MARSHALL — Discussions continued this week about how Lyon County should regulate cannabis businesses, as county commissioners offered their comments on topics such as the number of business licenses allowed.

Some commissioners have said they would like to see the number of cannabis business licenses in the county limited to the minimum required by the state.

“Depending on the population in Lyon County, we are required to provide a maximum of three retail outlets. If we want, we can do more. This will be the board’s decision.” said Commissioner Todd Draper.

On Tuesday, Draper and members of the Cannabis Regulation Committee gave commissioners an update on their work. The commission, which includes the Lyon County Attorney, the county’s zoning administrator and representatives from Southwest Health and Human Services, is in the process of developing a county ordinance regarding cannabis businesses.

“We had a meeting last week.” Draper said. The goal was to prepare a draft district regulation before the end of the year. “We all know we have a fast pace, but we think we can achieve it.”

While local governments cannot prohibit cannabis businesses under state law, they can require businesses to be registered and may set restrictions on where they can operate.

If Lyon County approves ordinances regulating cannabis businesses, cities and towns in the county could either use the county’s ordinances or create their own, Lyon County Administrator Loren Stomberg said.

“If a city or municipality does not delegate (licensing) authority to the county, they have their own restrictions that they can set.” – Stomberg said. “I understand that our ordinance is worthless if we do not receive delegation from cities and municipalities.”

“We know the city of Marshall will probably do it their way,” he added. Stomberg said. “Talks with Tracy and Minneota city officials have indicated they are interested in delegating, but want to see what our ordinance is first.”

“We hope that all the cities where we provide police protection will follow the county’s lead,” he added. Draper said. It would make it easier for the Lyon County Sheriff’s Office to enforce the law, he said.

During the discussion, commissioners supported allowing a minimum state license to operate a cannabis business in Lyon County.

“I think we’ll limit it to three.” said Commissioner Gary Crowley.

District Attorney Abby Wikelius suggested adopting the minimum required by the state rather than a specific number of licenses. If Lyon County’s population increases, the required minimum for cannabis businesses could increase as well.

Committee members said they would have to consider other issues when crafting the ordinance, including registration fees for cannabis businesses and county zoning requirements.

“Most of Lyon County is an agricultural county and unless it is agricultural related, we do not allow retail businesses there.” said zoning administrator John Biren. He said retail cannabis sales would be limited to highway commercial districts. “We probably want to keep it out of rural housing developments (neighborhoods) and things like that, for sure.”

Biren also suggested that the county implement strict standards for locating a cannabis business, “As rigorously as the state will allow us.” If companies met those standards, they could receive land use permits without having to go through the conditional use permit process, he said.

Stomberg said the commission will return to the County Board with a draft ordinance. The county would also have to hold a public hearing before approving a cannabis ordinance.