V.1. First Reading An Interim Ordinance Authorizing a Study and Imposing a Moratorium on the Operation of Cannabis Businesses; Lenz
CITY OF HOPKINS
City Council Report 2023-068
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Ari Lenz, Assistant City Manager
Date: July 11, 2023
Subject: First Reading: An Interim Ordinance Authorizing a Study and Imposing a
Moratorium on the Operations of Cannabis Businesses within the City of
Hopkins
_____________________________________________________________________
RECOMMENDED ACTION
MOTION TO Adopt for First Reading An Interim Ordinance Authorizing a Study and
Imposing a Moratorium on the Operations of Cannabis Businesses within the City of
Hopkins.
OVERVIEW
On June 20 the City Council directed staff and the City Attorney to draft a moratorium
on the Cannabis Businesses. Cannabis Businesses are businesses that deal in
products that are mode from cannabis plants containing more than .3% THC – this
does not include hemp products which are products made from cannabis plants
containing .3% or less of THC. Enacting a moratorium will give the City Council and
staff time to discuss and develop regulations related to the newly authorized cannabis
legislation prior to any licenses being issued at the state level. The City Council general
direction was for the moratorium to last 90-days. Staff is recommending a 120-day
moratorium because should the deadline need to be extended beyond 90-days, it will
ensure staff has time to begin that process before the moratorium expires. The
moratorium would start July 27, 2023 and end on November 24, 2023.
SUPPORTING INFORMATION
• Draft Ordinance 2023-1195
• https://www.hopkinsmn.com/AgendaCenter/ViewFile/Agenda/_06202023-388
Administration
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CITY OF HOPKINS
COUNTY OF HENNEPIN
ORDINANCE NO. 2023-1195
AN INTERIM ORDINANCE AUTHORIZING A STUDY AND
IMPOSING A MORATORIUM ON THE OPERATION OF CANNABIS
BUSINESSES WITHIN THE CITY OF HOPKINS
THE CITY COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS AS FOLLOWS:
Section 1. Legislative Findings and Authority.
(A) The Minnesota Legislature recently enacted, and the Governor signed, 2023
Minnesota Session Laws, Chapter 63 – H.F. No. 100 (the “Act”), which is
comprehensive legislation relating to cannabis including, but not limited to, the
establishment of the Office of Cannabis Management (“OCM”), legalizing and
limiting the possession and use of cannabis and certain hemp products by
adults, providing for the licensing, inspection, and regulation of cannabis and
hemp businesses, taxing the sale of cannabis flower, cannabis products, and
certain hemp products, establishing grant and loan programs, amending
criminal penalties, providing for expungement of certain convictions, and
providing for the temporary regulation of Edible Cannabinoid Products.
(B) The Act provides local units of government certain authority related to Cannabis
Businesses, including the authority to (i) require local registration of certain
Cannabis Businesses operating retail establishments, (ii) adopt reasonable
restrictions on the time, place, and manner of the operation of Cannabis
Businesses, provided that such restrictions do not prohibit the establishment or
operation of a Cannabis Business, (iii) limit the number of certain Cannabis
Businesses based on the population of the community, and (iv) prohibit the
operation of a Cannabis Business within 1,000 feet of a school, or 500 feet of
a day care, residential treatment facility, or an attraction within a public park
that is regularly used by minors, including a playground or athletic field.
(C) The Act requires the OCM, which was established effective July 1, 2023, to
work with local governments to develop model ordinances for reasonable
restrictions on the time, place, and manner of the operation of Cannabis
Businesses. The Act also requires the OCM to establish additional rules and
regulations relating to the operation of Cannabis Businesses. It is anticipated
that the city of Hopkins (the “City”) will benefit from reviewing and analyzing the
OCM’s model ordinances, rules and regulations before making any decisions
related to the regulation of Cannabis Businesses in the City.
(D) The Act (Minnesota Statutes, section 342.13(e)) expressly allows a local unit
of government that is conducting studies or has authorized a study to be
conducted or has held or scheduled a hearing for the purpose of considering
adoption or amendment of reasonable restrictions on the time, place and
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manner of the operation of Cannabis Businesses to 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. The interim
ordinance may regulate, restrict, or prohibit the operation of Cannabis
Businesses within the jurisdiction or a portion thereof until November 24, 2023.
(E) Given the uncertainty regarding the model ordinances to be developed by the
OCM and the broad scope of the changes to Minnesota law brought about by
the Act, the City desires to adopt an interim ordinance for the purpose of
protecting the planning process and the health, safety, and welfare of its
citizens.
(F) The City desires to conduct a study for the purpose of considering the adoption
or amendment of reasonable restrictions on the time, place and manner of the
operation of Cannabis Businesses as well as the other regulations local units
of government may adopt under the Act.
(G) On July 11, 2023, after providing at least 10 days published notice, the city
council held a public hearing regarding the consideration and adoption of an
interim ordinance prohibiting the operation of Cannabis Businesses within the
City until November 24, 2023.
Section 2. Definitions. For purposes of this Ordinance, the following terms shall have
the meaning given them in this section.
(A) “Act” means 2023 Minnesota Session Laws, Chapter 63 (H.F. No. 100).
(B) “Cannabis Business” has the meaning given the term in Minnesota Statutes,
section 342.01, subdivision 14.
(C) “City” means the city of Hopkins, a Minnesota municipal corporation.
(D) “Edible Cannabinoid Product” has the meaning given the term in Minnesota
Statutes, section 151.72, subdivision 1(f).
(E) “OCM” means the Office of Cannabis Management, established as set forth in
Minnesota Statutes, section 342.02, subd. 1.
(F) “Ordinance” means this interim ordinance, which is adopted pursuant to
Minnesota Statutes, section 342.13(e).
Section 3. Study Authorized. The city council hereby authorizes and directs City staff
to conduct a study regarding the adoption or amendment of reasonable restrictions on
the time, place, and manner of the operation of Cannabis Businesses, as well as other
potential local regulations allowed under the Act, and report to the city council on the
potential regulation of Cannabis Businesses. The study may include a review of any
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model ordinances that OCM is directed to draft under Minnesota Statutes, section
342.13(d), an analysis of potential setback regulations allowed under Minnesota Statues,
section 342.13(c), and such other matters as staff may determine are relevant to the city
council’s consideration of this matter. The report may also include City staff’s
recommendations on whether the city council should adopt regulations and, if so, the
recommended types of regulations.
Section 4. Moratorium. A moratorium is hereby imposed on the operation of any
Cannabis Business within the City. During the term of this Ordinance, no business,
person, or entity may establish or operate a Cannabis Business within the jurisdictional
boundaries of the City. Accordingly, during the period that this Ordinance is in effect, the
City shall not accept, process, or act on any application, site plan, building permit, zoning
request, or other approval, including any requested confirmation, certification, approval,
or other request from the OCM or other governmental entity requesting City review of any
application or proposal for a business proposing to engage in the operation of a Cannabis
Business. During the term of the moratorium, it is a violation of this Ordinance for any
business, person, or entity to establish or operate a Cannabis Business within the City.
Section 5. Exceptions. The moratorium imposed by this Ordinance does not apply to:
(i) the continued operation of a duly established business as part of the Medical Cannabis
Program administered by the Minnesota Department of Health that was lawfully operating
within the City prior to the effective date of this Ordinance; or (ii) the sale of Edible
Cannabinoid Products, provided, however, that nothing in this Ordinance exempts a
business, person, or entity from complying with all other requirements and prohibitions of
applicable laws and ordinances related to such exceptions.
Section 6. Enforcement. Violation of this Ordinance is a misdemeanor. The City may
also enforce this Ordinance by mandamus, injunction, or other appropriate civil remedy
in any court of competent jurisdiction. A violation of this Ordinance is also subject to the
City’s general penalties prescribed in the city code and may further result in the City
reporting violations to the OCM, if relevant to OCM licensing. The city council hereby
authorizes City staff and consultants to initiate any legal action deemed necessary to
secure compliance with this Ordinance.
Section 7. Severability. Every section, provision, and part of this Ordinance is declared
severable from every other section, provision, and part. If any section, provision, or part
of this Ordinance is held to be invalid by a court of competent jurisdiction, such judgment
shall not invalidate any other section, provision, or part of this Ordinance.
Section 8. Effective Date and Term. This Ordinance shall become effective on July 27,
2023. Unless earlier rescinded by the City Council, this Ordinance shall remain in effect
until November 24, 2023, or until the city council expressly repeals it – the City Council
may extend, by express council action, the term of this Ordinance until January 1, 2025,
pursuant to Minnesota Statutes, section 342.13(e).
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First Reading: July 11, 2023
Second Reading: July 18, 2023
Date of Publication: July 27, 2023
Date Ordinance Takes Effect: July 27, 2023
______________________________
Patrick Hanlon, Mayor
ATTEST:
_________________________________
Amy Domeier, City Clerk