VII.1. First Reading Ordinance Amending the Hopkins City Code Clarifying Certain Regulations Related to Cannabis and Hemp Businesses; Krzos City Council Report 2025-105
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Ryan Krzos, City Planner
Date: June 17, 2025
Subject: First Reading of an Ordinance Amendment Clarifying Cannabis Retail
Regulations
_____________________________________________________________________
RECOMMENDED ACTION
MOTION TO Approve for First Reading Ordinance 2025-1228 Amending the Hopkins
City Code clarifying cannabis retail regulations.
OVERVIEW
The proposed ordinance changes are based on aligning the City Code language with
amendments to the Cannabis Act enacted this past legislative session as well as one
change amending the date of which the city will determine when a buffer is established.
Preapproval v. Preliminary License Approval
The Cannabis Act previously required cities to issue retail registrations to businesses
with an approved license or a license preapproval. A license preapproval was an
approval limited to social equity applicants. Due to complications related to the state’s
delay in implementing the social equity license lottery, the Cannabis Act was amended
to now require the city to issue a registration to businesses with a license or preliminary
license approval. A preliminary license approval is an approval available to all cannabis
businesses, not just social equity applicants.
Date Establishing The Buffer
The change related to the date on which the city will establish the buffer distances is
proposed to provide a potential cannabis retailer with additional assurances/confidence
that they will ultimately be allowed to open a cannabis retailer prior to investing
significant funds into acquiring or remodeling a business property.
Linking the date the buffers are established to the retail registration process is
especially important in Hopkins because of the buffer between cannabis retailers that
was adopted in Ordinance 2024-1216, approved in late 2024.
SUPPORTING INFORMATION
• Ordinance 2025-1228
Planning & Development
DOCSOPEN\HP145\9\1032915.v1-6/12/25
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
ORDINANCE 2025-1228
AN ORDINANCE AMENDING THE HOPKINS CITY CODE CLARIFYING CERTAIN
REGULATIONS RELATED TO CANNABIS AND HEMP BUSINESSES
THE CITY COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS:
SECTION 1. Amending Chapter 10, Article XVIII of the Hopkins City Code by adding the
following underlined text and deleting striken material, as follows:
ARTICLE XVIII. – CANNABIS AND HEMP BUSINESSES
Sec. 10-650. - Findings and Purpose
The City of Hopkins makes the following legislative findings: The purpose of this
ordinance is to protect the public health, safety, welfare in the City by implementing
regulations pursuant to Minnesota Statutes, chapter 342 related to cannabis and hemp
businesses within the City. The City finds and concludes that these regulations are
appropriate and lawful, that the proposed amendments will promote the community's
interest in reasonable stability in the development and redevelopment of the City for now
and in the future, and that the regulations are in the public interest and for the public good.
Sec. 10-651. - Definitions
The following words, terms and phrases, when used in this article, shall have the
meanings ascribed to them in this article, except where the context clearly indicates a
different meaning. Additionally, the words and phrases used in this article which are
defined in Minnesota Statutes, Section 342.01 and the rules promulgated pursuant to
Minnesota Statutes, Chapter 342, shall have the meanings ascribe to them in those
statutes and rules.
Applicant means an entity with a license, preliminary license approval,, endorsement, or
other applicable written approval issued by the OCM that is applying for an initial
registration or for registration renewal.
The Act means Minnesota Statutes, Chapter 342, as it may be amended from time to
time.
Cannabis Business has the same meaning as defined in Minnesota Statutes, section
342.01.
Cannabis Retailer means a business with a cannabis retailer license, preliminary license
approval,, cannabis retail endorsement, or other applicable written approval from OCM.
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OCM means the Minnesota Office of Cannabis Management.
Park Feature means an attraction within a public park that is regularly used by minors,
including a playground or athletic field.
Potential Licensee means an entity that has not received a license from the OCM and is
seeking a pre-license zoning certification.
Retailer means every business that is licensed under the Act and required to register with
the city under Minnesota Statutes, section 342.22, including cannabis businesses and
lower-potency hemp edible retailers.
School means a public school, as defined in Minnesota Statutes, section 120A.05,
subdivisions 9, 11, 13, and 17, or a nonpublic school, or church or religious organization
in which a child is provided instruction in compliance with this section and section
120A.24, but does not include a home school.
Sec. 10-652. - Pre-License Zoning Certification of Cannabis Businesses
(a) The City Manager, or designee, is authorized to certify whether a proposed
cannabis business complies with the city’s zoning ordinances, this article, and if
applicable, with state fire code and building code pursuant to Minnesota Statutes,
section 342.13.
(b) Potential licensees are responsible for obtaining all necessary zoning approvals
prior to the city receiving the request for certification from the OCM. If a potential
licensee fails to obtain necessary zoning approvals prior to the city receiving a
request for certification, the city will inform the OCM that the potential licensee
does not meet zoning and land use laws. If, at the time the city receives a request
for zoning certification, there are no further intended alterations to the building
where the business is to be conducted, the city will also certify compliance with
building and fire code regulations, provided that the potential licensee has obtained
inspections prior the city’s receipt of a request for certification from the OCM.
Building and fire code inspections will be valid for 1 year from completion.
Sec. 10-653 Distance Requirements
(a) The city prohibits the establishment and operation of a cannabis retailer within the
following buffer zones:
• 350 from a school
• 350 feet from an attraction with a park feature
• 500 feet from another cannabis retailer
(b) The buffers in this section will be measured from the potential licensee’s proposed
business location based on the location of schools, park features, and cannabis
retailers on the earlier of the date the city receives the request from the OCM for
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certification pursuant to section 10-652 that is ultimately successful or the date the
city receives a complete application for a retail registration pursuant to section 10-
654. Buffer distances will be measured from the property line of the proposed
cannabis retailer to the property line of a school or cannabis retailer, and the border
line of a park feature.
(c) Nothing in this section shall prohibit a cannabis retailer from continuing to operate
at the same location if a school or park feature establishes within the buffer zone.
Sec. 10-654. - Retailer Registration
(a) Retail Registration Required. Before making retail sales to customers or patients,
a retailer must register with the city. Making retail sales to customers or patients
without an active registration is prohibited. Subject to Minn. Stat. 342.22, subd.
5(e) the city may impose a civil penalty, as specified in the city’s fee schedule, for
making a sale to a customer or patient without a valid registration from the city and
a valid license from the OCM.
(b) Cannabis Retail Registration Limits.
(1) The city will issue three (3) registrations to cannabis retailers.
(2) Registrations issued to businesses with a cannabis retailer license, preliminary
license approval, or other applicable written approval from the OCMwill count
toward the city’s registration limit.
(c) Processing Registrations.
(1) Applications will be processed on a first-come, first-served basis based on the
city receiving a complete application. Applications will be considered complete
when all materials in Section 10-654 (d) are received by the city and include all
required information and the require registration or renewal fee is received
(2) The date a certification under Section 10-652 is issued will have no impact on
the applicant’s registration processing.
(d) Application. The applicant must submit a registration application or renewal form
provided by the city. The form may be amended from time to time by the City Clerk,
but must include or be accompanied by:
(1) Name of the property owner.
(2) Name of the applicant.
(3) Address and parcel ID for the property for which the registration is sought.
(4) Certification that the applicant complies with the requirements of this article.
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(5) Fee Required. At the time of initial application, and prior to the city’s
consideration of any renewal application, each Retailer must pay fees or initial
registration and renewal as established in the city’s fee schedule. Initial
registration fees and renewal registration fees are nonrefundable.
(6) Proof of taxes, assessments, utility charges or other financial claims of the city
or the state are current for both the applicant and the proposed location.
(7) A copy of a valid state license, preliminary license approval, or other applicable
written approval from the OCM.
(e) Preliminary Compliance Check. Prior to issuing any retail registration, the city shall
conduct a preliminary compliance check to ensure compliance with this article and
any other regulations established pursuant to Minnesota Statutes, section 342.13.
(f) Reasons for Denial. The city shall not issue a registration or renewal if any of the
following conditions are true:
(1) The applicant has not submitted a complete application.
(2) The applicant does not comply with the requirements of this article.
(3) The applicant does not comply with applicable zoning and land use
regulations.
(4) The applicant is found to not comply with the requirements of the Act or this
article at the preliminary compliance check.
(5) The applicant is not current on all property taxes and assessments at the
location where the retailer is located.
(6) The maximum number of registrations, pursuant to Section 10-654 (b), have
been issued by the city.
(7) The applicant does not have a valid license, preliminary license approval, or
other applicable written approval from the OCM.
(g) Issuing the Registration or Renewal. The city shall issue the registration or renewal
if the Retailer meets the requirements of this article, including that none of the
reasons for denial in Section 10-654 (f) are true.
(h) Nontransferable. A registration is not transferable to another person, entity, or
location.
(i) Registration Enforcement.
(1) Generally. The city council may impose a fine or suspend a registration
under this article on a finding that the registered business has failed to
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comply with the requirements of this article or any applicable statute or
regulation.
(2) Notice and Right to Hearing. Prior to imposing a fine or suspending any
registration under this article, the city shall provide the registered
business with written notice of the alleged violations and inform the
registered business of his or her right to a hearing on the alleged violation.
a. Notice shall be delivered in person or by regular mail to the address
of the registered business and shall inform the registered business of
its right to a hearing. The notice will indicate that a response must be
submitted within ten (10) business days of receipt of the notice, or the
right to a hearing will be waived.
b. The registered business will be given an opportunity for a hearing
before the city’s hearing officer before final action to fine or suspend
a registration. Provided, the registered business has submitted a
written application for appeal within 10 business days after the notice
was served. The hearing officer shall give due regard to the
frequency and seriousness of the violations, the ease with which such
violations could have been cured or avoided and good faith efforts to
comply and shall issue a decision to fine or suspend the registration
only upon written findings. Within ten (10) business days of the
hearing officers order, the decision may be appealed to the city
council.
c. If no request for a hearing is received within ten (10) business days
following the service of the notice, the matter shall be submitted to
the city council for imposition of the fine or suspension of the
registration.
(3) Emergency. If, in the discretion of the City Manager, a registered
business poses an imminent threat to the health or safety of the public,
the City Manager may immediately suspend the registration and provide
notice of the right to hold a subsequent hearing as prescribed in part (2)
of this section.
(4) Reinstatement. The city may reinstate a registration if it determines that
the violations have been resolved. The city shall reinstate a registration
if the OCM determines the violations have been resolved.
Sec. 10-655. - Compliance Checks
The city shall complete at minimum one compliance check per calendar year of every
registered business to assess if the business meets age verification requirements, as
required under Minn. Stat. 342.22, subd. 4(b), and any applicable cannabis or hemp
regulations adopted by the city.
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Age verification compliance checks shall involve persons at least 17 years of age but
under the age of 21 who, with the prior written consent of a parent or guardian if the
person is under the age of 18, attempt to purchase adult-use cannabis flower, adult-use
cannabis products, lower-potency hemp edibles, or hemp-derived consumer products
under the direct supervision of a law enforcement officer or an employee of the city.
Any failures under this section are a basis for enforcement action and must be reported
to the OCM.
Sec. 10-656. - Hours of Operation. Cannabis Retailers may only make retail sales of
cannabis, cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-
derived consumer products between the hours of 8:00am-10:00pm Monday-Saturday;
and 10:00am-10:00pm on Sunday.
Sec. 10-657. - Cannabis Business Complaints
The City Manager is authorized to make complaints to the OCM related to any cannabis
business the city believes is in violation of the act or the administrative rules adopted
pursuant thereto. The City Manager is also authorized to file a complaint against a
cannabis business that poses an immediate threat to the health or safety of the public
and request immediate action by the OCM.
Sec. 10-658. - Penalties Administration and Enforcement
Any violation of the provisions of this article or failure to comply with any of its
requirements constitutes a misdemeanor and is punishable as defined by law. Each day
each violation continues or exists, constitutes a separate offense. Violations of this
ordinance can occur regardless of whether or not a permit is required for a regulated
activity listed in this ordinance. Violations of this article may also be addressed under City
Code, Chapter 2, Article VII – Administrative Penalties.
Violation of this article shall be grounds for enforcement against any business license
issued by the City of Hopkins.
Sec. 10-659. - Severability
If any section, clause, provision, or portion of this article is adjudged unconstitutional or
invalid by a court of competent jurisdiction, the remainder of this art shall not be affected
thereby.
SECTION 8. EFFECTIVE DATE. The effective date of this ordinance shall be the date of
publication.
First Reading:
Second Reading:
Date of Publication:
Date Ordinance Takes Effect:
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By:
____________________________
Patrick Hanlon, Mayor
ATTEST:
______________________________
Amy Domeier, City Clerk