This bill, Senate File No. 2142, proposes amendments to Minnesota Statutes 2024, section 342.13, to grant local governments more control over cannabis businesses while maintaining certain statewide regulations.

Key Provisions:

1. Restrictions on Local Governments

   • Local governments cannot prohibit the possession, transportation, or use of legal cannabis products.
   • Local governments cannot fully ban the retail sale of cannabis or the operation of licensed cannabis businesses, except in limited circumstances.

2. Allowed Local Regulations

   • Local governments may impose reasonable restrictions on the time, place, and manner of cannabis business operations.
   • They may prohibit cannabis businesses from operating within:
     • 1,000 feet of a school
     • 500 feet of a daycare, residential treatment facility, or park attractions regularly used by minors (e.g., playgrounds, athletic fields).

3. Interim Ordinances

   • If a local government is studying or considering restrictions, it may adopt a temporary ban (interim ordinance) on cannabis businesses for up to two years.
   • Public hearings must be held before enacting such an interim ordinance.

4. Zoning Compliance Certification

   • Local governments must certify whether a cannabis business meets local zoning laws, fire codes, and building codes within 30 days of receiving an application.
   • If they fail to provide a response within 30 days, the state may issue the license.

5. Complaint Process

   • The Office of Cannabis Management must develop an expedited process for handling complaints from local governments:
     • Initial response within 7 days.
     • On-site inspections within 30 days.
     • If a cannabis business presents an immediate threat to public health or safety, the office must respond within one business day.

6. Limits on Cannabis Licenses

   • Local governments can impose limits on the number of cannabis retailers, allowing no fewer than one cannabis business per 12,500 residents.
   • If a county meets this ratio, municipalities within that county are not required to license additional cannabis businesses.
   • However, municipalities may allow more than the minimum number of cannabis retailers.

7. Tribal Government Sovereignty

   • The state cannot issue a license for a cannabis business in Indian Country without the Tribal government’s consent.

8. Reimbursement of Application Fees for Denied Licenses

   • The Office of Cannabis Management must refund application fees if an applicant:
     • Applied for a cannabis retail business license and received preapproval.
     • Was later prohibited from operating due to local government action (such as an interim ordinance or ban).
     • Had identified their intended business location before the local ban was enacted.

Summary of Impact:

This bill expands local control over cannabis regulation while ensuring a minimum level of market access. It allows cities and counties to restrict business locations, impose temporary bans, and limit the number of retailers, but it does not permit outright prohibitions on possession, transportation, or use. It also seeks to protect businesses that invested in licensing but were later impacted by changing local laws.