The City of Hastings’ licensing and zoning requirements for businesses that sell or cultivate cannabis will take effect July 1.

The city council voted in the fall to put a moratorium in place on additional businesses getting into sales of cannabinoid products for six months. The city council approved first readings of ordinances that will require licensing for business that sell cannabis products, and provisions of where the businesses can be located.

The Minnesota Legislature passed new laws at the end of its legislative session last spring allowing the sale of edible cannabinoid products with .3% THC or less as of July 1, 2022. The “edibles” are available in several Hastings stores, and the moratorium didn’t affect sales at those locations, but stopped any new business from selling them.

The council forwarded the matter to its Public Safety Advisory Commission, which discussed regulation of the sale of cannabis products.

“During the moratorium, PSAC reviewed potential city regulations on legal cannabis products over several meetings from September 2022 to January 2023. PSAC invited existing Hastings retailers to share their knowledge and expertise about the various products, including edibles and beverages,” a memo to the city council from city attorney Kori Land states.

The state has since drafted legislation that may not give licensing authority to municipalities. However, the licensing provision will also be included in the zoning ordinance drafted for the city.

“While we cannot be certain that the proposed state legislation will be adopted this session or even if it is, that it will remain in its current rendition, it is possible that licensing will be completely preempted by the state, thereby making any local licensing ordinance ineffective. However, if identical provisions are in the zoning ordinance, authority for which is anticipated to survive in the proposed state legislation, then the city is able to preserve its intent of protecting the public health, safety and general welfare, especially as related to the unauthorized sales and use by minors,” Land wrote.

The city will work to develop a license and process for licensing the business in the next several months to be ready for July 1.

The ordinance prohibits the purchase use and possession of cannabinoid products to anyone under 21 years of age. Clerks at stores that sell the products must be 21. Products must be located behind a counter at the stores, and the city will do compliance checks, as it does with tobacco and alcohol sales. The products won’t be allowed at liquor stores or bars.

The city must also develop a license fee for retails. The city council’s Public Safety Committee recommended a $10,000 license fee for retailers and there also will be a background check fee.

A final reading and passage of the ordinances is expected at the Monday, March 20 city council meeting.