SF 3740

Introduction - 94th Legislature (2025 - 2026)

Posted on 02/24/2026 09:42 a.m.

A bill for an act
relating to cannabis; allowing a local unit of government to prohibit cannabis
business operation within 500 feet of congregate housing for children, congregate
housing for transplant recipients, and hospitals; amending Minnesota Statutes 2025
Supplement, section 342.13.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2025 Supplement, section 342.13, is amended to read:

342.13 LOCAL CONTROL.

(a) A local unit of government may not prohibit the possession, transportation, or use
of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived
consumer products authorized under this chapter.

(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.

(c) A local unit of government may adopt reasonable restrictions on 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. A local unit of government may
prohibit the operation of a cannabis business within 1,000 feet of a school, or 500 feet of a
day care, new text begin a new text end residential treatment facility, new text begin congregate housing for children, congregate housing
for transplant recipients, a hospital, new text end or an attraction within a public park that is regularly
used by minors, including a playground or new text begin an new text end athletic field.

(d) The office shall work with local units of government to:

(1) develop model ordinances for reasonable restrictions on the time, place, and manner
of the operation of a cannabis business;

(2) develop standardized forms and procedures for the issuance of a retail registration
pursuant to section 342.22; and

(3) develop model policies and procedures for the performance of compliance checks
required under section 342.22.

(e) If a local unit of government is conducting studies or has authorized a study to be
conducted or has held or has scheduled a hearing for the purpose of considering adoption
or amendment of reasonable restrictions on the time, place, and manner of the operation of
a cannabis business, the governing body of the local unit of government may adopt an
interim ordinance applicable to all or part of its jurisdiction for the purpose of protecting
the planning process and the health, safety, and welfare of its citizens. Before adopting the
interim ordinance, the governing body must hold a public hearing. The interim ordinance
may regulate, restrict, or prohibit the operation of a cannabis business within the jurisdiction
or a portion thereof until January 1, 2025.

(f) Within 30 days of receiving a copy of an application from the office, a local unit of
government shall certify on a form provided by the office whether a proposed cannabis
business complies with local zoning ordinances and, if applicable, whether the proposed
business complies with the state fire code and building code. The office may not issue a
license if the local unit of government informs the office that the cannabis business does
not meet local zoning and land use laws. If the local unit of government does not provide
the certification to the office within 30 days of receiving a copy of an application from the
office, the office may issue a license.

(g) The office by rule shall establish an expedited complaint process to receive, review,
and respond to complaints made by a local unit of government about a cannabis business.
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. Nothing in this paragraph prohibits a local unit of government from enforcing a
local ordinance. If a local unit of government notifies the office that a cannabis business
other than a cannabis retailer, cannabis microbusiness, cannabis mezzobusiness or
lower-potency hemp edible retailer with a retail operations endorsement, or medical cannabis
combination business operating a retail location poses an immediate threat to the health or
safety of the public, the office must respond within one business day and may take any
action described in section 342.19 or 342.21.

(h) A local government unit that issues a cannabis retailer registration under section
342.22 may, by ordinance, limit the number of licensed cannabis retailers, cannabis
mezzobusinesses with a retail operations endorsement, and cannabis microbusinesses with
a retail operations endorsement to no fewer than one registration for every 12,500 residents.

(i) If a county has one active registration for every 12,500 residents, a city or town within
the county is not obligated to register a cannabis business.

(j) Nothing in this section shall prohibit a local government unit from allowing licensed
cannabis retailers in excess of the minimums set in paragraph (h).

(k) 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.