Adult-Use Cannabis Sales Moratorium Discussion

As part of the 2023 Minnesota Legislative session, HF100 Regulation of Adult-Use Cannabis continues to gain traction. If approved, it will take effect on July 1, 2023, and permit adult use of cannabis products. As part of the current proposed language in the bill, Section 13. [342.13] LOCAL CONTROL, gives local governments the authority to adopt an interim ordinance (moratorium) that "may regulate, restrict, or prohibit the operation of a cannabis business within the jurisdiction or portion thereof until January 1, 2025." During the time of the interim ordinance, staff would be working closely with the Office of Cannabis Management (the Office) to develop ordinances for reasonable restrictions of the operation of a cannabis or hemp business, develop standardized forms and procedures for the issuance of retail registration, and develop policies and procedures for the performance compliance checks. Attached to the case is the most recent draft of legislation (April 4, 2023) regulating adult-use cannabis.

Key points to the proposed legislation:

• Licenses are issued through the State upon confirmation from the local jurisdiction on a land use compatibility statement
• Retailers would be required to register with the local jurisdiction, and a fee would be allowed to be collected (maximum fee set by legislation)
• Cities shall allow the use and sales within the jurisdiction
• Local controls are being considered, which may allow for regulations on number of licenses and locations of businesses
• Local law enforcement responsible for compliance checks

Similar 2022 Legislation:
Minnesota began allowing consumption of edible products containing THC in 2022.  This legislation surprised many cities as there was minimal guidance included in the language related to licensing, zoning, enforcement, etc.  Cities took varying approaches on what rules they implemented.  Ramsey has not adopted any local rules related to edible THC products, however, HF100 incorporates this legislation into the bill.  What was fairly consistent among cities who implemented rules was the adoption of a moratorium to ensure well thought out regulations were passed.

If a moratorium is adopted, the interim ordinances can be adopted until January 1, 2025. During this timer, staff will be working with the Office to get the required regulations in place.

Staff is seeking direction from City Council to begin the process for an interim ordinance (moratorium) to restrict the sales of cannabis products within the City until pertinent ordinances, forms, and procedures are in place to regulate adult-use cannabis.