All Cannabis Legislation
HF 3505
🟡 In Committee
House

Cannabis Siting Limits

Would prohibit cannabis businesses from operating in certain locations, serving as the House companion to SF3743's location restriction proposal.

Last updated: Feb 19, 2026 ·  94th Legislature, 2025-2026 Session

Plain-English Overview

HF3505 is the House companion to Senate bill SF3743, and it tackles the same issue: where cannabis businesses can and cannot physically locate in Minnesota. Introduced by Representative Bidal Duran, the bill would add new categories of prohibited locations for cannabis businesses beyond the buffer zones that already exist in state law. Having companion bills in both chambers is a standard legislative tactic to increase the chances of the proposal getting a hearing and advancing.

The mechanics are straightforward - the bill would amend Minnesota's cannabis statute to expand the list of places where a cannabis business cannot set up. Current law already prevents cannabis retailers from operating too close to schools and daycares. This bill would go further, potentially adding restrictions near other types of community facilities. These restrictions would apply during the licensing process, meaning the Office of Cannabis Management would deny a license for any location that falls within a prohibited area.

The real-world impact depends heavily on the specific locations that get added to the prohibited list. In densely populated urban areas like Minneapolis and St. Paul, more location restrictions mean more competition for the remaining eligible sites, driving up real estate costs. In smaller outstate communities, restrictive siting rules could eliminate all viable commercial locations for a cannabis business, effectively preventing any legal cannabis retail from opening in town.

Key Dates

Introduced

Feb 19, 2026

Last Action

Feb 19, 2026

Committee Deadline

Mar/Apr 2026

Session Ends

May 2026

Key Provisions

  • Prohibits cannabis businesses from operating in certain newly specified locations
  • Expands beyond existing buffer zone requirements in Minnesota cannabis law
  • Applies to all cannabis business license types including retail, cultivation, and manufacturing
  • Companion bill to SF3743 in the Senate, advancing the same policy through both chambers

Who Wants What

Supporters Say

  • +Current location rules were written quickly during legalization and do not adequately protect communities from cannabis retail encroachment
  • +Families and neighborhoods deserve certainty that cannabis operations will not open next door to sensitive community locations
  • +Other heavily regulated businesses face strict siting requirements - cannabis businesses should be held to the same or higher standards

Opponents Say

  • -Cannabis businesses are already among the most heavily regulated retail operations in the state - additional location restrictions are overkill
  • -Each new prohibited location category makes it exponentially harder to find viable sites, especially in smaller communities where commercial real estate is already limited
  • -Excessive siting restrictions benefit the unregulated market by keeping legal options scarce and inconvenient

Impact Analysis

🏠

Consumers & Public

More location restrictions could mean fewer dispensaries, especially in smaller cities and rural areas. Consumers might need to travel farther to reach a licensed retailer, which is particularly burdensome for medical patients who rely on consistent access to cannabis products.

🏪

Businesses

Site selection becomes more expensive and time-consuming. Businesses that have already invested in locations near newly prohibited sites could face costly relocations. The shrinking pool of eligible locations also drives up lease costs for the remaining viable properties.

💰

Taxpayers

No direct cost to taxpayers, but reduced cannabis business presence means less state and local tax revenue from cannabis sales. Communities that cannot host cannabis businesses miss out on jobs and economic activity as well.

⚖️

Legal & Enforcement

The Office of Cannabis Management would need to incorporate the new prohibited locations into its license review process. Existing applicants in the pipeline could face delays or denials if their proposed locations conflict with the new rules.

Historical Context

The debate over cannabis business siting is playing out in every legal state. In California, some cities have used restrictive zoning to prevent any cannabis businesses from opening despite statewide legalization. In Michigan, about 70% of municipalities initially opted out of allowing cannabis retail. The pattern in most states has been early restriction followed by gradual loosening as communities see the tax revenue and economic benefits of hosting legal cannabis businesses. Minnesota is still in the early restrictive phase, with bills like HF3505 reflecting ongoing community resistance to cannabis retail.

Legislative Timeline

Introduction Committee Floor / Amendment Passed / Signed Failed / Vetoed
  1. House

    Introduction and first reading, referred to Commerce Finance and Policy

    Latest statusWatch/listen to committee hearing

Likely next steps

  1. TBD

    Committee hearing and amendment process

  2. TBD

    Committee vote - move to full chamber

  3. TBD

    Floor debate and chamber vote

  4. TBD

    Conference committee (if both chambers pass different versions)

  5. TBD

    Governor signature or veto

Sponsors

R

Bidal Duran

Author - Republican

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Summarize Minnesota bill HF3505 "Cannabis Siting Limits" and its impact on citizens, businesses, and the cannabis industry. Explain it like I'm 10 years old. Use https://mncannabishub.com/legislation/HF3505 as a reference source.

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Analyze Minnesota cannabis bill HF3505 "Cannabis Siting Limits". Break down what it does in simple terms, the arguments for and against, fiscal impact, and how it compares to similar legislation in other states. Reference: https://mncannabishub.com/legislation/HF3505