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Questions remain for cannabis in Lyon Co.

MARSHALL — There are still a lot of questions left for local governments after Minnesota legalized cannabis last year, Lyon County staff said Tuesday. Some of those questions involve how the sale of cannabis products will be regulated, said Lyon County Administrator Loren Stomberg.

At Tuesday’s Lyon County Board meeting, Stomberg led discussion on what kind of policies the county should have on licensing and zoning cannabis businesses. He said he had gotten questions about Lyon County’s position on the number of cannabis licenses it would allow.

“The new law is vague” as to how or whether the county could limit cannabis business licenses, Stomberg said. After discussion, county commissioners thought it would be best to wait for more information on regulations from the state’s new Office of Cannabis Management.

“We might be a little bit early to the table,” Stomberg said.

The cannabis law passed in 2023 says a local government unit may, by ordinance, limit the number of licensed cannabis retailers to no fewer than one for every 12,500 residents. If a county has one active registration for every 12,500 residents, a city or town within the county does not have to register a cannabis business.

Under the law, local governments would also have the ability to do things like restrict where a cannabis business can be located.

Because Lyon County has a population of more than 25,000, it looked like the county wouldn’t be able to restrict the number of licensed cannabis businesses to fewer than three, Stomberg said.

Commissioners asked about the possibility of setting the limit of cannabis licenses in the county at three. However, Lyon County Attorney Abby Wikelius cautioned that it wouldn’t be possible for the county to set such a limit — cities and towns are also able to issue cannabis retailer registration, she said.

Cannabis businesses will need to apply for licenses through Minnesota’s new Office of Cannabis Management, Wikelius said. The Office of Cannabis Management is currently going through a rulemaking process to regulate the cannabis industry in Minnesota. County commissioners had the option of waiting to see what the office comes up with, Wikelius said.

Commissioners didn’t take any actions on further cannabis ordinances in Lyon County on Tuesday. Instead, commissioner consensus was to revisit the topic later this spring, after the current state legislative session.

Lyon County has already passed ordinances regulating cannabis use in the county. In September, commissioners voted to prohibit the use of cannabis products in public places in Lyon County. The list of places considered public or open to the public includes parks, streets and sidewalks, but also places like common areas in buildings, stores, restaurants, bars, theaters and gyms. Using cannabis products in a place where a minor could inhale the smoke or vapor is also prohibited.

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