1.1 A bill for an act 1.2 relating to cannabis; authorizing local governments to prohibit the sale of certain 1.3 cannabis products; authorizing local units of government to prohibit the operation 1.4 of certain cannabis businesses; authorizing the adoption of interim ordinances; 1.5 requiring reimbursement of certain application fees; amending Minnesota Statutes 1.6 2024, section 342.13. 1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.8 Section 1. Minnesota Statutes 2024, section 342.13, is amended to read: 1.9 342.13 LOCAL CONTROL. 1.10 (a) A local unit of government may not prohibit the possession, transportation, or use 1.11of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived 1.12consumer products authorized under this chapter. 1.13 (b) Except as provided In addition to the registration of cannabis microbusinesses, 1.14cannabis mezzobusinesses, cannabis retailers, and medical cannabis combination businesses 1.15as provided in section 342.22, a local unit of government may not prohibit the retail sale of 1.16cannabis flower, cannabis products, or hemp-derived consumer products and the 1.17establishment or operation of a cannabis business or hemp business licensed under this 1.18chapter microbusinesses with a retail operations endorsement, cannabis mezzobusinesses 1.19with a retail operations endorsement, cannabis retailers, and medical cannabis combination 1.20businesses operating retail locations. 1.21 (c) A local unit of government may adopt reasonable restrictions on the time, place, and 1.22manner of the operation of a cannabis business provided that such restrictions do not prohibit 1.23the establishment or operation of cannabis businesses. A local unit of government may 1.24prohibit the operation of a cannabis business within 1,000 feet of a school, or 500 feet of a 1Section 1. 25-00940 as introduced12/04/24 REVISOR BD/CH SENATE STATE OF MINNESOTA S.F. No. 2142NINETY-FOURTH SESSION (SENATE AUTHORS: NELSON and Limmer) OFFICIAL STATUSD-PGDATE Introduction and first reading03/03/2025 Referred to Commerce and Consumer Protection 2.1day care, residential treatment facility, or an attraction within a public park that is regularly 2.2used by minors, including a playground or athletic field. 2.3 (d) The office shall work with local units of government to: 2.4 (1) develop model ordinances for reasonable restrictions on the time, place, and manner 2.5of the operation of a cannabis business; 2.6 (2) develop standardized forms and procedures for the issuance of a retail registration 2.7pursuant to section 342.22; and 2.8 (3) develop model policies and procedures for the performance of compliance checks 2.9required under section 342.22. 2.10 (e) If a local unit of government is conducting studies or has authorized a study to be 2.11conducted or has held or has scheduled a hearing for the purpose of considering adoption 2.12or amendment of reasonable restrictions on the time, place, and manner of the operation of 2.13a cannabis business, the governing body of the local unit of government may adopt an 2.14interim ordinance applicable to all or part of its jurisdiction for the purpose of protecting 2.15the planning process and the health, safety, and welfare of its citizens. Before adopting the 2.16interim ordinance, the governing body must hold a public hearing. The interim ordinance 2.17may regulate, restrict, or prohibit the operation of a cannabis business within the jurisdiction 2.18or a portion thereof until January 1, 2025 for two years from the date on which the ordinance 2.19was adopted. 2.20 (f) Within 30 days of receiving a copy of an application from the office, a local unit of 2.21government shall certify on a form provided by the office whether a proposed cannabis 2.22business complies with local zoning ordinances and, if applicable, whether the proposed 2.23business complies with the state fire code and building code. The office may not issue a 2.24license if the local unit of government informs the office that the cannabis business does 2.25not meet local zoning and land use laws. If the local unit of government does not provide 2.26the certification to the office within 30 days of receiving a copy of an application from the 2.27office, the office may issue a license. 2.28 (g) The office by rule shall establish an expedited complaint process to receive, review, 2.29and respond to complaints made by a local unit of government about a cannabis business. 2.30At a minimum, the expedited complaint process shall require the office to provide an initial 2.31response to the complaint within seven days and perform any necessary inspections within 2.3230 days. Nothing in this paragraph prohibits a local unit of government from enforcing a 2.33local ordinance. If a local unit of government notifies the office that a cannabis business 2.34other than a cannabis retailer, cannabis microbusiness or cannabis mezzobusiness with a 2Section 1. 25-00940 as introduced12/04/24 REVISOR BD/CH 3.1retail operations endorsement, lower-potency hemp edible retailer, or medical cannabis 3.2combination business operating a retail location poses an immediate threat to the health or 3.3safety of the public, the office must respond within one business day and may take any 3.4action described in section 342.19 or 342.21. 3.5 (h) A local government unit that issues a cannabis retailer registration under section 3.6342.22 may, by ordinance, limit the number of licensed cannabis retailers, cannabis 3.7mezzobusinesses with a retail operations endorsement, and cannabis microbusinesses with 3.8a retail operations endorsement to no fewer than one registration for every 12,500 residents. 3.9 (i) If a county has one active registration for every 12,500 residents, a city or town within 3.10the county is not obligated to register a cannabis business. 3.11 (j) Nothing in this section shall prohibit a local government unit from allowing licensed 3.12cannabis retailers in excess of the minimums set in paragraph (h). 3.13 (k) Notwithstanding the foregoing provisions, the state shall not issue a license to any 3.14cannabis business to operate in Indian country, as defined in United States Code, title 18, 3.15section 1151, of a Minnesota Tribal government without the consent of the Tribal 3.16government. 3.17 Sec. 2. LICENSE PREAPPROVAL; REIMBURSEMENT OF APPLICATION FEE. 3.18 The Office of Cannabis Management must reimburse any application fee paid by a 3.19person who received license preapproval pursuant to Laws 2024, chapter 121, article 2, 3.20section 148, or a cannabis business license if: 3.21 (1) the person engaged in, or intended to engage in, the retail sale of cannabis flower, 3.22cannabis products, or hemp-derived consumer products from a cannabis microbusiness with 3.23a retail operations endorsement, cannabis mezzobusiness with a retail operations endorsement, 3.24cannabis retailer, or medical cannabis combination businesses operating retail location; 3.25 (2) a local unit of government either: 3.26 (i) prohibited the operation of cannabis businesses or the retail sale of cannabis flower, 3.27cannabis products, or hemp-derived consumer products in the location where the business 3.28was located or intended to locate; or 3.29 (ii) adopted an interim ordinance after January 1, 2025, prohibiting the operation of 3.30cannabis businesses in the location where the business was located or intended to locate; 3.31and 3Sec. 2. 25-00940 as introduced12/04/24 REVISOR BD/CH 4.1 (3) the person identified the location where the business operated or intended to operate 4.2to the Office of Cannabis Management before the local unit of government took any action 4.3described in clause (2). 4Sec. 2. 25-00940 as introduced12/04/24 REVISOR BD/CH