Minneapolis City Council Proposes Rules for Marijuana Businesses

The Minneapolis City Council has released proposed rules and restrictions for licensed marijuana businesses, as Minnesota moves forward with its recreational marijuana program.

The city is currently updating its zoning regulations in anticipation of issuing licenses for cannabis operations in the coming months, due to the state legalizing marijuana last year.

Under the proposed restrictions, dispensaries must be at least 500 feet from schools and other dispensaries. Additionally, cannabis businesses will not be permitted to grow plants outdoors, and there will be regulations in place concerning odors emitted from these operations. Cannabis manufacturing will be limited to commercial and mixed-use areas, similar to existing regulations for breweries.

Earlier this month, state officials met with city representatives to provide guidance on implementing cannabis restrictions under the new state law. Just last week, St. Paul passed a similar set of regulations.

The proposed zoning restrictions are still in the early stages and require further approval from the city council. The Office of Cannabis Management expects to finalize its draft rules for cannabis businesses by early 2025, with the licensing process slated to begin shortly after. Currently, cannabis sales are only permitted on tribal lands.

In August, a little over a year after legalizing recreational marijuana, Minnesota preapproved over 3,000 marijuana business licenses, aiming to launch its legal marijuana market by early 2025. Under the new law, individuals 21 and older can possess up to two ounces of marijuana, eight grams of concentrates, and 800 mg of edibles. Once retail outlets open, marijuana sales will be subject to a 10% tax, in addition to the state’s standard sales tax.

On August 1, 2023, recreational marijuana possession and personal cultivation became legal for all adults 21 and older in Minnesota, making it the 23rd state to legalize recreational marijuana. The law allows possession of up to two ounces of dried marijuana in public and up to two pounds in a private residence, as well as the personal cultivation of up to eight marijuana plants in an enclosed area.

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