Marijuana production, retail license regulations eyed by Minneapolis

MINNEAPOLIS (FOX 9) - As recreational marijuana becomes legal throughout Minnesota, leaders in the state’s largest city are looking to define a wide swath of regulations for businesses and licenses before the Office of Cannabis Management (OCM) officially doles out licenses next year.

On Thursday, Minneapolis officials discussed proposed city zoning code amendments regulating the cultivation, production, distribution, and retail sale of cannabis flower.

In an adult use cannabis staff memo, Minneapolis City Council members discussed standards that would, "regulate odor, light and glare, security, and noise, but are general in nature" while seeking to regulate the emerging industry.

"City leaders and subject matter experts across our local government have been collaborating for months to develop a framework to keep the production and sale of recreational cannabis safe for the community," Minneapolis Mayor Jacob Frey said in a statement.

Several tiers of licenses will be made available by the OCM, and the council will seek to regulate each through the proposed zoning amendment.
Below is a table of licenses, with their included definition as currently proposed:

• Cannabis microbusiness/mezzobusiness: Both allow a license holder to cultivate, manufacture, and sell cannabis, and related products. Micro and mezzobusinesses differ in the scale of operation permitted, with a 5,000 square foot plant canopy limit placed on indoor cultivation at microbusinesses, and a 15,000 square foot limit at mezzobusinesses.
• Cannabis cultivator: Allows an entity to grow cannabis for commercial purposes. Cannabis cultivation must be conducted inside an enclosed building, and not take place in hoop houses, greenhouses, or other similar structures. A cannabis cultivation license would be limited to 30,000 square feet of plant canopy. If the business has a retail component, it would be subject to the use standards for a dispensary.
• Cannabis/hemp edible manufacturer: Allows an entity to process cannabis or hemp to create products.
• Cannabis retailer: Also known as a dispensary, a business would be subject to further regulations due to its public-facing, retail component. A dispensary could not share a common entrance with a liquor store, a tobacco products shop, a food and beverage shop, a drugstore or a pharmacy. It also must be located at least 350 feet from a school (though staff are considering a 500-foot requirement). It could also not be located within 350 feet of an existing dispensary.
• Cannabis transporter: Allows a license holder to transport cannabis, hemp, or associated products from a cannabis business to a cannabis business.
• Cannabis wholesaler: Allows an entity to obtain, store, and sell cannabis and hemp and related products for resale to a cannabis business, but not to consumers.
• Cannabis testing facility: Allows a license holder to obtain and test cannabis and hemp plants and products, similar to a laboratory.
• Cannabis event organizer: Allows an entity to organize temporary cannabis events that last no more than four days.
• Cannabis delivery service: Allows a license holder to purchase cannabis or hemp products, and transport and deliver those products directly to consumers.
• Medical cannabis combination business: Allows a license holder to cultivate, manufacture, and sell cannabis, hemp, and cannabis and hemp related supplies and products. Similar to a micro or mezzobusiness license, however, this would primarily serve the medical cannabis industry.

As licenses are granted by the OCM, local governments outside of Minneapolis will be able to adopt their own zoning ordinances.

State statute permits local governments to limit the number of licensed cannabis retailers and businesses to no less than one registration for every 12,500 residents.

Based on 2020 Census data for the city of Minneapolis, the population of 429,954 people would equate to a minimum of 34 licenses. No current license cap for dispensary or retail cannabis operations is currently being proposed.

City staff says it aims to bring draft recommendations to the City Planning Commission and City Council in the coming months, with adoption taking place by the end of summer.

OCM has previously said it expects to grant licenses to social equity applicants prior to early 2025.

A legislative change this session to allow early cultivation will permit social equity applicants with pre-approval to begin cultivation prior to rule-making concluding at the state level if an applicant receives approval at the local level.

Minneapolis ordinance path to approval

The Minneapolis zoning code is the city’s regulation of land use, and exists to comply with state law, respond to changing market conditions and streamline city ordinances, among other objectives.

City Council members can propose amendments to the code, which is then researched and drafted.

At a City Council meeting, a member can provide a notice of intent to introduce the ordinance change, which is then discussed in committee. City staff can also conduct research and analyze alternative options for the proposed changes during this period.

During the adoption process, a public hearing is held to consider feedback, and a planning commission makes a final recommendation to the council prior to a vote.

If approved, the ordinance amendment is published, and the mayor of Minneapolis can formally approve it with a signature.

It then becomes effective the date the regulation begins.