HomeMy WebLinkAboutX-E-01 Cannabis Retail Registration
City Council Memorandum
To: Mayor Fasbender & City Councilmembers
From: Assistant City Administrator Kelly Murtaugh
Date: August 4, 2025
Item: Retail Cannabis Registration
Council Actions Requested:
Approve recommendations to follow amended statute regarding preliminary license approval and
retail registration cap interpretation.
Background Information:
Council approved the most recent ordinance language regarding cannabis business registration in
December 2024. This ordinance 1) requires that applicants for local retail registration provide
proof of license by the state’s Office of Cannabis Management and 2) places a cap of one retail
registration.
Preliminary Licenses: In the last session, the state legislature amended statutory language
allowing for preliminary licenses and requiring municipalities to complete local registration for
retail cannabis businesses that have had OCM approval of either preliminary license or license.
While the statute directs this through the use of the term “shall,” the state’s own interpretation of
this has been inconsistent. In keeping with the ordinance language and to not disrupt those
already deep into the approval process with OCM, staff have reinforced this when inquiries were
made about preliminary licenses.
Cap on Registrations: Statute states that municipalities are required to allow “no fewer than one
registration for every 12,500 residents.” With our population around 23,000 we have interpreted
this as requiring Hastings to allow at least 1 cannabis retail business. Recently, OCM has issued
their interpretation of this to mean that for a city the size of Hastings, two retail cannabis
operations must be allowed. Our City Attorney agrees with OCM’s recent interpretation.
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Through careful deliberation and consultation with the City Attorney, staff recommend the
following: 1) consider retail cannabis operations with preliminary license approval and 2) adjust
the cap to two. While ordinance amendments will come before Council in a future meeting, we
have been advised that we can follow state statute or its interpretation prior to those amendments
being codified. We recommend moving forward with the updated interpretation effective the
morning of Wednesday, August 6 to accommodate staff scheduling and availability.
All current cannabis retail business applicants have been notified of tonight’s memo.
Financial Impact:
N/A
Committee Discussion:
N/A
Attachments:
None
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