DEPARTMENT: Public Services and Revenue Administration
FILE TYPE: Regular Action
TITLE
title
Public Hearing To Receive Comments On Proposed Ordinance Regulating Registration And Sale Of Cannabis Products In Dakota County, Adopt Ordinance, And Amend 2025 Fee Schedule
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PURPOSE/ACTION REQUESTED
Conduct a public hearing to receive comments on proposed ordinance regulating the registration and sale of cannabis products in Dakota County, adopt the ordinance, and amend the 2025 fee schedule.
SUMMARY
In 2023, the State passed Minn. Stat. § 342, legalizing the sale of adult-use cannabis products and lower-potency hemp edibles. This law provides a regulatory framework for the cannabis industry, including licensing, regulations, and requirements for retail establishments to register with a local government entity. The statute authorized local jurisdictions to regulate businesses operating within their jurisdiction. Local jurisdictions may consent to Dakota County administering retail registration. By Minnesota statute, the local retail registration is granted to the city or organized township where the retail establishment is located. All large cities in the county have adopted cannabis retail regulations. Some small cities or townships may choose to consent and grant this authority to Dakota County.
Staff from Public Services and Revenue Division Administration, County Attorney’s Office, Sheriff’s Office, and Public Health have worked together to draft this ordinance in order to ensure its compliance with Minnesota State Statutes and in the interest of public health and safety. The County Board may adopt reasonable restrictions of the time, place and manner of the operation of a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses. The County Board may also implement retail location registration and annual compliance checks of state-licensed cannabis retail businesses and lower-potency hemp edible retail businesses.
Staff presented to the General Governance and Policy Committee of the Whole on March 11, 2025, seeking policy direction from the County Board for retail registration responsibilities including:
• The decision to regulate lower-potency hemp edibles,
• Options to limit the number of adult-use cannabis retail registrations in the townships,
• Placement of reasonable time, place, and manner restrictions on retail sales,
• Licensing of temporary cannabis events,
• Establishment of fee structures and penalties for non-compliance, and
• The retail registration process.
A draft ordinance was presented to the General Governance and Policy Committee of the Whole on April 8, 2025. Staff have incorporated policy direction into the proposed ordinance. By Resolution No. 25-215 (April 22, 2025), the County Board of Commissioners scheduled the public hearing and directed the publication of the intent to adopt a cannabis ordinance. During the public review period, dialog with a local business representative brought to light a necessary amendment to the draft ordinance removing the restriction during stated holidays that proposed to align with Ordinance No. 101 Regulating the Licensing and Sale of Intoxicating Liquor. The amendment reflects the limitations under State laws for imposing a time restriction for cannabis and low-potency hemp sales during public holidays. Another necessary amendment to provide for a swift response to any immediate threat to the health or safety of the public as provided in statute, is to delegate the authority to suspend a retail registration to the Director of Public Services and Revenue Division.
Those changes have been highlighted with strike-through text in the draft, Section 10. Hours and Days of Sale, Section 15. Suspension of Registration, and staff are seeking County Board approval and adoption (Attachment: Proposed Ordinance for Cannabis Registration and Sales).
Adoption of the Ordinance Regulating the Registration and Sale of Cannabis Products also requires amending the 2025 Fee Schedule to include the following fees:
Fee Initial Renewal
Cannabis Retailer $ 500 $1,000
Lower-Potency Hemp Retailer $ 125 $ 125
Medical Combination Retailer $ 500 $1,000
Mezzobusiness Retailer $ 500 $1,000
Microbusiness Retailer $ 0 $1,000
Temporary Cannabis Event License $ 150
In order to adopt the Cannabis Ordinance and amend the 2025 Fee Schedule, it is necessary for the County Board to hold a public hearing on the matter and to publish notice of its intent to adopt the Ordinance at least ten (10) days before the hearing at which the County Board will consider adopting the Ordinance and amending the 2025 Fee Schedule. The Notice of Public Hearing was published in the County’s Official Newspaper on May 8 and 15, 2025, and was posted to the Dakota County website.
RECOMMENDATION
recommendation
Staff recommends adoption of the proposed Ordinance Regulating the Registration and Sale of Cannabis Products and amending the 2025 Fee Schedule.
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EXPLANATION OF FISCAL/FTE IMPACTS
The proposed Ordinance Regulating the Registration and Sale of Cannabis Products includes amending the 2025 Fee Schedule to include annual retail registrations fees for cannabis and lower-potency hemp retail businesses and license fees for temporary cannabis events. The number of expected cannabis retail registrations is expected to be minimal and have a negligible effect on the budget.
☒ None ☐ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, the purpose of this ordinance is to implement the provisions of Minnesota Statutes, Chapter 342, which authorizes the retail registration and sale of cannabis and lower-potency hemp products, and to protect the public health, safety, and welfare of Dakota County residents by regulating retail cannabis and hemp businesses within the legal boundaries of Dakota County where the city or township consents to Dakota County administering registration of retail cannabis businesses and lower-potency hemp businesses from Dakota County; and
WHEREAS, pursuant to the authority vested in it by Minn. Stat. § 342.13 to adopt reasonable restrictions of the operation of a cannabis business in any political subdivision located in Dakota County that has consented to Dakota County to regulate the registration and sale of cannabis products; and
WHEREAS, pursuant to the authority vested in it by Minn. Stat. § 342.22 to issue local registrations to retailers for the sale of cannabis and lower-potency hemp products in any political subdivision located in Dakota County that has consented to Dakota County to regulate the registration and sale of cannabis products and lower-potency hemp products; and
WHEREAS, by Resolution No. 25-215 (April 22, 2025), the County Board of Commissioners scheduled the public hearing and directed the publication of the intent to adopt a cannabis ordinance; and
WHEREAS, the Notice of Public Hearing was published in the County’s Official Newspaper on May 8 and 15, 2025, and was posted to the Dakota County website; and
WHEREAS, dialog with a local business representative brought to light a necessary amendment to the draft ordinance removing the restriction during stated holidays that proposed to align with Ordinance No. 101 Regulating the Licensing and Sale of Intoxicating Liquor; and
WHEREAS, the amendment to the published ordinance reflects the limitations under State laws for imposing a time restriction for cannabis and low-potency hemp sales during public holidays; and
WHEREAS, to provide for a swift response to any immediate threat to the health or safety of the public as provided in statute, it is necessary to delegate the authority to suspend a retail registration to the Director of Public Services and Revenue Division; and
WHEREAS, staff from the Sheriff’s Office, Public Health, and Public Services and Revenue Division recommend that the amended cannabis ordinance is adopted; and
WHEREAS, the 2025 Fee Schedule must be amended to include fees associated under this ordinance for retail registration of cannabis retailers, temporary cannabis event licenses, and penalties for violations of the ordinance; and
WHEREAS, a public hearing is required for the purpose of receiving comments and informing the public of the proposed ordinance Regulating the Registration and Sale of Cannabis Products in Dakota County; and
WHEREAS, a public hearing is required for the purpose of receiving comments and informing the public of the amendment to the 2025 fee schedule in Dakota County.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners held a public hearing at 9:00 a.m. on May 20, 2025, in the Boardroom of the Dakota County Administration Center, 1590 Highway 55, Hastings, Minnesota for the purpose of receiving comments on the proposed Cannabis Ordinance and amendment to the 2025 Fee Schedule in Dakota County; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby adopts the Cannabis Ordinance, Regulating the Registration and Sale of Cannabis Products as presented on May 20, 2025; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners sets the registration fee for a Cannabis Retailer at $500 for the initial registration, and $1,000 for the second and each subsequent registration renewal; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners sets the registration fee for a Lower-Potency Hemp Retailer at $125 for the initial registration, and $125 for the second and each subsequent registration renewal; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners sets the registration fee for a Medical Combination Retailer at $500 for the initial registration, and $1,000 for the second and each subsequent registration renewal; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners sets the registration fee for a Mezzobusiness Retailer at $500 for the initial registration, and $1,000 for the second and each subsequent registration renewal; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners sets the registration fee for a Microbusiness Retailer at $0 for the initial registration, and $1,000 for the second and each subsequent registration renewal; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners sets the registration fee for a Temporary Cannabis Event License at $150 for a 1-2 day event; and
BE IT FURTHER RESOLVED, That staff shall publish, distribute, and file the amended ordinance pursuant to Minn. Stat. § 375.51.
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PREVIOUS BOARD ACTION
25-215; 4/22/25
ATTACHMENTS
Attachment: Proposed Ordinance for Cannabis Registration and Sales
Attachment: Presentation Slides
BOARD GOALS
☐ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
CONTACT
Department Head: Teresa Mitchell
Author: Sarah Kidwell