IV.2. Second Reading Extension of Interim Ordinance Authorizing a Study and Imposing a Moratorium on the Establishment and Operation of Cannabis Businesses in the City of Hopkins; Domei
CITY OF HOPKINS
City Council Report 2023-129
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Amy Domeier, City Clerk
Date: November 21, 2023
Subject: Second Reading: Extension of an Interim Ordinance Authorizing a Study
and Imposing a Moratorium on the Operations of Cannabis Businesses
within the City of Hopkins until January 1, 2025
_____________________________________________________________________
RECOMMENDED ACTION
MOTION TO Adopt Extension of an Interim Ordinance Authorizing a Study and
Imposing a Moratorium on the Operations of Cannabis Businesses within the City of
Hopkins until January 1, 2025.
OVERVIEW
No changes have been made to the ordinance since the first reading held on November
14.
SUPPORTING INFORMATION
• Draft Ordinance 2023-1195
Administration
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CITY OF HOPKINS
COUNTY OF HENNEPIN
ORDINANCE NO. 2023-1203
EXTENSION OF AN INTERIM ORDINANCE AUTHORIZING A STUDY AND
IMPOSING A MORATORIUM ON THE OPERATION OF CANNABIS
BUSINESSES WITHIN THE CITY OF HOPKINS UNTIL JANUARY 1, 2025
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) The city council adopted an interim ordinance (“Ord. No 2023-1195”) regarding
the operations and establishment of Cannabis Businesses effective July 27,
2023. Given the unknown timeline for establishing the OCM and administrative
rulemaking process, the city council decided to enact Ord. No. 2023-1195 for
an initial period to last until November 24, 2023, which could be extended until
January 1, 2025, by express city council action.
(H) Since that time, the OCM has not hired a permanent executive director to
oversee its operations, has not begun the administrative rulemaking process,
and estimates that licenses may not be issued until late 2024 or early 2025.
(I) The city council desires to extend Ord. No. 2023-1195 by passing this
ordinance restating Ord. No. 2023-1195, providing additional findings in
Section 1(G-J), and amending Section 8. Effective Date and Term to extend
the effective date of the moratorium until January 1, 2025.
(J) On November 14, 2023, after providing at least 10 days published notice, the
city council held a public hearing regarding the consideration and extension of
an interim ordinance prohibiting the operation of Cannabis Businesses within
the City until January 1, 2025.
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.
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(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
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
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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
November 23, 2023. Unless earlier rescinded by express City Council action, this
Ordinance shall remain in effect until January 1, 2025.
First Reading: November 14, 2023
Second Reading: November 21, 2023
Date of Publication: November 23, 2023
Date Ordinance Takes Effect: November 23, 2023
______________________________
Patrick Hanlon, Mayor
ATTEST:
_________________________________
Amy Domeier, City Clerk