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HomeMy WebLinkAboutX-E-02 Lower-Potency Hemp Edible RetailersCity Council Memorandum To: Mayor Fasbender & City Councilmembers From: Assistant City Administrator Kelly Murtaugh Date: July 7, 2025 Item: Lower-Potency Hemp Edible Registration Council Actions Requested: Approve resolution for new lower-potency hemp edible registrations. Background Information: Council approved the most recent ordinance language regarding cannabis business registration in December 2024. This ordinance language requires that applicants for local registration provide proof of license by the state’s Office of Cannabis Management. Lower-potency hemp edible retailers (LPHE) have been encouraged to register with the state’s Office of Cannabis Management until licensing begins this fall. This has caused questions and confusion from businesses inquiring whether or not they can begin retail operations in the city. By pausing the requirement for OCM licensing until it is available, businesses who meet all other requirements for local registration may be able to begin selling. Staff are recommending that in the interim, until OCM licensing is available, that local registration be allowed. Once licensing becomes available, all registered businesses would be required to submit a copy of the state license. Direct outreach to LPHE businesses who register at the state level will prevent confusion about the local ordinance and registration. Additionally, because there are zoning district and distance requirements, staff also recommend following Resolution 05-19-2025 for registration selection if there are businesses competing in certain areas. Should there be more than one that completes all registration steps at the same time, staff recommend a drawing to determine the approval. X-E-02 Financial Impact: N/A Committee Discussion: This topic was discussed at the most recent Administration Committee meeting on June 9, 2025. Committee members were generally in favor of addressing state registration confusion for lower- potency hemp edible businesses. Attachments: None X-E-02 CITY OF HASTINGS DAKOTA COUNTY STATE OF MINNESOTA RESOLUTION NO. ______ LOWER POTENCY HEMP EDIBLE REGISTRATION AND SELECTION PROCESS WHEREAS, the City of Hastings adopted Chapter 117 Cannabis and Lower- Potency Hemp Edible Business Registration in December 2024; and WHEREAS, the City of Hastings ordinance requires proof of license from the State’s Office of Cannabis Management for new local registration; and WHEREAS, state license issuance is not expected to occur until late 2025; and WHEREAS, the selection process mirrors that stated in Resolution No. 5-19- 2025,documenting how to handle competing requests. NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hastings approves that the interim local registration process as noted until such time that lower-potency hemp edible licensing is available through the state. Passed the 7th day of July, 2025. Mary Fasbender, Mayor Attest: Kelly Murtaugh, City Clerk X-E-02 05-19-25 X-E-02 CITY OF HASTINGS DAKOTA COUNTY STATE OF MINNESOTA RESOLUTION NO. CANNABIS RETAIL BUSINESS SELECTION PROCESS WHEREAS,the City of Hastings adopted Chapter 117 Cannabis and Lower-Potency Hemp Edible Business Registration in December 2024;and WHEREAS,the City of Hastings ordinance designates approval of one (1)cannabis retail registration per 12,500 population;and WHEREAS,more than one cannabis retail business may seek registration approval through the City;and WHEREAS,the ordinance is silent on the selection process if more than one cannabis retail business seeks simultaneous registration. NOW THEREFORE BE IT RESOLVED that the City Council of the City of Hastings approves that the selection process be based on time and date of city registration completion,with a drawing in the event of simultaneous city registration completions. Passed the 19th day of May,2025. Attest: Kelly Murtaugh,City Cler Mary Faspender,Mayor