived consumer
products, and other products authorized by law to other cannabis businesses and
to customers
•perform other actions approved by the office.
Cannabis Mezzobusiness
•grow cannabis plants and harvest cannabis flower from a mature plant,
•package and label immature cannabis plants and seedlings and cannabis
flower for sale
•transport cannabis flower to a cannabis manufacturer located on the same
premises
•perform other actions approved by the office.
Cannabis Cultivator
•make concentrate
•manufacture artificially derived cannabinoids;
•manufacture adult-use cannabis products, lower-potency hemp edibles,
and hemp-derived consumer products for public consumption;
•package and label adult-use cannabis products, lower-potency hemp
edibles, and hemp-derived consumer products for sale to customers;
•sell cannabis concentrate, hemp concentrate, artificially derived
cannabinoids, cannabis products, lower-potency hemp edibles, and hemp-
derived consumer products to other cannabis businesses
•perform other actions approved by the office.
Cannabis Manufacturer
•sell immature cannabis plants and seedlings, adult-use
cannabis flower, adult-use cannabis products, lower-potency
hemp edibles, hemp-derived consumer products, and other
products authorized by law to customers; and
•perform other actions approved by the office.
Cannabis Retailer
•A cannabis wholesaler must ensure that cannabis plants, cannabis flower,
and cannabis products are physically separated from all other products,
including but not limited to lower-potency hemp edibles and hemp-
derived consumer products, in a manner that prevents any cross-
contamination.
•perform other actions approved by the office.
Cannabis Wholesaler
•obtain and test cannabis and hemp
•perform other actions approved by the office.
Cannabis Testing Facility
•organize a temporary cannabis event lasting no more than
four days.
•perform other actions approved by the office.
Cannabis Event Organizer
•(1) purchase hemp plant parts, hemp concentrate, and artificially derived
cannabinoids from cannabis microbusinesses, cannabis mezzobusinesses, cannabis
manufacturers, cannabis wholesalers, and lower-potency hemp edible
manufacturers;
•(2) purchase hemp plant parts and propagules from industrial hemp growers
licensed under chapter 18K;
•(3) purchase hemp concentrate from an industrial hemp processor licensed under
chapter 18K;
•(4) make hemp concentrate;
•(5) manufacture artificially derived cannabinoids;
•(6) manufacture lower-potency hemp edibles for public consumption;
•(7) package and label lower-potency hemp edibles for sale to customers;
•(8) sell hemp concentrate, artificially derived cannabinoids, and lower-potency
hemp edibles to other cannabis businesses and hemp businesses;
•perform other actions approved by the office.
Lower Potency Hemp Manufacturer
•Sell lower-potency hemp edibles
•A lower-potency hemp edible retailer may permit on-site
consumption of lower-potency hemp edibles on a portion of
its premises if it has an on-site consumption endorsement. (b)
The office shall issue an on-site consumption endorsement to
any lower-potency hemp edible retailer that also holds an on-
sale liquor license
•perform other actions approved by the office.
Lower Potency Hemp Retailer
342.13 LOCAL
CONTROL
(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.
This presentation is intended to convey general information and should not be taken as legal advice.
342.18 LICENSE SELECTION
CRITERIA.
This presentation is intended to convey general information and should not be taken as legal advice.
•Licenses outlined above fall under numerous uses and are currently allowed in all
zoning districts
•Given this information, the Council should consider the following questions
1. Where should the sale of cannabis and hemp products be permitted in the City of Scandia?
2. Where should the growth, production, and manufacturing of cannabis and hemp products be
permitted in the City of Scandia?
3. Will zoning districts allow the sale, growth, production, and manufacturing of cannabis and hemp as
a permitted use, or should they be conditional uses?
General Zoning Guidelines
CANNOTCAN
ProhibitChoose Zoning Districts
LicenseDistance from Schools
Distance from day cares
Distance from residential treatment facilities
Distances from playgrounds/baseball fields in
parks
Hours of Operation
Signage
Noise Levels
Odor
Register
1. Do you want to restrict Cannabis Businesses from operating close to schools?
a. within 1000 feet?
b. Within 500 feet?
c. No
2. Do you want to restrict Hemp Businesses from operating close to schools?
a. Within 1000 feet?
b. Within 500 feet?
c. No
3. Do you want to restrict Cannabis Businesses from operation within 500 feet from:
a. Day Cares
b. Residential Treatment Facilities
c. Attractions in parks (like playgrounds/baseball fields)
4. Do you want to regulate Cannabis Business operations more than you currently regulate other types of retail, plant growth, and
manufacturing operations?
5. Do you want to regulate Hemp Business operations more than you currently regulate other types of retail, plant growth, and
manufacturing operations?
6. Doesthe City want to regulate Cannabis and Hemp the same or differently that it regulates liquor and tobacco?
General Zoning Questions
Number of Retail Operations.Scandia could limit Cannabis Retail to a single license (legislation requires at least one
retail location per 12,500 residents). The city may prohibit the operation of a cannabis business within 1000 feet of a
school or 500 feet of a daycare, residential facility, public park, playground, or athletic field.
Question for Council. Does the Council want to use these distance restrictions; does the Council want to limit the # of
retail licenses?
Licensing (OCM) versus Registration (City or County).OCM is or will be the exclusive licensing entity. The city or the
county is limited to registration only. Registrations seem to fulfill two purposes only: (1) the City has a record of
Hemp/Cannabis Retail Operation locations and ownership, and (2) the Registration Fee covers the City’s
Hemp/Cannabis administrative costs, primarily compliance oversight.
Question for the City: Should the City undertake registration, and if so, what registration fee would it like to set? The
answer(s) to these questions are probably determined in part by how compliance will be undertaken and the
estimated City cost.
Compliance.If the City delegates registration to the County, the County is mandated to undertake the compliance
obligations required by law. If the Cityundertakes registration, is the City required to perform compliance
operations.
Licensing/Registration/Compliance
•July 24 Council Workshop – Cannabis/Hemp
•September 4 Council Workshop – Present/Discuss Proposed Zoning Ordinance
•October 1 Planning Commission Review – Cannabis/Hemp Zoning Ordinance
•November 19 Council Public Hearing – Cannabis/Hemp Zoning Ordinance Adoption
Timeline for Review and Approval
Business Type Conduct taking place on site Size Scandia Zoning Districts
PermiƩed
(1) cannabis
microbusiness
licenses, 100;
grow cannabis plants and harvest
make concentrate
manufacture arƟficially derived cannabinoids;
manufacture adult-use cannabis products, lower-potency
hemp edibles, and hemp-derived consumer products for
public consumpƟon;
package and label adult-use cannabis flower, adult-use
cannabis products, lower-potency hemp edibles, and
hemp-derived consumer products for sale to customers;
sell immature cannabis plants and seedlings, adult-use
cannabis flower, adult-use cannabis products, lower-
potency hemp edibles, hemp-derived consumer products,
and other products authorized by law to other cannabis
businesses and to customers;
operate an establishment that permits on-site
consumpƟon of edible cannabis products and lower-
potency hemp edibles;
perform other actions approved by the office.
A cannabis microbusiness that
cultivates cannabis at an indoor
facility may cultivate up to
5,000 square feet of plant
canopy.
A cannabis microbusiness that
cultivates cannabis at an
outdoor location may cultivate
up to one-half acre of mature,
flowering plants unless the
office increases that limit. The
office may increase the limit to
no more than one acre.
(d) A cannabis microbusiness
with the appropriate
endorsement may operate one
retail location.
Light Manufacturing and
Assembly
I-P
Agricultural Direct –
Market Business
A-P
AG-C
RR-G
RR-N
V-N
Agricultural Processing A-P
AG-C
RR-G
R-C
Agriculture A-P
AG-C
RR-G
RR-N
R-C
Agritourism Enterprise AG-C
RR-G
RR-N
Y-N
R-C
Plant Nursery,
Greenhouses
Ag-C
RR-G
RR-N
V-M
V-C
V-HC
R-C
I-P
Feed and Seed Sales A-P
AG-C
RR-G
Retail Sales and Services V-C
V-HC
R-C
Processing food and
beverages
V-C
I-P
Wholesale business V-C
V-HC
I-P
Bars and Taverns V-C
V-HC
R-C
Restaurants V-C
V-HC
R-C
(2) cannabis
mezzobusiness
licenses, 11;
grow cannabis plants and harvest
make concentrate
manufacture arƟficially derived cannabinoids;
manufacture adult-use cannabis products, lower-potency
hemp edibles, and hemp-derived consumer products for
public consumpƟon;
process medical cannabinoid products;
package and label adult-use cannabis flower, adult-use
cannabis products, lower-potency hemp edibles, and
hemp-derived consumer products for sale to customers;
sell immature cannabis plants and seedlings, adult-use
cannabis flower, adult-use cannabis products, lower-
potency hemp edibles, hemp-derived consumer products,
and other products authorized by law to other cannabis
businesses and to customers
perform other actions approved by the office.
A cannabis mezzobusiness that
culƟvates cannabis at an indoor
facility may culƟvate up to
15,000 square feet of plant
canopy. The office may adjust
plant canopy limits upward.
A cannabis mezzobusiness that
culƟvates cannabis at an
outdoor locaƟon may culƟvate
up to one acre of mature,
flowering plants unless the
office increases that limit. The
office may increase the limit to
no more than three acres.
Light Manufacturing and
Assembly
I-P
Agricultural Direct –
Market Business
A-P
AG-C
RR-G
RR-N
V-N
Agricultural Processing A-P
AG-C
RR-G
R-C
Agriculture A-P
AG-C
RR-G
RR-N
R-C
Agritourism Enterprise AG-C
RR-G
RR-N
Y-N
R-C
Plant Nursery,
Greenhouses
Ag-C
RR-G
RR-N
V-M
V-C
V-HC
R-C
I-P
Feed and Seed Sales A-P
AG-C
RR-G
Retail Sales and Services V-C
V-HC
R-C
Processing food and
beverages
V-C
I-P
Wholesale business V-C
V-HC
I-P
(3) cannabis
culƟvator
licenses, 13;
grow cannabis plants and harvest cannabis flower from a
mature plant,
package and label immature cannabis plants and seedlings
and cannabis flower for sale
transport cannabis flower to a cannabis manufacturer
located on the same premises
perform other actions approved by the office.
A cannabis culƟvator that
culƟvates cannabis at an indoor
facility may culƟvate up to
30,000 square feet of plant
canopy. The office may adjust
plant canopy limits upward.
(b) A cannabis culƟvator that
culƟvates cannabis at an
outdoor locaƟon may culƟvate
up to two acres of mature,
flowering plants unless the
office increases that limit. The
office may increase the limit to
no more than four acres.
Light Manufacturing and
Assembly
I-P
Agricultural Direct –
Market Business
A-P
AG-C
RR-G
RR-N
V-N
Agricultural Processing A-P
AG-C
RR-G
R-C
Agriculture A-P
AG-C
RR-G
RR-N
R-C
Feed and Seed Sales A-P
AG-C
RR-G
Plant Nursery,
Greenhouses
Ag-C
RR-G
RR-N
V-M
V-C
V-HC
R-C
I-P
(4) cannabis
manufacturer
licenses, six;
make concentrate
manufacture arƟficially derived cannabinoids;
manufacture adult-use cannabis products, lower-potency
hemp edibles, and hemp-derived consumer products for
public consumpƟon;
package and label adult-use cannabis products, lower-
potency hemp edibles, and hemp-derived consumer
products for sale to customers;
sell cannabis concentrate, hemp concentrate, arƟficially
derived cannabinoids, cannabis products, lower-potency
hemp edibles, and hemp-derived consumer products to
other cannabis businesses
perform other actions approved by the office.
The office shall establish a limit
on the manufacturing of
cannabis products, lower-
potency hemp edibles, or
hemp-derived consumer
products a cannabis
manufacturer may perform.
Light Manufacturing and
Assembly
I-P
Processing food and
beverages
V-C
I-P
(5) cannabis
retailer
licenses, 50;
sell immature cannabis plants and seedlings, adult-use
cannabis flower, adult-use cannabis products, lower-
potency hemp edibles, hemp-derived consumer products,
and other products authorized by law to customers; and
perform other actions approved by the office.
A cannabis retailer may operate
up to five retail locaƟons.
Retail Sales and Services V-C
V-HC
R-C
(6) cannabis
wholesaler
licenses, 20;
A cannabis wholesaler must ensure that cannabis plants,
cannabis flower, and cannabis products are physically
separated from all other products, including but not
limited to lower-potency hemp edibles and hemp-derived
consumer products, in a manner that prevents any cross-
contaminaƟon.
perform other actions approved by the office.
A cannabis wholesaler shall
maintain compliance with state
and local building, fire, and
zoning requirements or
regulaƟons.
Wholesaling V-C
V-HC
I-P
(7) cannabis
transporter
licenses, 20;
Transport virtually everything cannabis/hemp related
perform other actions approved by the office.
None
(8) cannabis
tesƟng facility
licenses, 25;
obtain and test cannabis and hemp
perform other actions approved by the office.
None Laboratories, medical,
research, and tesƟng
I-P
Research I-P
(9) cannabis
event
organizer
licenses, ten;
and
organize a temporary cannabis event lasƟng no more than
four days.
perform other actions approved by the office.
None Retail Sales and Services V-C
V-HC
R-C
Temporary Outdoor
Retail Sales
V-C
V-HC
R-C
Resorts/Conference
Center
AG-C
RR-G
Rural Event Facility AG-C
RR-G
RR-N
R-C
Farmers Market V-C
V-HC
R-C
(10) cannabis
delivery
service
licenses, ten.
Purchase, transport and deliver hemp and cannabis
perform other actions approved by the office.
None
Type of Hemp
Business
Types of operaƟons permiƩed Type of use District
Lower-
Potency Hemp
Edible
Manufacturer
(1) purchase hemp plant parts, hemp concentrate, and arƟficially derived cannabinoids from cannabis
microbusinesses, cannabis mezzobusinesses, cannabis manufacturers, cannabis wholesalers, and lower-
potency hemp edible manufacturers;
(2) purchase hemp plant parts and propagules from industrial hemp growers licensed under chapter 18K;
(3) purchase hemp concentrate from an industrial hemp processor licensed under chapter 18K;
(4) make hemp concentrate;
(5) manufacture arƟficially derived cannabinoids;
(6) manufacture lower-potency hemp edibles for public consumpƟon;
(7) package and label lower-potency hemp edibles for sale to customers;
(8) sell hemp concentrate, arƟficially derived cannabinoids, and lower-potency hemp edibles to other cannabis
businesses and hemp businesses;
Light
Manufacturing
and Assembly
I-P
Processing
food and
beverages
V-C
I-P
Wholesale
business
V-C
V-HC
I-P
Lower-
potency hemp
edible retailer
sell lower-potency hemp edibles
A lower-potency hemp edible retailer may permit on-site consumpƟon of lower-potency hemp edibles on a
porƟon of its premises if it has an on-site consumpƟon endorsement. (b) The office shall issue an on-site
consumpƟon endorsement to any lower-potency hemp edible retailer that also holds an on-sale liquor license
Retail Sales and
Services
V-C
V-HC
R-C
Bars and
Taverns
V-C
V-HC
R-C
Restaurants V-C
V-HC
R-C
Liquor, off sale V-C
V-HC
R-C
Clubs/Lounges V-C
V-HC
R-C
Brewery/Cidery AG-C
V-C
V-HC
R-G
I-P
Club Houses AG-C
RR-G
A Guide for Local Governments
on Adult-Use Cannabis
Version 1.2
June 25, 2024
Table of Contents
Introduction ............................................................... 3
About OCM ............................................................... 4
Cannabis License Types ............................................. 5
Adult-Use Cannabis Law ........................................... 7
Cannabis Licensing Process........................................ 8
General Authorities .................................................. 10
Zoning and Land Use ................................................ 12
Local Approval Process ............................................. 15
Inspections and Compliance Checks ........................ 18
Municipal Cannabis Stores ...................................... 19
Creating Your Local Ordinance ............................... 20
Additional Resources ................................................ 21
Introduction
This guide serves as a general overview of Minnesota’s new adult-use cannabis law, and
how local governments can expect to be involved. The guide also provides important
information about Minnesota’s new Office of Cannabis Management (OCM), and the
office’s structure, roles, and responsibilities. While medical cannabis continues to play an
important role in the state’s cannabis environment, this guide is primarily focused on the
adult-use cannabis law and marketplace.
The following pages outline the variety of cannabis business licenses that will be issued,
provide a broad summary of important aspects of the adult-use cannabis law, and cover a
wide range of expectations and authorities that relate to local governments. This guide also
provides best practices and important requirements for developing a local cannabis
ordinance.
Chapter 342 of Minnesota law
was established by the State
Legislature in 2023 and was
updated in 2024. Mentions of
“adult-use cannabis law” or “the
law” throughout this guide refer
to Chapter 342 and the changes
made to it.
As of this guide’s date of
publication, state regulations
governing the adult-use
cannabis market have not yet
been published—this document
will be updated when such
regulations become effective.
This guide is not a substitute for legal advice, nor does it seek to provide legal advice. Local governments and
municipal officials seeking legal advice should consult an attorney.
Page 3
About OCM
Minnesota’s Office of Cannabis Management is the state regulatory office created to
oversee the implementation and regulation of the adult-use cannabis market, the medical
cannabis market, and the consumer hemp industry. Housed within OCM are the Division
of Medical Cannabis (effective July 1, 2024), which operates the medical cannabis
program, and the Division of Social Equity, which promotes development, stability, and
safety in communities that have experienced a disproportionate, negative impact from
cannabis prohibition and usage.
OCM, through Chapter 342, is tasked with establishing rules and policy and exercising its
regulatory authority over the Minnesota cannabis industry. In its duties, OCM is mandated
to:
Promote public health and welfare.
Protect public safety.
Eliminate the illicit market for cannabis flower and cannabis products.
Meet the market demand for cannabis flower and cannabis products.
Promote a craft industry for cannabis flower and cannabis products.
Prioritize growth and recovery in communities that have experienced a
disproportionate, negative impact from cannabis prohibition.
OCM governs the application and licensing process for cannabis and hemp businesses,
specific requirements for each type of license and their respective business activities, and
conducts enforcement and inspection activities across the Minnesota cannabis and hemp
industries.
Page 4
License Types
Minnesota law allows for 13 different types of business licenses, each fulfilling a unique role
in the cannabis and hemp supply chain. In addition to license types below, OCM will also
issue endorsements to license holders to engage in specific activities, including producing,
manufacturing, and sale of medical cannabis for patients.
Microbusiness
Microbusinesses may cultivate cannabis and manufacture cannabis products and hemp
products, and package such products for sale to customers or another licensed cannabis
business. Microbusiness may also operate a single retail location.
Mezzobusiness
Mezzobusinesses may cultivate cannabis and manufacture cannabis products and hemp
products, and package such products for sale to customers or another licensed cannabis
business. Mezzobusiness may also operate up to three retail locations.
Cultivator
Cultivators may cultivate cannabis and package such cannabis for sale to another licensed
cannabis business.
Manufacturer
Manufacturers may manufacture cannabis products and hemp products, and package such
products for sale to a licensed cannabis retailer.
Retailer
Retailers may sell immature cannabis plants and seedlings, cannabis, cannabis products,
hemp products, and other products authorized by law to customers and patients.
Wholesaler
Wholesalers may purchase and/or sell immature cannabis plants and seedlings, cannabis,
cannabis products, and hemp products from another licensed cannabis business.
Wholesalers may also import hemp-derived consumer products and lower-potency hemp
edibles.
Page 5
License Types (continued)
Transporter
Transporters may transport immature cannabis plants and seedlings, cannabis, cannabis
products, and hemp products to licensed cannabis businesses.
Testing Facility
Testing facilities may obtain and test immature cannabis plants and seedlings, cannabis,
cannabis products, and hemp products from licensed cannabis businesses.
Event Organizer
Event organizers may organize a temporary cannabis event lasting no more than four days.
Delivery Service
Delivery services may purchase cannabis, cannabis products, and hemp products from
retailers or cannabis business with retail endorsements for transport and delivery to
customers.
Medical Cannabis Combination Business
Medical cannabis combination businesses may cultivate cannabis and manufacture
cannabis and hemp products, and package such products for sale to customers, patients,
or another licensed cannabis business. Medical cannabis combination businesses may
operate up to one retail location in each congressional district.
Lower-Potency Hemp Edible Manufacturer
Lower-potency hemp edible manufacturers may manufacture and package lower-potency
hemp edibles for consumer sale, and sell hemp concentrate and lower-potency hemp
edibles to other cannabis and hemp businesses.
Lower-Potency Hemp Edible Retailer
Lower-potency hemp edible retailers may sell lower-potency hemp edibles to customers.
Each license is subject to further restrictions on allowable activities. Maximum cultivation
area and manufacturing allowances vary by license type. Allowable product purchase,
transfer, and sale between licensees are subject to restrictions in the law.
Page 6
The Adult-Use Cannabis Law
Minnesota’s new adult-use cannabis law permits the personal use, possession, and
transportation of cannabis by those 21 years of age and older, and allows licensed
businesses to conduct cultivation, manufacturing, transport, delivery, and sale of cannabis
and cannabis products.
For Individuals
Possession limits:
Flower - 2 oz. in public, 2 lbs. in private residence
Concentrate - 8 g
Edibles (including lower-potency hemp) - 800 mg THC
Consumption only allowed on private property or at licensed businesses with on-site
consumption endorsements. Consumption not allowed in public.
Gifting cannabis to another individual over 21 years old is allowed, subject to
possession limits.
Home cultivation is limited to four mature and four immature plants (eight total) in a
single residence. Plants must be in an enclosed and locked space.
Home extraction using volatile substances (e.g., butane, ethanol) is not allowed.
Unlicensed sales are not allowed.
For Businesses
Advertising:
May not include or appeal to those under 21 years old.
Must include proper warning statements.
May not include misleading claims or false statements.
Billboards are not allowed.
The flow of all products through the supply chain must be
tracked by the state-authorized tracking system.
All products sold to consumers and patients must be
tested for contaminants.
Home delivery is allowed by licensed businesses.
Page 7
The Cannabis Licensing Process
An applicant will take the following steps to proceed from application to active licensure.
As described, processes vary depending on social equity status and/or whether the type of
license being sought is capped or uncapped in the general licensing process.
License Preapproval: Early Mover Process for Social
Equity Applicants
The license preapproval process is a one-time application process available for verified social
equity applicants. State law requires OCM to open the application window on July 24,
2024, and close the window on August 12, 2024. The preapproval process is available for
the following license types, and all are capped in this process: microbusiness, mezzobusiness,
cultivator, retailer, wholesaler, transporter, testing facility, and delivery service.
Applicant’s social equity applicant (SEA) status verified.
Complete application and submit application fees.
Application vetted for minimum requirements by OCM.
Application (if qualified) entered into lottery drawing.
If selected in lottery, OCM completes background check of selected applicant and
issues license preapproval.
Applicant with license preapproval* submits business location and amends application
accordingly.
OCM forwards completed application to local government.
Local government completes certification of zoning compliance.
OCM conducts site inspection.
When regulations are adopted, license becomes active, operations may commence.
*For social equity applicants with license preapproval for microbusiness, mezzobusiness, or
a cultivator license, they may begin growing cannabis plants prior to the adoption of rules if
OCM receives approval from local governments in a form and manner determined by the
office. This is only applicable to cultivation and does not authorize retail sales or other
endorsed activities of the licenses prior to the adoption of rules.
Preapproval steps:
Page 8
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
The Cannabis Licensing Process (cont.)
The general licensing process will align with the adoption of rules and OCM will share more
information about the timing of general licensing process. The general licensing process
includes social equity applicants and non-social equity applicants.
General Licensing: Cultivator, Manufacturer, Retailer, Mezzobusiness
Complete application and submit application fees.
Application vetted for minimum requirements by OCM.
Application (if qualified) entered into lottery drawing.
If selected in lottery, OCM completes background check of selected applicant and
issues preliminary approval.
Applicant with preliminary approval submits business location and amends application
accordingly.
OCM forwards completed application to local government.
Local government completes certification of zoning compliance.
OCM conducts site inspection.
License becomes active, operations may commence.*
General Licensing: Microbusiness, Wholesaler, Transporter, Testing
Facility, Event Organizer
Complete application and submit application fees.1.
Application vetted for minimum requirements by OCM.2.
For qualified applicants, OCM completes background check of vetted applicant and
issues preliminary approval.
3.
Selected applicant submits business location and amends application accordingly.4.
OCM forwards completed application to local government.5.
Local government completes certification of zoning compliance.6.
OCM conducts site inspection.7.
License becomes active, operations may commence.*8.
1.
2.
3.
4.
5.
6.
7.
8.
9.
*For businesses seeking a retail endorsement (microbusiness, mezzobusiness, and retailer),
a valid local retail registration is required prior to the business commencing any retail sales.
See Page 16 for information on the local retail registration process.
Page 9
General Authorities
Local governments in Minnesota have various means of oversight over the cannabis market,
as provided by the adult-use cannabis law. Local governments may not issue outright bans on
cannabis business, or limit operations in a manner beyond what is provided by state law.
Cannabis Retail Restrictions (342.13)
Local governments may limit the number of retailers and microbusiness/mezzobusinesses
with retail endorsements allowed within their locality, as long as there is at least one retail
location per 12,500 residents. Local units of government are not obligated to seek out a
business to register as cannabis business if they have not been approached by any potential
applicants, but cannot prohibit the establishment of a business if this population
requirement is not met. Local units of government may also issue more than the minimum
number of registrations. Per statutory direction, a municipal cannabis store (Page 19)
cannot be included in the minimum number of registrations required. For population
counts, the state demographer estimates will likely be utilized.
Tribal Governments (342.13)
OCM is prohibited from and will not issue state licenses to businesses in Indian Country
without consent from a tribal nation. Tribal nations hold the authority to license tribal
cannabis businesses on tribal lands – this process is separate than OCM’s licensing
process and authority. Subject to compacting, Tribal nations may operate cannabis
businesses off tribal lands. There will be more information available once the compacting
processes are complete.
Taxes (295.81; 295.82)
Retail sales of taxable cannabis products are subject to the state and local sales and use tax
and a 10% gross receipts tax. Cannabis gross receipts tax proceeds are allocated as follows:
20% to the local government cannabis aid account and 80% to the state general fund.
Local taxes imposed solely on sale of cannabis products are prohibited.
Cannabis retailers will be subject to the same real property tax classification as all other
retail businesses. Real property used for raising, cultivating, processing, or storing cannabis
plants, cannabis flower, or cannabis products for sale will be classified as commercial and
industrial property.
Page 10
General Authorities (cont.)
Retail Timing Restrictions (342.13)
Local governments may prohibit retail sales of cannabis between the hours of 8 a.m. and
10 a.m. Monday-Saturday, and 9 p.m. and 2 a.m. the following day.
Operating Multiple Locations with One License
Certain cannabis licenses allow for multiple retail locations to be operated under a single
license, with the following limitations:
Retailers: up to five retail locations.
Mezzobusinesses: up to three retail locations.
Microbusinesses: up to one retail location.
Medical cannabis combination businesses: one retail location per congressional
district. Additionally, medical cannabis combination businesses may cultivate at more
than one location within other limitations on cultivation.
For all other license types, one license permits the operation of one location. Each retail
location requires local certification and/or registration.
Page 11
Zoning and Land Use
Buffer Guidelines (342.13)
State law does not restrict how a local government conducts its zoning designations for
cannabis businesses, except that they may prohibit the operation of a cannabis business
within 1,000 feet of a school, or 500 feet of a day care, residential treatment facility, or
an attraction within a public park that is regularly used by minors, including playgrounds
and athletic fields.
Zoning Guidelines
While each locality conducts its zoning differently, a few themes have emerged across the
country. For example, cannabis manufacturing facilities are often placed in industrial
zones, while cannabis retailers are typically found in commercial/retail zones. Cannabis
retail facilities align with general retail establishments and are prohibited from allowing
consumption or use onsite, and are also required to have plans to prevent the visibility of
cannabis and hemp-derived products to individuals outside the retail location. Industrial
hemp is an agricultural product, and should be zoned as such.
Cannabis businesses should be zoned under existing zoning ordinances in accordance with
the license type or endorsed activities held by the cannabis business. Note that certain
types of licenses may be able to perform multiple activities which may have different
zoning analogues. In the same way municipalities may zone a microbrewery that
predominately sells directly to onsite consumers differently than a microbrewery that sells
packaged beer to retailers and restaurants, so too might a municipality wish to zone two
microbusinesses based on the actual activities that each business is undertaking. Table 1,
included on Pages 13 and 14, explains the types of activities that cannabis businesses might
undertake, as well as, some recommended existing zoning categories.
Page 12
Endorsed Activity
License Type
Eligible to Do
Endorsed Activity
Description of Activity Comparable
Districts
Municipal
Considerations
Cultivation
Cultivator
Mezzobusiness
Microbusiness
Medical Cannabis
Combination
"Cultivation" means any
activity involving the planting,
growing, harvesting, drying,
curing, grading, or trimming
of cannabis plants, cannabis
flower, hemp plants, or hemp
plant parts.
Indoor:
Industrial,
Commercial,
Production
Outdoor:
Agricultural
Odor
Potential need for
transportation from
facility
Waste, water, and
energy usage
Security
Cannabis
Manufacturing,
Processing,
Extraction
Manufacturer
Mezzobusiness
Microbusiness
Medical Cannabis
Combination
This group of endorsed
activities turn raw, dried
cannabis and cannabis parts
into other types of cannabis
products, e.g. edibles or
topicals.
Industrial,
Commercial,
Production
Odor
Potential need for
transportation from
facility
Waste, water, and
energy usage
Security
Hemp
Manufacturing
Lower-Potency
Hemp Edible
(LPHE)
Manufacturing
These business convert hemp
into LPHE edible prodcuts.
Industrial,
Commercial,
Production
Odor
Waste, water, and
energy
Wholesale
Wholesale
Cultivator
Manufacturer
Mezzobusiness
Microbusiness
Medical Cannabis
Combination
This activity and license type
allows a business to purchase
from a business growing or
manufacturing cannabis or
cannabis products and sell to
a cannabis business engaged
in retail.
Industrial,
Commercial,
Production
Need for
transportation from
facility
Security
Page 13
Zoning and Land Use (cont.)
Table 1: Cannabis and Hemp Business Activities
Page 14
Endorsed Activity
License Type
Eligible to Do
Endorsed Activity
Description of
Activity
Comparable
Districts
Municipal
Considerations
Cannabis Retail
Retailer
Mezzobusiness
Microbusiness
Medical Cannabis
Combination
This endorsed
activity and license
types allow a business
to sell cannabis and
cannabis products
directly to
consumers.
Retail,
Neighborhood
Shopping Districts,
Light Industrial,
Existing districts
where off-sale liquor
or tobacco sales are
allowed.
Micros may offer
onsite consumption,
similar to breweries.
Micros and Mezzos
may include multiple
activities: cultivation,
manufacture, and/or
retail.
Transportation Cannabis
Transporter
This license type
allows a company to
transport products
from one license
type to another.
Fleet based business
that will own multiple
vehicles, but not
necessarily hold a
substantial amount
of cannabis or
cannabis products.
Delivery Cannabis Delivery
This license type
allows for
transportation to the
end consumer.
Fleet based business
that will own multiple
vehicles, but not
necessarily hold a
substantial amount
of cannabis or
cannabis products.
Events Event Organizer
This license entitles
license holder to
organizer a
temporary event
lasting no more than
four days.
Anywhere that the
city permits events
to occur, subject to
other restrictions
related to cannabis
use.
On site
consumption.
Retail sales by a
licensed or endorsed
retail business
possible.
Zoning and Land Use (cont.)
Table 1: Cannabis and Hemp Business Activities (continued)
Local Approval Process
Local governments play a critical role in the licensing
process, serving as a near-final approval check on
cannabis businesses nearing the awarding of a state
license for operations. Once an applicant has been
vetted by OCM and is selected for proceeding in the
verification process, they are then required to receive
the local government’s certification of zoning
compliance and/or local retail registration before
operations may commence.
Local Certification of Zoning Compliance (342.13;
342.14)
Following OCM’s vetting process, local governments must certify that the applicant with
preliminary approval has achieved compliance with local zoning ordinances prior to the
licensee receiving final approval from OCM to commence operations.
During the application and licensing process for cannabis businesses, OCM will notify a
local government when an applicant intends to operate within their jurisdiction and request
a certification as to whether a proposed cannabis business complies with local zoning
ordinances, and if applicable, whether the proposed business complies with state fire code
and building code.
According to Minnesota’s cannabis law, a local unit of government has 30 days to respond
to this request for certification of compliance. If a local government does not respond to
OCM’s request for certification of compliance within the 30 days, the cannabis law allows
OCM to issue a license. OCM may not issue the final approval for a license if the local
government has indicated they are not in compliance.
OCM will work with local governments to access the licensing software system to
complete this zoning certification process.
Page 15
Local Approval Process (cont.)
Local Retail Registration Process (342.22)
Once the licensing process begins, local government registration applies to cannabis
retailers or other cannabis/hemp businesses seeking a retail endorsement. Local
governments must issue a retail registration after verifying that:
The business has a valid license or license preapproval issued by OCM.
The business has paid a registration fee or renewal fee to the local government;
Initial registration fees collected by a local government may be $500 or half the
amount of the applicable initial license fee, whichever is less, and renewal
registration fees may be $1,000 or half the amount of the applicable renewal
license fee, whichever is less.
The business is found to be in compliance with Chapter 342 and local ordinances.
If applicable, the business is current on all property taxes and assessments for the
proposed retail location.
Local registrations may also be issued by counties if the respective local government
transfers such authorities to the county.
Determining a Process for Limiting Retail Registrations
If a local government wishes to place a limitation on the number of retailers and
microbusiness/mezzobusinesses with retail endorsements allowed within their locality (as
long as there is at least one retail location per 12,500 residents, see Page 10), state law
does not define the process for a local government’s selection if there are more applicants
than registrations available. A few options for this process include the use of a lottery, a
first-come/first-serve model, a rolling basis, and others. Local governments should work
with an attorney to determine their specific process for selection if they wish to limit the
number of licensed cannabis retailers per 342.13. Local governments are not required to
limit the number of licensed cannabis retailers.
Page 16
Local Approval Process (cont.)
Local governments are permitted specific authorities for registration refusal and
registration suspension, in addition to—and not in conflict with—OCM authorities.
Registration and Renewal Refusals
Local governments may refuse the registration
and/or certification of a license renewal if the
license is associated with an individual or business
who no longer holds a valid license, has failed to pay
the local registration or renewal fee, or has been
found in noncompliance in connection with a
preliminary or renewal compliance check.
Local Registration Suspension (342.22)
Local governments may suspend the local retail registration of a cannabis business or
hemp business if the business is determined to not be operating in compliance with a
local ordinance authorized by 342.13 or if the operation of the business poses an
immediate threat to the health and safety of the public. The local government must
immediately notify OCM of the suspension if it occurs. OCM will review the
suspension and may reinstate the registration or take enforcement action.
Expedited Complaint Process (342.13)
Per state law, OCM will establish an expedited complaint process during the rulemaking
process to receive, review, read, and respond to complaints made by a local unit of
government about a cannabis business. Upon promulgation of rules, OCM will publish
the complaint process.
At a minimum, the expedited complaint process shall require the office to provide an
initial response to the complaint within seven days and perform any necessary
inspections within 30 days. Within this process, if a local government notifies OCM
that a cannabis business poses an immediate threat to the health or safety of the public,
the office must respond within one business day.
Page 17
Inspections & Compliance Checks
Local governments are permitted specific business inspection and compliance check
authorities, in addition to—and not in conflict with—OCM authorities.
Inspections and Compliance Checks (342.22)
Local governments must conduct compliance
checks for cannabis and hemp businesses
holding retail registration at least once per
calendar year. These compliance checks must
verify compliance with age verification
procedures and compliance with any applicable
local ordinance established pursuant to 342.13.
OCM maintains inspection authorities for all
cannabis licenses to verify compliance with
operation requirements, product limits, and
other applicable requirements of Chapter 342.
Page 18
Municipal Cannabis Stores
State law requires OCM issue a license to a
city or county seeking to operate a single
municipal cannabis store if the city or
county:
As authorized in Chapter 342.32, local
governments are permitted to apply for
a cannabis retail license to establish and
operate a municipal cannabis store.
Submits required application information to OCM,
Meets minimum requirements for licensure, and
Pays applicable application and license fee.
A municipal cannabis store will not be included in the total count of retail licenses issued by
the state under Chapter 342.
A municipal cannabis store cannot be counted as retail registration for purposes of
determining whether a municipality’s cap on retail registrations imposed by ordinance.
Page 19
Creating Your Local Ordinance
Local governments may not prohibit the possession,
transportation, or use of cannabis, or the establishment
or operation of a cannabis business licensed under state
law.
Local governments may adopt reasonable restrictions on
the time, place, and manner of cannabis business
operations (see Page 11).
Local governments may adopt interim ordinances to
protect public safety and welfare, as any studies and/or
further considerations on local cannabis activities are
being conducted, until January 1, 2025. A public hearing
must be held prior to adoption of an interim ordinance.
If your local government wishes to operate a municipal
cannabis store, the establishment and operation of such
a facility must be considered in a local ordinance.
As authorized in 342.13, a local government may adopt a local ordinance regarding
cannabis businesses. Establishing local governments’ ordinances on cannabis businesses in
a timely manner is critical for the ability for local cities or towns to establish local control as
described in the law, and is necessary for the success of the statewide industry and the
ability of local governments to protect public health and safety. The cannabis market’s
potential to create jobs, generate revenue, and contribute to economic development at
the local and state level is supported through local ordinance work. The issuance of local
certifications and registrations to prospective cannabis businesses is also dependent on
local ordinances.
Model Ordinance
For additional guidance regarding the creation of a cannabis related ordinance, please
reference the addendum in this packet.
Page 20
Additional Resources
OCM Toolkit for Local Partners
Please visit OCM webpage (mn.gov/ocm/local-governments/) for additional information,
including a toolkit of resources developed specifically for local government partners. The
webpage will be updated as additional information becomes available and as state
regulations are adopted.
These resources are also included in the addendum of this packet.
Toolkit resources include:
Appendix A: Model Ordinance
Appendix B: Hemp Flower and Hemp-Derived Cannabinoid Product Checklist
Appendix C: Enforcement Notice from the Office of Cannabis Management
Appendix D: Notice to Unlawful Cannabis Sellers
Local Organizations
There are several organizations who also have developed resources to support local
governments regarding the cannabis industry. Please feel free to contact the
following for additional resources:
League of Minnesota Cities
Association of Minnesota Counties
Minnesota Public Health Law Center
Page 21
Appendix A: Model Ordinance
Cannabis Model Ordinance
The following model ordinance is meant to be used as a resource for cities, counties, and townships within
Minnesota. The italicized text in red is meant to provide commentary and notes to jurisdictions considering
using this ordinance and should be removed from any ordinance formally adopted by said jurisdiction.
Certain items are not required to be included in the adopted ordinance: ‘OR’ and (optional) are placed
throughout for areas where a jurisdiction may want to consider one or more choices on language.
Section 1 Administration
Section 2 Registration of Cannabis Business
Section 3 Requirements for a Cannabis Business (Time, Place, Manner)
Section 4 Temporary Cannabis Events
Section 5 Lower Potency Hemp Edibles
Section 6 Local Government as a Retailer
Section 7 Use of Cannabis in Public
AN ORDINANCE OF THE (CITY/COUNTY OF ______) TO REGULATE CANNABIS
BUSINESSES
The (city council/town board/county board) of (city/town/county) hereby ordains:
Section 1. Administration
1.1 Findings and Purpose
(insert local authority) makes the following legislative findings:
The purpose of this ordinance is to implement the provisions of Minnesota Statutes,
chapter 342, which authorizes (insert local authority) to protect the public health, safety,
welfare of (insert local here) residents by regulating cannabis businesses within the legal
boundaries of (insert local here).
(insert local authority) finds and concludes that the proposed provisions are appropriate
and lawful land use regulations for (insert local here), that the proposed amendments will
promote the community's interest in reasonable stability in zoning for now and in the
future, and that the proposed provisions are in the public interest and for the public good.
1.2 Authority & Jurisdiction
A county can adopt an ordinance that applies to unincorporated areas and cities that have
delegated authority to impose local zoning controls.
(insert local authority) has the authority to adopt this ordinance pursuant to:
a) Minn. Stat. 342.13(c), regarding the authority of a local unit of government to
adopt reasonable restrictions of the time, place, and manner of the operation of
a cannabis business provided that such restrictions do not prohibit the
establishment or operation of cannabis businesses.
b) Minn. Stat. 342.22, regarding the local registration and enforcement
requirements of state-licensed cannabis retail businesses and lower-potency
hemp edible retail businesses.
c) Minn. Stat. 152.0263, Subd. 5, regarding the use of cannabis in public places.
d) Minn. Stat. 462.357, regarding the authority of a local authority to adopt zoning
ordinances.
Ordinance shall be applicable to the legal boundaries of (insert local here).
(Optional) (insert city here) has delegated cannabis retail registration authority to (insert county here).
However, (insert city here) may adopt ordinances under Sections (2.6, 3 and 4) if (insert county here) has
not adopted conflicting provisions.
1.3 Severability
If any section, clause, provision, or portion of this ordinance is adjudged unconstitutional
or invalid by a court of competent jurisdiction, the remainder of this ordinance shall not
be affected thereby.
1.4 Enforcement
The elected body of a jurisdiction can choose to designate an official to administer and
enforce this ordinance.
The (insert name of local government or designated official) is responsible for the
administration and enforcement of this ordinance. Any violation of the provisions of this
ordinance or failure to comply with any of its requirements constitutes a misdemeanor
and is punishable as defined by law. Violations of this ordinance can occur regardless of
whether or not a permit is required for a regulated activity listed in this ordinance.
1.5 Definitions
1. Unless otherwise noted in this section, words and phrases contained in Minn. Stat. 342.01
and the rules promulgated pursuant to any of these acts, shall have the same meanings in
this ordinance.
2. Cannabis Cultivation: A cannabis business licensed to grow cannabis plants within the
approved amount of space from seed or immature plant to mature plant. harvest
cannabis flower from mature plant, package and label immature plants and seedlings
and cannabis flower for sale to other cannabis businesses, transport cannabis flower to a
cannabis manufacturer located on the same premises, and perform other actions
approved by the office.
3. Cannabis Retail Businesses: A retail location and the retail location(s) of a
mezzobusinesses with a retail operations endorsement, microbusinesses with a retail
operations endorsement, medical combination businesses operating a retail location,
(and/excluding) lower-potency hemp edible retailers.
4. Cannabis Retailer: Any person, partnership, firm, corporation, or association, foreign or
domestic, selling cannabis product to a consumer and not for the purpose of resale in any
form.
5. Daycare: A location licensed with the Minnesota Department of Human Services to
provide the care of a child in a residence outside the child's own home for gain or
otherwise, on a regular basis, for any part of a 24-hour day.
6. Lower-potency Hemp Edible: As defined under Minn. Stat. 342.01 subd. 50.
7. Office of Cannabis Management: Minnesota Office of Cannabis Management, referred to
as “OCM” in this ordinance.
8. Place of Public Accommodation: A business, accommodation, refreshment,
entertainment, recreation, or transportation facility of any kind, whether licensed or not,
whose goods, services, facilities, privileges, advantages or accommodations are extended,
offered, sold, or otherwise made available to the public.
9. Preliminary License Approval: OCM pre-approval for a cannabis business license for
applicants who qualify under Minn. Stat. 342.17.
10. Public Place: A public park or trail, public street or sidewalk; any enclosed, indoor area
used by the general public, including, but not limited to, restaurants; bars; any other food
or liquor establishment; hospitals; nursing homes; auditoriums; arenas; gyms; meeting
rooms; common areas of rental apartment buildings, and other places of public
accommodation.
11. Residential Treatment Facility: As defined under Minn. Stat. 245.462 subd. 23.
12. Retail Registration: An approved registration issued by the (insert local here) to a state-
licensed cannabis retail business.
13. School: A public school as defined under Minn. Stat. 120A.05 or a nonpublic school that
must meet the reporting requirements under Minn. Stat. 120A.24.
14. State License: An approved license issued by the State of Minnesota’s Office of Cannabis
Management to a cannabis retail business.
Section 2. Registration of Cannabis Businesses
A city or town can delegate authority for registration to the County. A city or town can still adopt specific
requirement regarding zoning, buffers, and use in public places, provided said requirements are not in
conflict with an ordinance adopted under the delegated authority granted to the County.
2.1 Consent to registering of Cannabis Businesses
No individual or entity may operate a state-licensed cannabis retail business within (insert
local here) without first registering with (insert local here).
Any state-licensed cannabis retail business that sells to a customer or patient without valid
retail registration shall incur a civil penalty of (up to $2,000) for each violation.
Notwithstanding the foregoing provisions, the state shall not issue a license to any
cannabis business to operate in Indian country, as defined in United States Code, title 18,
section 1151, of a Minnesota Tribal government without the consent of the Tribal
government.
2.2 Compliance Checks Prior to Retail Registration
A jurisdiction can choose to conduct a preliminary compliance check prior to issuance of
retail registration.
Prior to issuance of a cannabis retail business registration, (insert local here) (shall/shall
not) conduct a preliminary compliance check to ensure compliance with local ordinances.
Pursuant to Minn. Stat. 342, within 30 days of receiving a copy of a state license
application from OCM, (insert local here) shall certify on a form provided by OCM whether
a proposed cannabis retail business complies with local zoning ordinances and, if
applicable, whether the proposed business complies with the state fire code and building
code.
2.3 Registration & Application Procedure
2.3.1 Fees.
(insert local here) shall not charge an application fee.
A registration fee, as established in (insert local here)’s fee schedule, shall be charged to
applicants depending on the type of retail business license applied for.
An initial retail registration fee shall not exceed $500 or half the amount of an initial state
license fee under Minn. Stat. 342.11, whichever is less. The initial registration fee shall
include the initial retail registration fee and the first annual renewal fee.
Any renewal retail registration fee imposed by (insert local here) shall be charged at the
time of the second renewal and each subsequent renewal thereafter.
A renewal retail registration fee shall not exceed $1,000 or half the amount of a renewal
state license fee under Minn. Stat. 342.11, whichever is less.
A medical combination business operating an adult-use retail location may only be
charged a single registration fee, not to exceed the lesser of a single retail registration fee,
defined under this section, of the adult-use retail business.
2.3.2 Application Submittal.
The (insert local here) shall issue a retail registration to a state-licensed cannabis retail
business that adheres to the requirements of Minn. Stat. 342.22.
(A) An applicant for a retail registration shall fill out an application form, as provided
by the (insert local here). Said form shall include, but is not limited to:
i. Full name of the property owner and applicant;
ii. Address, email address, and telephone number of the applicant;
iii. The address and parcel ID for the property which the retail registration is
sought;
iv. Certification that the applicant complies with the requirements of local
ordinances established pursuant to Minn. Stat. 342.13.
v. (Insert additional standards here)
(B) The applicant shall include with the form:
i. the application fee as required in [Section 2.3.1];
ii. a copy of a valid state license or written notice of OCM license
preapproval;
iii. (Insert additional standards here)
(C) Once an application is considered complete, the (insert local government
designee) shall inform the applicant as such, process the application fees, and
forward the application to the (insert staff/department, or elected body that will
approve or deny the request) for approval or denial.
(D) The application fee shall be non-refundable once processed.
2.3.3 Application Approval
(A) (Optional) A state-licensed cannabis retail business application shall not be
approved if the cannabis retail business would exceed the maximum number of
registered cannabis retail businesses permitted under Section 2.6.
(B) A state-licensed cannabis retail business application shall not be approved or
renewed if the applicant is unable to meet the requirements of this ordinance.
(C) A state-licensed cannabis retail business application that meets the requirements
of this ordinance shall be approved.
2.3.4 Annual Compliance Checks.
The (insert local here) shall complete at minimum one compliance check per calendar
year of every cannabis business to assess if the business meets age verification
requirements, as required under [Minn. Stat. 342.22 Subd. 4(b) and Minn. Stat. 342.24]
and this/these [chapter/section/ordinances].
The (insert local here) shall conduct at minimum one unannounced age verification
compliance check at least once per calendar year.
Age verification compliance checks shall involve persons at least 17 years of age but under
the age of 21 who, with the prior written consent of a parent or guardian if the person is
under the age of 18, attempt to purchase adult-use cannabis flower, adult-use cannabis
products, lower-potency hemp edibles, or hemp-derived consumer products under the
direct supervision of a law enforcement officer or an employee of the local unit of
government.
Any failures under this section must be reported to the Office of Cannabis Management.
2.3.5 Location Change
A jurisdiction may decide to treat location changes as a new registration, or alternatively
treat a location change as allowable subject to compliance with the rest of the registration
process.
A state-licensed cannabis retail business shall be required to submit a new application for
registration under Section 2.3.2 if it seeks to move to a new location still within the legal
boundaries of (insert local here).
or
If a state-licensed cannabis retail business seeks to move to a new location still within the
legal boundaries of (insert local here), it shall notify (insert local here) of the proposed
location change, and submit necessary information to meet all the criteria in this
paragraph.
2.4 Renewal of Registration
The (insert local here) shall renew an annual registration of a state-licensed cannabis retail
business at the same time OCM renews the cannabis retail business’ license.
A state-licensed cannabis retail business shall apply to renew registration on a form
established by (insert local here).
A cannabis retail registration issued under this ordinance shall not be transferred.
2.4.1 Renewal Fees.
The (insert local here) may charge a renewal fee for the registration starting at the second
renewal, as established in (insert local here)’s fee schedule.
2.4.2 Renewal Application.
The application for renewal of a retail registration shall include, but is not limited to:
• Items required under Section 2.3.2 of this Ordinance.
• Insert additional items here
2.5 Suspension of Registration
2.5.1 When Suspension is Warranted.
The (insert local here) may suspend a cannabis retail business’s registration if it violates
the ordinance of (insert local here) or poses an immediate threat to the health or safety
of the public. The (insert local here) shall immediately notify the cannabis retail business
in writing the grounds for the suspension.
2.5.2 Notification to OCM.
The (insert local here) shall immediately notify the OCM in writing the grounds for the
suspension. OCM will provide (insert local here) and cannabis business retailer a response
to the complaint within seven calendar days and perform any necessary inspections within
30 calendar days.
2.5.3 Length of Suspension.
A jurisdiction can wait for a determination from the OCM before reinstating a registration.
The suspension of a cannabis retail business registration may be for up to 30 calendar
days, unless OCM suspends the license for a longer period. The business may not make
sales to customers if their registration is suspended.
The (insert local here) may reinstate a registration if it determines that the violations have
been resolved.
The (insert local here) shall reinstate a registration if OCM determines that the violation(s)
have been resolved.
2.5.4 Civil Penalties.
Subject to Minn. Stat. 342.22, subd. 5(e) the (insert local here) may impose a civil penalty,
as specified in the (insert local here)’s Fee Schedule, for registration violations, not to
exceed $2,000.
2.6 Limiting of Registrations
A jurisdiction may choose to set a limit on the number of retail registrations within its
boundaries. The jurisdiction may not however, limit the number of registrations to fewer
than one per 12,500 residents.
(Optional) The (insert local here) shall limit the number of cannabis retail businesses to
no fewer than one registration for every 12,500 residents within (insert local legal
boundaries here).
(Optional) If (insert county here) has one active cannabis retail businesses registration for
every 12,500 residents, the (insert local here) shall not be required to register additional
state-licensed cannabis retail businesses.
(Optional) The (insert local here) shall limit the number of cannabis retail businesses to
(insert number <= minimum required).
Section 3. Requirements for Cannabis Businesses
State Statutes note that jurisdictions may “adopt reasonable restrictions on the time, place, and manner
of the operation of a cannabis business.” A jurisdiction considering other siting requirements (such as a
buffer between cannabis businesses, or a buffer from churches) should consider whether there is a basis
to adopt such restrictions.
3.1 Minimum Buffer Requirements
A jurisdiction can adopt buffer requirements that prohibit the operation of a cannabis
business within a certain distance of schools, daycares, residential treatment facilities, or
from an attraction within a public park that is regularly used by minors, including a
playground or athletic field. Buffer requirements are optional. A jurisdiction cannot
adopt larger buffer requirements than the requirements here in Section 3.1. A jurisdiction
should use a measuring system consistent with the rest of its ordinances, e.g. from lot
line or center point of lot.
(Optional) The (insert local here) shall prohibit the operation of a cannabis business within
[0-1,000] feet of a school.
(Optional) The (insert local here) shall prohibit the operation of a cannabis business within
[0-500] feet of a day care.
(Optional) The (insert local here) shall prohibit the operation of a cannabis business within
[0-500] feet of a residential treatment facility.
(Optional) The (insert local here) shall prohibit the operation of a cannabis business within
[0-500] feet of an attraction within a public park that is regularly used by minors, including
a playground or athletic field.
(Optional) The (insert local here) shall prohibit the operation of a cannabis retail business
within [X] feet of another cannabis retail business.
Pursuant to Minn. Stat. 462.367 subd. 14, nothing in Section 3.1 shall prohibit an active
cannabis business or a cannabis business seeking registration from continuing operation
at the same site if a (school/daycare/residential treatment facility/attraction within a
public park that is regularly used by minors) moves within the minimum buffer zone.
3.2 Zoning and Land Use
For jurisdictions with zoning, said jurisdiction can limit what zone(s) Cannabis businesses
can operate in. As with other uses in a Zoning Ordinance, a jurisdiction can also
determine if such use requires a Conditional or Interim Use permit. A jurisdiction cannot
outright prohibit a cannabis business. A jurisdiction should amend their Zoning
Ordinance and list what zone(s) Cannabis businesses are permitted in, and whether they
are permitted, conditional, or interim uses. While each locality conducts its zoning
differently, a few themes have emerged across the country. For example, cannabis
manufacturing facilities are often placed in industrial zones, while cannabis retailers are
typically found in commercial/retail zones. Cannabis retail facilities align with general
retail establishments and are prohibited from allowing consumption or use onsite and
are also required to have plans to prevent the visibility of cannabis and hemp-derived
products to individuals outside the retail location. Cannabis businesses should be zoned
under existing zoning ordinances in accordance with the license type or endorsed
activities held by the cannabis business.
3.2.1. Cultivation.
Cannabis businesses licensed or endorsed for cultivation are permitted as a (type of use)
in the following zoning districts:
• (Insert zoning districts use is permitted in here)
• (Insert zoning districts use is permitted in here)
3.2.1. Cannabis Manufacturer.
Cannabis businesses licensed or endorsed for cannabis manufacturer are permitted as a
(type of use) in the following zoning districts:
• (Insert zoning districts use is permitted in here)
• (Insert zoning districts use is permitted in here)
3.2.1. Hemp Manufacturer.
Businesses licensed or endorsed for low-potency hemp edible manufacturers permitted
as a (type of use) in the following zoning districts:
• (Insert zoning districts use is permitted in here)
• (Insert zoning districts use is permitted in here)
3.2.1. Wholesale.
Cannabis businesses licensed or endorsed for wholesale are permitted as a (type of use)
in the following zoning districts:
• (Insert zoning districts use is permitted in here)
• (Insert zoning districts use is permitted in here)
3.2.1. Cannabis Retail.
Cannabis businesses licensed or endorsed for cannabis retail are permitted as a (type of
use) in the following zoning districts:
• (Insert zoning districts use is permitted in here)
• (Insert zoning districts use is permitted in here)
3.2.1. Cannabis Transportation.
Cannabis businesses licensed or endorsed for transportation are permitted as a (type of
use) in the following zoning districts:
• (Insert zoning districts use is permitted in here)
• (Insert zoning districts use is permitted in here)
3.2.1. Cannabis Delivery.
Cannabis businesses licensed or endorsed for delivery are permitted as a (type of use) in
the following zoning districts:
• (Insert zoning districts use is permitted in here)
• (Insert zoning districts use is permitted in here)
3.3 Hours of Operation
A jurisdiction may adopt an ordinance limiting hours of operation between 10 a.m. and 9
p.m., seven days a week, and that State statute prohibits the sale of cannabis between 2
a.m. and 8 a.m., Monday through Saturday, and between 2 a.m. and 10 a.m. on
Sundays.
(Optional) Cannabis businesses are limited to retail sale of cannabis, cannabis flower,
cannabis products, lower-potency hemp edibles, or hemp-derived consumer products
between the hours of (insert time here) and (insert time here).
3.4 (Optional) Advertising
Cannabis businesses are permitted to erect up to two fixed signs on the exterior of the
building or property of the business, unless otherwise limited by (insert local here)’s sign
ordinances.
Section 4. Temporary Cannabis Events
Any individual or business seeking to obtain a cannabis event license must provide OCM information
about the time, location, layout, number of business participants, and hours of operation. A cannabis
event organizer must receive local approval, including obtaining any necessary permits or licenses issued
by a local unit of government before holding a cannabis event.
4.1 License or Permit Required for Temporary Cannabis Events
4.1.1 License Required.
A cannabis event organizer license entitles the license holder to organize a temporary
cannabis event lasting no more than four days. A jurisdiction should determine what type
of approval is consistent with their existing ordinances for events.
A license or permit is required to be issued and approved by (insert local here) prior to
holding a Temporary Cannabis Event.
4.1.2 Registration & Application Procedure
A registration fee, as established in (insert local here)’s fee schedule, shall be charged to
applicants for Temporary Cannabis Events.
4.1.3 Application Submittal & Review.
The (insert local here) shall require an application for Temporary Cannabis Events.
(A) An applicant for a retail registration shall fill out an application form, as provided
by the (insert local here). Said form shall include, but is not limited to:
i. Full name of the property owner and applicant;
ii. Address, email address, and telephone number of the applicant;
iii. (Insert additional standards here)
(B) The applicant shall include with the form:
i. the application fee as required in (Section 4.1.2);
ii. a copy of the OCM cannabis event license application, submitted pursuant
to 342.39 subd. 2.
The application shall be submitted to the (insert local authority), or other designee for
review. If the designee determines that a submitted application is incomplete, they shall
return the application to the applicant with the notice of deficiencies.
(C) Once an application is considered complete, the designee shall inform the
applicant as such, process the application fees, and forward the application to the
(insert staff/department, or elected body that will approve or deny the request) for
approval or denial.
(D) The application fee shall be non-refundable once processed.
(E) The application for a license for a Temporary Cannabis Event shall meet the
following standards:
A jurisdiction may establish standards for Temporary cannabis events which the event
organizer must meet, including restricting or prohibiting any on-site consumption. If
there are public health, safety, or welfare concerns associated with a proposed cannabis
event, a jurisdiction would presumably be authorized to deny approval of that event.
• Insert standards here
(G) A request for a Temporary Cannabis Event that meets the requirements of this
Section shall be approved.
(H) A request for a Temporary Cannabis Event that does not meet the requirements
of this Section shall be denied. The (insert city/town/county) shall notify the
applicant of the standards not met and basis for denial.
(Optional) Temporary cannabis events shall only be held at (insert local place).
(Optional) Temporary cannabis events shall only be held between the hours of (insert start
time) and (insert stop time).
Section 5. (Optional) Lower-Potency Hemp Edibles
A jurisdiction can establish different standards or requirements regarding Low-Potency Edibles. A
jurisdiction can consider including the following section and subsections in their cannabis ordinance.
5.1 Sale of Low-Potency Hemp Edibles
The sale of Low-Potency Edibles is permitted, subject to the conditions within this
Section.
5.2 Zoning Districts
If sales are permitted, a jurisdiction can limit what zone(s) the sales of Low-Potency
Edibles can take place in. A jurisdiction can also determine if such activity requires a
Conditional or Interim Use permit.
Low-Potency Edibles businesses are permitted as a (type of use) in the following zoning
districts:
• (Insert zoning districts use is permitted in here)
• (Insert zoning districts use is permitted in here)
5.3 (Optional) Additional Standards
5.3.1 Sales within Municipal Liquor Store.
A jurisdiction that already operates a Municipal Liquor Store may sell Low-Potency
Edibles within the same store.
The sale of Low-Potency Edibles is permitted in a Municipal Liquor Store.
5.3.2 Age Requirements.
A jurisdiction is able to restrict the sale of Low-Potency Edibles to locations such as bars.
The sale of Low-Potency Edibles is permitted only in places that admit persons 21 years
of age or older.
5.3.3 Beverages.
The sale of Low-Potency Hemp Beverages is permitted in places that meet requirements
of this Section.
5.3.4 Storage of Product.
A jurisdiction is able to set requirements on storage and sales of Low-Potency Edibles.
Low-Potency Edibles shall be sold behind a counter, and stored in a locked case.
Section 6. (Optional) Local Government as a Cannabis Retailer
(insert local here) may establish, own, and operate one municipal cannabis retail business
subject to the restrictions in this chapter.
The municipal cannabis retail store shall not be included in any limitation of the number
of registered cannabis retail businesses under Section 2.6.
(insert local here) shall be subject to all same rental license requirements and procedures
applicable to all other applicants.
Section 7 Use in Public Places
No person shall use cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived
consumer products in a public place or a place of public accommodation unless the premises is an
establishment or an event licensed to permit on-site consumption of adult-use.
Appendix B: Hemp Flower and Hemp-
Derived Cannabinoid Product Checklist
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 1
Office of Cannabis Management
Department of Health
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist
Minnesota Statute 18K.02, Definitions
Minnesota Statute 152.01, Subdivision 9
Minnesota Statute 151.72, Sale of Certain Cannabinoid Products
Minnesota Statute 152.0264, Cannabis Sale Crimes
Minnesota Statute 342.09, Personal Adult Use of Cannabis
Question Yes No Comments Additional Information
Business License and Registration Compliance
Is the business registered with
the Minnesota Department of
Health?
All businesses selling hemp-derived cannabinoid products must
be registered. See Hemp-Derived Cannabinoid Products
(www.health.state.mn.us/people/cannabis/edibles/index.html)
If the business offers on-site
consumption, do they have a
liquor license?
Local authorities issue on-site consumption licenses. These are
required for all businesses permitting on-site consumption of
THC.
Product Compliance – All Products
Does the business ensure that all
sales are made to persons 21
years old or older?
Only persons 21 years of age or older may purchase hemp-
derived cannabinoid products, with the exception of topicals.
These products may be sold to anyone.
Does the business have all edible
cannabinoid products, except
beverages, behind the counter or
in a locked cabinet?
Businesses must ensure all edible cannabinoid products are
secure and inaccessible to customers.
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 2
Question Yes No Comments Additional Information
Only delta-8 and delta-9 are
allowed for human consumption.
Does the business sell edibles or
beverages with any other
intoxicating cannabinoids?
MDH has identified products containing many different
intoxicating cannabinoids, such as HHC, THC-O, THC-P, PHC,
delta-10, delta-11, delta-8p, delta-9p, etc. The product must
contain only delta-8 and/or delta-9.
Does the business sell any edible
products that are similar to a
product marketed to or
consumed by children?
Edible products that appear similar to candy or snacks
marketed toward or consumed by children are not allowed.
Does the label on the edible or
beverage state “Keep out of
reach of children”?
All products must include the warning label “Keep out of reach
of children.”
Is the manufacturer’s name,
address, website, and contact
phone number included on the
label or provided through a QR
code?
If not, the product is not in compliance.
Does the QR code on the product
bring the user to a Certificate of
Analysis on the website, which
includes the name of the
independent testing laboratory,
cannabinoid profile, and product
batch number?
All products must be tested by batch in an independent,
accredited laboratory. The results must include the
cannabinoid profile.
Does the label on the product
indicate the cannabinoids by
serving and in total?
The label must indicate the potency by individual serving as
well as in total.
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 3
Question Yes No Comments Additional Information
Does the label on the product
make any claim the product
offers any kind of health benefit?
Health claims are not permitted on hemp or cannabis products
unless approved by the FDA. At this time, there is not an
approved statement.
Does the label on the product
state that the product does not
claim to diagnose, treat, cure or
prevent any disease?
The manufacturer cannot claim the product will provide any
health benefit unless the product has been formally approved
by the FDA.
Does the business sell CBD (or
other forms of cannabidiol) in
the form of a softgel, tablet, or
tincture?
Non-intoxicating cannabinoids may only be sold in the form of
an edible, beverage, or topical. Therefore, softgels and tablets
cannot be sold. Tinctures must be labeled as either an edible or
beverage and comply with the edible or beverage
requirements.
Product Compliance – Edibles
Does the edible product contain
more than 5 mg delta-8 and/or
delta-9 per serving?
Edibles may not exceed 5 mg delta-8 and/or delta-9 per
serving.
Does the edible product
package/container contain more
than 50 mg total THC (delta-8
and/or delta-9)?
Edibles may not exceed 50 mg total delta-8 or delta-9 per
package. The edible cannot contain any other form of THC or
intoxicating cannabinoid.
Are all the edible product’s
servings clearly marked,
wrapped, or scored on the
product?
Edible product servings must be clearly distinguished on the
product. Bulk products that require the consumer to measure
are not allowed.
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 4
Question Yes No Comments Additional Information
Does the business sell any edible
products in the shape of bears,
worms, fruits, rings, ribbons?
Edibles in shapes that appeal to children are not allowed.
Is the edible product in a child-
proof, tamper-evident, opaque
container?
All edibles must be in a container that is child-resistant and
tamper evident. If the container is clear, the business must
place the edible into an opaque bag at the point of sale. Clear
bags are not allowed.
Product Compliance - Beverages
Does the beverage product
contain more than 5 mg delta-8
or delta-9 per serving?
Beverages may not exceed 5 mg delta-8 and/or delta-9 per
serving.
Does the beverage product
contain more than 2 servings?
Beverages cannot exceed two servings, regardless of the THC
potency.
Is the beverage product in an
opaque container?
If the beverage is in a clear container, the business must place
the beverage in an opaque bag at the point of sale.
Product Compliance – Smokables (non-flower)
Does the business sell vapes, pre-
rolls, dabs, or other smokable
products which contain more
than 0.3% THC?
A product’s certificate of analysis will show the concentration
of THC the product contains. The certificate typically is found
through the QR code on the product package. In MDH’s
experience, most vapes contain 50% - 90%+ THC.
Pre-rolls may consist of raw hemp flower. These products are
not regulated by 151.72. However, if a pre-roll is labeled as
“infused” or “coated” have additional cannabinoids applied to
the material, of which the product typically exceeds the 0.3%
THC limit.
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 5
Question Yes No Comments Additional Information
Does the business sell vapes, pre-
rolls, dabs, or other smokeable
products that contain other
intoxicating cannabinoids, such
as HHC?
MN Statutes do not allow any cannabinoid, other than delta-8
or delta-9, to be sold if the cannabinoid is intended to alter the
structure or function of the body. HHC is a cannabinoid known
to have potency greater than THC.
Does the business sell vapes, pre-
rolls, dabs, or other smokable
products which contain CBD?
Non-intoxicating cannabinoids cannot be smoked, vaped, or
inhaled.
Product Compliance – Flower
Does the business sell raw hemp
flower?
Raw hemp flower must contain 0.3% or less of delta-9 on a dry
weight basis. Products exceeding 0.3% delta-9 dry weight are
marijuana, and are illegal for sale.
THC-A is the non psychoactive precursor to delta-9. Once
heated THC-A converts to delta-9. In that process some
amount of THC-A is lost.
To determine whether, once heated, the hemp flower will
exceed the allowable 0.3% of delta-9, one can use a
decarboxylation formula which takes into account the
conversion of THC-A into delta-9.
That formula is as follows:
Total THC = (0.877 X THC-A) + d-9 THC)
Raw flower must include a certificate of analysis to show
testing below 0.3% delta-9.
• A lack of a certificate of analysis would constitute an
illegal sale.
Hemp Flower and Hemp-Derived Cannabinoid Product Checklist 6
Question Yes No Comments Additional Information
• A certificate of analysis showing that under the
decarboxylation formula that delta-9 would exceed
the 0.3% threshold would also indicate the flower is
cannabis and not hemp and therefore being sold
illegally.
Product Compliance – On-Site Consumption
If the business offers on-site
consumption, do they serve the
edible or beverage in its original
packaging?
The business may not pour out or remove an edible from its
original packaging.
If the business offers on-site
consumption, do they mix a
cannabis-infused beverage with
alcohol?
The business may not mix cannabis-infused products with
alcohol.
If the business offers on-site
consumption, do they permit
customers to remove from the
premises products which have
been removed from their original
packaging?
Products which have been removed from their original
packaging cannot be removed from the premises by the
customer.
NOTE: If a person suspects that a hemp-derived cannabinoid product is being sold in violation of Minnesota law, they can use the complaint
form at Submitting Hemp-Derived Cannabinoid Product Complaints (www.health.state.mn.us/people/cannabis/edibles/complaints.html).
Appendix C: Enforcement Notice from
the Office of Cannabis Management
Enforcement Notice 1
Enforcement Notice from the Office of Cannabis
Management
Dear Registered Hemp Derived Cannabinoid Business:
The Office of Cannabis Management (OCM), established in 2023, is charged with developing and implementing
the operational and regulatory systems to oversee the cannabis industry in Minnesota as provided in Minnesota
Statutes Chapter 342.
When Minnesota legalized the sale of adult-use of cannabis flower, cannabis products, and lower-potency hemp
edibles/ hemp-derived consumer products, the Minnesota Legislature included statutory provisions, Minnesota
Statutes, chapter 152.0264, making the sale of cannabis illegal until a business is licensed by OCM. The Office of
Cannabis Management has not yet issued licenses for the cultivation, manufacture, wholesale, transportation or
retail sale of cannabis, therefore any retail sales of cannabis products, including cannabis flower, are illegal.
The Office of Cannabis Management has received complaints of retailers selling cannabis flower under the label
of hemp flower. Under an agreement between The Minnesota Department of Health (MDH) and OCM,
inspectors from MDH will begin to examine any flower products being sold during their regular inspections to
determine whether they are indeed hemp flower or cannabis flower.
In distinguishing between hemp and cannabis flower, OCM, consistent with federal rules and regulations related
to hemp under 7 CFR 990.1, will consider the total concentration of THC post- decarboxylation, which is the
process by which THC-A is converted into Delta-9 to produce an intoxicating effect. The examination of raw
flower products will include reviewing the certificate of analysis for compliance in several areas, including:
Compliance with the requirement that raw flower listed for sale includes a Certificate of Analysis (COA).
Products for sale without a COA will constitute an illegal sale.
A COA that affirms concentrations of 0.3% or less of Delta-9 on a dry weight basis. Products exceeding 0.3%
Delta-9 dry weight are considered marijuana and are therefore illegal to sell.
A COA that confirms that the total levels of Delta-9 and THC-A after the decarboxylation process do not exceed
0.3%. A COA that indicates the raw flower will exceed 0.3 percent Delta-9 post-decarboxylation, or a subsequent
test conducted by an independent laboratory utilized by OCM that confirms Delta-9 in excess of 0.3 percent will
be considered illegal.
Minnesota Statutes, Chapter 342 governs Minnesota’s cannabis market, and empowers OCM to ensure
regulatory compliance. Minnesota Statutes, chapter 342.09, subdivision 4 prohibits the retail sale of cannabis
flower and cannabis products “without a license issued under this chapter that authorizes the sale.”
Enforcement Notice 2
To date, the Office of Cannabis Management has not issued any cannabis licenses, applications for licenses are
expected to be available in the first half of 2025. As such, selling cannabis is a clear violation of law. Be aware
that under Minnesota Statutes, 342.09, subdivision 6, OCM may assess fines in excess of a $1 million for
violations of this law. Likewise, under Minnesota Statutes, chapter 342.19, OCM is empowered to embargo any
product that it has “probable cause to believe . . . is being distributed in violation of this chapter or rules
adopted under this chapter[.]” Furthermore, violations of law may be considered in future licensing decisions
made by OCM.
As inspectors enter the field, we encourage you to review the products you are currently selling to ensure they
fall within the thresholds outlined above. If you have any questions related to the products you are selling,
please send an email to cannabis.info@state.mn.us.
Thank you for your attention to this matter.
Charlene Briner
Interim Director
Office of Cannabis Management
Appendix D: Notice to Unlawful
Cannabis Sellers
Notice to Unlawful Cannabis Sellers
This notice is to inform you that your current course of action may run afoul of Minnesota law, and
continuing this course of action may result in civil actions and potential criminal prosecution. To avoid
such outcomes, you should immediately cease and desist any plans to engage in the unlicensed sale of
cannabis and cannabis products.
Minnesota Statutes, Chapter 342 (www.revisor.mn.gov/statutes/cite/342) governs Minnesota’s
cannabis market, and empowers OCM to ensure regulatory compliance. Minnesota Statutes, chapter
342.09, subdivision 4 (www.revisor.mn.gov/statutes/cite/342.09#stat.342.09.4) prohibits the retail sale
of cannabis flower and cannabis products “without a license issued under this chapter that authorizes
the sale.” To date the Office of Cannabis Management has not issued any retail, or other, cannabis
licenses. As such, your plan to sell cannabis in a retail setting at this date would be in flagrant violation
of the law. Be aware that under Minnesota Statutes, 342.09, subdivision 6
(www.revisor.mn.gov/statutes/cite/342.09#stat.342.09.6), OCM may assess fines in excess of a
$1,000,000 for violations of this law.
Likewise, under Minnesota Statutes, chapter 342.19 (www.revisor.mn.gov/statutes/cite/342.19), OCM
is empowered to embargo any product that it has “probable cause to believe . . . is being distributed in
violation of this chapter or rules adopted under this chapter[.]” It is believed that products attempted
to be sold at your retail location might be distributed in violation of the law, and would therefore be
subject to embargo by OCM. Under Minnesota Statutes, chapter 342.19, subd. 2
(www.revisor.mn.gov/statutes/cite/342.19#stat.342.19.2), once embargoed OCM “shall release the
cannabis plant, cannabis flower, cannabis product, artificially derived cannabinoid, lower-potency
hemp edible, or hemp-derived consumer product when this chapter and rules adopted under this
chapter have been complied with or the item is found not to be in violation of this chapter or rules
adopted under this chapter.”
While Minnesota has legalized the sale of adult-use of cannabis flower, cannabis products, lower-potency
hemp edibles, or hemp-derived consumer products, the legislature did add new statutory provisions,
Minnesota Statutes, chapter 152.0264 (www.revisor.mn.gov/statutes/cite/152.0264), making illegal the
unlawful sale of cannabis. As there are not yet any licenses issued by OCM for the cultivation,
manufacture, wholesale, transportation, or retail of cannabis, any sales of cannabis products in excess of
the limits in 152.0264 is illegal.
If you are only planning to sell cannabinoid products that are derived from hemp, you should ensure that
the sale of those products is consistent with Minnesota Statutes, chapter 151.72
(www.revisor.mn.gov/statutes/cite/151.72), including but not limited to the requirement that your
business be registered with the Commissioner of Health, and that all products are in compliance with the
relevant statutes.
Finally, in addition to the state laws outlined above, please be aware that any retail location must be in
compliance with local government ordinances and zoning requirements.
OCM takes seriously its charge to enforce Minnesota Statutes, Chapter 342, and its responsibility to
ensure a safe and legal cannabis market. In order to avoid the above-described actions, all attempts to
open a cannabis retail dispensary in Minnesota without the appropriate license should be ceased.